How to Start a Business in Dubai: A complete guide

Looking to establish a business abroad? Look no further than Dubai. As one of the UAE’s most populous and advanced cities, Dubai offers a thriving economy, cutting-edge infrastructure, and many advantages for entrepreneurs. If you want to start a business in Dubai, you need careful planning, thorough research, meticulous documentation, budgeting, and decision-making, among other things.

This blog will provide all the essential steps and insights you need to start a company in Dubai successfully, including the process, cost, documentation and necessary legal requirements.

Why start a business in Dubai?

Dubai is witnessing increase in growth of businesses and company establishments every year. A total of 18,1600 new companies joined the Chamber of Commerce Dubai in Q1 of 2025, which reflects a strong start to the year.

Dubai’s welcoming atmosphere and strategic location make it a prime business destination. Benefits of starting a business in Dubai include:

Tax benefits:

Dubai has one of the most relaxed tax environments across the globe. There is zero personal income tax and huge corporate tax benefits.

Vibrant and growing economy:

The economy of the city is stable, affluent and flourishing. Many sectors including finance, media, marketing, IT, healthcare, thrive here together.

Thriving business communities:

Thousands of MNCs and big brands call Dubai their home. The business community here offers rich networking opportunities.

World-class infrastructure:

Modern and latest infrastructure, facilities, logistics network and telecommunication together offer a smooth base for operations.

Strategic location for trade:

Dubai is located between Asia, Europe and Africa which allows it to connect to massive international markets. Thus, for businesses, it means easy global reach.

100% ownership rights:

Starting a business in UAE as a foreigner allows you to enjoy full business ownership, needless of any local sponsor, on freezones as well as for many mainland activities.

Business-friendly policies:

The UAE government is very supportive to foreign investors and startups. From time to time, they devise policies for ease of business setup in Dubai.

Luxurious life for self and family:

Dubai is synonyms with luxury. By starting a business here, you can build a prosperous life for yourself and your family.

Easy immigration:

Dubai offers seamless visa and residency options for those who start a venture here. This includes golden visa, investor visa, staff visa, family visa, etc. Moving here won’t be cumbersome.

How to open a company in Dubai?

Setting up a business in Dubai is not difficult, provided you are well-informed about the intricacies involved.

To start a business in Dubai, follow these steps:

Step 1 – Choose your business activity:

Start by selecting the business activities you wish to pursue. The nature of these activities will determine the type of license you will require. UAE trade licenses are broadly of 6 types: occupational, tourism, industrial, commercial, agricultural, and professional. Dubai offers a range of sectors to consider, including finance, education, retail, hospitality, and media.

Step 2 – Choose the right economic zone:

The Emirates offers three jurisdictions: mainland, free zone and offshore. Each economic zone has its own set of laws and regulations regarding business setup and permitted activities. The type of jurisdiction that you choose will depend on your business needs, activities chosen, license needed, etc.

Below is the overview of the different economic zones where you can open business in Dubai:

• Mainland: Mainland, also known as onshore, is the part of Dubai outside the free zones and is regulated by the Department of Economic Development (DED). Businesses operating in mainland Dubai have the freedom to work in various sectors. They can interact with other companies and individuals within Dubai, UAE, and globally.
• Free Zone: Free zones in Dubai are special economic areas with their own regulations. They offer numerous benefits and tax exemptions thus attracting foreign investors. Dubai boasts over 30 free zones, with over thousands of companies already established.
• Offshore: Offshore companies are legal entities established in Dubai that can conduct business activities outside Dubai but not inside it. Opting for a UAE offshore company formation can be advantageous for accessing global markets.

