Common questions about setting up and running a company in the UAE, answered by the TRUVIS advisory team. Every answer reflects the position as at September 2026. Rules change and every application is decided by the relevant authority — treat this as orientation, not advice on your specific situation.
Choosing a jurisdiction
Should I set up in a free zone or on the UAE mainland?
The decision turns on market access, not licence price. A mainland company is generally the better fit if you need to trade directly inside the UAE — UAE consumers, government contracts, retail or physical operations. A free zone is generally better for companies serving international clients, remote or digital service providers, holding companies and consultancies that do not need direct mainland market access. TRUVIS advises on the fit; the licensing authority decides the application.
Can a free zone company sell directly to customers on the UAE mainland?
Generally not without additional authorisation. A free zone entity is built to serve international and other free zone clients. In most emirates, selling directly into the mainland means adding a distributor, a branch or a mainland licence. In Dubai there is now a further route: under Executive Council Resolution No. 11 of 2025, a free zone company (DIFC entities excluded) can apply to the Department of Economy and Tourism for a mainland branch licence, or a temporary permit for activities on DET's published eligible list, without forming a separate mainland company. Mainland-sourced income carries its own corporate tax consequences, so the licensing route and the tax position should be reviewed together. If most of your revenue will come from onshore UAE customers, a mainland setup is often still the more direct path. The right route depends on your specific activity and emirate.
Can I convert a free zone company to a mainland company later?
There is no simple conversion of the entity itself. Traditionally, moving onshore meant establishing a mainland entity or branch and migrating the business into it — new licence, new banking relationship, and in some cases new contracts, which is still the general pattern in Abu Dhabi, Sharjah and Ras Al Khaimah. In Dubai, the Executive Council Resolution No. 11 of 2025 route described above is lighter: the company can serve mainland customers under a DET branch licence or temporary permit while keeping its existing free zone entity, banking and contracts, subject to conditions including separate financial records for the mainland activity. Either way it costs more than choosing correctly at the start, which is the reason to take the jurisdiction decision seriously up front.
What is the difference between DIFC and ADGM?
Both are common-law financial free zones with independent English-language courts and internationally recognised regulators — the DFSA in DIFC, the FSRA in ADGM. The structural similarities are greater than the differences. The decision usually turns on ecosystem: DIFC is the larger, longer-established centre with a deeper concentration of international financial institutions; ADGM sits closer to Abu Dhabi sovereign and family wealth. Your investors, clients and counterparties are the better guide than a feature list.
Which UAE vehicle suits a holding company or SPV — ADGM, DIFC or RAK ICC?
The three vehicles founders compare most often are an ADGM SPV or foundation, a DIFC structure and a RAK ICC offshore company, each with a different cost, substance and credibility profile. Rather than defaulting to one jurisdiction, weigh banking acceptance — which vehicle the banks you actually want to work with will onboard — against substance expectations for your activity and counterparties, and against cost. On banking, RAK ICC is read differently by some banks than an onshore or financial-centre vehicle, so map the account-opening path before you commit; for a venture planning an external raise, investor recognition and banking acceptance usually matter more than saving on setup cost. Do not assume a holding company is automatically tax-neutral — confirm the current rules and your specific position with a qualified adviser. Each registry assesses applications on its own criteria, and approval rests with the relevant authority.
Cost and timelines
How much does it cost to set up a company in the UAE?
Setup cost depends on the emirate, the licensing authority and how many visas you need, so treat any headline figure as indicative rather than a quote. On a licence-fee-only basis, indicative 2026 figures run from roughly AED 5,750 (Sharjah/RAK) to about AED 12,900 (Dubai) for a free-zone licence, and around AED 10,000-18,000 for a mainland (DED) professional licence. These exclude residence visas (roughly AED 3,000-5,000 each), the mainland leased office (Ejari) and any dedicated office or warehouse, so a realistic first-year total is materially higher. Premium and financial centres (DMCC, JAFZA, DIFC, ADGM) cost materially more. A licensed TRUVIS consultant confirms your exact, all-inclusive quote. [PUBLISH BLOCKER: before this goes live, reconcile these licence-only figures with the first-year ranges published at /compare/free-zone-vs-mainland faq[1] and /setup/dubai faq[2], whose floors currently undercut the licence-only numbers.]
