10 Apr 2025
By Vista CorpWhy Start a Business in Dubai?
Dubai is no longer just a city of luxury skyscrapers and lavish lifestyles—it’s now a serious player on the global business stage. In recent years, it has emerged as one of the most attractive destinations for entrepreneurs, startups, and international corporations looking to tap into new markets. With its future-focused government policies, low taxation environment, and strategic location, Dubai provides more than just a good idea—it offers a thriving ecosystem where that idea can grow. The city is renowned for its efficient business regulations, supportive infrastructure, and investor-friendly approach, making it easy for both locals and foreigners to start and expand their ventures.
What’s more, Dubai has developed sector-specific Freezones that cater to everything from tech startups to logistics and media businesses. The city’s strong digital infrastructure, stable political climate, and open economy give entrepreneurs the tools they need to launch and scale quickly. Whether you’re a freelancer, a founder with global ambitions, or a business owner looking to access Middle Eastern markets, Dubai offers a unique blend of opportunity, stability, and innovation. For those who plan wisely and act decisively, Dubai can become the launchpad for long-term success. So if you’re considering doing business in the UAE, there’s no better time—or place—to begin your journey than right here in Dubai.
Strategic Location
Dubai’s geographic location is one of its strongest business advantages. Situated at the heart of the Middle East, the city acts as a natural bridge between the East and West. Strategically nestled between Europe, Asia, and Africa, Dubai offers seamless access to over 2 billion consumers across these continents. This makes it an ideal hub for import-export businesses, logistics companies, and international firms seeking to serve multiple markets from a single, central location.
Dubai is connected to the rest of the world through world-class air and sea infrastructure. The city is home to Dubai International Airport (DXB)—one of the busiest airports for international passenger traffic—and Al Maktoum International Airport (DWC), which is rapidly expanding its cargo handling capabilities. On the maritime side, Jebel Ali Port is the largest seaport in the Middle East and among the top ten busiest ports globally. These advanced logistics channels enable businesses to move goods quickly and efficiently, whether they’re shipping to Saudi Arabia, Europe, Africa, or Asia.
Furthermore, Dubai’s time zone (GMT+4) allows overlapping business hours with major global markets including London, Mumbai, Singapore, and Hong Kong. This is a significant advantage for international trade, financial services, and global customer support operations. Combined with its stable government, investor-friendly regulations, and multilingual workforce, Dubai’s location is not just convenient—it’s strategically powerful for global business expansion.
Zero Personal Income Tax
One of the most appealing reasons to start a business in Dubai is its tax-friendly structure—particularly the absence of personal income tax. Unlike many countries where individuals are taxed heavily on their salaries, business profits, or dividends, Dubai offers complete tax exemption on personal income. Whether you’re an entrepreneur drawing profits from your business or a salaried individual working in the UAE, you retain 100% of your income. This gives business owners more room to reinvest, grow faster, and enjoy a higher standard of living without the burden of income tax deductions.
For business owners operating in Freezones, the tax benefits often extend even further. Many Freezones offer corporate tax exemptions for up to 15–50 years, depending on the jurisdiction and the type of activity. Even with the introduction of a 9% federal corporate tax in 2023, businesses earning less than AED 375,000 in annual profits remain exempt—making it ideal for startups and small enterprises in their early stages. And even for larger companies, Dubai’s corporate tax rate is still among the lowest globally.
Additionally, there’s no capital gains tax, no withholding tax on dividends or royalties, and no restrictions on profit repatriation. This kind of tax regime not only makes Dubai financially attractive—it also simplifies accounting, improves cash flow, and reduces compliance costs. Simply put, Dubai rewards entrepreneurs by letting them keep more of what they earn.
100% Foreign Ownership
Until a few years ago, foreign investors looking to establish a business in Dubai’s mainland were required to partner with a UAE national, who would typically hold a 51% ownership stake. This arrangement created uncertainty for many international entrepreneurs who wanted complete control over their business. But in 2021, a major policy shift changed everything. The UAE government passed reforms allowing 100% foreign ownership of onshore (mainland) businesses in most sectors—without the need for a local Emirati sponsor.
This reform has dramatically increased investor confidence and made Dubai one of the easiest places in the region to establish a company with full control. Now, international entrepreneurs can register and operate businesses in the mainland just as easily as locals. This includes industries like retail, consulting, technology, e-commerce, and manufacturing, although some strategic sectors like oil, defense, and banking may still require local partnerships.
The benefit goes beyond just control—it means you also own 100% of the profits, can make independent strategic decisions, and don’t need to share business equity unless you choose to. This reform has removed a major barrier to entry for foreign investors and helped fuel a new wave of international businesses relocating to or expanding into Dubai.
Whether you’re a startup founder, digital nomad, or global enterprise, 100% ownership gives you peace of mind and true freedom to build your business your way.
Ease of Doing Business
Dubai consistently ranks as one of the top global cities for ease of doing business, and for good reason. The city’s leadership has prioritized creating a business environment that is efficient, digital-first, and welcoming to international entrepreneurs. From the moment you decide to start a business here, you’ll find that processes are streamlined and designed to minimize red tape. In fact, many Freezones can issue a business license in just 1–3 working days, and you can even register your company remotely from anywhere in the world.
Government services in Dubai are heavily digitized. Most applications—from trade license issuance and visa processing to utility registration and tax filing—can be done online or through user-friendly government portals. There’s no need to stand in long queues or go through excessive paperwork. The Department of Economic Development (DED), Freezones, and various public departments are integrated in a way that reduces bureaucracy and simplifies approvals.
Additionally, business registration is supported by clear legal frameworks, multilingual service centers, and a highly responsive support system. The flexibility in choosing between different jurisdictions (Mainland, Freezone, or Offshore) gives you options tailored to your business needs. Whether you’re a solo entrepreneur or a multinational corporation, Dubai’s pro-business regulatory structure and service delivery make the entire process smoother and faster.
This operational efficiency allows founders to focus less on paperwork and more on growing their ventures—a key reason why Dubai continues to attract businesses from over 150 countries.
