What Are Business Setup Services In Dubai?

24 Apr 2025

By Vista Corp

Introduction to Business Setup Services in Dubai

Starting a business in Dubai is a dream for many, and not without reason. The emirate has become a magnet for global entrepreneurs thanks to its zero personal income tax, strategic location, and pro-business laws. But while the city opens doors, navigating the setup process requires more than just ambition. That’s where business setup services come in. These services are designed to make your company formation journey smooth, compliant, and cost-effective. Think of them as the backstage crew making sure your spotlight moment goes off without a hitch. Whether you’re an expat setting up your first venture or a corporate group expanding into the UAE, these services are often the difference between delays and success.

In essence, business setup services in Dubai are end-to-end solutions offered by consultants who guide you through every step of establishing your company. This includes everything from choosing the right business activity and jurisdiction (mainland, free zone, or offshore), to handling complex documentation, liaising with authorities, and ensuring legal compliance. Dubai’s regulatory landscape is layered with rules set by multiple governing bodies – like the Department of Economic Development (DED), free zone authorities, and immigration departments. Without a reliable consultant or setup expert, you’re likely to hit bottlenecks or worse—miss legal obligations. According to a 2024 report by the UAE Ministry of Economy, more than 85% of foreign-owned businesses in Dubai were established with professional setup assistance. Why? Because while the UAE makes business easy, the backend processes can be detailed and technical, especially for newcomers.

In this comprehensive guide, we’ll break down:

• What business setup services really include
  
• The types of licenses and company structures
  
• Visa, banking, and office space solutions
  
• Actual costs and timelines
  
• Common FAQs, and
  
• How to choose the right consultant in 2025
  

Whether you’re planning to launch a startup, a freelance brand, or a multinational branch, this guide will walk you through every step of the Dubai company formation process—clearly, practically, and without the jargon.

What Do Business Setup Services Include?

Business setup services in Dubai are not just about helping you fill out a form or register a company. They’re a comprehensive suite of solutions designed to take care of everything that happens before, during, and after your company is officially launched. In a highly regulated economy like the UAE, each business type requires specific licenses, approvals, and processes—and that’s exactly where setup consultants shine.

Company Registration and Licensing

The first and most essential service is helping you register your business and secure a trade license. Depending on your business model, you’ll need to choose between:

• Mainland license – issued by the Dubai DED, allowing you to operate anywhere in the UAE.
  
• Free zone license – issued by specific authorities like IFZA, RAKEZ, or DMCC, with benefits like 100% foreign ownership and tax exemptions.
  
• Offshore license – best for holding companies, international trading, and asset protection.
  

Each type has its own set of rules, benefits, and limitations. Setup companies guide you in choosing the best jurisdiction based on your target market, budget, and activity.

They also assist in:

• Name reservation and approvals
  
• Drafting and notarizing Memorandum of Association (MOA)
  
• Coordinating with DED, Municipality, Ministry of Labor, and Immigration
  

Legal Structure Advisory

Choosing the right legal entity is crucial for liability protection, taxation, and expansion flexibility. Common structures include:

• LLC (Limited Liability Company)
  
• Sole Establishment
  
• Branch of a Foreign Company
  
• Civil Company for professional services
  

Business setup consultants assess your goals and recommend the most advantageous legal structure. For example, an LLC allows local market access but requires a UAE national sponsor unless in a 100% foreign-owned activity. Free zones, however, offer full ownership but restrict you from directly operating in the local market without a distributor.

Documentation and Approvals

Navigating UAE bureaucracy without help can be overwhelming. Setup service providers handle:

• Passport & visa copies
  
• Lease agreements
  
• Initial approval documents
  
• MOA & AOA preparation
  
• Tenancy contract (Ejari) if mainland
  

They also ensure compliance with industry-specific regulations—for example, tourism, food services, healthcare, or real estate—all of which require extra approvals from specialized departments.

Visa Services

Getting a business license is just the start. If you plan to work in the UAE, you’ll need the right visa. Setup firms help with:

• Investor visa application
  
• Employment visas for staff
  
• Dependent visas for family
  
• Emirates ID & medical fitness test
  

They also manage renewals and visa quotas, especially important for businesses hiring international teams.

Banking and Financial Services

Opening a corporate bank account in Dubai requires proper documentation, a solid business plan, and KYC compliance. Setup firms:

• Recommend the right banks (Emirates NBD, RAKBANK, ADCB)
  
• Help prepare business profiles and reference letters
  
• Guide you through compliance and security checks
  

Some even offer tie-ups with banks, fast-tracking the account opening process.

