Moving to Dubai 2026: Residency and Company Formation Step by Step

Moving to Dubai 2026: Residency and Company Formation Step by Step

Moving to Dubai in 2026 begins with one decision that shapes everything after it: which route gives you residency and actually lets you do the work you came for? If you own property worth AED 2,000,000 or more, the 10-year Golden Visa is your route; if you are a skilled employee or a freelancer, the 5-year Green Visa fits you; and if you will invoice clients inside the UAE or hire staff, there is no substitute for setting up a company in Dubai and obtaining an investor or partner residence visa.

The mistake we see every week is treating the visa, the trade licence, the bank account and tax as four separate transactions, so the investor ends up with a licence the banks will not accept or a residence visa that does not allow the work he came for. This guide sets out the steps in their correct legal order, the way a company formation lawyer in Dubai applies them.

How do I move to Dubai, obtain residency and set up my company in 2026?

The short answer: define your real objective first, then choose the residence route that serves it, then the legal structure of the company if you need one, and prepare your banking and tax file before paying licence fees, not after.

Why does moving to Dubai in 2026 need legal planning rather than just a visa?

Dubai levies no tax on personal income and allows a foreigner to own his company outright in most activities, but these advantages operate inside an interlocking system: under the Federal Decree-Law on the Entry and Residence of Foreigners, residency is tied to a specific basis (property, employment, company, talent); under the Federal Decree-Law on Commercial Companies, the licence defines your activity and its limits; and under the Federal Decree-Law on the Taxation of Corporations and Businesses, your business is taxed whether it sits in the mainland or in a free zone.

The right question is therefore not "which visa is fastest?" but "which structure protects my business, my bank account, my tax position and my family together?".

Which residence visa suits you? Dubai residency options for investors and talent in 2026

The wrong route can mean a valid visa that does not allow the work you want. These four routes cover most cases (alongside the standard employment visa through an employer in the UAE):

Golden Visa (10 years) for investors and talent
A long-term visa with no sponsor, granted to those who own property in the UAE worth at least AED 2,000,000 (including off-plan property and property financed by a bank loan under the applicable rules), to entrepreneurs with approved projects, and to scientists, doctors and holders of exceptional talent. It covers the spouse, children and parents and does not lapse through long absence from the country.
Green Visa (5 years) for skilled employees and freelancers
A self-sponsored visa with no sponsor, for skilled employees holding a university degree and an employment contract with a minimum salary, and for freelancers holding a freelance permit with proof of annual income.
Remote work visa for those employed by an entity outside the UAE
Lets you live in Dubai while keeping your job or running your company registered abroad, subject to proof of the employment contract or company ownership, a minimum monthly income and health insurance. It does not entitle you to invoice clients inside the UAE or hire local staff.
Investor or partner visa through setting up a company in Dubai
The natural route for anyone who will carry on business inside the country. Usually issued for two or three years through the Department of Economy and Tourism or the free zone authority once the licence is issued. Its validity is tied to the licence remaining in force.

Make sure the route supports what you intend to do over the next two years, not only your current position; changing route later costs time and fees.

Setting up a company in Dubai: mainland or free zone?

This decision determines whom you can deal with, how you are taxed and how easily you open your bank account. The rule: choose the jurisdiction that matches your real activity and real clients, not the cheapest fees.

Mainland companies (licence from the Department of Economy and Tourism)
Necessary if your clients are inside the UAE, if you will contract with government entities, open branches or shops, or practise a regulated profession. Under the Federal Decree-Law on Commercial Companies a foreigner may own 100% of a limited liability company in most activities, with exceptions for activities of strategic impact that require a national partner or special approvals.
Free zone companies (licence from the free zone authority)
Ideal for international trade, consulting, technology and holding companies, with faster procedures. Their limits: activity within the local market requires an agent or a mainland branch, and the 0% corporate tax rate is not automatic but requires "Qualifying Free Zone Person" status, qualifying income and genuine economic substance.