World-Class Infrastructure
Dubai is not just business-friendly in its policies—it’s physically built for business success. The city boasts world-class infrastructure that rivals the most developed cities globally. From its state-of-the-art road networks and public transport systems to advanced digital connectivity and futuristic office spaces, Dubai’s infrastructure has been carefully developed to support business growth and innovation at every level. One of the most compelling features for entrepreneurs is the wide availability of commercial spaces. Whether you need a flexi-desk, a private office, or a full-fledged warehouse, Dubai offers scalable options across its numerous Freezones and business parks. Areas like Dubai Internet City, Dubai Silicon Oasis, and Business Bay are designed with startups, tech firms, and SMEs in mind—equipped with high-speed internet, secure utilities, and access to coworking environments that foster collaboration and creativity.
Logistics infrastructure is another strength. Dubai is home to major logistics hubs such as Jebel Ali Freezone (JAFZA) and Dubai Airport Freezone (DAFZA), which offer world-class facilities for storage, shipping, and distribution. With two of the region’s busiest airports and one of the largest seaports, businesses can efficiently move goods across continents in record time. On top of that, Dubai is a leader in smart city innovation, with cutting-edge digital systems, AI integration, and paperless government initiatives. This technological edge significantly boosts efficiency and minimizes operational hurdles for businesses of all sizes. In short, whether you’re running a digital startup or a global logistics company, Dubai’s infrastructure gives you the tools to scale and thrive.
Types of Business Setups in Dubai
Before you can officially launch your business in Dubai, one of the most crucial decisions you’ll make is choosing the right type of business setup. Dubai offers three main types of company formations: Mainland, Freezone, and Offshore. Each comes with its own benefits, restrictions, and legal frameworks—so understanding the differences is key to making the right choice based on your business model, target market, and operational needs.
A Mainland Company is licensed by the Department of Economic Development (DED) and allows you to do business anywhere in the UAE and internationally. It offers flexibility to operate across Emirates and participate in government contracts. With the 2021 reforms, most sectors now permit 100% foreign ownership, removing the need for a UAE national partner in many cases. Mainland setups also allow an unlimited number of visas (based on office space size) and are ideal for businesses planning to serve UAE-based clients directly.
A Freezone Company is registered in one of Dubai’s more than 40 specialized Freezones. These are economic areas created to attract foreign investors by offering benefits like 100% foreign ownership, corporate tax holidays, and customs exemptions. Freezones are best suited for companies focusing on international business, digital operations, or niche industries like tech, media, or logistics.
An Offshore Company, on the other hand, is meant solely for conducting business outside the UAE. It offers total privacy, asset protection, and no physical office requirements—perfect for international investors or holding structures.
Choosing the right setup ensures smooth operations, legal compliance, and long-term scalability.
1. Mainland Company Setup In Dubai
Setting up a mainland company in Dubai means your business will be licensed by the Department of Economic Development (DED), granting you the legal authority to operate across the UAE and internationally without any geographic restrictions. Unlike Freezone companies, which are often limited to doing business within their zone or through agents, mainland businesses have the flexibility to deal directly with clients anywhere in the Emirates and bid for government contracts—a major plus for service providers and large-scale companies. A key advantage following the 2021 reforms is the allowance of 100% foreign ownership in most sectors, eliminating the previous requirement of having a UAE national as a majority partner. This has significantly boosted investor confidence and opened the doors for full control and profit retention.
Mainland setups also offer the benefit of unlimited visa quotas, but the actual number of visas you can apply for is tied to the size of your physical office space. This makes it important to plan your office lease based on your growth projections. Additionally, mainland businesses can expand branches across different Emirates without needing separate licenses. However, one mandatory requirement is having a physical office space—virtual or shared desks are not permitted. The DED also imposes slightly more regulatory oversight compared to Freezones, which may mean more compliance responsibilities but also higher credibility, especially for B2B companies working with local clients or government entities.
In summary, a mainland company is the best choice for businesses aiming to serve the local UAE market comprehensively.
2. Freezone Company Formation
A Freezone company in Dubai is one of the most popular choices for entrepreneurs, startups, and international businesses seeking a cost-effective and flexible setup. Free Zones are specially designated economic areas created to attract foreign investment by offering a variety of incentives. There are more than 40 Free Zones across the UAE, each focused on specific industries like media, logistics, fintech, healthcare, education, and more. These zones operate with their own regulatory authorities and provide business-friendly environments with minimal bureaucratic interference. The biggest benefit? 100% foreign ownership is guaranteed—no local sponsor or partner is required, and all profits can be repatriated without restriction. Most Free Zones also offer corporate tax holidays ranging from 15 to 50 years, customs duty exemptions, and zero import/export tax for trade conducted within the Freezone or internationally. Some zones, such as IFZA or SHAMS, even offer license packages starting at just AED 8,050, making it an ideal choice for first-time founders and solo entrepreneurs.
Another major advantage is speed and convenience. Many Free Zones issue trade licenses in as little as 1–3 working days and offer flexible office solutions such as shared desks, virtual offices, and private offices. Some even include visa allocations in their packages. The main limitation? Freezone companies cannot trade directly with the mainland UAE unless they appoint a local distributor. But if your business is export-focused, online-based, or primarily serves clients outside the UAE, a Freezone setup is often the smartest and most budget-friendly route.
3. Offshore Company Setup
An Offshore company setup in the UAE is ideal for entrepreneurs and investors who want to manage international operations, protect assets, or reduce tax burdens—without physically operating within the UAE. Unlike mainland and Freezone setups, offshore companies are not allowed to conduct business within the UAE domestic market. Instead, they’re typically used for holding assets (such as real estate or intellectual property), opening multi-currency corporate bank accounts, conducting international trade, or serving as investment vehicles.
One of the most attractive features of offshore companies is 100% foreign ownership, with no requirement for a physical office space, no minimum capital, and no requirement for a visa. This significantly reduces startup and operating costs. Offshore companies also benefit from strong privacy protections—shareholder information is not made public, and most jurisdictions offer nominee director and shareholder services for additional confidentiality.
