SonsözPartner provides end-to-end consultancy for entrepreneurs and investors who want to establish a company in Dubai, benefit from the United Arab Emirates’ unique tax system, and obtain a residence visa for themselves and their families. With our headquarters in Türkiye and a dedicated Dubai-focused advisory structure, we support you through every step of the business setup and relocation process.
From choosing between Mainland and Free Zone structures to understanding corporate tax, Residence Visa and Golden Visa options, banking requirements and annual renewals, SonsözPartner offers a structured, transparent and professional approach designed to protect your interests and accelerate your entry into the Dubai market.
Why Set Up a Company in Dubai?
Dubai is one of the world’s leading hubs for trade, logistics, finance and innovation. Strategically located between East and West, it serves as a bridge between Europe, Asia and Africa, with world-class ports, airports and infrastructure. For investors, it combines attractive tax advantages with a high standard of living, safety, and a multicultural environment.
Tax Structure – The Core of Dubai’s Attractiveness
The United Arab Emirates does not levy personal income tax, capital gains tax or tax on dividends for individuals. This means that, as a shareholder, your personal income from company profits is not taxed at the individual level.
In 2023, a federal corporate tax regime was introduced with a standard rate of 9%, generally applied to taxable profits above 375,000 AED. Below this threshold, a 0% rate can apply, and for qualifying Free Zone entities that meet specific conditions, the effective corporate tax rate may remain at or close to 0% for relevant income streams.
This makes the choice of company structure and location (Mainland vs. Free Zone) critical for your overall tax burden. SonsözPartner analyses your business model and helps you select the most efficient structure from day one.
100% Foreign Ownership and Business Freedom
Dubai has gradually removed many of the previous restrictions on foreign ownership. For a wide range of activities, investors can now hold 100% ownership in both Free Zone and many Mainland structures, without the need for a local sponsor holding 51% of shares as in the past.
Infrastructure and Quality of Life
Dubai offers state-of-the-art transport, telecoms, logistics and office infrastructure, along with high-quality healthcare, education and housing. For entrepreneurs and their families, it provides a secure environment, modern lifestyle and a globally connected social and business ecosystem.
Mainland vs Free Zone – Choosing the Right Structure
There are three main business setup models associated with Dubai: Mainland, Free Zone and Offshore. For those seeking residence visas and local operational presence, Mainland and Free Zone structures are the primary options, as Offshore entities cannot directly sponsor visas within the UAE.
Mainland Companies (DED Licensed)
Mainland entities are licensed by the Department of Economy and Tourism (formerly DED) and can operate across the UAE local market without geographic restrictions.
- Advantages: Ability to trade directly in the local market, bid for government contracts, and operate anywhere within the UAE. Wider scope of activities and fewer geographic constraints.
- Considerations: Setup and annual renewal costs are usually higher than basic Free Zone packages. A physical office lease (Ejari) is generally mandatory. Administrative processes may be more time-consuming.
Free Zone Companies
Dubai and the wider UAE host more than 40 Free Zones, many of which are sector-focused (for example, media, technology, trade, logistics, finance). Each Free Zone has its own regulations, license types and cost structures.
- Advantages: 100% foreign ownership, customs advantages, potentially 0% corporate tax for qualifying entities, simplified procedures and fast incorporation (sometimes within 7–10 business days). Flexible office options (Flexi-Desk, co-working, virtual offices) help minimise premises costs, especially for SMEs and service providers.
- Considerations: Free Zone entities are primarily authorised to operate within their Free Zone and internationally. To trade directly with the UAE local market (onshore), you typically need a distributor, a local agent or a Mainland partner.
Estimated Setup Costs (2024–2025)
The total cost of setting up a company in Dubai varies depending on the chosen Free Zone or Mainland authority, activity type, required number of visas, and office solution. As a general indication for the first year (including licence, registration, establishment card and one investor visa where applicable):
- Free Zone (basic Flexi-Desk packages): approximately 15,000 AED – 50,000 AED
- Mainland (standard office and licence): approximately 35,000 AED – 75,000 AED
Additional costs may include notary fees, legal attestations, bank account opening fees, PRO (public relations officer) services, medical tests and Emirates ID issuance. SonsözPartner lays out a clear budget plan before you commit, so there are no surprises.