How long does it take to set up a UAE company?
Timelines vary by structure and authority. ADGM and some free zone registrations can move quickly once documentation is complete; mainland applications involve multiple touchpoints. TRUVIS does not guarantee timelines — the role is to prepare applications thoroughly so they are not delayed by avoidable gaps, and processing times and approvals are determined by the relevant authority.
Ownership, tax and compliance
Can a foreigner own 100% of a company in Dubai or the wider UAE?
Yes. Free zone companies have always permitted 100% foreign ownership, and since the UAE ownership reforms it is also available across a wide range of mainland activities. Mainland eligibility depends on the specific activity classification, so it should be confirmed for your intended activity before an application is filed. The classification and the licence decision rest with the relevant authority.
Does a free zone licence automatically mean 0% corporate tax?
No. A free zone company may qualify for 0% corporate tax on qualifying income, but only if it meets the conditions of the Qualifying Free Zone Person framework. Those conditions can include maintaining adequate substance, earning qualifying income and complying with transfer pricing requirements. If the company's income, activity or operating model does not qualify, the tax position may differ from what the founder expected. Assess it against your actual business model with a tax adviser before relying on it.
Does my free zone company still need to register for UAE corporate tax if it expects 0%?
Very likely yes. Registration and the tax rate are separate questions: a free zone company may need to register even if it expects to qualify for 0% on qualifying income, and a business may need to register even where its taxable income is below the taxable threshold. Do not assume that no tax payable means no registration required — the applicable deadline depends on entity type, licence date, jurisdiction and whether you are a juridical or natural person. The FTA has confirmed that missing the applicable registration timeline can result in an AED 10,000 administrative penalty, and has also run a late-registration penalty waiver, stating that to qualify the taxable person must submit the tax return within seven months from the end of the first tax period. Check your specific registration position early, and assess the 0% question against your actual business model with a tax adviser rather than relying on the licence type.
What are my ongoing obligations once the company is licensed?
Formation is the start, not the end. Beyond keeping the licence and visas current, a UAE company generally has to keep its beneficial-ownership record accurate, and support FTA registration, corporate tax, VAT, ESR, UBO and AML obligations as they apply to it. UBO compliance in particular is not a one-time filing: ownership changes, a shareholder is replaced, a beneficial owner moves jurisdiction, and if the registered UBO record does not match the actual ownership and control position the result can be delays, additional questions, regulatory scrutiny, banking friction and penalties. Accurate records also feed banking KYC, tax registration, licence renewals and investor due diligence, so treat ownership transparency as part of ongoing corporate governance rather than a document filed away after setup.
Do I need an ICV certificate to bid for UAE government or ADNOC-linked contracts?
If you are bidding into a participating entity's procurement, it matters a great deal. The National In-Country Value (ICV) Programme, run by the Ministry of Industry and Advanced Technology since 2021 after ADNOC pioneered it in 2018, measures how much of a supplier's economic value is retained inside the UAE. In the procurement frameworks of participating entities, ICV is a weighted evaluation factor and a bidder without a valid certificate is recorded at 0%. The certificate is issued against your audited financial statements and remains valid for 14 months from the date those statements were issued, so it should be planned around your audit calendar rather than around a tender deadline. TRUVIS runs the readiness and gap assessment and coordinates the certifying-body review; the certifying body issues the certificate.
Banking
Does a trade licence guarantee me a UAE corporate bank account?
No. The licensing authority decides whether the company can be incorporated; the bank then runs its own assessment. Banks commonly decline or delay when the licensed activity does not match the actual business, the ownership structure is unclear, the source of funds is not properly documented, or the business plan does not explain how money will move through the account. TRUVIS prepares and coordinates the file; the bank decides.
