Business setup in Dubai and the UAE: company formation

Free zone, mainland or RAK ICC?

Sources: [2][3][4][5][6][7][15][16].

A small set of "strategic impact" activities still restricts foreign ownership on the mainland. They include defence, banking, insurance and telecommunications. [2]

Can a free zone company trade on the Dubai mainland?

Yes, with permission. Since 2025, Dubai free zone companies can work on the Dubai mainland through:

• a branch licence, or
• a Free Zone Mainland Operating Permit, AED 5,000 for 6 months, launched in October 2025

Income earned on the mainland is taxed at 9%. This applies in Dubai only. [7][8]

The main options we work with

• DMCC, in Jumeirah Lakes Towers, where Marlborough Gulf itself has been a member company since 2012. DMCC companies →
• RAK ICC, for holding and asset-owning companies. We act as a RAK ICC registered agent. RAK ICC companies →
• Other free zones, chosen against what the company will do. Choosing a free zone →
• Offshore companies. Offshore companies in the UAE →
• Holding companies. Holding companies in the UAE →

After the company is formed

Every UAE company must meet these obligations:

• Corporate tax registration, within 3 months of formation for companies formed since March 2024. Late registration carries a penalty of AED 10,000. The penalty is waived if the first return is filed within 7 months of the first tax period's end. [9][10]
• Tax return, within 9 months of the end of each tax period. [11]
• VAT registration, if taxable supplies exceed AED 375,000 in 12 months. Registration is voluntary above AED 187,500. [12]
• Records, kept for 7 years. [11]
• Audited accounts, where the free zone requires them (DMCC does), for every Qualifying Free Zone Person, and for businesses with revenue above AED 50 million. [13][17]
• Beneficial ownership records, kept up to date. [3]

Accounting and bookkeeping → Tax consultancy →

How Marlborough Gulf helps

What we do:

• We compare the jurisdictions against what the company will do.
• We prepare the documents and manage the application through to the licence.
• We then keep the company's books and advise on its tax.

A company is often one part of a wider plan, such as holding property, a family business or a move to the UAE. We set the company up with that plan in mind.

Questions people ask

How much does it cost to set up a company in Dubai?

It depends on the jurisdiction, office and visas. DMCC, for example, states initial costs of AED 10,345 to AED 84,515. A RAK ICC company's 2026 government formation fee is AED 3,250 for the first year. [3][14]

Can a foreigner own 100% of a company in Dubai?

Yes, in free zones, and since 1 June 2021 for most mainland activities. Strategic impact activities are the exception. [2][15]

Do free zone companies pay corporate tax?

They must register. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other income. Other free zone companies pay the standard rates. [6][18]

What is the difference between a free zone and a mainland company?

A mainland company can trade anywhere in the UAE. A free zone company trades in its zone and abroad, and needs a permit to trade on the Dubai mainland. [7][15]