Dubai is more than just a luxurious tourist destination. It’s one of the most attractive business hubs in the world — offering low taxes, world-class infrastructure, a strategic location, and a pro-business environment. Whether you’re a startup founder, an investor, or a small business owner looking to expand, setting up a business in Dubai could be one of the smartest moves you make. In this blog post, we’ll walk you through everything you need to know about business setup in Dubai — from choosing the right structure and license, to legal requirements, costs, and benefits.
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).
Cost of Starting a Business in Dubai
Here’s a rough breakdown of the costs:
| Expense | Estimated Cost (AED) |
| Trade name registration | 620 – 1000 |
| Initial approval | 120 – 300 |
| License fee (Mainland) | 10,000 – 15,000 |
| License fee (Free Zone) | 12,000 – 25,000+ |
| Office rent | 5,000 – 20,000+ |
| Visa (per person) | 3,500 – 7,500 |
| Misc. documents & approvals | 1,000 – 2,000 |
Note: Many Free Zones offer all-inclusive business setup packages starting from AED 12,500 per year with license, office, and visa included.
Benefits of Starting a Business in Dubai
100% Ownership (No Local Sponsor Needed)
Foreigners can now fully own mainland businesses in most sectors.
Tax Advantages
No corporate tax on most activities (exceptions apply), no personal income tax, and full repatriation of profits.
Global Connectivity
Dubai’s central location, world-class ports, and aviation links provide unmatched access to global markets.
Diverse Economy
Opportunities across tourism, logistics, fintech, healthcare, real estate, AI, education, and more.
Business-Friendly Government
Initiatives like Dubai 2040 Vision and Dubai Startup Hub support SMEs and global entrepreneurs.
Common Challenges to Be Aware Of
- Complex legal procedures (especially in the mainland)
- Rapid policy changes (always stay updated)
- Licensing restrictions on some sensitive activities
- Competition in saturated markets (e.g., e-commerce, food delivery)
Working with a business setup consultant or local expert can help you navigate these challenges smoothly.
Final Thoughts
Setting up a business in Dubai offers incredible potential — whether you’re a freelancer launching a consultancy, a startup scaling internationally, or a company expanding into new markets. With the right guidance, planning, and compliance, Dubai can be the perfect place to build your dream business.
