UAE Business Setup Guide
UAE Business Setup Guide
Complete UAE business setup guide 2025: Compare Mainland, Freezone, and Offshore options. Detailed costs, requirements, procedures, and expert tips from Najoom Corporate Services. Choose the right jurisdiction for your business.
UAE Business Setup Guide 2025: Mainland, Freezone & Offshore
The United Arab Emirates offers three distinct business jurisdictions, each designed to meet different business objectives. This comprehensive guide helps you understand Mainland, Freezone, and Offshore setups to make the best choice for your business goals.
Choosing the right business jurisdiction in the UAE is one of the most critical decisions you'll make. With 40+ Freezones, flexible Mainland options, and Offshore structures, the UAE provides multiple pathways to business ownership. This guide breaks down each option to help you make an informed decision.
Najoom Corporate Services has been guiding entrepreneurs through UAE business setup since 2015. Our expertise spans all three jurisdictions, helping businesses from startups to multinational corporations establish successful operations in the UAE.
Mainland vs Freezone vs Offshore: Quick Comparison
🏢 Mainland Business Setup in UAE
Mainland businesses operate under the jurisdiction of the Department of Economic Development (DED) and have full access to the UAE market, including all seven emirates. This structure is ideal for businesses targeting local customers, government contracts, or requiring direct market presence.
✅ Key Advantages
- Full market access across all UAE emirates
- 100% foreign ownership available for many activities
- Eligibility for government contracts and tenders
- No restrictions on local trading
- Can open branches anywhere in UAE
- Direct customer interaction and retail operations
⚠️ Considerations
- Physical office space required
- Higher setup and renewal costs
- Some activities may require local partner
- More regulatory requirements
- Longer processing times
- Corporate tax applies (9% with exemptions)
💼 Ideal For
- Retail businesses
- Restaurants and F&B
- Construction companies
- Government contractors
- Healthcare services
- Education providers
- Real estate agencies
💡 Mainland Setup Process: Trade name reservation → Initial approvals → Office lease → License application → MOA drafting → License issuance → Bank account → Visa processing. Timeline: 10-20 business days. Costs: AED 15,000-30,000+
🏭 Freezone Business Setup in UAE
UAE Freezones are designated economic zones offering 100% foreign ownership, tax benefits, and streamlined business setup. With over 40 Freezones across the UAE, each specializing in different industries, Freezones are perfect for international trade, e-commerce, and service businesses.
✅ Key Advantages
- 100% foreign ownership guaranteed
- 0% corporate tax on qualifying income
- Flexible office solutions (virtual/flexi/physical)
- Fast setup process (5-15 days)
- Cost-effective packages
- 40+ Freezones to choose from
- Full profit repatriation
⚠️ Considerations
- Cannot trade directly in UAE mainland
- Need local distributor for mainland sales
- Limited to zone and international operations
- Annual license renewal required
- Visa quota depends on office type
💼 Popular Freezones
- IFZA: Fast setup, affordable
- DMCC: Prestigious, trading focus
- Ajman Free Zone: Cost-effective
- RAKEZ: Industrial & commercial
- Dubai South: Logistics hub
- Dubai CommerCity: E-commerce
💡 Freezone Setup Process: Choose Freezone → Select activity → Reserve name → Submit documents → Pay fees → Receive license → Open bank account → Process visas. Timeline: 5-15 business days. Costs: AED 5,000-20,000
🌐 Offshore Business Setup in UAE
Offshore companies in the UAE are designed for international business operations, asset protection, and tax planning. Popular jurisdictions include RAK ICC (Ras Al Khaimah International Corporate Centre), offering privacy, confidentiality, and tax neutrality for global entrepreneurs.
✅ Key Advantages
- 100% foreign ownership
- Tax neutrality
- Asset protection
- Privacy and confidentiality
- No physical office required
- Fastest setup (3-7 days)
- Lower costs
⚠️ Considerations
- Cannot operate in UAE market
- Limited visa options
- Designed for international operations
- Cannot hold UAE real estate (with exceptions)
- Banking may be more challenging
💼 Ideal For
- International trading
- Asset holding companies
- Wealth management
- Consultancy services
- Investment holding
- Intellectual property
💡 Offshore Setup Process: Choose jurisdiction → Select structure → Reserve name → Submit documents → Pay fees → Receive incorporation documents. Timeline: 3-7 business days. Costs: AED 8,000-15,000
🎯 Which Jurisdiction is Right for You?