Popular offshore jurisdictions in the UAE include RAK ICC (Ras Al Khaimah International Corporate Centre) and JAFZA Offshore (Jebel Ali Free Zone Authority). These zones are internationally recognized and well-respected in global banking and financial networks. Offshore companies are governed by their own set of corporate laws, which are generally aligned with international standards. This setup is particularly favored by high-net-worth individuals, global traders, consultants, and international investors looking for asset protection, tax optimization, and a simplified regulatory environment.
Legal Structures for Businesses in the UAE
Choosing the right legal structure is one of the most important decisions you’ll make when setting up a company in Dubai. Your choice will determine how your business operates, who can own it, how much liability you carry, and what kind of documentation or approvals you’ll need. It also affects your ability to raise capital, your tax responsibilities, and your eligibility for visas or bank accounts.
The UAE offers a range of legal entity types to suit different business models and ownership preferences. The most common structures include: Sole Establishment (or Sole Proprietorship), Limited Liability Company (LLC), Civil Company, and Branch of a Foreign Company. Each comes with its own advantages and limitations based on your industry, nationality, and whether you’re registering in the mainland or a Freezone.
For solo entrepreneurs or consultants, a Sole Establishment offers full ownership and direct control but comes with unlimited personal liability. An LLC, on the other hand, is the most versatile structure, allowing multiple shareholders and offering limited liability, making it ideal for small-to-medium enterprises that want to operate across the UAE.
If you’re a professional—like a doctor, engineer, or lawyer—a Civil Company allows 100% ownership within your field, though liability remains unlimited. And for international companies looking to expand into Dubai without creating a new entity, opening a Branch Office offers full foreign ownership, although local representation might be required. Selecting the right legal structure isn’t just a legal formality—it’s a foundational step that shapes how your business is built and grown.
1. Sole Establishment (Sole Proprietorship)
A Sole Establishment, also known as a Sole Proprietorship, is a business structure where the company is owned and operated by a single individual. It’s one of the simplest and most cost-effective ways to set up a business in Dubai—especially for solo entrepreneurs, consultants, freelancers, and professionals offering services under their own name. This legal form allows for 100% ownership and gives the owner full control over decision-making, business profits, and operations.
The structure is particularly common among those providing professional or service-based activities such as coaching, marketing, legal advice, IT consultancy, or training. However, there’s a key factor to consider: the business and the owner are legally considered the same entity. This means the owner is personally liable for all financial obligations, debts, and legal issues related to the business. If the business incurs losses or faces legal claims, the owner’s personal assets could be at risk.
To set up a Sole Establishment, expatriates may need to apply for special approvals depending on their activity and licensing authority. In some cases, a Local Service Agent (LSA) is required—this is not a shareholder but a UAE national appointed to liaise with government departments on your behalf.
Despite its liability risk, this structure remains a preferred option for independent professionals who want to retain full control and keep startup costs low. It’s simple, fast to register, and perfect for low-overhead businesses that don’t require external investors or complex ownership models.
2. Limited Liability Company (LLC)
A Limited Liability Company (LLC) is the most popular and flexible legal structure for businesses operating in the UAE mainland. It’s ideal for both small and medium enterprises (SMEs) and larger firms looking to serve the local UAE market as well as international clients. The defining feature of an LLC is that it provides limited liability protection—meaning shareholders are only responsible for the company’s debts or obligations up to the amount of capital they invest. This separates your personal assets from business liabilities, offering an essential safety net for entrepreneurs.
An LLC in Dubai can have between 1 to 50 shareholders, which makes it a good fit for single investors, partnerships, or families running a joint venture. Thanks to the 2021 foreign ownership reform, most business activities now allow 100% foreign ownership, eliminating the need for a local Emirati partner in many sectors. This has significantly increased investor freedom and trust in the system.
Another key advantage is that an LLC can freely operate across all Emirates, deal with government contracts, and lease office space anywhere in the UAE. It also allows for multiple employee visas, making it a great structure for growing teams.
Although it requires more paperwork and formalities than a Sole Establishment, an LLC adds credibility, protects your liability, and opens the door to long-term scalability. It’s a preferred choice for trading businesses, consultancies, retail outlets, restaurants, manufacturers, and virtually any service-based operation.
3. Civil Company
A Civil Company is a legal structure in the UAE specifically designed for professionals who want to offer specialized services under a partnership model. It’s commonly used by individuals in fields such as healthcare, engineering, law, consultancy, or accounting—essentially, sectors that require licensed expertise. The defining trait of a Civil Company is that it must be formed by two or more partners in the same professional field, although in some cases, solo professionals may also apply.
One of the biggest advantages of a Civil Company is the allowance of 100% foreign ownership, even in the mainland. Foreign professionals can fully own and operate their business without needing a local sponsor as a shareholder. However, they are typically required to appoint a Local Service Agent (LSA)—a UAE national who does not own equity or interfere in business operations but serves as a government liaison for certain legal and regulatory matters.
The downside to consider is unlimited liability. In a Civil Company, the partners are personally liable for the debts and obligations of the business. That means if the business incurs losses or legal issues, your personal assets may be at risk. For this reason, civil companies are usually recommended for seasoned professionals who have a solid grasp of the local market and manageable financial risk.
4. Branch of a Foreign Company
If you’re an international business looking to expand into the UAE without creating a completely new legal entity, opening a Branch of a Foreign Company is an ideal solution. This structure allows your overseas company to set up a physical presence in Dubai while maintaining full ownership and operational control. Unlike other types of legal setups, a branch office is not considered a separate legal entity—it’s treated as an extension of the parent company. This means that all liabilities, profits, and responsibilities fall under the parent firm.
One major benefit of this model is that it allows you to conduct the same business activities in the UAE that your parent company is licensed to do abroad—provided they are approved by the relevant authorities in Dubai. Whether it’s a consulting firm, a tech company, or a manufacturing group, the branch can engage in full commercial activity, issue invoices, and open corporate bank accounts.
