Key takeaways
- A UAE company formation agent can be checked online for free: search its trade licence on the government portal of the emirate that issued it, confirm the licensed activity fits the work, and compare the licence name with the name on your contract.
- The Federal Tax Authority (FTA) keeps a public Tax Agent Register on its website; a firm that will represent you before the FTA on VAT or corporate tax should appear on it, and a juridical (company) tax agent must be linked to at least one registered individual tax agent.
- A formation agent's licence only proves the firm exists and may trade; it does not show the quality of its work, so a written scope, an itemised fee list and a named person who does the work matter as much as the licence.
- Government and free zone portals confirm the authority's own record; a polished website, a long list of "partner" logos or a price that is far below every other quote proves nothing either way.
- Paying a deposit before you hold a written quote and a signed service agreement is the single most common way founders end up with no recourse.
How do you check that a UAE company formation agent is licensed?
Search the agent's trade licence on the portal of the authority that issued it, using the licence number or the trade name, and confirm the licence is active. The search itself is quick and has no fee on the portals above.
The u.ae government portal lists the official channels: the Ministry of Economy's Unified Commercial Registration System, Dubai Economy and Tourism (trade name and business activity search), the Abu Dhabi and Ajman economic departments, the Sharjah Economic Development Department (trade name search) and the Fujairah Municipality's Rukhsati app. The federal National Economic Register at growth.gov.ae also covers economic licences, economic activities and trade name availability across the emirates' licensing authorities. For Dubai mainland firms, the Invest In Dubai licence search accepts a licence number, a Dubai Unified License number, or the business name in English or Arabic.
Free zone firms are licensed by their free zone, not by an emirate's economic department, so ask the agent which authority issued the licence and check with that authority. Portals differ in how much they show, so treat a missing result as a reason to ask questions, not as proof of anything on its own.
| Licence type | Where to check | What you can search |
|---|---|---|
| Dubai mainland | Dubai Economy and Tourism / Invest In Dubai licence search | Licence number, DUL number, business name (English or Arabic) |
| Other emirates (mainland) | The emirate's economic development department, or Ministry of Economy system | Trade name; business activity (depends on portal) |
| Federal view | National Economic Register | Economic licences, activities, trade name availability |
| Free zone | The issuing free zone's own channels | Ask the free zone; not covered by one federal portal |
Source for the table: u.ae "Verify business licences" and "National Economic Register" pages, checked 10 October 2026.
What licensed activity should a formation agent hold?
The licence should list an activity that matches the work you are paying for, such as business setup, business consultancy or corporate services. If the licensed activity is unrelated (a general trading licence, say), you are right to ask why.
Licence activities are what the authority approved the firm to do, so they are the cleanest check on scope. Compare three things: the legal name on the licence, the name on the quote, and the name on the bank account that will receive your payment. If any of the three differ, ask for a written explanation before you transfer anything. This is a reasoned precaution rather than a rule published by any single authority, but it is cheap, and it catches both honest mistakes and intermediaries who are reselling someone else's service.
How do you check if an agent is a registered FTA tax agent?
Use the FTA's Tax Agent Register on tax.gov.ae, which lists agents authorised and registered with the FTA, and filter by sector. Only do this if the agent will handle your VAT or corporate tax filings; a pure formation agent does not need to be on it.
Eligibility is set by Cabinet Resolution No. 74 of 2023 (Article 12): qualifications, experience, language, good conduct, and the FTA's training and examinations. A company tax agent applies through EmaraTax, needs a licence to operate as an audit, tax or law firm, and must carry professional indemnity insurance. The FTA's published fees are AED 3,000 for an individual and AED 10,000 for a company agent (as of the FTA page updated 19 August 2026), and the FTA targets 20 business days to process a complete application.
The register tells you the agent's status; it does not tell you how good the agent is. Registered tax agents are also not FTA employees and must not present themselves as affiliated with the FTA, so a firm that implies a special line to the FTA is a warning sign.
At least one: the number of registered individual tax agents a company tax agent must be linked to in order to operate. Source: FTA Tax Agent Registration page (Cabinet Resolution No. 74 of 2023), checked 10 October 2026.