Choose Mainland If:
- You need to serve customers directly in the UAE market
- You want to bid for government contracts
- You plan to open retail stores or restaurants
- You need to trade with local UAE companies directly
- Your business requires physical presence and customer interaction
Choose Freezone If:
- You're focused on international trade and e-commerce
- You want 100% ownership with tax benefits
- You need flexible office solutions
- You want fast, cost-effective setup
- You're providing services to international clients
- You want to import/export goods
Choose Offshore If:
- You're operating internationally outside the UAE
- You need asset protection and privacy
- You want tax-neutral structure
- You don't need UAE market access
- You're holding investments or intellectual property
- You want the fastest, most affordable setup
Complete Cost Breakdown: UAE Business Setup
Mainland Costs
License Fee: AED 8,000 - 15,000
Trade Name: AED 500 - 1,000
MOA Drafting: AED 2,000 - 5,000
Office Rent (Annual): AED 15,000 - 50,000+
Visa (per person): AED 3,000 - 5,000
Service Fees: AED 2,000 - 5,000
Total Setup Cost
AED 15,000+
Freezone Costs
License Fee: AED 3,000 - 12,000
Registration: AED 1,000 - 3,000
Office (Virtual/Flexi): AED 2,000 - 8,000
Visa (per person): AED 2,500 - 4,500
Establishment Card: AED 500 - 1,500
Service Fees: AED 1,500 - 3,000
Total Setup Cost
AED 5,000+
Offshore Costs
Incorporation: AED 5,000 - 10,000
Registration: AED 1,000 - 2,000
Annual Fee: AED 2,000 - 4,000
Nominee Services: Optional
Bank Account Setup: AED 1,000 - 3,000
Service Fees: AED 1,000 - 2,000
Total Setup Cost
AED 8,000+
💡 Note: Costs vary based on activity type, jurisdiction choice, office requirements, visa quota, and service provider. Najoom Corporate Services offers transparent, fixed pricing with detailed cost breakdowns. All prices exclude VAT and are subject to change.
⚠️ Common Mistakes to Avoid in UAE Business Setup
❌ Choosing Wrong Jurisdiction
Many entrepreneurs choose based on cost alone without considering market access needs. A Freezone company cannot serve UAE mainland customers directly - this is a common mistake that limits business growth.
❌ Incomplete Documentation
Submitting incomplete or incorrectly formatted documents causes delays. Ensure all documents are attested, translated (if needed), and meet UAE requirements before submission.
❌ Not Planning for Ongoing Costs
Many focus only on setup costs but forget annual renewals, office rent, visa renewals, and compliance costs. Plan for at least AED 8,000-25,000 annually.
❌ Going It Alone
Navigating UAE business setup without expert guidance leads to costly mistakes, delays, and compliance issues. Professional assistance saves time, money, and ensures proper compliance.
Why Choose Najoom Corporate Services for UAE Business Setup?
✅ 10+ Years Experience
Since 2015, we've successfully set up thousands of businesses across all UAE jurisdictions, building expertise and strong relationships with authorities.
🎯 Expert Jurisdiction Selection
We analyze your business goals, target market, and budget to recommend the perfect jurisdiction - Mainland, Freezone, or Offshore.
💰 Transparent Pricing
Fixed, upfront pricing with detailed cost breakdowns. No hidden fees, no surprises. You know exactly what you're paying for.
⚡ Fast Processing
Efficient processes and strong authority relationships enable us to complete setups faster than industry averages.
📄 Complete Documentation
We handle all document preparation, attestation, translation, and submission, ensuring 100% compliance with UAE regulations.
🌐 End-to-End Support
From initial consultation to license issuance, bank account opening, visa processing, tax registration, and ongoing compliance - we're your complete business setup partner.
Frequently Asked Questions: UAE Business Setup
Ready to Start Your UAE Business Setup?
Whether you're choosing Mainland, Freezone, or Offshore, Najoom Corporate Services makes your UAE business setup simple, fast, and compliant. Get expert guidance, transparent pricing, and end-to-end support from Dubai's trusted business setup partner.
📍 Office Address: Al Moosa Tower 2, Diamond Sky Business Centre, Floor 30, Office No. 17, Sheikh Zayed Road, Dubai, UAE
📞 Phone: +971 52 946 6862 | 📧 Email: info@najoomcorp.com