Office Space and Address Solutions

Depending on your license type, you may need to show proof of a physical office address. Setup companies offer:

• Co-working space
  
• Dedicated desks or executive offices
  
• Virtual offices (especially in free zones)
  
• Ejari registration for mainland companies
  

This is especially useful for startups and freelancers who want a credible business address without huge rent costs.

Ongoing PRO and Compliance Services

The journey doesn’t end after license issuance. You’ll need help with:

• Immigration and labor contract management
  
• VAT registration & quarterly filing
  
• Annual license renewals
  
• Corporate tax registration and filing (now mandatory in UAE)
  

Most consultants offer ongoing PRO services, saving you from endless government visits, Arabic form submissions, and fine risks. In summary, business setup services act like a one-stop-shop for launching and sustaining a business in the UAE. They remove the guesswork, reduce risk, and speed up your path to profitability.

Benefits of Using a Business Setup Company in Dubai

While it’s technically possible to set up a company on your own in Dubai, doing so without the help of professionals can quickly turn into a long, confusing, and error-prone process. Business setup consultants exist for a reason—they bring speed, clarity, compliance, and peace of mind. Let’s explore the top advantages of hiring one.

1. Saves Time and Avoids Costly Mistakes

Setting up a business in Dubai involves multiple government departments: the Department of Economic Development (DED), Municipality, Free Zone Authorities, Immigration, and Labor Ministry. Each has its own process, rules, and required documentation. Missing one form or submitting an incorrect document can delay your launch by weeks—or worse, lead to fines or rejections. Business setup companies know the process inside-out. They streamline every step, from name approval to final license issuance. What might take you 4–6 weeks could take them just 7–10 business days.

2. Legal and Compliance Expertise

The UAE’s business laws are dynamic. A rule that applied last year might be outdated today, especially with new regulations like Corporate Tax and updated visa frameworks. Setup consultants stay updated with all legal changes and ensure your business remains 100% compliant—whether it’s trade license renewals, VAT submissions, or investor visa documentation.

They also help:

• Structure your company for tax efficiency
  
• Avoid compliance violations
  
• Navigate ownership restrictions and sponsorship
  

3. Custom-Tailored Packages Based on Your Needs

No two businesses are the same. A food delivery startup and a real estate brokerage will have completely different requirements—from licensing to physical space. Good consultants offer customized business setup packages tailored to your goals, budget, and target market. Whether you need a low-cost setup, want to include multiple visas, or require bank account assistance, they craft a strategy that fits your situation, not a one-size-fits-all model.

4. Hassle-Free Visa and Immigration Handling

The visa process in the UAE is multi-step and includes medical tests, biometrics, Emirates ID applications, and residence stamping. Business setup experts offer door-to-door support—picking you up for tests, booking appointments, and even liaising with authorities on your behalf. For international entrepreneurs, this service is a game-changer. It minimizes miscommunication and speeds up your entry into the UAE market.

5. Transparent Costing and Faster Launch

Contrary to popular belief, hiring a consultant doesn’t always cost more. In fact, because they know the shortcuts, have bulk deals with free zones, and prevent mistakes, they might help you save more in the long run.

They often provide a clear cost breakdown, so you know what you’re paying for:

• License fees
  
• Visa costs
  
• Office rent
  
• PRO services
  
• Government charges

This prevents hidden fees, last-minute surprises, and unnecessary rework.

6. After-Setup Support and Renewals

The relationship doesn’t end after your business is formed. Top consultants also offer ongoing support:

• License renewals
  
• Visa extensions
  
• Business expansion planning
  
• Legal restructuring and rebranding
  
• Accountancy and taxation compliance
  

In many cases, they even assign a dedicated relationship manager to handle your business affairs annually.

Types of Business Licenses in Dubai

Understanding the different types of business licenses available in Dubai is crucial for choosing the right foundation for your company. Dubai offers a variety of license categories depending on your business activity, location, and ownership preferences. Your license determines where you can operate, what you can trade or offer, and which authorities you’ll report to.

Here are the three main types of business licenses you can apply for:

Free Zone Licenses

Free zone licenses are among the most popular choices for startups, freelancers, and foreign investors due to their flexibility and benefits. A free zone is a special economic area that allows 100% foreign ownership, simplified import/export procedures, and often tax exemptions.

