How to Setup Business in Dubai
Dubai continues to be one of the world’s most attractive destinations for entrepreneurs, investors, and global businesses. With its tax-friendly policies, strategic location, and world-class infrastructure, thousands of new companies are launched every year. If you are planning to enter the UAE market, understanding how to setup business in Dubai is the first and most essential step.
This detailed guide will walk you through the process, requirements, costs, and best options for a smooth and successful company setup in Dubai.
Why Dubai Is the Best Place for Starting a Business
Before understanding how to setup business in Dubai, it’s important to know why the city is a global business hub:
0% corporate tax for many Freezone businesses
100% foreign ownership across most business activities
Easy visa processing for investors and employees
No currency restrictions
Strategic access to Middle East, Asia, and Europe
Stable and business-friendly legal environment
Dubai offers flexibility for entrepreneurs, whether they are starting a small business or expanding a multinational enterprise.
Types of Business Jurisdictions in Dubai
To understand how to setup business in Dubai, you must first choose the right jurisdiction. There are three main options:
1. Mainland
Operate anywhere in the UAE
No restrictions on office location
Suitable for service, consulting, retail, restaurants, construction, general trading, etc.
2. Freezone
100% foreign ownership
Tax benefits
Ideal for e-commerce, trading, media, consulting, tech, import-export
Operate within the Freezone and internationally
3. Offshore
Ideal for holding companies, asset protection, and international business
No physical office required
Cannot operate within the UAE market
Each jurisdiction affects cost, licensing, and operational scope.
Step-by-Step Guide: How to Setup Business in Dubai
Below is the exact process to follow when starting your company.
Step 1: Choose Your Business Activity
Dubai offers more than 2,000+ business activities across all sectors.
Your activity determines the license type, approvals needed, and jurisdiction selection.
Step 2: Select the Right Jurisdiction
Decide whether Mainland, Freezone, or Offshore is best for your operations.
Step 3: Choose a Business Structure
Common structures include:
LLC (Limited Liability Company)
Sole Establishment
Civil Company
Branch of a Foreign Company
Freezone Company (FZCO / FZE)
Your business structure impacts ownership, visa quota, and banking.
Step 4: Reserve Your Trade Name
Your company name must follow UAE naming laws—no religious words, special characters, or offensive terms.
Step 5: Apply for Initial Approval
This confirms the UAE government has no objection to your business activities.
Step 6: Prepare Required Documents
Typical documents include:
Passport copies
Passport-size photo
Entry stamp or residence visa copy
Business plan (for some Freezones)
NOC (if applicable)
Step 7: Secure Office Space
You can choose:
Virtual office / Flexi desk
Shared office
Dedicated office
Warehouse (if required)
Mainland companies require a valid tenancy contract (Ejari).
Step 8: Submit Final Application & Pay Fees
Once documents are submitted and fees paid, your business license is issued.
Step 9: Apply for Investor & Employee Visas
After license issuance, open your immigration file and apply for:
Investor visa
Partner visa
Employee visas
Step 10: Open a Corporate Bank Account
Dubai has many reliable banks including:
Emirates NBD
Mashreq
ADCB
RAKBANK
International banks like HSBC & Standard Chartered
Bank requirements may vary based on your business activity and jurisdiction.
Approximate Cost to Setup Business in Dubai
Costs depend on multiple factors:
Jurisdiction (Mainland vs Freezone)
Business activity
Office requirements
Visa quota
On average:
Freezone license: AED 7,500 – AED 18,000
Mainland license: AED 12,000 – AED 25,000
Offshore setup: AED 9,000 – AED 15,000
Documents Required to Setup Business in Dubai
Passport copy of each shareholder
UAE entry stamp or residence visa copy
Passport-size photo
Business activity details
Proposed trade name
Emirates ID (if applicable)
How Long Does It Take to Setup a Business in Dubai?
Company formation in Dubai is fast and efficient.
Most businesses can be set up within:
Freezone: 1–5 days
Mainland: 3–7 days
Offshore: 1–2 days
Benefits of Starting a Business in Dubai
Low taxes
Global market access
Modern infrastructure
Investor-friendly policies
High-quality lifestyle
Business stability and safety