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Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis
~51 days
Setup Time
~$6,580
Setup Cost
9%
Corporate Tax
100%
Foreign Ownership
#16
Ease of Business
| Entity | Min Capital | Foreign % | Liability | Min Shareholders | Best For |
|---|---|---|---|---|---|
Free Zone LLC | None | 100% | Limited | 1 | Most popular for foreign entrepreneurs — 100% ownership, 0% tax, visa sponsorship |
Mainland LLC | None | 100% | Limited | 1 | Trading within UAE market, government contracts — 100% foreign ownership since 2021 |
Branch Office | None | 100% | Unlimited | 0 | Foreign companies expanding into UAE — requires local service agent |
Freelancer Permit | None | 100% | Unlimited | 1 | Individual professionals — media, tech, consulting |
Choose Jurisdiction
Free zone (e.g., DMCC, DIFC, JAFZA) or mainland via DED
0-1 days
Free
Investor decision
Reserve Trade Name
Submit trade name for approval at chosen authority
1-3 days
~$80
DED or Free Zone Authority
Obtain Initial Approval
Submit business plan, shareholder details, activity codes
1-5 days
~$300
DED or Free Zone
Lease Office Space
Mandatory physical or virtual office (Ejari registration for mainland)
1-7 days
~$3,000
RERA
Obtain Trade License
Final license issuance after all approvals
1-5 days
~$2,500
DED or Free Zone
Apply for Visas
Establishment card, investor visa, employee visas
7-30 days
~$700
GDRFA
No statutory minimum
Minimum Wage
$3500/mo
Average Wage
48 hrs/week
Work Hours
30 days/year
Paid Leave
3 weeks/year
Severance
12.5% of salary
Employer Social Security
5% of salary
Employee Social Security
Required
Foreign Worker Permit
Foreign Worker Quota: No formal quota — visa tied to license and office space capacity
Work Permit Process: Employer sponsors residence visa through MOHRE. No worker quotas — visa tied to office space capacity.
#16/190
Ease of Business Rank
3.5 days
Starting a Business
1.5 days
Registering Property
445 days
Enforcing Contracts
67/100
Corruption Perception
99%
Internet Penetration
AED
Currency
UTC+4
Time Zone
16
Retail (months)
12
F&B (months)
10
Tech (months)
24
Manufacturing (months)
8
Services (months)