FAQ
Dubai Business FAQ — 26 answers
Everything founders ask us about setting up and running a Dubai mainland company. Answers written by people who file the paperwork — not by marketers.
Setup & company formation
Trade-licence issuance typically takes 2–4 weeks from initial approval, assuming all shareholder documents are ready. The full path from decision to first employee on payroll is 60–90 days, with bank-account opening usually the slowest step (4–8 weeks).
Yes, since June 2021. Federal Decree-Law No. 32 of 2021 removed the 51% Emirati-shareholder requirement for most commercial and professional activities. Strategic activities (defence, banking, certain energy) still require majority Emirati ownership.
Mainland (DET-licensed) lets you trade anywhere in the UAE without restrictions, win government contracts, and serve domestic customers directly. Free zones offer 100% foreign ownership and tax incentives but restrict you from billing UAE mainland customers without a special permit. For most service businesses targeting UAE customers, mainland is the right answer.
Total first-year costs typically range AED 25,000–50,000 across DET licence fees (AED 10,000–15,000), office and Ejari (AED 15,000–35,000), MOA notarisation (~AED 1,500), establishment card setup (AED 700–2,000), and PRO service fees. Government fees vary by activity; ZETUP PRO publishes a transparent breakdown.
Yes — DET requires a registered Ejari for every mainland LLC. However, smart-desk and serviced-office arrangements count, so you don't need a dedicated physical space from day one. Costs start around AED 12,000/year for compliant smart-desk options.
Visas & residency
Standard employment visa processing is 5–10 working days from MOHRE work-permit approval to residency-visa stamp, assuming the worker is in the UAE on a visit or grace status. The full process — from contract signing to Emirates ID issuance — is typically 3–4 weeks.
The Golden Visa is a 5- or 10-year UAE residency that doesn't require an employer sponsor. Eligible categories include real-estate investors (typically AED 2 million property), entrepreneurs with approved projects, scientists, top students, exceptional talents, and professionals meeting certain salary thresholds.
Yes. UAE residents — employees, investors, and Golden Visa holders — can sponsor spouses, unmarried children (under 18 for sons, any age for daughters), and parents under specific income conditions. Minimum salary thresholds vary by emirate; typically AED 4,000 + accommodation for a spouse, around AED 20,000 for parents.
Your old employer cancels your labour card and residency visa, and your new employer issues fresh ones. The technical term is 'visa transfer' but it's really a cancellation + re-issuance. There's typically a grace period (30 days) between cancellation and the new visa to handle the paperwork without leaving the country.
Trade licence & compliance
Annually, on the anniversary of your initial issuance. DET sends reminders, but missing the deadline is costly: AED 200 per month of delay (part-month rounded up), plus a freeze on every government transaction (visa renewals, Emirates IDs, hiring). Renew at least 30 days early.
It's the master file MOHRE keeps on your company. Required to issue work permits, sign employment contracts, register on WPS, and file any labour transaction. Issued together with your trade licence, renewed annually, costs AED 700–2,000 per year.
If your company is a Designated Non-Financial Business or Profession (DNFBP) — real-estate broker, lawyer, accountant, gold dealer, corporate-services provider — yes. Register on goAML, designate a Money Laundering Reporting Officer (MLRO), and file Suspicious Transaction Reports when red flags appear. Non-registration fines start at AED 50,000.
Emiratisation
Companies with 50+ skilled employees must reach 10% Emirati skilled workforce by December 2026. Smaller companies (20–49 employees) have category-specific targets introduced in 2024. Non-compliance triggers AED 9,000/month fines per missing role and a freeze on new work permits.
Nafis is the federal Emiratisation incentive programme. Its salary support tops up an eligible Emirati employee's salary toward a target salary — paid to the employee, with no fixed ceiling or duration published; the amount is confirmed per employee on nafis.gov.ae. A published child allowance adds AED 600 per child per month (up to 4 children, salaries under AED 50,000), and the programme also supports pension contributions. Together this significantly reduces the effective cost of hiring an Emirati.
An Emirati employee 'counts' if they're a UAE national in a job classified under MOHRE's 9 skill categories (managers, professionals, technicians, etc.), on a registered employment contract, paid through WPS, and earning at least AED 4,000/month. Casual or part-time arrangements don't count.
Tax (VAT + corporate)
Mandatory at AED 375,000 rolling 12-month taxable turnover; voluntary above AED 187,500. Once registered, you receive a TRN, charge 5% VAT on most sales, and file quarterly returns via EmaraTax. Failure to register on time is AED 10,000.
Yes. Every UAE taxable person — every company, branch, partnership, even loss-making ones — must register with the FTA and file an annual corporate-tax return via EmaraTax. Returns are due 9 months after fiscal year-end. Late filing penalties start at AED 500 per month.
Yes, until December 2026. Companies with revenue under AED 3 million can elect to be treated as having zero taxable income. After SBR ends, the standard 0% bracket (up to AED 375,000 of taxable income) applies, with 9% on everything above.
Qualifying free-zone income (free-zone-to-free-zone, exports, certain qualifying activities) gets 0% corporate tax. Non-qualifying free-zone income (e.g., direct billing to UAE mainland customers above AED 5 million revenue threshold) is taxed at 9%. Filing is still mandatory regardless of activity mix.
If your financial year ended 31 December 2025, your corporate tax return and payment are due by 30 September 2026 — nine months after year-end. Other year-ends shift the deadline by the same nine-month rule. Late filing penalties start at AED 500 per month for the first year.
Newly incorporated companies — mainland or free zone — must register for corporate tax on EmaraTax within 3 months of their incorporation date. Failing to register on time is a one-off AED 10,000 penalty.
ZETUP PRO pricing & engagement
Sliding-scale monthly retainer based on employee count: from AED 839/month for companies with up to 5 employees, scaling to AED 14,863/month for 205-employee operations. Government fees are itemised separately at actual cost — never marked up. Use the calculator on /pricing for your exact rate.
Our standard agreement is 12 months with a 30-day termination clause. You can leave with 30 days' notice — no lock-in, no early-termination fees. We earn your business each month through performance, not contractual obligation.
Yes, and it's typically painless. We manage the full handover: contact your current provider, transfer all documents, audit active transactions, and ensure zero compliance gaps. Most transitions are completed within 7 business days. See our /switch-pro page for the full process.
A free 30-minute call where we audit your current PRO setup: visa expiry tracking, Emiratisation status, trade-licence renewal cadence, government-fee transparency, and any compliance gaps. You leave with a clear written summary — no obligation to engage with us.
Yes. We set up free-zone companies across IFZA, Meydan, RAKEZ, DMCC, SHAMS, and DAFZA — see our Free Zone Company Formation service for the full breakdown. Our PRO retainer packages are optimised for mainland LLCs, but we handle free-zone setup, visa processing, document attestation, and licence renewals on request.
Question not answered here?
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