Step 3 – Decide on your company structure:

Legal compliance, effective taxes, liability protection, operational flexibility, and general business performance depend on a strong corporate structure. The structure you choose for your company will depend on your business needs. The UAE offers several types of business structures under various economic zones, some of them including:

Mainland:

• Sole proprietorship
• GCC company branch
• Limited liability company (LLC)
• Civil company/partnership
• Branch of an international or local company
• Holding company
• Public joint stock company (PJSC)
• Private joint stock company

Free zone:

• Free zone limited liability company (FZ LLC)
• Free zone company (FZ Co.)
• Free zone establishment (FZE)
• Branch of an international or local company

Offshore:

• Offshore limited liability company (OLLC)

Step 4 – Finalize and register your trade name:

Choose an appropriate trade name for your business in Dubai. The UAE has strict conventions and regulations that you need to follow. To get the necessary approvals from the DED or specific authorities, make sure your name:

• does not violate the public morals or public order of the nation
• is followed by the legal form of the company
• has not been previously registered
• is compatible and relevant to the chosen activity.
• does not contain names of any religion or governing authority, nor names or logos of any external bodies.

Step 5 – Obtain initial approval (NOC) for business:

Securing initial approval from DED or respective freezone means that the UAE government has no objections to you starting a business in the country. This approval lets you proceed with the business setup process and get the license.

Step 6 – Prepare LSA or MOA:

If your company is a civil, limited liability, public shareholding, or private company, then a Memorandum of Association (MOA) is required to start a business in Dubai. As you progress through the application process, it’s important to ensure that essential documents like the MOA and AOA are duly notarised. A local service agent agreement (LSA) may also be required for sole proprietorship.

Please note that the requirements may change from time to time. You can get latest details with our experts.

Step 7 – Find a local sponsor (if required):

Whether you require a local sponsor in Dubai depends on your business’s nature and the industry you wish to enter. In Dubai’s mainland, certain strategic sectors mandate a local sponsor, while others permit full foreign ownership. In that case, a reliable and trustworthy local sponsor is essential to start a business in Dubai successfully. On freezone, you do not need to partner with any local Emirati sponsor.

Step 8 – Choose a location for your office:

Considering the needs of your business, you have several options for office space in Dubai, ranging from flexi desks to shared workplaces. Once you have found the right space, register your tenancy contract, known as “Ejari,” through the Dubai Land Department’s Ejari portal.

Ejari is an agreement between you and the real estate agency for the office unit or shared workspace you plan to lease. This agreement is crucial for company registration. Alternatively, opting for a virtual office is also a viable option for some license types.

Step 9 – Apply for additional government approvals (if needed):

In certain cases, obtaining additional approvals from relevant government entities is necessary for specific business operations in Dubai. For example, legal activities and consultations typically require approval from the Ministry of Justice, while as healthcare business in Dubai may need clearance from local health departments.

Step 10 – Apply for the business license:

Finally, submit the required documents and pay the necessary fees to obtain your trade license. It will also include filling out a license application form. Be sure to enter proper and correct details whether its personal or business related. After successful application approval, you can collect the business license from the respective authority.

Step 11 – Open a corporate bank account:

Once you have secured your business license and documents back, it is time to open a business bank account in Dubai. Dubai hosts a huge number of banks, both domestic and international. You will need to provide your business license, shareholders’ passport copies, and other documents required by the bank.

Step 12 – Apply for a visa:

The final step involves immigration and visa processing. If you or your employees require visas to live and work in the UAE, initiate the visa application process. This often involves medical testing and the submission of passport copies, photos, and other relevant documents.

*It should be noted that the process for setting up a business in Dubai can vary depending on the specific requirements of the business activity and the jurisdiction (mainland or free zone). To seek further guidance, please contact us at Dubiz Business Setup.

Documents required for starting business in Dubai

The documents required for business license in Dubai typically includes:

• License application form
• Initial approval receipt and all the previously submitted documents
• Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in Dubai
• Duly attested memorandum of association (for all types of companies)
• Approvals from other government entities concerned, if required
• Duly attested service agent contract (for civil establishments and companies 100% owned by non-GCC nationals) involving a local service agent.
• Business plan
• Passport copies of shareholders and the appointed manager
• Financial statements
• NOC from the local sponsor or partner (if applicable)
• Any additional documents requested by the DED/respective authority

Please note that additional documents may be required to start a business in Dubai depending on your jurisdiction.