Key Benefits:

• 100% foreign ownership (no need for a local sponsor)
  
• No corporate or personal income tax
  
• Import and export duty exemptions
  
• Repatriation of 100% profits and capital
  
• Affordable co-working or flexi-desk options
  
• Fast-tracked license approvals
  

Popular Free Zones in Dubai:

• IFZA (International Free Zone Authority)
  
• DMCC (Dubai Multi Commodities Centre)
  
• Dubai Silicon Oasis
  
• Dubai South Free Zone
  
• Dubai Airport Freezone (DAFZA)
  

Free zones are ideal if you plan to operate internationally or online, and don’t need direct access to Dubai’s mainland retail market.

Mainland Licenses

A mainland business license is issued by the Department of Economic Development (DED). This license allows you to trade freely anywhere within the UAE and internationally. If you want to set up a retail shop, real estate brokerage, or offer services to UAE government entities, a mainland license is the right choice.

Key Benefits:

• Access to the entire UAE market (public and private)
  
• Eligibility for government contracts
  
• Ability to open offices anywhere in Dubai
  
• No restrictions on visa quota (subject to office size)
  

Recent Reforms:

• As of 2021, the UAE allows 100% foreign ownership for many business activities, eliminating the need for a local Emirati sponsor in certain sectors. However, some strategic sectors may still require a UAE national partner.
  

Key Authorities Involved:

• DED
  
• Ministry of Labor
  
• Dubai Municipality
  
• Civil Defense
  
• RTA (for transport-related activities)
  

Mainland licenses suit entrepreneurs planning on scaling locally, opening physical stores, or managing service-based businesses.

Offshore Licenses

Offshore licenses are often misunderstood. They’re non-residential business entities used mainly for international operations, asset protection, and tax optimization. Unlike mainland or free zone licenses, offshore companies cannot rent office space or apply for visas in the UAE. Their use is mostly for holding companies, consulting, or global trading businesses.

Key Benefits:

• Full foreign ownership
  
• No minimum capital requirements
  
• No tax on international income
  
• Privacy and confidentiality of directors and shareholders
  
• Ideal for wealth management, international contracts, or IP holdings
  

Popular Offshore Jurisdictions:

• JAFZA Offshore
  
• RAK ICC (Ras Al Khaimah International Corporate Centre)
  

Each license type serves a different need. Choosing the wrong one can limit your growth or even require restructuring. That’s why expert business setup consultants evaluate your goals, industry, and target market before advising the right path.

Dubai Business Setup Cost Breakdown

“How much does it cost to start a business in Dubai?” — It’s the question on every entrepreneur’s mind. And the honest answer is: it depends. Your business activity, company type (mainland, free zone, offshore), visa needs, and office space requirements all influence the total cost.

This section will give you a clear picture of what to expect—and where your money goes.

1. Business License Cost

This is your core expense. The cost of your trade license varies depending on whether it’s issued by a mainland authority or a free zone.

2. Office Space and Ejari Cost

If you’re setting up a mainland company, you’re required to lease physical space with Ejari registration. In contrast, free zones offer virtual or flexi-desks, making them more affordable for startups.

3. Visa & Immigration Costs

Visas are essential if you plan to live or work in the UAE. The number of visas you need—investor, partner, employee, or dependent—affects your budget.

: 4. Additional Setup Charges

Besides core costs, here are some common additional charges to keep in mind:

• Name Reservation: AED 600 – AED 1,000
  
• Initial Approval: AED 100 – AED 500
  
• MoA Notarization: AED 500 – AED 2,000 (mainland)
  
• Bank Account Setup: AED 0 – AED 2,500 (depending on service provider)
  
• PRO Services: AED 1,000 – AED 3,000 (annual)
  
• VAT Registration: AED 500 – AED 1,500 (if applicable)
  

: Sample Cost Breakdown: Free Zone vs. Mainland

If you’re looking for low-cost company formation in Dubai, opt for bundled free zone packages that include your license, flexi-desk, and visa. Some promotions even offer 10-year visa options starting at AED 22,500 with staggered payments. In short, while there’s no fixed price for setting up a business in Dubai, working with a transparent consultant helps you avoid surprises—and stick to your budget.

 Step-by-Step: How to Setup Business in Dubai

Starting a business in Dubai doesn’t have to be complicated—especially when you break it down into actionable steps. Whether you’re setting up in a free zone, mainland, or offshore jurisdiction, the process follows a clear roadmap. Below is a complete step-by-step guide to forming your company the right way in 2025.