If your branch is set up in the mainland, you’ll need to appoint a Local Service Agent (LSA)—a UAE national who handles government paperwork but holds no ownership or operational control. If registered in a Freezone, this may not be necessary depending on the zone’s regulations.
Setting up a branch is perfect for large corporations or global SMEs that want to test the UAE market without incorporating a new business. It also builds brand consistency, as you continue operating under the same name and governance model as your head office abroad.
Comparison Table: Legal Structures at a Glance
| Structure | Ownership | Liability | Best Suited For | Jurisdiction |
| Sole Establishment | 100% (UAE national or expat with approval) | Unlimited (personal liability) | Freelancers, consultants, solo professionals | Mainland |
| Limited Liability Company (LLC) | 100% (in most sectors post-2021) | Limited to capital invested | Traders, service businesses, SMEs | Mainland |
| Civil Company | 100% (for professionals in same field) | Unlimited (joint liability) | Doctors, engineers, lawyers, consultants | Mainland |
| Branch of Foreign Company | 100% by parent company | Parent company liable | International companies expanding to the UAE | Mainland / Freezone |
Step-by-Step Guide to Company Formation in Dubai
Setting up a company in Dubai has never been more streamlined, thanks to the UAE government’s continued push toward ease of doing business. However, having a clear roadmap can help you avoid delays, confusion, and hidden costs. Whether you’re setting up in the mainland, a Freezone, or offshore, the steps typically follow a similar structure—with some variations depending on jurisdiction and activity type.
Here’s a simplified step-by-step breakdown:
1. Choose Your Business Activity
Dubai offers 2,000+ licensed activities across sectors like trade, services, education, and tech. Your chosen activity affects your license type and the need for special approvals.
2. Select Jurisdiction
Decide between Mainland (DED license), Freezone (e.g., IFZA, RAKEZ), or Offshore (RAK ICC, JAFZA). Each has different rules, costs, and trading permissions.
3. Pick a Legal Structure
Choose a Sole Establishment, LLC, Civil Company, or Foreign Branch based on your goals, risk tolerance, and ownership preference.
4. Reserve Your Trade Name
Submit name choices aligned with your activity and UAE naming conventions. Avoid religious or political references.
5. Apply for Initial Approval
This is a NOC from the authority stating they have no objection to your business plan. It’s not your final license.
6. Lease Office or Register a Flexi Desk
Mainland businesses must lease a physical space (Ejari). Freezones offer virtual and shared desk options. Offshore has no space requirement.
7. Submit Documents & Pay Fees
After document submission and payment, you’ll receive your trade license, Chamber of Commerce certificate, and MoA.
8. Open a Corporate Bank Account
Prepare for KYC checks. Choose a bank that fits your profile (Emirates NBD, RAKBank, WIO, etc.).
9. Apply for Visas (Optional)
You can now apply for investor, employee, or family visas.
Step 1: Choose Your Business Activity
Before you can apply for a license or even reserve a trade name, you need to clearly define your business activity—and this is not just a formality. In Dubai, all companies must select from a pre-approved list of over 2,000 business activities that cover everything from trading and retail to consulting, manufacturing, e-commerce, and tech services. This decision will directly influence which license category you fall under—commercial, professional, or industrial—and what kinds of operations your company is legally allowed to carry out.
For example, if you want to run an online store, you’ll need to list “e-commerce” or “online trading” as your core activity. If you’re offering marketing services, you’ll need to register under a “professional license” with that specific activity approved by the relevant authority, such as the Department of Economic Development (DED) or a Freezone authority like IFZA or RAKEZ.
Some activities—especially in finance, education, healthcare, and media—may require additional approvals from specialized regulatory bodies such as the KHDA, Central Bank, or Media Council. It’s also important to select all the activities you might offer from day one; adding new ones later can involve additional fees and paperwork.
Step 2: Select the Jurisdiction
Once you’ve finalized your business activity, the next critical step is to choose the right jurisdiction for your company: Mainland, Freezone, or Offshore. This decision affects everything from your trading rights to cost, office requirements, visa quotas, and tax exposure—so it’s important to align this choice with your business model and goals.
- A Mainland setup (licensed by the Department of Economic Development or DED) allows you to trade freely anywhere within the UAE and internationally. It’s the ideal choice if your business involves local clients, retail operations, or government contracts. You can also lease office space anywhere in Dubai and apply for unlimited visas, depending on office size.
- A Freezone setup is more cost-efficient and comes with perks like 100% foreign ownership, tax holidays, and customs exemptions. However, Freezone companies cannot directly trade with the UAE mainland unless they appoint a local distributor. This is best for export-driven businesses, e-commerce, tech startups, or consultants serving overseas clients.
- An Offshore setup is purely for international business. It’s ideal for asset holding, global investments, or online consulting. You can’t lease office space or apply for UAE visas, but you’ll benefit from confidentiality, zero taxes, and easy international banking.
| Jurisdiction | UAE Trade Allowed | 100% Foreign Ownership | Office Required | Tax Benefits |
| Mainland | Yes | Yes (most sectors) | Yes | Moderate |
| Freezone | No (unless via agent) | Yes | Optional | High |
| Offshore | No | Yes | No | High |
Step 3: Choose the Legal Structure
After selecting your jurisdiction, it’s time to choose your legal structure—a step that shapes your ownership rights, profit distribution, personal liability, tax obligations, and how your business is recognized by banks, government entities, and investors. The legal structure must align with your business activity and chosen jurisdiction (Mainland, Freezone, or Offshore), and some structures are only available in specific zones.
The most popular option is the Limited Liability Company (LLC), which offers protection of personal assets and flexibility in ownership. LLCs can have 1 to 50 shareholders and are suitable for a wide range of businesses including trading, retail, services, and manufacturing. In most sectors, 100% foreign ownership is now permitted.