In both cases the licence activities must precisely match your actual business model, because any gap between what you do and what is written on the licence surfaces first at the bank and then at the Federal Tax Authority.

The steps of moving to Dubai and setting up the company in their correct legal order

PLANNING

Define the objective and route before any transaction
Are you relocating personally or relocating your business? Will you issue local invoices? Will you sponsor your family? Will you buy property? The answers determine the residence route and the type of licence.

STRUCTURING

Choose the jurisdiction, legal form and shareholding
Mainland or a specific free zone; limited liability company, sole establishment or branch of a foreign company; and the split of shares with a shareholders' agreement governing management and exit.

DOCUMENTATION

Prepare the incorporation and compliance documents
Memorandum and articles of association, the resolution appointing the manager and authorised signatories, the ultimate beneficial owner declaration under the Cabinet Decision regulating beneficial owner procedures, the office lease, and a power of attorney if you will complete the process remotely.

LICENSING

Obtain initial approval, then the trade licence
Trade name reservation, initial approval, special approvals for regulated activities, then issuance of the licence.

RESIDENCY

Issue your residence visa and Emirates ID, then the family's
Entry permit or change of status, medical test, biometrics, stamping of the residence visa and issuance of the Emirates ID, then sponsoring the family under the conditions of each route.

BANKING

Open the corporate and personal bank accounts
The most scrutinised stage. The bank asks for source of wealth and funds, an explanation of the business model, client geography, the partners' CVs and proof of the company's physical presence. A weak file means months of delay or a refusal.

COMPLIANCE

Tax registration and recurring obligations
Corporate tax registration within the prescribed period, VAT registration on reaching the threshold, updating the beneficial owner register, renewing the licence and visas, and keeping proper accounting records.

UAE corporate tax: what must a new resident know before incorporating?

Under the Federal Decree-Law on the Taxation of Corporations and Businesses, businesses in the UAE are taxed at 9% on taxable income above the threshold set by Cabinet Decision, AED 375,000, and at 0% below it. The law covers mainland and free zone companies alike, and natural persons carrying on a business whose annual turnover exceeds AED 1,000,000.

In practice:

  • Corporate tax registration is mandatory for every company even if its income is below the threshold, and late registration attracts an administrative penalty.

  • A free zone company does not get 0% merely because of its location; it must be a "Qualifying Free Zone Person": adequate substance inside the zone, qualifying income, transfer pricing compliance and no election for the standard rate.

  • The place of effective management matters: if you manage your foreign company from Dubai, that company may be treated as UAE tax resident.

Setting up a company in Dubai takes days, but making it tax-compliant and bankable is planned before choosing the free zone, not after the licence is issued.

Legal obligations after incorporation: beneficial owner, anti-money laundering and employment

Three obligations begin with the company from day one:

Beneficial owner register
Under the Cabinet Decision regulating beneficial owner procedures, every company must keep a register of partners, shareholders and ultimate beneficial owners (any natural person who owns or controls 25% or more, or effectively controls the company), file it with the licensing authority and update it on any change.
Anti-money laundering requirements
Under the Executive Regulations of the law on combating money laundering issued by Cabinet Decision, certain activities (real estate, precious metals, brokerage, some professional services) are subject to customer due diligence and suspicious transaction reporting obligations.
Hiring and sponsoring employees
From your first hire you fall under the Federal Decree-Law on the Regulation of Employment Relations and its amendments: an approved employment contract, a defined probation period, wage protection, health insurance and end-of-service gratuity.

The new Civil Transactions Law: why does it matter to anyone moving to Dubai in 2026?

Under the Federal Decree-Law promulgating the new Civil Transactions Law, which replaced the 1985 law and applies from 1 June 2026, the rules governing every contract you sign in the UAE were rewritten: the property purchase contract, the shareholders' agreement, the commercial lease, and supply and service contracts.