Step 1: Choose Your Business Activity

Your business license will be based on the activity you choose. Dubai offers over 2,000 business activities across sectors like:

• Trading (retail, e-commerce, import/export)
  
• Services (consulting, marketing, tech)
  
• Industrial (manufacturing, logistics)
  

Pro Tip: Activities are regulated. For example, a real estate brokerage requires approval from RERA, while a tourism agency needs clearance from DTCM. A consultant can help match your vision with the right category.

Step 2: Select the Right Jurisdiction

Dubai has three business jurisdictions:

• Mainland – For businesses targeting the local UAE market
  
• Free Zone – Ideal for startups and international operations
  
• Offshore – For holding assets or global trade, not for local activity
  

Each jurisdiction has its own rules, benefits, and setup procedures. Your choice will affect everything—ownership structure, taxation, visa eligibility, and banking.

Step 3: Decide on a Legal Structure

This defines how your business is owned and operated. Common legal structures in Dubai include:

• LLC (Limited Liability Company) – Popular for most SMEs
  
• Sole Proprietorship – Suitable for individual professionals
  
• Civil Company – Ideal for service providers like doctors, engineers
  
• Branch of a Foreign Company – For multinational expansion
  

Free zones often simplify this by offering FZCO, FZE, or branch models. A consultant will help you choose the most compliant and tax-efficient structure.

Step 4: Reserve Your Trade Name

Your trade name must reflect your business activity and meet UAE naming standards. Avoid names with:

• Religious references
  
• Government entities
  
• Offensive or duplicate terms
  

This process includes:

• Initial name search and approval
  
• Payment of name reservation fees (typically AED 600–1000)
  

Step 5: Get Initial Approval

Once your business name and activity are confirmed, you’ll need initial approval from the relevant authority (e.g., DED or free zone authority). This is a green light to proceed with documentation.

It usually requires:

• Passport copies of shareholders
  
• Proposed company name
  
• Activity list
  
• NOC (if applicable)
  

Step 6: Draft and Notarize the MoA (Mainland Only)

For mainland companies, you’ll need a Memorandum of Association (MoA) that defines ownership shares, responsibilities, and legal rights. This document must be:

• Drafted in Arabic
  
• Signed in front of a notary public
  

Free zones typically skip this step or use a simplified incorporation form.

Step 7: Secure Office Space

• Mainland: Requires a physical office with Ejari registration
  
• Free Zone: Flexi-desk, virtual office, or dedicated space
  
• Offshore: Virtual address only (no premises required)
  

Attach your lease contract or office agreement to your license application. This determines your visa quota.

Step 8: Final Submission and License Issuance

Submit all signed documents, payment receipts, and approvals to the licensing authority. Once approved, you’ll receive your:

• Trade License
  
• Company Registration Certificate
  
• Establishment Card (for visas)
  

Turnaround time:

• Free zone: 2–5 working days
  
• Mainland: 7–14 working days
  

Step 9: Apply for Visas

You can now proceed to apply for:

• Investor/Partner Visa
  
• Employment Visas for staff
  
• Dependent Visas for family
  

This includes:

• Entry permit
  
• Medical fitness test
  
• Emirates ID application
  
• Visa stamping
  

Most setup companies handle this end-to-end.

Step 10: Open a Corporate Bank Account

Your final step is to open a business bank account. Required documents:

• Trade license
  
• Shareholder passport copies
  
• Office lease
  
• Business plan or invoices (depending on bank)
  

Popular banks: Emirates NBD, Mashreq, ADCB, RAKBANK, and international options like HSBC and Citi.

Best Business Setup Services in Dubai

Dubai’s popularity as a business hub has led to the rise of hundreds of business setup service providers. But not all are created equal. Choosing the right partner can make the difference between a smooth, strategic launch—or weeks of wasted time, unclear pricing, and regulatory confusion.

In this section, we’ll go over the top 10 business setup companies in Dubai, what to look for when selecting one, and how to avoid common traps.

Top 10 Business Setup Companies in Dubai (2025)

Disclaimer: This list is based on client reviews, industry experience, services offered, and market presence. Rankings may vary based on your specific needs.

What to Look for in a Business Setup Consultant

Choosing a setup consultant isn’t just about pricing. Here are key factors to consider before signing on:

✅ 1. Transparency in Costing

• Are all costs clearly itemized?
  
• Do they explain government fees vs service fees?
  

✅ 2. Jurisdiction Options

• Can they offer mainland, free zone, and offshore?
  
• Or are they only pushing one type of setup?
  

✅ 3. Visa and Banking Support

• Do they assist with investor, employee, and family visas?
  
• Can they help open a corporate bank account?
  