A Sole Establishment is best for independent professionals or freelancers offering service-based activities. While it’s simple to set up and gives you full control, it also means you bear unlimited personal liability.
Professionals like doctors, engineers, or consultants who are entering into partnerships may choose a Civil Company. This structure allows 100% foreign ownership but does not protect partners from financial liability.
Step 4: Reserve a Trade Name
Your trade name is more than just a label—it’s your business identity in the UAE. It must align with your chosen activity and follow specific naming rules outlined by the licensing authority (whether it’s DED, a Freezone, or an Offshore registrar). In this step, you’ll submit your preferred company name(s) for official approval and reservation.
The trade name must be unique, relevant to your business activity, and must not duplicate or closely resemble existing registered names. It should avoid any offensive or blasphemous language and must not reference political or religious entities. For example, names containing terms like “bank,” “government,” or “Emirates” often require additional approvals or are outright restricted.
If you’re planning to use your personal name as your trade name (e.g., “John Smith Consulting”), you must include both the first and last name—initials alone won’t be accepted. You can also choose to add a legal suffix like LLC, FZE, or DMCC based on your structure and jurisdiction.
Once approved, the name is typically reserved for up to 60 days, during which time you should complete the remaining steps in the company setup process. Some Freezones include name reservation in their license packages, while others may charge an additional fee (usually around AED 600–700 in the mainland).
Step 5: Apply for Initial Approval
The Initial Approval Certificate is a formal confirmation from the UAE authorities stating that they have no objection to your proposed business setup. It’s an essential document in the company formation process—but it’s not your final trade license. Think of it as a green light to move forward with the remaining steps like finalizing office space, preparing legal documents, and applying for the full license.
To apply, you’ll typically need to submit the following documents:
- Copies of all shareholders’ and managers’ passports
- Your reserved trade name certificate
- Description of your intended business activity
- Chosen legal structure (e.g., LLC, Sole Establishment)
- UAE residency visa or entry stamp (if applicable)
- No Objection Certificate (NOC) from your current sponsor, if you’re already on a UAE residence visa
In most Freezones, the process is digital and takes just 1–3 working days. For mainland companies, the Department of Economic Development (DED) will issue the certificate, and some regulated activities may require additional approvals from external authorities (e.g., KHDA for education, DHA for healthcare, etc.).
The Initial Approval is usually valid for six months, giving you ample time to complete the next steps such as leasing an office and submitting your MoA. Delays beyond this period may require a renewal or reapplication.
Step 6: Lease Office Space or Register a Flexi Desk
Once you have your initial approval, the next critical step is to secure a physical address for your business—because in the UAE, every company must have a registered office location, even if you’re not operating from a traditional workspace. Your choice of office depends largely on your jurisdiction, budget, and visa requirements.
For Mainland companies, leasing a physical office is mandatory. The lease must be registered with Ejari, the official real estate regulatory system in Dubai. The size of your office will directly influence how many employee visas you’re eligible to sponsor—typically, every 80–100 square feet qualifies for one visa. So if you plan to grow your team, factor this into your leasing decision.
In contrast, Freezones offer more flexibility. Many allow you to operate from shared facilities like flexi-desks, co-working spaces, or virtual offices. These options are especially useful for startups and solopreneurs looking to minimize overhead costs. Some Freezones bundle a shared desk and license together in a package starting from AED 12,500 to AED 15,000 annually, which includes trade license and one visa allocation.
Offshore companies are not allowed to lease physical premises within the UAE. They are typically registered using the address of their registered agent.
Step 7: Submit All Documents & Pay Fees
With your initial approval secured and your office space or flexi-desk confirmed, it’s time to complete the formalities by submitting all required documents and paying the relevant government and licensing fees. This is the stage where your business setup becomes official, and once approved, you’ll receive your Trade License, along with other vital documents that legally authorize you to operate in Dubai.
Here’s what you’ll typically need to submit:
- Signed office lease agreement (Ejari for mainland or lease/flexi-desk contract for Freezone)
- Passport copies of all shareholders and managers
- Initial Approval Certificate
- Trade name reservation certificate
- Completed license application form
- Passport-size photos (white background)
- MoA (Memorandum of Association) and LSA agreement (if applicable)
- NOC from sponsor (if required)
Once your application is processed—usually within 1 to 5 business days—you will receive:
✅ Trade License
✅ Chamber of Commerce Certificate
✅ Memorandum of Association (MoA)
✅ Company Incorporation Certificate (in Freezones or Offshore setups)
The total fee will depend on your jurisdiction, number of shareholders, license type, and visa allocation. Mainland setups generally cost between AED 15,000–25,000, while Freezone packages start as low as AED 12,500.
Step 8: Open a Corporate Bank Account
Now that your trade license has been issued, the next important step is to open a corporate bank account—a requirement for running any business legally in the UAE. Whether you’re invoicing clients, receiving international payments, or paying staff, a business account gives you the credibility and functionality needed to operate efficiently.
Opening a bank account in the UAE, however, is often more complex than in other countries due to strict Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Banks will evaluate your business activity, ownership structure, source of funds, and the nature of your transactions before approving your application.
You’ll need to prepare the following:
- Trade license
- MoA (for LLCs) or Incorporation Certificate (for Freezone/Offshore)
- Passport copies of all shareholders
- Emirates ID and residency visa (if available)
- Business plan or projected financials (some banks may require it)
- Utility bill or proof of address
- Company stamp
Some of the most business-friendly banks in the UAE include Emirates NBD, Mashreq, RAKBANK, WIO, and ADIB. New digital banks like Zand and WIO are especially fast for startups and Freezone entities.
Step 9: Apply for Visas (Optional)
Once your company is fully licensed and your bank account is in process or opened, you can move forward with applying for residency visas—either for yourself (as the business owner), your employees, or even your family members. While this step is technically optional, it’s a key advantage of setting up a business in Dubai, especially if you plan to live in the UAE or hire staff locally.
Every business license comes with a visa quota, which defines how many visas your company is eligible to issue. In the mainland, this quota is tied directly to the size of your physical office space (more square footage = more visas). In Freezones, many packages come with 1 to 6 visa allocations included.
