How to Set Up an Entity in the United Arab Emirates (Dubai Meydan)

The United Arab Emirates (UAE) remains a leading destination for global expansion thanks to its strategic trading position, clear regulatory framework, and strong infrastructure supporting finance, technology, and cross-border services. Dubai Meydan Free Zone is particularly appealing for companies seeking a fast, fully digital setup with broad activity coverage and cost-efficient licensing. Unlike Dubai Internet City, Dubai LLC (mainland), Abu Dhabi, or Dubai Multi Commodities Centre (DMCC)—which each cater to specific sectors, business models, or operational needs—Meydan offers a more general-purpose, flexible entry point suitable for a wide range of international businesses.

The process in Meydan is generally straightforward, though businesses still need to prepare accurate documentation, navigate licensing rules, and comply with the UAE’s federal corporate tax framework. The main challenges typically involve banking approvals and ensuring the business meets Free Zone compliance requirements, while key benefits include 100% foreign ownership, streamlined registrations, and efficient operational control for global companies.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in the United Arab Emirates?

In the UAE, “opening an entity” means registering a legal business structure with the relevant authorities so it can operate commercially. For most foreign investors setting up in Dubai, this often involves forming a Free Zone company, like in Meydan Free Zone, which grants a distinct legal status, a trade license, and the ability to conduct permitted business activities under local law.

Entity overview in Dubai Meydan

Here is a summary of the key aspects of company formation in Dubai Meydan:

Step-by-step guide: How to open an entity in the United Arab Emirates

Step 1: Choose the right structure

Most foreign companies select the FZ-LLC structure for liability protection and full foreign ownership. Single-shareholder businesses may use an FZE, while established international companies may register a branch, which does not have separate legal personality.

Step 2: Verify business name availability

Check and reserve your trade name through the Meydan Free Zone online portal. Names must follow UAE naming rules, avoiding restricted terms or religious references. The portal checks availability instantly.

Step 3: Prepare incorporation documents

Typical documents include:

• A completed application form through the Meydan Free Zone portal
• Passport copies of all shareholders and directors
• Proof of address (e.g., utility bill or bank statement) for individuals
• Corporate documents for any corporate shareholder, including Certificate of Incorporation, Memorandum and Articles of Association (MOA/AOA), and a Board Resolution authorizing the formation of the new entity in Meydan
• Passport-style photos of the shareholders/directors were required for identity verification
• No Objection Certificate (NOC) from a sponsor may be required if a shareholder is already in the UAE on a visa sponsored by another employer

Step 4: Register with Meydan Free Zone Authority

Submit all documents through Meydan Free Zone’s digital platform. Once approved, you receive:

• Trade License
• Certificate of Incorporation
• Company Registration Number

These documents allow the company to operate legally within the Free Zone.

Step 5: Register for tax and social security

Register with the Federal Tax Authority (FTA) for a Corporate Tax Registration Number. Register for VAT if your business meets the AED 375,000 annual revenue threshold. UAE nationals employed by the company must be registered with the General Pension and Social Security Authority (GPSSA); expatriates are exempt.

Step 6: Open a corporate bank account

Banks typically require incorporation documents, shareholder passports, a business plan, and verification of the company’s expected activities. Enhanced due diligence is common, and account opening may take several weeks.

Step 7: Set up payroll and employment compliance

To hire employees, register for work permits and visas through the UAE immigration system. Employment contracts must comply with the UAE Labour Law, and all employees must obtain an Emirates ID and medical insurance.

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Post-registration obligations

After incorporation, companies in the UAE must remain compliant with ongoing governance, tax, and employment requirements, including:

• Tax and financial reporting: File Corporate Tax returns annually and VAT returns (if registered) according to the FTA schedule, using International Financial Reporting Standards (IFRS)-compliant financial statements
• Corporate registers: Maintain accurate records of directors, shareholders, and beneficial owners and report changes to the Meydan Free Zone Authority promptly.
• Compliance tracking: Monitor tax, licensing, and corporate deadlines to avoid penalties
• Licenses and renewals: Renew your business license annually with Meydan Free Zone
• Recordkeeping: Retain accounting, payroll, HR, and transactional records for the period required by UAE law
• Employment law compliance: Maintain compliant employment contracts, visa renewals, payroll reporting, and insurance coverage in line with UAE labour regulations

Taxes and financial considerations

You're responsible for:

• Corporate income tax: 9% on income above AED 375,000; 0% for qualifying Free Zone income if conditions are met
• VAT: 5% VAT applies when annual revenue exceeds AED 375,000
• Payroll/social contributions: No social security for expatriate employees; UAE nationals require pension contributions
• Accounting standards: Financial reporting must follow IFRS

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in the United Arab Emirates?
Typically 2–14 days, depending on documentation and approvals. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
No mandatory minimum capital is required in Meydan Free Zone.

Can foreign companies own 100% of an entity in the United Arab Emirates?
Yes. Meydan Free Zone allows 100% foreign ownership.

Do I need a local director or representative?
No. Foreign nationals may hold all director and shareholder positions.

How much does it cost to register an entity?
Basic setup starts around AED 12,500–15,000+, depending on license type and services. Find out the setup cost with our Entity Setup Calculator.

Can Deel help me open an entity in the United Arab Emirates?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.