Dubai continues to be one of the most attractive destinations for entrepreneurs and investors looking to start or expand their businesses. With its strategic location, world-class infrastructure, tax incentives, and business-friendly environment, setting up a business in Dubai offers immense opportunities across various industries.
In this blog, we will walk you through everything you need to know about business setup in Dubai in 2025 — from choosing the right business structure to understanding legal requirements and setup costs.
Why Set Up a Business in Dubai?
Dubai offers a range of benefits to local and international entrepreneurs:
- 100% foreign ownership in most sectors
- 0% personal and corporate income tax in many cases
- Strategic location between Europe, Asia, and Africa
- Modern infrastructure and free zones
- Stable political and economic environment
- Ease of doing business and quick setup process
Types of Business Licenses in Dubai
Before you start, you must choose the right type of business license. The main categories include:
- Commercial License – For trading activities
- Industrial License – For manufacturing or industrial businesses
- Professional License – For service providers, consultants, and freelancers
- Tourism License – For businesses in the travel and tourism sector
Mainland vs. Free Zone vs. Offshore
1. Mainland
- Allows you to trade within the UAE market and internationally.
- Offers flexibility to open branches across Dubai.
- You can now own 100% of the business in most sectors (no local sponsor required).
2. Free Zone
- Ideal for businesses focused on international trade.
- 100% foreign ownership.
- Fast-track setup process and tax benefits.
- Cannot directly trade with the UAE market without a local distributor.
3. Offshore
- For international business operations with no physical presence in the UAE.
- Used for asset protection, holding companies, or international investments.
Steps to Set Up a Business in Dubai
- Define Your Business Activity
- Choose from over 2,000 activities listed by the Dubai Department of Economic Development (DED).
- Choose from over 2,000 activities listed by the Dubai Department of Economic Development (DED).
- Choose a Legal Structure
- Examples: Sole proprietorship, LLC, branch office, or free zone company.
- Examples: Sole proprietorship, LLC, branch office, or free zone company.
- Register Your Trade Name
- Make sure it complies with UAE naming regulations.
- Make sure it complies with UAE naming regulations.
- Apply for Initial Approval
- This shows that the UAE government has no objection to you starting a business.
- This shows that the UAE government has no objection to you starting a business.
- Choose a Business Location
- Either physical office or virtual office depending on your license type.
- Either physical office or virtual office depending on your license type.
- Draft & Notarize MOA (Memorandum of Association)
- Especially for LLCs and partnerships.
- Especially for LLCs and partnerships.
- Apply for Business License
- Submit documents to DED or relevant Free Zone Authority.
- Submit documents to DED or relevant Free Zone Authority.
- Visa & Bank Account
- Apply for residence visa and open a corporate bank account.
- Apply for residence visa and open a corporate bank account.
Cost of Business Setup in Dubai
Costs vary depending on:
- Type of license (Mainland, Free Zone, Offshore)
- Office space requirements
- Number of visas needed
- Industry-specific approvals
Typical setup costs range from AED 12,000 to AED 50,000+.
Popular Free Zones in Dubai
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- Dubai International Financial Centre (DIFC)
- Dubai Media City
- Jebel Ali Free Zone (JAFZA)
Final Thoughts
Dubai’s pro-business policies, efficient regulatory framework, and diverse economy make it a magnet for entrepreneurs from around the world. Whether you’re a solo entrepreneur, SME, or a multinational, there is a pathway for every kind of business setup in Dubai.
However, the process can be complex without local knowledge. It’s highly recommended to consult with a trusted business setup consultant in Dubai to ensure compliance and speed up the process.
Need Help Starting Your Business in Dubai?
We offer end-to-end business setup services including company formation, PRO services, visa processing, and more. Contact us today for a free consultation and take the first step toward launching your business in Dubai!