The visa process typically involves:
- Entry Permit Issuance
- Medical Fitness Test
- Emirates ID Registration
- Residency Visa Stamping in Passport
Types of visas you can apply for:
- Investor/Partner Visa (for company owners)
- Employee Visa
- Dependent Visa (for sponsoring family)
Visa validity is usually 2 years (mainland) or 3 years (Freezone), depending on jurisdiction. Some Freezones also offer special packages with lifetime investor visas or discounted visa renewals.
Optional: Register for VAT (If Applicable)
While not every business in Dubai is required to register for Value Added Tax (VAT), it becomes mandatory once your company’s annual turnover exceeds AED 375,000. If you anticipate hitting that threshold—or want to deal with VAT-registered clients and suppliers—it’s a smart idea to understand your VAT obligations early on.
The UAE introduced VAT in 2018 at a standard rate of 5% on most goods and services. Businesses that meet the minimum revenue criteria must register with the Federal Tax Authority (FTA) and obtain a Tax Registration Number (TRN). This number is used for issuing VAT-compliant invoices, filing tax returns, and reclaiming input VAT on business expenses.
Here’s what’s typically needed to register:
- Trade License copy
- Emirates ID and passport copies of owner(s)
- Company bank account details
- Lease agreement (Ejari or Freezone contract)
- Financial projections or actual revenue records
- Description of business activities
VAT registration is done online through the FTA portal, and approval usually takes 5–10 working days. Once registered, you’ll be required to file VAT returns quarterly and maintain accurate financial records.
Documents Required for Company Registration in Dubai
While Dubai’s business setup process is fast and streamlined, having your documentation in order is critical for a smooth and successful registration. Depending on your chosen jurisdiction (Mainland, Freezone, or Offshore) and legal structure, the exact documents may vary slightly—but the core requirements remain similar across the board.
Here’s a list of the most commonly required documents:
1. Passport Copies
Each shareholder, director, and manager must provide a clear, valid passport copy. Ensure the passport is valid for at least 6 months from the date of submission.
2. Visa or Entry Stamp
If you’re already in the UAE, include a copy of your residence visa, visit visa, or entry stamp. Tourists can still register a company, but certain mainland activities may require local representation.
3. Passport-Sized Photos
Recent photos (white background, high resolution) are needed for immigration records, Emirates ID, and visa applications.
4. Business Plan (For Some Free Zones)
Free Zones offering consultancy, fintech, or education-related licenses often require a basic business plan. This should include your activity, revenue model, market focus, and founder bios.
5. No Objection Certificate (NOC)
If a shareholder is employed in the UAE under another sponsor, a NOC from that employer is required—unless you’re registering in a Freezone that waives this requirement.
6. Tenancy Contract / Ejari (Mainland Only)
Mainland companies must lease a physical office, and the lease must be registered with Ejari.
7. Memorandum of Association (MoA)
This outlines shareholder roles and company structure. Free Zones often provide templates, while mainland MoAs must be notarized.
Optional / Additional Documents & Summary Table
In addition to the standard documents, there are certain optional or situation-specific documents that may be requested based on your business structure, shareholder type (individual vs corporate), or jurisdiction-specific requirements. Submitting these correctly the first time can prevent costly delays or rejections.
Here are some of the most common additional documents:
- Board Resolution
Required if a corporate entity (rather than an individual) is investing as a shareholder. The resolution should authorize company formation in the UAE and nominate a representative.
- Articles of Association (AoA)
Applicable mainly for Free Zones and offshore companies, this document outlines internal company rules, decision-making processes, and shareholder rights.
- Power of Attorney (PoA)
If you appoint someone to act on your behalf during setup (like a business consultant or PRO), a notarized PoA is often necessary.
- Parent Company Documents
For foreign branch setups, additional documents from the parent company—including license, incorporation certificate, and board resolution—are required. These may need to be attested by the UAE embassy in the country of origin.
Summary Table: Company Registration Documents
| Document | Required For | Notes |
| Passport Copy | All setups | Valid for at least 6 months |
| Visa Copy / Entry Stamp | All setups | Shows UAE residency or entry status |
| Photos | All setups | Passport-sized, white background |
| Business Plan | Some Freezones | Especially for service/consultancy firms |
| NOC | Mainland (if employed) | Required from current sponsor |
| Tenancy / Ejari | Mainland | Proves physical office space |
| MoA | LLCs | Notarized in mainland; template in Freezone |
| Board Resolution | Branch / Corporate Shareholders | Authorizes setup |
| AoA | Some Freezones / Offshore | Internal operating rules |
| Power of Attorney | If using a representative | Notarized & attested |
Cost Of Setting Up A Business In Dubai
The cost of starting a business in Dubai can vary significantly depending on your chosen jurisdiction, license type, office space, and visa requirements. Fortunately, Dubai offers a range of pricing options—from affordable startup packages to comprehensive business solutions for larger enterprises.
At the most basic level, Freezone company setups start from as low as AED 5,750, particularly in zones like SPC Freezone (no visa). More complete packages that include a trade license, shared desk, and 1 investor visa typically start around AED 12,500 to AED 15,000. These are ideal for startups, consultants, and remote businesses looking to launch quickly with minimal overhead.
Mainland business setups, on the other hand, usually cost more because they involve additional components such as Ejari-registered office space, notarization of MoA, and government registration fees. A typical mainland license with one visa can range from AED 20,000 to AED 40,000+, depending on your activity, office size, and legal structure.
Offshore setups are the most affordable for international business purposes, ranging between AED 8,000 to AED 12,000, since they don’t require visas, office space, or local regulatory registrations.
General Cost Breakdown by Jurisdiction
When setting up a business in Dubai, your choice of jurisdiction—Mainland, Freezone, or Offshore—has a direct impact on your total startup costs. Each zone offers different pricing based on office requirements, visa eligibility, and regulatory involvement. Understanding this cost breakdown helps you make an informed decision aligned with your budget and business goals.
