Dubai has firmly positioned itself as one of the world’s most dynamic business hubs. Whether you’re a startup founder, investor, or established company looking to expand, Dubai offers unmatched benefits for business setup — from zero tax policies to full foreign ownership and global market access.
Here’s a simplified, updated guide to help you understand how a business setup in Dubai in 2025.
Why Dubai?
Before diving into the process, let’s look at why Dubai is a hotspot for entrepreneurs:
✅ 100% foreign ownership (in most sectors)
✅ 0% corporate and personal income tax (in many zones)
✅ Strategic location — gateway to Middle East, Asia, Europe, and Africa
✅ Advanced infrastructure, logistics, and connectivity
✅ Over 40 free zones tailored to specific industries
✅ Business-friendly government policies
Step-by-Step Guide to Business Setup in Dubai
1. Choose the Right Jurisdiction
There are three main types of jurisdictions in Dubai:
- Mainland – Operate anywhere in the UAE and beyond. No need for a local sponsor in most sectors.
- Free Zone – 100% foreign ownership, tax incentives, but restricted to operating within the free zone or internationally.
- Offshore – Ideal for holding companies or international business; no UAE trade allowed.
2. Define Your Business Activity
Every company in Dubai must list its activities. Over 2,000 are available across:
- Trading
- Manufacturing
- Consulting
- Real estate
- Tech & IT
- Media
- Education
- Finance
3. Select a Legal Structure
Depending on your business size, activity, and partners, choose from:
- LLC (Limited Liability Company)
- Sole Establishment
- Civil Company (for professionals)
- Free Zone Company (FZC or FZE)
- Branch Office
4. Reserve Your Trade Name
Pick a name that reflects your brand and follows the UAE naming rules (no offensive words, no religious terms, must be unique).
5. Apply for Initial Approval
This is a no-objection letter from the DED or relevant free zone authority. It gives the green light to proceed.
6. Choose a Business Location
- Mainland: Must lease physical office space
- Free Zones: Options for flexi-desks, virtual offices, or full offices
7. Submit Legal Documents
Including:
- Passport copies
- Visa/Emirates ID (if applicable)
- MOA (Memorandum of Association)
- Lease agreement
- Initial approval certificate
8. Get Your Business License
The authority will issue your official license based on your chosen activity and jurisdiction.
9. Open a Corporate Bank Account
After licensing, you’ll need a UAE business bank account for transactions.
10. Apply for Visas
Business owners and employees can apply for UAE residency visas under the company.
How Much Does It Cost?
Here’s a general breakdown (subject to activity and zone):
- Free Zone setup: AED 12,000 – AED 35,000
- Mainland setup: AED 15,000 – AED 40,000+
- Office space: From AED 5,000/year (virtual) to AED 30,000+ (physical)
- Visa fees: AED 3,000 – AED 7,000 per person
Note: Costs vary by business type, number of visas, and specific free zone.
Top Free Zones in Dubai
If you’re setting up a niche business, consider these:
- DMCC – Best for trading and commodities
- Dubai Internet City – IT & tech startups
- Dubai Healthcare City – Medical professionals
- Dubai Media City – Marketing & media
- Dubai South – Aviation, logistics, eCommerce
- IFZA – Affordable setup with a wide range of activities
Final Thoughts
Dubai is a land of opportunity — but only if you start right. Whether you’re launching a new company, expanding into the region, or relocating, the key to success is understanding the rules, choosing the right setup, and ensuring compliance.
If you’re unsure where to begin, working with a professional business setup service can save you time, money, and stress.
