Like Dubai itself, companies established in it also thrive in every manner. It is 2025, and Dubai continues to be a favourite spot for entrepreneurs to start their dream businesses. Be it starting a luxury retail store, a food business, something related to IT, education, or finance, every business idea is a profitable idea in Dubai.
The availability of the latest facilities and infrastructure, the strategic central global location, and the ambitious government supporting startups; all these benefits make it a great investment destination.
If you are also looking to flip your fortune into something big and are looking to start your own company, then you must come to Dubai. Here in this article, you will find out all the necessary details regarding business setup in Dubai, including its process, costs, and requirements, and what makes it a better choice than other nations.
Dubai as a business location for entrepreneurs
From a small trading port to one of the most dynamic cities of the world, Dubai has come a long way. Today, it is known for being among the most suitable global trade hubs and is home to countless businesses and MNCs.
What truly sets apart the city is the visionary leadership of its government which has been supporting foreign entrepreneurs and investors since day one. People from different corners of the world are proud to call Dubai their home and a haven for their businesses.
The Chamber of Commerce in Dubai welcomes thousands of new company registrations every year. With such an influx of trade and investment, Dubai’s economy keeps rising and uplifting everyone who becomes a part of it. This makes company formation in Dubai a great choice for aspiring entrepreneurs!
Types of trade license in Dubai
To start your company, you must get the appropriate business license in Dubai. The following are the three main types of business license in Dubai:
Commercial license: For businesses who want to trade, import/export, buy and sell products and commodities. Examples include retail shops.
Industrial license: Allows industrial activities such as manufacturing and processing of products. Examples include a cloth manufacturing facility.
Services license: Required for offering any professional service based on expertise, qualification or experience. Examples include running an IT consultancy.
Documents needed for business setup in Dubai:
Here is the checklist for you regarding documents needed for company setup in Dubai:
- Passport copy
- Passport-sized photographs
- Trade name registration certificate
- All approval receipts
- Current residence visa (if any)
- Office lease contract attested by RERA
- Your Memorandum of Association (MOA) and Articles of Association (AOA), attested and translated
- Some financial statements
There may be some additional documents asked for, so we recommend letting experts like Dubiz Business Setup handle the licensing process for you.
The process of business setup in Dubai
After discovering what business activities you plan to conduct, you can go ahead with the setup process. You can check the permitted list of business activities in Dubai from the government official list.
Let us now go through the steps of business formation in Dubai:
Step 1: Choose the jurisdiction
In Dubai you can start your business in three economic zone:
Freezone: These are economic zones with their own regulatory and licensing authorities. There are more than 30 freezones in Dubai. These freezones specialize in certain sectors and are known for offering 100% business ownership, tax advantages, and affordable business license packages.
Some famous freezones include Dubai Media City, IFZA, DMCC, Dubai Internet City, Meydan Freezone, and more.
Mainland: Mainland businesses come under the regulation of the Department of Economic Development (DED). Businesses established on the mainland can trade anywhere in Dubai and internationally. Mainland offers more trade license options, the opportunity to directly work on government contracts, and much more.
Offshore: Offshore companies are registered in Dubai but can only operate internationally, not within the UAE. This setup is meant for those who want to establish a global presence and benefit from the UAE’s tax-friendly policies. Offshore companies are prohibited from having any operational or physical presence in Dubai.
Please note that each jurisdiction has its own laws and requirements when it comes to business setup in Dubai. What would be suitable for you depends on your business goals and activities you plan to conduct.
Step 2: Choose the legal structure for your business
A legal structure of a business refers to how a business is organized and recognized by law. It determines the ownership pattern, legal responsibilities, and tax obligations of the business. Some of the types of legal structures allowed in the UAE include:
- Sole Proprietorship: A business owned and run by one person, who is fully responsible for the profits and liabilities.
- Partnership: Owned by two or more individuals who share profits and losses according to the partnership agreement.
- Limited Liability Company (LLC): A company where the shareholders’ personal assets are separate from the business debts. Their liability is limited to their shareholding in the company.
- Civil Company: A partnership between two or more professionals in the same field, such as a partnership between lawyers or accountants.
- Joint Stock Company: A company where the ownership is divided into shares, which can be either a public or private joint stock company.
Step 3: Get a trade name registered
Next, you must decide on a name for your business. While thinking of a name, try to keep it unique, easy to remember, and most importantly lawful. There are some particular rules regarding trade names that must be followed in Dubai, including:
- The name must not be previously registered.
- It should reflect the legal structure of the business (e.g., Pvt Ltd).
- It should not be blasphemous.
- It should not hurt any religious or moral sentiments.
- It should not contain the name of any government body of Dubai.
Step 4: Get the approvals form government
In this step, there are two major types of approvals that would be needed for your business setup in Dubai:
- Initial approval: This is an initial NOC issued by the Department of Economic Development (DED) or the relevant free zone authority for your business. It is a preliminary requirement for proceeding with the rest of the business setup process.