1. Mainland Company Setup
Starting Cost: AED 15,000 – AED 25,000
Includes trade license, name reservation, initial approvals, MoA notarization, and registration fees.
Office space (Ejari-registered) is mandatory and can range from AED 10,000 to 30,000/year depending on size and location.
Best for businesses serving the local UAE market or applying for government contracts.
2. Freezone Company Setup
Starting Cost: AED 12,500 – AED 20,000
Typically includes license, flexi-desk or virtual office, 1 investor visa, and basic admin support.
Many Freezones offer bundled packages to simplify the process.
Ideal for startups, consultants, remote businesses, and exporters who don’t need direct access to the UAE mainland market.
3. Offshore Company Setup
Starting Cost: AED 8,000 – AED 12,000
Includes company registration, certificate of incorporation, and registered agent fee. No visa or physical office included.
Perfect for international business, asset holding, and tax optimization.
| Jurisdiction | Starting Cost (AED) | Best For |
| Mainland | 15,000 – 25,000+ | UAE trade, full-scale local operations |
| Freezone | 12,500 – 20,000 | Startups, freelancers, online business |
| Offshore | 8,000 – 12,000 | Global trading, holding companies |
Common Business Setup Costs (Mainland Example)
Setting up a Mainland company in Dubai provides you with maximum flexibility to operate across the UAE, deal directly with local customers, and apply for government tenders. However, this flexibility comes with a more involved cost structure compared to Freezones. Let’s break down the key components that contribute to your total setup cost.
| Item | Estimated Cost (AED) |
| Trade License (Commercial/Professional) | 10,000 – 15,000 |
| Name Reservation | 620 |
| Initial Approval | 120 |
| MoA Drafting & Notarization | 1,500 – 2,000 |
| Office Lease (Ejari) | 10,000 – 30,000/year |
| Immigration Card (Establishment Card) | 750 |
| Investor Visa | 3,500 – 5,000 |
| Medical & Emirates ID | 1,000 – 1,200 |
In total, a standard Mainland setup with one visa and a modest office space can cost anywhere from AED 20,000 to AED 40,000+, depending on your choices. Larger offices or additional visas will naturally increase your expenses.
What Is A Low-Cost Business Setup In Dubai?
If you’re a startup, freelancer, or solo entrepreneur, the idea of starting a business in Dubai may sound expensive—but it doesn’t have to be. Thanks to the rise of startup-friendly Freezones, Dubai now offers several low-cost business setup options that allow you to legally operate with minimal overhead, while still benefiting from full foreign ownership and tax advantages.
Low-cost setups usually fall under Freezone jurisdictions and include budget-friendly packages that combine a business license, shared desk or virtual office, and visa allocation—all at a flat annual fee. These packages are ideal for service-based businesses, remote consultants, e-commerce sellers, and digital freelancers who don’t need physical retail space or large staff.
Examples of Affordable Freezone Packages:
| Freezone | Starting Price (AED) | Includes |
| IFZA | 12,900 | License + 1 visa + shared desk |
| SHAMS | 8,050 | License only (no visa) |
| RAKEZ | 11,200 | License + flexi-desk |
| Meydan | 13,500 | License + 1 visa + e-office |
These setups are often completed in 3–5 working days, with minimal documentation and flexible renewal terms. While they don’t allow direct mainland trading, they’re perfect for businesses focusing on online services, export markets, or international clients.
Additional Cost Considerations
While Dubai offers a variety of cost-effective business setup options, it’s important to plan for ongoing and supplementary costs that can significantly impact your budget over time. Many new entrepreneurs focus only on license fees but overlook the additional expenses that come with maintaining and running a fully compliant business in the UAE.
Bank Account Setup Fees
Although opening a corporate bank account is essential, some banks may charge a compliance or account activation fee, typically ranging from AED 500 to AED 2,000. Digital banks (like WIO or Zand) often charge less, while traditional banks may require minimum balance maintenance.
VAT Registration & Accounting
If your business exceeds AED 375,000 in annual revenue, VAT registration becomes mandatory. Setup costs for VAT registration and compliance (including quarterly filings) can start from AED 1,500 to AED 3,000 per year, depending on your accountant or service provider.
Corporate Tax (Effective June 2023)
Companies earning over AED 375,000 annually are subject to a 9% federal corporate tax. It’s wise to factor this into your long-term financial planning.
Annual License Renewal
Most business licenses must be renewed every year. Renewal fees typically range from AED 8,000 to AED 15,000, depending on the jurisdiction and whether you’re also renewing visas, office contracts, or corporate services.
Best Free Zones for Budget-Friendly Company Setup
Not all Freezones in the UAE are created equal. Some cater to large corporations with specialized licensing and premium office spaces, while others are tailored specifically to startups, freelancers, and small businesses looking for low-cost, hassle-free company formation. If you’re just starting out or want to minimize your upfront investment, choosing the right Freezone can save you thousands of dirhams—without compromising on support or credibility.