Step-by-Step Company Formation Process in Dubai
With the right advisory partner, setting up a company in Dubai becomes a structured and predictable process. SonsözPartner manages the entire journey through the following stages:
Step 1: Defining the Business Activity and Legal Structure
We start by clarifying your intended activities (trading, services, industrial, consultancy, etc.), your target markets (local vs. international), and your visa needs. Based on this, we advise whether a Mainland or Free Zone structure is more appropriate and help you choose a legal form, such as an LLC or a sole establishment where applicable.
Step 2: Trade Name Reservation
We propose and reserve a trade name that complies with the naming rules of the relevant authority (Mainland or selected Free Zone). The name must not be misleading, offensive or associated with religious or political references and must not duplicate an existing registered name.
Step 3: Initial Approvals and Licence Application
We submit the initial approval application together with required documents, such as passport copies of shareholders and managers, business plan details where needed, and any supporting declarations. Once approval is granted, the company’s Memorandum of Association (MOA) or Articles are drafted and notarised.
Step 4: Office Lease or Flexi-Desk Arrangement
For Mainland companies, a physical office and Ejari (registered tenancy agreement) are typically mandatory. In Free Zones, a physical or Flexi-Desk office solution is arranged as per the package. SonsözPartner coordinates with office providers to secure an appropriate and compliant solution.
Step 5: Licence Issuance and Establishment Card
After documentation and fees are finalised, the commercial licence is issued. We then obtain the Establishment Card, which is required to register the company with immigration and labour authorities and forms the basis for sponsoring residence visas.
Step 6: Corporate Bank Account Opening
Once the company is fully incorporated, we proceed with bank account opening. Due to international KYC and AML standards, UAE banks undertake detailed due diligence on foreign-owned entities. Having an active residence visa for the company owner significantly facilitates this step. SonsözPartner prepares the documentation, introduces you to suitable banks and supports you throughout the review process.
Residence Visa Through Company Ownership
One of the main advantages of establishing a company in Dubai is the ability to obtain a Residence Visa sponsored by your own company. This allows you to live in the UAE, open local accounts, sponsor your family, and travel in and out of the country with ease.
1. Standard Investor / Partner Visa
This visa type is typically granted to company owners or partners for a period of 2–3 years and can be renewed as long as the company and licence remain active.
Key steps in the process:
- Entry Permit: After the Establishment Card is issued, the company applies for an Entry Permit for the investor or partner.
- Entry to the UAE: The applicant enters the country using the Entry Permit if they are abroad, or status change is processed if already inside the UAE.
- Medical Tests and Biometrics: Mandatory health screening (blood tests and X-ray, especially for infectious diseases such as tuberculosis) and biometric data collection.
- Emirates ID Application: Application for the Emirates ID, the official identity card used within the UAE.
- Visa Stamping: Once all steps are completed, the residence visa is stamped electronically on the passport record and associated with the Emirates ID.
2. Golden Visa – Long-Term Residency
The UAE offers a 5-year and 10-year Golden Visa for qualifying investors and entrepreneurs. For company owners, the typical criteria include:
- 10-Year Golden Visa: Owning at least 2 million AED share capital in a UAE company, or holding investments of equal value in approved forms.
- 5-Year Golden Visa: Being the owner or partner of an SME registered in the UAE with annual revenue of at least 1 million AED, or holding an approved, innovative project endorsed by a recognised business incubator.
Golden Visa holders enjoy greater flexibility than standard visa holders, including the ability to stay outside the UAE for extended periods without losing their residency status, broader family sponsorship options, and enhanced stability for long-term planning.
