Question 1

Can I get UAE residency by opening a company?

Accepted Answer

Yes, you can get UAE residency legally by opening a company in the UAE. This is one of the most common and reliable residency routes for entrepreneurs, investors, and foreign nationals. When you form a company in the UAE, you become eligible to apply for an investor or shareholder visa linked to that business.

The residency is not automatic. It follows a structured process that includes company registration, establishment card issuance, entry permit approval, medical fitness test, Emirates ID registration, and visa stamping. Once completed, the visa allows you to live, work, and operate your business in the UAE.

This route is popular because it does not require a local sponsor in most cases, offers long term stability, and supports business banking and tax residency. The residency is usually valid for 2 or 3 years and can be renewed as long as the company remains active and compliant.

Company formation based residency is suitable for freelancers, consultants, traders, digital entrepreneurs, and investors who want a legitimate presence in the UAE without employment dependency.

Question 2

How much does it cost to get UAE residency through company formation?

Accepted Answer

The cost of getting UAE residency through company formation typically starts from AED 12000 and can go up depending on multiple factors. The base cost usually includes the business license, registration fees, and initial setup expenses.

Additional costs include the investor visa, medical test, Emirates ID, establishment card, and office or flexi desk requirements. These can add another AED 6000 to AED 10000 depending on the jurisdiction and visa category.

Free zone company setups often offer bundled packages that make entry more affordable, especially for first time entrepreneurs. Mainland setups may cost more but provide wider operational flexibility within the UAE market.

The final cost depends on:

-Type of business activity
-Free zone or mainland jurisdiction
-Number of visas required
-Office space selection

It is important to look beyond the license cost alone and factor in visa related and compliance expenses to avoid surprises later.

Question 3

Is UAE residency through company formation valid for tax residency?

Accepted Answer

Yes, UAE residency through company formation can support tax residency, but residency alone is not enough. To qualify for UAE tax residency, you must meet additional criteria set by the authorities, such as physical presence requirements and economic substance.

Generally, individuals must spend a minimum number of days in the UAE and demonstrate genuine economic ties. Holding a valid residency visa through company formation is one of the key foundations required to apply for a Tax Residency Certificate.

Once qualified, UAE tax residency allows individuals to benefit from the UAE’s tax treaties, no personal income tax, and favorable international tax positioning. This is especially useful for entrepreneurs with global income streams.

However, tax residency planning must be done carefully. Factors like business activity, country of origin tax rules, and double taxation agreements must be reviewed. Professional guidance is recommended to ensure compliance and avoid future tax risks.

Question 4

Can I sponsor my family after getting UAE residency through company formation?

Accepted Answer

Yes, once you obtain UAE residency through company formation, you can sponsor your immediate family members, including your spouse and children, subject to meeting eligibility criteria. Family sponsorship is one of the major advantages of this residency route.

To sponsor family members, you must hold a valid residence visa, have an active Emirates ID, and meet minimum income or business stability requirements. Additional documents such as attested marriage and birth certificates are required.

Family visas are usually issued for the same duration as the sponsor’s visa and can be renewed accordingly. Sponsored family members can live, study, and access healthcare services in the UAE.

This makes company formation based residency attractive for entrepreneurs planning long term relocation, not just business presence. Proper structuring of the company and visa planning helps ensure smooth family sponsorship without delays.

Question 5

What are the most common mistakes people make when getting UAE residency through company formation?

Accepted Answer

One of the most common mistakes is choosing the wrong business activity or jurisdiction without understanding long term implications. This can affect visa eligibility, banking approval, and operational flexibility.

Another frequent issue is underestimating total costs. Many entrepreneurs focus only on license fees and overlook visa processing, renewals, office requirements, and compliance costs.

Applying for bank accounts before residency completion is also a mistake. Most banks prefer resident profiles, and premature applications often lead to rejections.

Lack of proper documentation, unclear source of funds, and weak business explanation can delay or block the process. Lastly, trying to manage everything without professional support often results in delays and higher corrective costs.

Planning the setup properly from the start avoids these issues and ensures a smooth, compliant, and long term residency solution.

January 22, 2026

How to Get UAE Residency Through Company Formation Without Confusion

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