Here are some of the top Free Zones in 2025 offering value-for-money business setup packages:
1. IFZA (International Free Zone Authority – Dubai)
- Starting from AED 12,900
- Includes 1 visa and flexi-desk
- Allows multiple business activities under one license
- Located in Dubai Silicon Oasis
2. SHAMS (Sharjah Media City)
- License from AED 8,050 (no visa)
- Focus on media, marketing, and digital businesses
- 100% foreign ownership
3. RAKEZ (Ras Al Khaimah Economic Zone)
- License + flexi-desk from AED 11,200
- Broad sector coverage including industrial and services
- Generous visa quotas available
4. Meydan Freezone (Dubai)
- Packages from AED 13,500
- Includes 1 visa + e-office solution
- Located near Downtown Dubai
5. SPC Freezone (Sharjah Publishing City)
- Starting from AED 5,750 (license only)
- Visa packages available
- Fast issuance (within 24 hours)
Comparison Table: Budget-Friendly Free Zones in UAE (2025)
| Freezone | Starting Cost (AED) | Visa Allocation | Office Requirement | License Issuance Time | Best For |
| IFZA | 12,900 | Optional (1 included in base package) | No | 2–3 business days | Multi-activity licenses, digital services |
| SHAMS | 8,050 | Optional | No | 3–5 business days | Media, freelancers, creatives |
| RAKEZ | 11,200 | Yes (up to 6+) | Flexi-desk | 3–7 business days | Manufacturing, SMEs, industrial services |
| Meydan | 13,500 | 1 visa included | No | 1–2 business days | Professional address, consultants, traders |
| SPC | 5,750 | Optional | No | Within 24 hours | Startups, publishing, advisory firms |
Top Business Setup Consultants In Dubai
Setting up a business in Dubai is faster and easier than ever—but navigating licenses, approvals, visas, taxes, and banking can still be overwhelming, especially for first-time entrepreneurs or foreign investors. That’s where business setup consultants come in. These experts provide end-to-end guidance, ensuring you avoid delays, legal pitfalls, and unexpected costs.
A good consultant will help with:
- Choosing the right jurisdiction (Mainland, Freezone, Offshore)
- Selecting the appropriate license and legal structure
- Handling trade name reservation, document preparation, and submissions
- Coordinating with government departments for approvals
- Opening corporate bank accounts
- Managing visa processing, Emirates ID, and medical tests
- Providing ongoing support like license renewals, VAT registration, and PRO services
Benefits Of Hiring A Consultant
| BENEFIT | WHY IT MATTERS |
| Saves Time | No need to deal with multiple government departments |
| Expertise | Up to date with latest regulations and Freezone policies |
| Banking Support | Helps match you with the right bank for your business |
| Transparent Pricing | Avoid hidden fees and unclear government charges |
| Compliance | Reduces risk of legal errors or fines |
Top-Rated Business Setup Firms In Dubai
With so many consultants and agencies operating in Dubai, choosing the right business setup firm can be the difference between a smooth launch and a costly mistake. The best setup firms don’t just help you register a company—they act as strategic partners, offering transparent advice, tailored packages, and reliable aftercare. Whether you’re a solo entrepreneur or a global investor, it’s important to work with a team that understands your goals and provides localized expertise.
Here are some of the most well-known and trusted business setup companies in Dubai (note: always do your own due diligence before engaging):
1. Vista Corporate Group – Dubai
Vista Corporate Group is your one-stop destination for company formation, real estate, and financial services in Dubai. With tailored business setup solutions, expert consultancy, and unmatched support, Vista empowers entrepreneurs to launch and grow their ventures with ease.
💡 Key Features:
✅ Business licenses starting from AED 11,999
✅ Free residency visa included with select packages
✅ Mainland, Freezone & Offshore company setup options
✅ Dedicated support for banking, compliance & accounting
✅ 100% foreign ownership – no local sponsor required
📍 Location: Business Bay, Dubai
2. Creative Zone
One of the oldest and most recognized firms, Creative Zone is ideal for entrepreneurs looking for comprehensive support, including coworking spaces and incubation programs.
3. Virtuzone
Specializes in high-volume company formations with sleek processes and strong ties to Freezones like IFZA, Meydan, and DMCC.
4. Commitbiz
Offers a broad range of services including accounting, PRO, and offshore company formation. Great for international investors.
5. Adam Consulting
Focused on high-net-worth individuals, offshore structures, and tax planning. Excellent for more complex structures.
Conclusion
Salaries for business setup advisors in Dubai vary widely based on experience, qualifications, and the employing organization. It’s advisable for individuals to research specific companies and roles to obtain the most accurate and up-to-date salary information.
FAQs
1. How much does it cost to set up a business in Dubai?
Costs typically range from AED 12,500 to AED 40,000, depending on:
- License type (mainland, Freezone, offshore)
- Visa requirements
- Office space
- Additional services (like VAT registration, accounting)
Low-cost packages (with no visa) start from AED 5,750 in Free Zones like SPC.
2. How to start a service business in Dubai?
Here’s a simplified process:
- Choose your business activity (consulting, marketing, design, etc.)
- Pick a Freezone or Mainland license
- Submit required documents
- Get approvals and your license
- Apply for investor/employee visas (if needed)
- Open a business bank account
Service-based businesses are commonly set up as Sole Establishments or LLCs.
3. How much does a business setup advisor make in Dubai?
- Junior consultants earn: AED 6,000 – 10,000/month + commissions
- Senior advisors earn: AED 12,000 – 20,000/month + high commissions
- Experienced freelancers & agency partners can make AED 30,000+
It’s a high-demand profession, especially Q4–Q1 when new companies register for the next fiscal year.
4. Which business is most profitable in Dubai?
Based on 2025 trends:
- Real estate brokerage
- E-commerce
- Digital marketing
- Tourism and experience-based startups
- Business consultancy
Businesses that solve real needs (like banking, logistics, or digital services) see faster growth and ROI.
5. Is it hard to start a business in Dubai?
Not at all—if you have the right support.
✅ Dubai offers one of the fastest and most efficient business registration processes globally.
✅ Licenses in some Free Zones are issued in as little as 24–48 hours.
However, without expert help, entrepreneurs often:
- Choose the wrong jurisdiction
- Face delays in document approvals
- Struggle with bank account setup
6. What is the cost of an LLC in Dubai?
For a Limited Liability Company (LLC):
- Mainland LLC license: AED 15,000 – AED 30,000+
- Freezone LLC license: AED 12,500 – AED 25,000+
Add visa, MoA, and office costs depending on your setup.
LLCs are ideal for those who want flexibility, multiple visas, and local/international trade capability.
7. How much money is required to start a small business in the UAE?
✅ Minimum investment: AED 12,500 (Freezone with no visa)
✅ With 1 visa and address: AED 13,500 – AED 18,000
✅ Mainland setup with office: AED 20,000 – AED 40,000+
Start lean with a Freezone package if you’re bootstrapping. Upgrade later as your business grows.
