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Guide

UAE company formation guide 2026

Everything you need to know about opening a business in the UAE — from prerequisites and documents to free zone vs mainland, costs, visas and timelines. RAKEFZ is your all-in-one Ras Al Khaimah formation portal; we also cover other UAE emirates on request.

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Prerequisites to open a company in the UAE

Business purpose

A clear description of what your company will do. This determines the licence activity and zone eligibility.

Shareholders

At least one individual or corporate shareholder. Corporate shareholders need additional attested documents.

Passport & proof of address

Valid passport copy and a recent proof of address for every shareholder and director.

Proposed company names

Provide at least two options. Names must not conflict with existing brands or contain restricted words.

Activity approvals

Some activities such as healthcare, education, finance and transport need extra third-party approval.

Visa intent

Decide how many residence visas you need now. Visa quota affects the office package you choose.

How to open a company in the UAE

1

Choose activity

Match your business purpose to a licensed activity.

2

Pick zone

Free zone or mainland — based on your market and ownership needs.

3

Build package

Add visas, office space and add-ons; see your live price.

4

Submit docs

Upload passports, photos and address proof; we file everything.

5

Get licensed

Sign electronically and receive your trade licence.

Free zone vs mainland: which is right for you?

Feature
Free zone
Mainland
Foreign ownership
100% for most activities
100% for most activities
Setup time
1–7 days
7–14 days
Sell inside UAE
Invoice clients; goods may need dual licence
Unrestricted UAE trade
Government tenders
Limited
Eligible
Visa quota
Tied to office package
More flexible
Best for
International trade, services, holdings
Local market, retail, government work

Documents you need to start a company

Standard documents

  • Passport copy (every shareholder / director)
  • Passport-size photo with white background
  • Proof of residential address (utility bill or bank statement)
  • Two proposed company names in order of preference
  • Short business description and source-of-funds note

Sometimes required

  • Entry stamp or UAE visit/tourist visa copy
  • Corporate shareholder documents (attested MOA / certificate)
  • Professional qualifications for regulated activities
  • No-objection certificate from current employer (if applicable)
  • Detailed business plan for special approvals

Cost and timeline

Free-zone fee from
AED 6,000
RAKEZ Biz Starter
Agent service fee from
AED 2,900
Essential package
Typical setup time
5–7 days
Free zone, docs complete
Visa quota
1–unlimited
Depends on office package
RAKEZ recommendedMost popular

RAKEZ — the most popular RAK zone for flexible, low-cost setup

RAKEZ is Ras Al Khaimah’s flagship economic zone. It covers commercial, service, industrial, media and educational activities, offers 100% foreign ownership and has one of the lowest entry costs in the UAE. For most founders, it is the fastest path from idea to licensed company.

Explore RAKEZ →Read the RAKEZ page

UAE company formation FAQs

Ready to open your UAE company?

Use the RAKEFZ wizard to choose your activity, zone and package. Compare every RAK zone and get an all-in quote in minutes.

Compare zones →