Its direct effect on the investor shows in three places: liability in negotiation and pre-contractual disclosure, interpretation and nullity of contracts, and the rules of compensation. Shareholders' agreements and off-plan purchase contracts deserve review in its light. Enforcement in the event of a dispute (payment orders, attachment and travel bans) is governed by the Civil Procedure Law issued by Federal Decree-Law.

Protecting your assets in Dubai: property, will and power of attorney

Three instruments protect your new assets in the UAE:

Buying property with independent legal due diligence
Under the Dubai Real Property Registration Law and the law regulating the Interim Real Property Register, ownership passes only on registration with the Dubai Land Department, and off-plan property is recorded in the interim register with instalments paid into the project escrow account. Before transferring any deposit, verify the title deed, the absence of mortgages and the developer's registration, and that the property's value and financing qualify you for the Golden Visa.
A will registered inside the UAE
A foreign will does not apply automatically to your assets in the UAE, and without a locally registered will your accounts and properties may be temporarily frozen pending the inventory of the estate. Registering a will with the DIFC Courts or the Dubai Courts settles the fate of the company, the property and the account.
A notarised power of attorney
Allows your lawyer or partner to complete the company set-up, sign at the bank, buy or sell property and represent you before government authorities while you are abroad. Drafting it with defined powers and a defined term protects you from misuse.

Common mistakes when moving to Dubai and how to avoid them

  • Obtaining the visa in isolation from the business plan: the visa does not open an account or protect you from tax; plan the whole package.

  • Choosing the cheapest set-up package: hidden fees, licence activities that do not match your business, and a refusal from the bank.

  • Assuming the UAE is tax-free: a direct road to Federal Tax Authority penalties.

  • Incorporating before reviewing bank readiness: review the file before paying licence fees, not after.

  • Buying property without independent due diligence: the sales broker is not your lawyer; the sale contract, title deed and escrow account are reviewed before the transfer.

10 years
duration of the Golden Visa for investors and talent
5 years
duration of the Green Visa for skilled employees and freelancers
9%
corporate tax on taxable income above AED 375,000

Practical tips before you start moving to Dubai

For founders and entrepreneurs
Settle the licensing jurisdiction and activity codes before anything else, draft a shareholders' agreement governing exit and share transfers, and prepare the bank-readiness file with proof of source of wealth.
For property investors
Make sure the property's value and financing qualify you for the Golden Visa, and review the sale contract, title deed and escrow account independently of the broker.
For skilled employees and freelancers
Check that you meet the Green Visa or freelance permit conditions and have your qualifications attested in the country of origin.
For high-net-worth individuals and families
Review the structure of your international assets as you change tax residence, register a will inside the UAE and issue mutual powers of attorney.

Legal references

  • Federal Decree-Law No. 29 of 2021 on the Entry and Residence of Foreigners, and its Executive Regulations issued by Cabinet Decision No. 65 of 2022

  • Federal Decree-Law No. 32 of 2021 on Commercial Companies

  • Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses

  • Federal Decree-Law No. 25 of 2025 promulgating the Civil Transactions Law

  • Federal Decree-Law No. 42 of 2022 promulgating the Civil Procedure Law

  • Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations, as amended by Federal Decree-Law No. 9 of 2024

  • Cabinet Decision No. 109 of 2023 regulating the procedures of the Ultimate Beneficial Owner

  • Cabinet Decision No. 10 of 2019 on the Executive Regulations of the law on combating money laundering and the financing of terrorism

  • Law No. 7 of 2006 concerning Real Property Registration in the Emirate of Dubai

  • Law No. 13 of 2008 regulating the Interim Real Property Register in the Emirate of Dubai

Planning to move to Dubai or set up a company? Consult a lawyer before signing any contract or paying any fees
AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS accompanies you from choosing the residence route to issuing the licence, opening the bank account, tax registration and registering your will.
AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS

Frequently asked questions about moving to Dubai, residency and company formation