✅ 4. Ongoing Support

• Will they handle renewals, tax filing, and visa renewals?
  
• Do they offer a relationship manager?
  

✅ 5. Reputation and Reviews

• Check Google reviews, Trustpilot, or Facebook feedback
  
• Ask for case studies or client references if needed
  

Red Flags to Watch Out For

❌ Too good to be true pricing:
If someone offers “full setup for AED 5,000”, be cautious—it’s often missing key components like visa eligibility or renewal support.

❌ Lack of clarity on ownership:
Ensure you’re getting 100% ownership (where applicable) and not being forced into silent partnerships.

❌ No registered office:
Legitimate consultants have a visible office you can visit. Avoid companies operating only online with no physical presence.

Why Vista Corporate Group is a Top Choice

Among the trusted names, Vista Corporate Group stands out for offering:

• Custom-tailored setup strategies
  
• All-in-one service under one roof (licenses, visas, taxes, real estate)
  
• Transparent pricing with no hidden charges
  
• Free consultations and business planning
  
• Setup packages with bank account + visa + office space included

Dubai Business Setup for Freelancers & Indians

Dubai is no longer just a playground for corporate giants. With government reforms encouraging entrepreneurship and remote work, the city has opened its arms to freelancers, consultants, creatives, and Indian professionals looking to legally operate and thrive in the UAE. In this section, we’ll explore how you can set up a business in Dubai as a freelancer or Indian national, with affordable packages, visa options, and licensing solutions tailored to your needs.

 Freelance Permits in Dubai Free Zones

For solo professionals who don’t want the complexity of setting up a full company, freelance permits are the easiest gateway. These permits are available in specific free zones and allow you to operate under your own name or a trade name.

✅ Popular Free Zones for Freelancers:

• Dubai Media City – Great for content creators, designers, journalists
  
• Dubai Internet City – Ideal for IT professionals and software developers
  
• Dubai Design District (D3) – For fashion, art, architecture
  
• RAKEZ and Ajman Free Zone – Known for low-cost freelance permits (starting from AED 5,750)
  

 Benefits of Freelance Permits:

• 100% ownership
  
• No office space requirement
  
• Access to residency visa
  
• Ability to invoice clients legally
  
• Bank account eligibility
  

Most free zones offer 1-year and 2-year freelance permits, making it perfect for consultants and remote workers who need legal backing for their UAE operations.

 Dubai Business Setup for Indians

Indian entrepreneurs have historically played a major role in Dubai’s economy. From tech startups and real estate to trading and logistics—Indians continue to lead as one of the top investor communities in the UAE.

✅ Why Dubai Is Perfect for Indian Business Owners:

• Close proximity to India (just 3–4 hours by flight)
  
• Tax-friendly (0% personal income tax)
  
• Access to Indian-friendly banking and legal support
  
• Strong existing Indian business networks (B2B, JITO, BNI, FCP)
  
• Cultural compatibility and ease of doing business
  

 Top Business Activities for Indian Nationals in Dubai:

• Grocery & foodstuff trading
  
• E-commerce & dropshipping
  
• Digital marketing & consulting
  
• Real estate & property investment
  
• Garments, fashion, and retail
  

📄 Documents Required to Set Up:

• Passport copy with UAE visa or visit stamp
  
• Passport-size photo with white background
  
• Business activity list
  
• Proposed trade name
  
• Optional: NOC from current sponsor (if UAE resident)
  

Indian entrepreneurs can opt for:

• Mainland company (LLC) – With or without a UAE partner
  
• Free zone company – 100% ownership, visa-inclusive packages
  
• Freelancer permit – For professionals without employees

Final Thoughts: 

Absolutely—if you value your time, legal compliance, and peace of mind, hiring a business setup consultant in Dubai is one of the smartest investments you can make. The UAE may offer a streamlined approach to entrepreneurship, but it’s still layered with legal, governmental, and administrative steps that can trip up even seasoned investors.

Here’s the reality: company formation in Dubai isn’t hard, but doing it right, cost-effectively, and in full compliance with the law takes expertise. The right consultant does more than submit forms—they:

• Help you avoid expensive mistakes
  
• Speed up the setup by days or even weeks
  
• Recommend the most suitable jurisdiction
  
• Secure approvals from the right government departments
  
• Ensure your company is future-ready with banking, tax, and immigration in place
  

Whether you’re a solopreneur launching a remote consultancy or a global investor building a holding structure, a business setup expert simplifies your journey—making it faster, safer, and fully legal.

When Should You DIY?

