COMPANY SETUP GUIDE 2025

Everything you need to know to form and launch a company in the UAE in 2025 — structure, steps, compliance, costs, and strategic tips.

Introduction

The UAE continues to evolve as a leading business hub, offering strategic location, tax incentives, and streamlined processes. In 2025, setting up a company remains attractive — but there are new reforms, regulatory clarifications, and tax implications to watch. This guide walks you through choosing jurisdiction, licensing, documentation, compliance, and best practices.

1. Choosing the Right Jurisdiction & Structure

Your choice of jurisdiction impacts ownership, market access, tax treatment, and compliance burden.

Mainland (Onshore): 100% foreign ownership is now permitted for most activities. Full UAE market access.

Free Zone: 100% foreign ownership, tax incentives, but restrictions on trading directly with mainland.

Offshore: Primarily for holding or global operations, not domestic trade.

Entity Types: LLC, Sole Establishment, Branch of Foreign Company, Free Zone Entities.

2. Reforms & Regulatory Updates You Must Know

100% foreign ownership expanded across many sectors.
More digital-first licensing and renewal processes.
Emiratization rules: companies with 20–49 employees must hire 1 UAE national (2024), and add another by 2025.
Corporate Tax (CT) introduced with implications for mainland and free zone companies.

3. Step-by-Step Company Setup Workflow

Select business activity.
Reserve trade name.
Obtain initial approval.
Lease office space or register address.
Prepare and submit legal documents (MOA/AOA, attestations).
Obtain trade license (Mainland or Free Zone Authority).
Open corporate bank account.
Post-setup: VAT registration, immigration/visa processing, regulatory body registrations.

4. Documentation & Requirements

Common requirements:

Passport copies of shareholders/directors.
Proof of residence.
Specimen signatures.
NOC if visa-holder.
Lease agreement.
MOA/AOA.
Bank references/financials for foreign entities.
Power of Attorney if acting by representative.

5. Costs & Timeline

Costs vary by jurisdiction, license type, visas, and office costs. Free zones may take a few days; mainland may take weeks. Bank accounts can take longer to open.

6. Corporate Tax & Free Zone Considerations

9% corporate tax applies on profits exceeding AED 375,000.
Free Zone Entities may enjoy 0% tax on qualifying income if substance and compliance requirements are met.
Proper planning ensures eligibility for incentives.

7. Compliance & Ongoing Obligations

Annual license renewals.
Accounting records and audits (especially in free zones).
Corporate tax and VAT filings.
Visa and labor compliance (WPS, contracts).
Emiratization obligations for applicable companies.
Sector-specific regulatory compliance.

8. Strategic Tips & Best Practices

Align jurisdiction with business model.
Structure capital and ownership carefully.
Integrate tax planning early (VAT, CT, free zone).
Maintain substance for compliance and tax eligibility.
Use advisors for approvals and compliance.
Monitor ongoing regulatory reforms.

How We Can Help

Setting up a company in the UAE requires more than just paperwork — it needs strategic planning and compliance expertise. At MP Elites Consulting, our team guides you through every step of your UAE business formation, from choosing the right jurisdiction to meeting all tax and licensing requirements.