My bank application was declined. What should I do next?
Do not simply send the same application to several more banks. Start by reviewing the previous file: did the licence accurately cover the business model, was the ownership structure clearly explained, was the source of funds fully documented, did the business plan contain realistic transaction details, and was the bank suitable for the profile? Correct the weakness before approaching another institution — repeated applications without changing the file can make the process more difficult.
Office space and visas
Do I need a physical office to get a UAE trade licence?
Some form of registered address is generally required, but the accepted arrangement varies by authority and licence type — a flexi-desk is sufficient for many free zone licences, while mainland and regulated activities often require a physical lease. Visa quotas broadly scale with the space: a virtual office tends to carry the smallest quota, a flexi desk somewhat more, a serviced office the most. Confirm the exact allowance for your case before you sign anything.
Can I include my family on my UAE residence visa?
In most cases, yes. Once you hold a qualifying residence, you can generally sponsor your spouse and children — and in some cases parents — subject to income, housing and documentation conditions. Because family-sponsorship rights differ between routes, the family should be factored into the recommendation from the start. Visa approvals remain at the discretion of the relevant authority.
Financial services licensing
Which UAE financial licence do I need — CBUAE (Open Finance / TPP, SVF or PSP) or a free zone route through ADGM or DIFC?
It depends on where your customers are and whether customer money touches your balance sheet. CBUAE authorisation governs onshore activity: Open Finance authorises third-party providers for account-information or payment-initiation services, an SVF licence covers wallets and stored-value products where customer funds are held before they are spent, and the Retail Payment Services framework licenses acquiring, aggregation, payment-account services and money transfer. ADGM (through the FSRA) and DIFC (through the DFSA) regulate within their financial free zones, and many fintechs combine a free-zone base with CBUAE engagement to reach onshore customers. Capital and safeguarding requirements vary by category and are set and updated by the CBUAE, so confirm the current requirement for your category rather than relying on a figure you read once. TRUVIS advises on the route and manages the regulator engagement — TRUVIS itself is a licensed Corporate Service Provider in Abu Dhabi and DNFBP registered; it does not hold an FSRA, DFSA or CBUAE licence, and the regulator decides the application.
Working with TRUVIS
What does TRUVIS actually do, and how is it different from a company formation agent?
TRUVIS International Services is a licensed Corporate Service Provider based in Abu Dhabi, UAE, and DNFBP registered. That is a regulated professional status carrying defined obligations around diligence, confidentiality, compliance and client accountability, not a marketing term. The work is advisory-led and continues beyond basic registration: structuring, formation, compliance planning, corporate governance, banking readiness and long-term entity management. Approvals for licences, visas and banking remain decisions of the relevant authority.
Does TRUVIS issue visas, Emirates IDs or licences?
No. TRUVIS prepares, submits and follows up on applications and coordinates with the relevant authorities and their service centres. The licence, visa, Emirates ID or permit is issued by the competent government authority, which also decides the outcome. TRUVIS is a licensed corporate-services provider, not a government body or an official government channel, and does not guarantee specific results or outcomes.
I'm setting up in Dubai — can TRUVIS help if the office is in Abu Dhabi?
Yes. TRUVIS advises across the UAE, including mainland, free zone, ADGM and DIFC structures, and supports Dubai clients from its Abu Dhabi headquarters at Level 36, Tower 3, Etihad Towers. Dubai engagements are served from that headquarters by email, phone or scheduled consultation, so a Dubai setup does not require a Dubai office visit. Enquiries can be started through the contact form, by email to info@truvis.ae, or by phone and WhatsApp.
Still have a question?
If your situation is not covered here, contact the TRUVIS team or schedule a call. You can also compare jurisdictions with the TRUVIS Jurisdiction Hub or read more on financial services licensing.