Why Set Up a Business in Dubai?
Dubai has built a global reputation as a safe, profitable, and future-ready place for entrepreneurs. Here are a few key reasons why people are choosing to start businesses in Dubai:
- 100% foreign ownership in most business activities
- 0% corporate and personal income tax (some exceptions apply)
- Access to regional and global markets (Middle East, Asia, Africa, and Europe)
- State-of-the-art infrastructure and logistics
- Supportive government policies and easy visa access
- Thriving ecosystem for startups, e-commerce, tech, and trade
Step-by-Step Guide to Setting Up a Business in Dubai
Let’s break down the process into clear steps:
1. Choose Your Business Activity
Your first step is to decide what kind of business you want to establish — e.g., retail, consulting, trading, tech, real estate, or manufacturing.
The activity you choose will determine:
- The type of license you need
- The legal structure allowed
- Any additional approvals or regulations
The Department of Economic Development (DED) in Dubai provides a full list of approved business activities.
2. Decide on a Business Jurisdiction
There are three main jurisdictions where you can set up your business in Dubai:
Mainland
- Operates under the DED
- Can trade anywhere in the UAE and internationally
- Now allows 100% foreign ownership in most sectors
- Suitable for retail, services, restaurants, construction, etc.
Free Zone
- Located in designated zones like Dubai Multi Commodities Centre (DMCC), Dubai Silicon Oasis (DSO), or Dubai Internet City
- Offers 100% ownership, 0% import/export duties, and tax benefits
- Ideal for tech companies, consultants, traders, and e-commerce
Offshore
- Meant for companies operating outside of the UAE
- No physical office required
- Cannot trade within the UAE
- Used for holding companies, international trading, and asset protection
Each jurisdiction has different rules, fees, and benefits, so choose based on your business goals.
3. Select a Legal Structure
Your company’s legal form will depend on your business activity, number of shareholders, and chosen jurisdiction. Some common types include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Civil Company (for professionals like doctors, engineers, consultants)
- Free Zone Company (FZC / FZE)
- Branch of a foreign company
4. Register Your Company Name
Your trade name must comply with UAE’s naming rules:
- Must reflect your business activity
- No religious or political words
- Cannot include offensive language
- Should not duplicate existing names
You can register your trade name with the DED or the relevant Free Zone authority.
5. Apply for a Business License
Depending on your activity, you’ll apply for one of the following licenses:
- Commercial License – for trading or general business
- Professional License – for services like consultancy or education
- Industrial License – for manufacturing or production
- Tourism License – for travel agencies, tour operators, etc.
Submit the necessary documents:
- Passport copies of shareholders
- Business plan
- Initial approval letter
- Proof of office address (Ejari or lease contract)
6. Get Office Space or Virtual Office
You’ll need to provide a physical address for your company. Options include:
- Renting office space
- Virtual office (allowed in some Free Zones)
- Flexi-desk/shared office (cost-effective)
7. Receive Approvals and Pay Fees
After document submission, authorities will review and approve your application. You’ll then need to:
- Pay licensing and registration fees
- Sign the Memorandum of Association (MOA)
- Receive your business license
Typical costs range from AED 10,000 to AED 30,000+ depending on location, business type, and office setup.
8. Apply for UAE Residence Visa (Optional)
Once your company is licensed, you can apply for:
- Your own investor visa
- Employee visas
- Family sponsorship for spouse and children
Free Zones often include visa quotas in their packages.
How Long Does It Take?
- Free Zone setup: 3–7 working days (for most activities)
- Mainland setup: 7–14 working days
- Offshore setup: 5–10 working days
Delays may occur if additional approvals are needed from external authorities (e.g., for healthcare or education).