- Additional approvals: Some businesses need permission from specific government bodies. For example, if you want to start a healthcare business, such as a clinic in Dubai, the Dubai Healthcare Authority (DHA) needs to issue permission for it.
Step 5: Find a local sponsor
One of the advantages in Dubai is the ability to have 100% ownership of your business. This is applicable in all free zones. However, in the mainland, many strategic sectors require a local sponsor. In such cases, finding a reliable sponsor is necessary. It can be a UAE citizen (Emirati) or a UAE-owned company.
Step 6: Get office space for your business
Whether or not a physical office space is required depends on the nature of your business license. For most cases, a physical office presence is required as part of the legal requirement. However, licenses such as e-trader may allow for relaxation.
In Dubai, you can choose from private offices, warehouses, shared workspaces, or flexi desks. When it comes to infrastructure, rest assured you will only get stunning places equipped with amenities like parking space, meeting rooms, Wi-Fi services, security systems, and great locations in Dubai.
Step 7: Apply for the business license
Once you have your approvals and everything sorted, you can approach the government and apply for the UAE trade license for your business. In this step, first be sure you have all the documents ready as they will be needed with the license application.
You will need to fill out the application form and submit it along with these documents to DED for mainland or the relevant free zone authority.
Step 8: License approval and issuance
The government will review your license application, and once they confirm that you meet all the legal requirements, your business license will be issued. Once you receive your license, it gives you the legal permit to operate your business setup in Dubai.
Step 9: Get a visa and open a bank account
As a foreigner, you would need to apply for a suitable visa that would allow you to stay and work in Dubai. It could be a business visa, golden visa, investor visa, or any type based on what you are eligible for.
You may also get an employment visa for foreign staff of your business. Once you receive your residence visa, you can also sponsor a visa for your family. With respective immigration authorities, you can file applications, pass some medical screenings, and get your Emirates ID and residency visa.
Additionally, you must open a corporate bank account to take care of your financial transactions with the bank of your choice in the UAE.
Cost of business setup in Dubai
The cost of business setup in Dubai can start from as low as AED 5,555*. The price basically depends on where the business is being opened, mainland or freezone or offshore. It also depends on the type of license needed, number of visas required, office space costs, etc.
You can check the latest prices with Dubiz Business Setup.
Benefits of starting a business setup in Dubai
Here are the benefits of starting a company in Dubai, UAE:
A stable and flourishing economy: Dubai’s economy is always stable, reducing the chances of trade fluctuations. The economy is growing day by day, which only brings more prosperity for businesses.
Easy process of business setup: The entire procedure of starting any business in Dubai is systematic and easy. There are very few administrative hurdles and reasonable legal requirements to be met.
Central geographic location: Dubai enjoys a strategic location at the crossroads of Europe, Asia, and Africa. It connects the East to the West seamlessly, expanding the scope of international markets for businesses.
Business activity of choice: The Department of Economic Development in Dubai supports more than 2,000 business activities that belong to diverse industries like finance, IT, health, education, science, and more. Almost any kind of business can be started here.
Top-class infrastructure: The latest infrastructure, including roads, logistics, buildings, and amenities, offers the ideal environment for business operations. Office spaces are equipped with the latest technology, internet connectivity, utilities; everything needed to run a business smoothly.
100% ownership benefits: Free zones in Dubai and the mainland for many business activities allow foreigners to have full ownership of their businesses. This means they do not have to partner with a local sponsor.
Corporate tax savings: The corporate tax rate in the UAE is only 9%, and it applies only to those whose taxable income exceeds the threshold of AED 375,000. For those below it, there is no corporate tax at all.
Advantageous residency: People can get the UAE residence visa and unlock many residency benefits. For example, the Golden Visa is available to businessmen, allowing them to access government services, enjoy a long-term 10-year stay, and bring their family along as well.
Cosmopolitan environment: In Dubai, people from different countries and cultures live and work together. Businesses can find a diverse workforce with every skill. The open, welcoming and vibrant environment in Dubai is full of opportunities.
Luxurious lifestyle: The famous luxurious and lavish lifestyle of Dubai is well known everywhere. By being a part of Dubai, you welcome luxury for yourself and your family.
Fast track your business setup in Dubai
Starting a business in Dubai is full of exciting opportunities, and when you partner with the best business setup consultants in UAE, the journey can be even more seamless.
Dubiz Business Setup can help you with company formation in Dubai from end to end. With 7 years of experience in the industry, they have a team of experts from various fields. They make the entire process of licensing, documents, visa processing, bank account setup, and approvals look so easy.
If you are looking for professionals who can help you get started with your dream venture with utmost help and affordable package options, they can be the best choice for you. Give them a call today!