QWhat is the best residence visa for moving to Dubai in 2026?
Owner of property worth AED 2,000,000 or more: the Golden Visa. Skilled employee or freelancer: the Green Visa. Employed by an entity abroad: the remote work visa. Carrying on business inside the UAE: the investor visa through setting up a company in Dubai.
QCan I get the Golden Visa by buying property in Dubai?
Yes. Owning property worth at least AED 2,000,000 is an approved route to the Golden Visa, including off-plan property and property financed by a bank loan under the applicable rules.
QDo I need to set up a company to move to Dubai?
Not always. You can obtain residency through an employment contract, property, the Green or Golden Visa or the remote work visa. But if you will invoice clients inside the UAE, hire staff or run a business from the UAE, setting up a company becomes mandatory.
QWhat is the difference between a mainland company and a free zone company?
The mainland gives you full access to the local market and government contracts; the free zone gives you speed and conditional exemptions with restrictions on activity inside the local market.
QCan a foreigner own 100% of his company in Dubai?
Yes, in most commercial and professional activities under the Federal Decree-Law on Commercial Companies, except activities of strategic impact that remain subject to ownership conditions or special approvals.
QHow long do company formation in Dubai and the residence visa take?
The licence takes a few days in the free zones and a week to several weeks in the mainland depending on approvals, then the residence visa and Emirates ID usually take one to three weeks.
QIs the trade licence enough to open a bank account in the UAE?
No. The bank examines the business model, source of funds, client geography, the partners' background and the existence of a physical office. The licence is a precondition, not a guarantee.
QDoes corporate tax apply to free zone companies?
Yes, free zone companies fall within the scope of corporate tax. Some can benefit from 0% on qualifying income if they satisfy the Qualifying Free Zone Person conditions of substance, qualifying income and transfer pricing compliance.
QIs my personal income taxed after moving to Dubai?
Salaries and returns on personal investments not carried on through a trade licence are not subject to corporate tax.
QCan I sponsor my family and parents after moving to Dubai?
Yes. The Golden Visa allows sponsorship of the spouse, children without an age limit, and parents; investor and employment visas allow sponsorship of the spouse and children subject to income conditions.
QWhat changes for the investor with the new Civil Transactions Law?
Under the Federal Decree-Law promulgating the new Civil Transactions Law, in force since 1 June 2026, the rules of negotiation and pre-contractual disclosure, contract interpretation and compensation were reorganised, which calls for reviewing shareholders' agreements and property purchase contracts in its light.
QDo I need a will in the UAE if I have a will in my home country?
Yes. A foreign will does not apply automatically to your assets inside the UAE, and without a locally registered will your accounts, properties and company shares may be temporarily frozen pending the inventory of the estate. Registering a will with the DIFC Courts or the Dubai Courts settles the matter.
QCan the set-up and relocation be completed without my presence in Dubai?
Most steps are completed through a notarised power of attorney to a lawyer in the UAE; the medical test and biometrics remain in person.
QWhen should I contact a company formation lawyer in Dubai?
Before choosing the free zone and paying licence fees, before transferring a property deposit, and before signing the shareholders' agreement or the lease. Early legal review is far cheaper than correcting a wrong structure after incorporation.

Legal Disclaimer
This content is provided for legal awareness and community education only and does not constitute legal advice or a binding legal opinion. Conditions and procedures vary by emirate, licensing authority and each person's circumstances and are subject to change. Do not take any legal or financial decision on the basis of this content without consulting a licensed lawyer in the United Arab Emirates.

In the event of any discrepancy between this translation and the Arabic text, the Arabic text shall prevail.
Dubai
AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS provides the services of a company formation lawyer in Dubai and advice on moving to Dubai, the Golden Visa, the Green Visa and the investor visa, company formation in the mainland and the free zones, opening bank accounts, tax registration, registration of wills and powers of attorney, and review of property contracts in Dubai.
Other Emirates
We provide the same services to anyone wishing to move to the UAE and set up a company in Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah and their free zones, with follow-up of residency, licensing and tax and banking compliance.