What should be in the written scope and fee quote?
A legitimate quote lists each service, each government fee, each third-party cost and the agent's own fee as separate lines, and says what happens at renewal. If you cannot tell which lines are government charges, ask for them to be marked.
Before paying, get these in writing:
- The exact legal entity that will sign the contract and its licence number.
- The licence type and issuing authority you are buying (mainland or a named free zone).
- Every line of cost: licence, registration, office or flexi desk, visas and their related charges, and the agent's service fee.
- What is excluded: bank account opening, tax registrations, bookkeeping and renewals are often separate.
- Renewal fees for year two, because the first-year price is rarely the whole picture.
- The refund position if the authority rejects the application.
- The name of the person who will actually handle your file.
No UAE-wide rule sets what a formation contract must contain, so these are practical checks rather than legal requirements. They are worth insisting on because, without them, a dispute becomes your word against a sales conversation.
What are the red flags with a business setup consultant?
The common red flags are pressure to pay a deposit before a written quote, a price far below every other quote with no itemisation, a licence that does not match the contract name, and vague answers about who does the work. None proves wrongdoing alone; two or three together are enough to walk away.
- Payment to a personal account or a different company. Pay only to an account in the licensed firm's name.
- Guaranteed approvals or bank accounts. Authorities and banks decide; an agent cannot promise the outcome.
- No named contact. If you cannot say who handles your file, nobody is accountable for it.
- Documents held back. You should receive the licence, the Memorandum of Association and the registration papers in your name.
Qawi does not rank or review other firms here, and this list does not say any particular provider has these problems. It describes how to test any provider the same way.
What most guides don't tell you
A valid licence and a good provider are different questions. The licence search proves the authority has the firm on record and can trade. It says nothing about response times, mistakes or what happens at renewal, so ask for a reference you can phone and ask how many renewals the firm handled for clients last year; if the answer is evasive, treat that as information.
The agent is often a reseller, and that is not a problem if the contract says so. Many formation agents sell a free zone or mainland licence that the authority issues in your name. That is normal, but you should know whether the agent or the authority holds your documents, and whether the agent is your contact for renewals. The licence in your company's name should show your company, not the agent, as the licensee. This follows from how licences are issued rather than from a published rule, so confirm it with the issuing authority.
Check what your company is registered for, not just who sold it. Once your company exists, the business owner's own obligations start: corporate tax registration, VAT if the threshold is met, and visa and licence renewals. An agent that only forms the company and disappears leaves these to you. If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company.
Rely on the portal, not a screenshot. A licence copy sent by email or chat can be out of date or edited. Search the number yourself on the authority's portal and compare the result.
Which deadlines apply to your company?
Choosing a formation agent is the first compliance decision; the deadlines that follow it are the ones that cost money when missed. Qawi's free calendar shows your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file: get your UAE compliance calendar.
Frequently asked questions
Are there hidden fees in UAE company formation packages?
Packages can leave out costs that arrive later, such as visa-related charges, an office or flexi desk upgrade, bank account opening or renewal fees. Ask for every line itemised, with government charges marked, and for the year-two renewal price in writing.
What questions should I ask a business setup consultant before paying?
Ask for the licence number and issuing authority, the exact entity that signs the contract, an itemised fee list with exclusions, the refund position if the application is rejected, and the name of the person who will handle your file. Then verify the licence yourself on the issuing authority's portal.
What are the ongoing costs after setting up a UAE company?
Ongoing costs usually include licence renewal, any office or flexi desk fees, visa renewals for each person sponsored, and accounting and tax compliance. The amounts depend on the licence type and free zone or emirate, so get the renewal schedule from the issuing authority and your agent before you commit.
About Qawi
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- u.ae: Verify business licences
- u.ae: National Economic Register
- Invest In Dubai: Search license information
- FTA: Tax Agent Registration
- FTA: Specialised Tax Agent service
Last checked: 10 October 2026
This is general information, not tax or legal advice for your specific situation.