3. Family Sponsorship
Once the main investor or partner visa is obtained, the sponsor can apply for residence visas for their spouse and children, subject to meeting income, housing and documentation requirements. The process largely mirrors the main visa procedure: Entry Permits, medical tests (for adults), Emirates ID, and visa issuance.
Key Considerations for a Successful Setup
To ensure a smooth experience when setting up in Dubai, investors should plan carefully and work with a professional advisory team. SonsözPartner guides you through the critical points:
- Selecting the right structure: Mainland vs Free Zone, based on your activity, target markets, budget and visa requirements.
- Preparing complete documentation: Passports, corporate records, notarised and attested documents where required.
- Understanding bank expectations: Realistic timelines for account opening and minimum balance requirements.
- Budgeting for annual renewals: Licence fees, office rent, visa renewals and other recurring obligations.
Who Cannot Easily Establish a Company in Dubai?
While Dubai is generally open and supportive of foreign investment, there are important restrictions and compliance checks that can prevent certain individuals or activities from obtaining a licence.
Criminal Record and Legal History
Applicants with serious criminal convictions, especially in areas such as money laundering, terrorist financing, fraud or major financial crimes, are likely to be rejected. Unresolved legal issues within the UAE, including unpaid debts, bounced cheques, or immigration violations, can also block licence issuance and visa processing until resolved.
International Sanctions and Watchlists
The UAE complies with international security and financial transparency standards. Shareholders and key individuals are screened against global sanctions lists issued by bodies such as the United Nations and the European Union. Being listed on such sanctions or associated watchlists can result in an automatic rejection of applications.
Prohibited and Restricted Activities
Dubai does not allow licensing for activities that contravene law or public policy, such as gambling, illegal drug trade or certain explicit content industries. Other sectors, such as banking, financial services, insurance, healthcare, telecoms and defence, are heavily regulated and require special approvals from competent authorities, failing which a company cannot be licensed in those fields.
Age and Legal Capacity
Founders and managers must have full legal capacity under UAE law. This generally implies being at least 18 (and in some Free Zones 21) years old and being mentally capable of entering into binding contracts and assuming legal responsibility.
Core Advantages of Setting Up in Dubai
Summarising the benefits, Dubai offers a unique combination of fiscal, operational and lifestyle advantages for ambitious entrepreneurs:
- No personal income, capital gains or dividend tax on individuals.
- Competitive 9% corporate tax above certain profit thresholds, with potential 0% for qualifying Free Zone entities.
- Customs advantages and trade facilitation, especially for Free Zone companies.
- 100% foreign ownership for a wide range of activities, both in Free Zones and many Mainland structures.
- Strategic geographic location connecting Europe, Asia and Africa.
- Direct path to residence visas and potential eligibility for Golden Visa long-term residency.
- Modern infrastructure, political and economic stability, and high quality of life for families.
Why Work with SonsözPartner for Your Dubai Setup?
SonsözPartner combines regional expertise, up-to-date legal and tax knowledge, and a structured advisory methodology to guide you through the complexity of Dubai’s evolving business environment. We help you choose the right jurisdiction and licence type, manage the full setup process, and support you after incorporation with banking, compliance and renewals.
Our role is not limited to “paperwork”; we act as a long-term partner, helping you plan your investment, protect your position, and build a sustainable presence in Dubai.
Integrated Support – From Türkiye to Dubai
Operating from Türkiye with a strong Dubai-focused advisory structure, SonsözPartner supports clients from initial planning through to company formation, residence visas, family sponsorship and ongoing compliance.
English & Turkish language support ensures clear communication at every step, while our network of local partners in the UAE facilitates efficient coordination with authorities, banks and service providers.
English: Full support for Dubai company formation, corporate tax planning, Residence Visa and Golden Visa procedures, and banking.
Turkish: Dubai’de şirket kuruluşu, oturum ve Golden Visa süreçleri, banka hesabı açılışı ve vergi planlaması için kapsamlı ve profesyonel danışmanlık sağlıyoruz.