Cost of setting up a business in Dubai

The cost of starting a new business in Dubai in various economic zones is as follows:

• Mainland: AED 17,900* (professional license) and AED 24,500* (commercial license)
• Free zone: AED 11,999* onwards
• Offshore: Around AED 19,000*

Setting up your business in UAE involves various costs, such as license fees, registration fees, visa application charges, office space expenses, share capital, UAE visa renewal charges, DED fees, typing charges, and more. Contact our experts at Dubiz for a detailed breakdown of costs tailored to your needs.

Which businesses are making profits in Dubai?

In Dubai, every business, literally any business can shine. Here are some profitable businesses that can thrive in Dubai:

• Ecommerce
• Tourism
• Real estate
• Construction
• Consultancy
• Digital marketing
• Beauty salon
• Freelancing
• Fashion boutique

Want to check out more? Here are top business opportunities in Dubai

Checklist of legal requirements for starting a business in Dubai

Being legally compliant is very essential for businesses in Dubai. Not only does it save you from legal penalties and punishments, but at the same time, a legally respectful business is always seen as credible and held in high regard by everyone.

Here is the list of items you must take care of when setting up a business in Dubai:

🟧Trade license: To legally operate your business activity in Dubai, you must obtain a business license: commercial, industrial, or professional.

🟧 Emirates ID and residence visa: To live legally in Dubai, a residency visa is required for yourself and any foreign staff. An Emirates ID is an identification card that you must apply for.

🟧Initial approval certificate: The primary NOC must be obtained from the DED or Free Zone authority that allows you to proceed with the licensing process.

🟧Tenancy contract: Official registration of the lease contract for office space is needed. Remember, for many license types, you may opt for flexi-desk options too.

🟧Trade name certificate: This certificate confirms the reservation of your trade name. You must get the name for your business registered.

🟧Corporate bank account: As a personal bank account cannot be used for business purposes, a separate business bank account is required.

🟧External approvals: Based on the nature of your business, you may need additional permissions from Dubai Municipality, KHDA, DHA, RERA, or other relevant departments.

Start your business in Dubai with Dubiz!

Dubai is the land of dreams. However, the process required to start a business in Dubai can feel overwhelming, given the numerous formalities and steps involved. That is where Dubiz comes in as your trusted partner.

Our company formation experts walk you through each step. From selecting an office space to obtaining a trade license, we streamline the entire process, allowing you to concentrate on the success of your business. We can help you with:

• Dubai company registration
• Business licensing
• Visa applications
• Business bank account
• Golden visa
• Tax and accounting
• Business space solutions
• Document clearance
• PRO services

Want to start a business in Dubai? Let’s launch it together!

Contact us today:

📞 Call: +971 56 369 5485 

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Asked Questions (FAQs)

1. Is Dubai startup-friendly?

Dubai is extremely startup-friendly due of its business-friendly environment, tax incentives, and government support.

2. What are the most popular businesses in Dubai?

The most popular businesses in Dubai include transportation and logistics, healthcare and medical services, commerce, real estate, wholesale and retail trade, tourism and hospitality, fintech and IT solutions.

3. How long does it take to start a new business in Dubai?

Starting a new business in Dubai usually takes 4-5 working days. However, it depends upon certain variables, such as the type of company formation, license and documentation needed, etc.

4. Can I own 100% of a company in Dubai?

Yes, you can own 100% of your business in Dubai free zones. Certain activities on the mainland also allow 100% ownership.

5. How to start a business in Dubai free zone?

For business setup in Dubai free zone, you can follow these simple steps:

• Choose your business activity
• Determine your business structure
• Select your trade name
• Apply for a business license
• Choose an office space
• Get initial approvals, register your business and collect your license