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How to start a business in Dubai – Complete guide
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AUTHOR shreya
- Date
Thinking of launching a business in one of the world’s most stable economies in the world?
You’re not alone.
Dubai has long been a magnet for entrepreneurs and investors from around the globe—and for good reason. With its zero income tax policy, world-class infrastructure, and investor-friendly regulations, business setup in UAE has become one of the most attractive options for startups and corporations alike.
Whether you’re a solo entrepreneur, a small team looking to expand, or a global enterprise exploring Middle East markets, this guide breaks down everything you need to know to get started in Dubai. From choosing the right jurisdiction to understanding licensing, visa processing, and legal requirements — here’s your complete roadmap to building a successful business in Dubai in 2025.
1. Define your business activity
Before anything else, determine what type of business activity you’ll engage in. This will influence the license you need and where you can set up.
- Common sectors include:
- Trading and e-commerce
- Consulting and professional services
- Manufacturing
- Tourism and hospitality
- Technology and IT
- Healthcare and education
Dubai offers over 2,000 approved business activities, giving you a wide range of flexibility and opportunities.
2. Choose the right jurisdiction: Mainland vs. Free Zone vs. Offshore
When planning your business setup in the UAE, selecting the appropriate jurisdiction is a critical first step.
- Mainland
- Allows you to operate anywhere in the UAE and internationally.
- Can serve government contracts and local customers directly.
- Requires a physical office.
- Now permits 100% foreign ownership in most sectors.
- Free Zone
- Offers 100% foreign ownership.
- Provides tax exemptions and fast-track business setup.
- Ideal for international trade, tech startups, and consultancy services.
- Popular zones include DMCC, Dubai South, IFZA, and DIFC.
- Offshore
- Not permitted to trade within the UAE.
- Used for international business, holding companies, or intellectual property.
- Ideal for interNo visa eligibility, but offers confidentiality and low-cost maintenance.national trade, tech startups, and consultancy services.
If you’re looking for a low-cost business setup in Dubai, many free zones offer attractive packages for startups.
3. Select a legal structure
Your legal entity will define your ownership, liability, and operational structure.
- Popular options include:
- Limited Liability Company (LLC) – most common for onshore businesses
- Sole Establishment – suitable for individual entrepreneurs
- Free Zone Company (FZC or FZE) – for full foreign ownership
- Branch Office – for international companies wanting a Dubai presence
Choosing the right structure will depend on your investor base, business model, and long-term goals.
4. Register your trade name
A trade name is your business identity. It must reflect your activity and meet Dubai’s naming regulations.
- Tips for choosing a name:
- avoid any offensive or religious terms
- don’t use abbreviations (like initials) unless they’re part of your brand
- make sure it's not already registered
Once approved by the Department of Economic Development (DED) or your respective free zone authority, you can proceed with license applications.
5. Get initial approval
Initial approval means the UAE government has no objection to you proceeding with your Dubai company setup. This is not your license—it’s just the green light to continue.
- You’ll need:
- passport copies of shareholders
- proposed trade name and activity
- business plan (for some activities or free zones)
This step also allows you to prepare and notarize your memorandum of association (MOA) and other required legal documents.
6. Find a business location
In Dubai, your business must have a physical address to operate. Options include:
- leasing traditional office space
- renting desks in co-working hubs
- virtual offices (for certain free zones)
Business setup consultants in Dubai can help you find low-cost and flexible workspace options that meet licensing requirements.
7. Apply for a business license
- Dubai offers several types of licenses:
- commercial license – for trading and e-commerce
- professional license – for consultancy or services
- industrial license – for manufacturing and production
- tourism license – for travel agencies and hospitality
License costs vary depending on your jurisdiction and activity. Some Dubai company setup packages combine licensing, visa allocation, and office space to reduce overall startup costs.
8. Open a corporate bank account
Once your license is issued, you’ll need a local business bank account. Documentation usually includes:
- trade license
- shareholder and director IDs
- MOA and AOA
- office lease agreement
Tip: some banks have stricter requirements than others. This is where business setup consultants in Dubai can be helpful—they often have established relationships with banks and can streamline the process.
9. Visa processing for owners and employees
After getting your license, you can apply for UAE residence visas for yourself and your staff.
- Steps include:
- entry permit
- Emirates ID application
- medical test
- visa stamping
The number of visas you can apply for depends on your office space size and license type.
10. Understand costs and minimum investment
There’s no one-size-fits-all answer to the minimum investment to start business in Dubai. However, here are average cost estimates:
| Setup Type | Approximate Cost (AED) |
|---|---|
| Free zone (basic setup) | 12,000 – 25,000 |
| Mainland LLC | 20,000 – 35,000 |
| Offshore company | 10,000 – 15,000 |
- Keep in mind:
- office space, visa fees, and business activity can affect final cost
- many Dubai company setup packages offer bundled deals that include trade license, co-working space, and visas
If you’re looking for a low-cost business setup in Dubai, consider starting in a free zone that doesn’t require large capital or heavy documentation.
11. Ongoing compliance and taxes
Since 2023, Dubai introduced a 9% corporate tax on businesses with profits above AED 375,000. However, there’s still:
- 0% income tax for individuals
- 5% VAT (if annual turnover exceeds AED 375,000)
- no withholding tax or capital gains tax
For entrepreneurs starting a business in Dubai as a foreigner, it’s vital to stay updated on tax laws and file returns annually.
Conclusion
Dubai is where dreams turn into ventures—and ventures into global successes.
With its supportive business ecosystem, flexible company structures, and access to global markets, business setup in UAE is a strategic move in 2025 and beyond.
Whether you’re an entrepreneur looking for minimum investment to start a business in Dubai, or a scaling founder evaluating Dubai company setup packages, the opportunity is real—and growing.
And while the process may seem detailed, the right guidance can make it smooth and efficient. That’s where business setup consultants in Dubai come in—helping you navigate licensing, legal work, and compliance with ease.
So, what’s stopping you from building your future in Dubai? The time to act is now.
Get an Expert consultation
Chris Elliott
CEO and Real Estate Expert
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