If you’re an experienced entrepreneur familiar with UAE laws and are going for a very basic freelance permit, DIY might save a few dirhams. But even then, small missteps (like missing a document or choosing the wrong license type) can cost you more later.

When Should You Definitely Hire a Consultant?

✅ If you’re a foreigner without UAE residency
✅ If you’re setting up a mainland LLC or regulated activity
✅ If you need multiple visas, a bank account, or office space
✅ If your business needs long-term scalability or tax planning
✅ If you simply don’t want to chase paperwork around town

FAQs:

Q: What is Company Formation Services in Dubai?

Company formation services in Dubai refer to professional solutions that assist in setting up your business legally. These include selecting the right jurisdiction, registering your trade license, preparing legal documents like MOA, applying for visas, and opening a bank account—all tailored to your business activity and structure.

Q: What is Company Formation Services in Dubai Sharjah?

In Sharjah, company formation services offer similar support as in Dubai but through local authorities like SHAMS and SPC. These services include business licensing, activity approval, visa processing, and office space assistance—usually at lower costs compared to Dubai, making it ideal for startups and freelancers.

Q: What is Company Formation Services in Dubai PDF?

This usually refers to downloadable brochures or documents that explain how to set up a business in Dubai. These PDFs include pricing, license options, required documents, visa support, and steps involved—helpful for entrepreneurs comparing packages or understanding the process before committing.

Q: How is a company formed in Dubai?

A company is formed by choosing your business activity and jurisdiction (mainland, free zone, offshore), reserving a trade name, submitting identification documents, and paying the registration fee. After license issuance, you can apply for visas and open a corporate bank account to begin operations.

Q: How much is company formation fees in Dubai?

The cost of forming a company in Dubai starts from AED 5,750 for a basic freelance permit and can go up to AED 25,000 or more for full packages that include visas and office space. The total fee depends on the business type, jurisdiction, and number of visas needed.

Q: What is the meaning of company formation?

Company formation is the legal process of creating a registered business entity that can operate commercially. It involves selecting a legal structure, obtaining a trade license, fulfilling regulatory requirements, and opening a corporate bank account, which allows you to conduct lawful business in the UAE.

Q: How can I get residency by company formation in Dubai?

By forming a company, you’re eligible to apply for an investor or partner visa. Once your trade license is issued, you can get an establishment card and complete visa procedures like the medical test, Emirates ID, and visa stamping, which grants you renewable UAE residency for 2–3 years.

Q: Can I start a company in Dubai from India?

Yes, many Indian entrepreneurs form companies in Dubai remotely using business setup agencies. You’ll need to submit passport copies and make the initial payment. Free zones are ideal for remote setups as they offer digital registration, e-signatures, and courier-based document exchange for hassle-free incorporation.

Q: What is the cheapest free zone in Dubai?

RAKEZ, SPC Free Zone, and Ajman Free Zone are among the most affordable options. RAKEZ offers packages from AED 5,750 including trade license and workspace. These are perfect for freelancers, startups, and budget-conscious entrepreneurs seeking legal status in the UAE without high overhead costs.

Q: How much capital is required to start a company in Dubai?

Most free zones do not require any minimum paid-up capital to start. In the mainland, AED 10,000 to AED 50,000 is often declared as share capital, but it’s usually not required to be deposited unless you’re applying for regulated activities or opening a bank account.

Q: Is Dubai tax-free for business?

Yes and no. Dubai offers 0% personal income tax, and businesses earning below AED 375,000 in annual profit are exempt from corporate tax. Above that, a 9% corporate tax applies as per the UAE’s new 2023 regulation. Free zones may offer tax holidays if properly structured.

Q: What is the first stage of company formation?

The first stage involves selecting your business activity and jurisdiction—this defines your company’s legal framework. After that, you’ll reserve a trade name and apply for initial government approvals. These foundational steps determine your licensing path, ownership model, and compliance requirements moving forward.

Q: How many types of company formation are there?

There are three main types in the UAE:

1. Mainland – Regulated by DED and allows full UAE market access.
   
2. Free Zone – Offers 100% ownership and simplified procedures.
   
3. Offshore – Ideal for asset holding, international trade, and no local operations.
   

Each type has unique benefits depending on your business goals.

Q: How do you create a company formation?

You start by identifying the correct business activity and jurisdiction (free zone, mainland, or offshore), choosing a legal structure like LLC or FZE, reserving a trade name, preparing and submitting required documents, paying government fees, and obtaining your license before proceeding to visa and bank setup.