Topic · updated 16.10.2026 · 8 min read · Lucent Legal team

A company in the UAE: open it, run it, close it

Doing Business in the UAE: Open, Run, Close a Company

Key points

Pick the structure by market: clients inside the UAE point to the mainland, export and foreign clients to a free zone. Since 2025 a Dubai free zone company can operate on the Dubai mainland with a DET branch licence or permit.
Lowest published licence prices without a visa as of 16 October 2026: from AED 5,750 (SPC Free Zone), from AED 5,760 (SHAMS), AED 6,000 (RAKEZ). The visa costs extra.
Corporate tax: 0% on profit up to AED 375,000, 9% above. FTA registration and an annual return are mandatory, in free zones too and with zero profit.
Closing takes at least four procedures: liquidation, licence cancellation, cancelling visas and the lease, and tax deregistration with the FTA. You file corporate tax deregistration within 3 months of ceasing business, VAT within 20 business days.
An insolvent company cannot go through voluntary liquidation: the case moves under Bankruptcy Law No. 51/2023 and a court controls it.

Get a lawyer's help: Business & Corporate Lawyer in Dubai

A UAE company goes through three stages, and each has its own authorities. You open it with the emirate's economic department or a free zone. You run it in front of the FTA, immigration and your bank. You close it through a liquidator, licence cancellation and tax deregistration. A mistake at stage one usually surfaces at stage two, and an abandoned company costs more at stage three than one closed properly. The guides below follow that order.

Opening a company

Choose the structure first, then work out the budget, then prepare for the bank. The order matters: a licence the bank won't open an account for is money thrown away.

Open a company in Dubai and the UAE in 2026: step by step and cost: mainland and free zone steps, documents, timelines, the first-year budget.
Free zone vs mainland: which to choose: clients, 0% or 9% tax, visas, office, and working on the Dubai mainland from a free zone.
Cheapest free zone in the UAE: prices from official sites: Fujairah Creative City, SPC, SHAMS, RAKEZ, Meydan, DMCC, what the price includes and what the visa costs.
UAE free zones compared: 14 zones: licence and visa package prices, office, QFZP conditions, Dubai mainland access, DIFC and ADGM for holdings.
UAE corporate bank account: what banks check and why they refuse: documents, source of funds, refusals for Russian founders.
Investor and partner visa through your own company: who can sponsor themselves and family, the steps, and how it differs from a golden visa.
Due diligence on a UAE counterparty: if you go into business with a partner or buy a ready-made company.

Running the company

After registration the company has yearly obligations. A missed return or an expired licence each carries its own penalty and blocks visas.

Running a company in the UAE: yearly obligations: a table of 17 obligations with deadlines, penalties and official sources: tax, licence, UBO, audit, WPS, Russian FNS notices.
Expired trade licence: fines and renewal: DET, DMCC, RAKEZ, JAFZA, SHAMS and Meydan tariffs, and what an expired licence blocks.
Selling or transferring a share in a UAE company: partners' pre-emption right, notary, fees, UBO and tax on the deal.
Moving a company between mainland and free zone: Art. 15 bis of the Companies Law, DMCC and ADGM continuation, a DET permit instead of moving.
Russian CFC rules for a UAE company owner: participation and CFC notices, deadlines, RUB 50,000 and 500,000 fines, exemptions.
Add or change a business activity on your licence: amendment with DET or a free zone, approvals, FTA and bank.
9% corporate tax in the UAE: who pays and late penalties: rates, QFZP, registration, return, FTA penalties.
Small Business Relief: 0% on revenue up to AED 3 million until 2029: who can claim it and what you give up.
VAT changes from 1 October 2026: input tax on cash payments, staff housing.
E-invoicing deadlines: who must appoint a provider and when.
EAEU–UAE free trade agreement from 6 October 2026: if the company imports goods from Russia, Belarus or Kazakhstan.

Closing the company: liquidation, licence, FTA

If the business may come back, check the option that keeps the company first: putting a UAE company on hold, covering DMCC dormancy, the JAFZA freeze and what happens to tax.

Closing a business in the UAE means voluntary liquidation plus separate steps with immigration, the landlord and the FTA. The order and cost depend on whether it is a mainland or free zone company.

Closing a business in Dubai and the UAE: company liquidation step by step: start here. Liquidator, creditor notice, timelines, when closure turns into bankruptcy.
Trade licence cancellation in Dubai and the UAE: steps, NOCs, fees: Invest in Dubai, staff visas, DEWA, Ejari, free zones.
Tax deregistration: VAT and corporate tax: 3-month and 20-business-day deadlines, penalties up to AED 10,000, EmaraTax steps.

You close the office separately, and DET won't cancel the licence until you do. In Dubai the lease is registered in Ejari, and DET accepts a cancellation application only after the Ejari is cancelled. The order: close the DEWA account and pay the final bill, get a NOC from the landlord confirming the premises are vacated and nothing is owed, then cancel the Ejari. A free zone closes its own workspace together with the licence.

When the money runs out: bankruptcy and personal liability

Once liabilities exceed assets, different rules apply. The owner's first question is usually about their own flat and bank account, not the company.

Bankruptcy in the UAE: what it actually gives you and who it suits: when voluntary liquidation is no longer available.
Is a director personally liable for company debts: personal guarantee, cheque, wrongful trading.

Disputes inside the business and money owed by others

A business partner has locked you out of the company: signatures, account access, a parallel structure.
A 50/50 partner blocked access and moved the money: the first 72 hours: bank, court and police while the money is still in the accounts.
A client won't pay an invoice: options for a small business: court or a settlement.

FAQ

Where do I start when opening a UAE company?

With the question of where your clients are. It decides the structure: mainland or free zone. Then you pick the emirate and zone, the activity, an office that fits the visas you need, and only then pay for the licence. Talk to a bank before you register.

How much does it cost to open a company in the UAE?

A licence in budget free zones starts at AED 5,750–6,000 without a visa, per official sites as of 16 October 2026. With a visa, the first year starts from AED 10,000–14,000 in Sharjah and Ras Al Khaimah and costs more in Dubai. The mainland costs more because of the Ejari lease and DET fees.

Can I just walk away from a UAE licence if the business didn't work out?

No. Until you formally close the licence, renewal penalties keep growing and the FTA registration keeps demanding returns. A separate penalty applies for late VAT and corporate tax deregistration, up to AED 10,000 for each.

Am I personally liable for my UAE company's debts?

Not by default: LLC shareholders' liability is limited to their share. The exceptions are a personal guarantee, a cheque you signed personally, wrongful trading under Art. 246 of the Bankruptcy Law, and unpaid share capital.

What if the company can't pay its creditors?

Voluntary liquidation is off the table. The case moves under Federal Decree-Law No. 51/2023 on bankruptcy, and a court controls the procedure.

Sources

Related: how to verify a trade licence.

Get a lawyer's help: Corporate disputes and asset protection

This material is for information only and is not legal advice. UAE law changes — a lawyer will assess how it applies to your situation.