How to Start a Business in Dubai 2026: A Complete Guide

Ambitious entrepreneurs from different parts of the world can start a business in Dubai easily. Dubai, one of the most lavish and premier cities in the world, offers equal opportunities for large-scale companies as well as startups. That is why it continues to be a top choice for starting a business in 2026. It offers investor-friendly policies, lower tax rates, and faster business growth compared to many other regions.

However, when starting a business anywhere, including Dubai, careful planning, thorough research, and smart investment are essential, along with meeting all legal requirements. For accurate guidance on business setup in Dubai, this blog has been prepared based on the latest UAE business laws and trends.

Quick summary:

• UAE citizens as well as foreigners can start a business in Dubai.
• There are more than 3500 permitted activities for businesses in Dubai.
• Business license is issued by Department of Economy and Tourism (DET) and free zone authority.
• Affordable business setup in Dubai is possible from AED 5,999*.
• You need a business license, government approval, and corporate bank account to operate.

Whether you are a beginner or an experienced entrepreneur, this blog will help you understand the official Dubai company formation process, including the legal requirements and the set-up costs. It is a must-read to get clarity on how to start a business in Dubai in 2026 successfully.

Why Start a Business in Dubai in 2026?

Starting a business in Dubai offers a wealth of benefits to investors and entrepreneurs in 2026, including a global address, tax exemptions, brilliant infrastructure, and ease of doing business.

Over the years, positive updates to business laws and policies have solidified Dubai’s position as a global business hub. Dubai business owners enjoy 100% foreign ownership along with the flexibility to operate across the UAE and globally. Access to a multi-skilled workforce and UAE residency through company setup further strengthens its appeal.

It is an undisputed fact that Dubai is one of the world’s most dynamic and diversified urban economies. Profitable business opportunities lie in sectors such as technology, construction, tourism, healthcare, finance, real estate, and many more. So, if you are planning to start a new business in Dubai or expand an existing one, we strongly encourage you to proceed.

Key Things to Know Before Starting a Business in Dubai

Before understanding how to start a business in Dubai, it is important to know a few key aspects of the Dubai business setup. This will help you better understand the process and make informed decisions.

1. Mainland vs free zones vs offshore – Dubai jurisdictions for business setup

You might have heard of the Dubai mainland, free zones, and offshore. These are the three distinct economic zones (known as jurisdictions) inside Dubai where you can open a business. Each of them has its own regulations and features.

Mainland:

The mainland, also known as the onshore area, refers to the part of Dubai outside its free zones. Companies established in the Dubai mainland are regulated and licensed by the Department of Economy and Tourism (DET).

Mainland companies have the freedom to operate anywhere in the UAE. They can apply for an unrestricted number of visas based on their office size and are permitted to work directly on government contracts. All mainland companies in Dubai are required to have a physical office space. Those with annual taxable income exceeding AED 375,000 must pay 9% corporate tax rate (on exceeding income) and register for VAT with FTA.

Here is the latest update – DET now allows 100% foreign business ownership in most sectors on the mainland. If you are looking for maximum flexibility and want to trade directly with UAE and global clients, setting up a mainland business could be a viable option.

Start Mainland Business

Free Zone:

For entrepreneurs who wish to have 100% foreign business ownership and an affordable business license, Dubai free zones are a great option. Free zones are industry-specific economic areas, each governed by its own regulations.

Free zone companies in Dubai benefit from 0% corporate tax on qualifying income. Although they must register for the same. Additionally, they can operate through a flexi-desk or virtual office address, which significantly reduces the operational costs. However, to operate on the Dubai mainland, free zone companies need a separate license from DET, as direct trading is not allowed.

The free zone concept was introduced by the Dubai government to attract foreign investment and drive business growth. Currently, there are more than 35 free zones in Dubai, each offering futuristic infrastructural facilities. Some popular names include DMCC, IFZA, DWTC, JAFZA, Meydan Free Zone, and Dubai Internet City.

Start Free Zone Company

Offshore:

Offshore companies are legal entities established in Dubai for conducting international operations, holding assets, managing patents, or investing in real estate. You can register an offshore company in free zones like Rakez, JAFZA, and Ajman. However, offshore companies should not be confused with free zone companies, as their purpose and legal requirements are entirely different.

Offshore entities are not permitted to operate within the UAE and do not require any physical presence in the country. They also offer strong asset protection, and investor details need not be disclosed on public registries.

Thus, offshore company formation in Dubai is a strategic business setup option. It lets you open a UAE corporate bank account and access the UAE’s tax exemptions and double taxation treaties.

Start Offshore Company

Types of Trade License in Dubai – The Right One for Your Business

It is crucial to obtain the right type of trade license from the Department of Economy and Tourism (DET) or a free zone that matches your business activities in Dubai. A trade license is your official authorization to start a business in Dubai, and without it, you basically cannot operate.

Based on the nature of your business activities, you can apply for one of the 3 types of trade licenses in Dubai:

Commercial license:

If you plan to start a trading business in Dubai that involves buying and selling goods, you will need a commercial license in Dubai. Common examples include import and export businesses, retail stores, sales and logistics companies, tourism-related activities, clothing businesses, e-commerce businesses, and real estate trading.

Industrial license:

Manufacturing and production businesses in Dubai require an industrial license. This license covers activities such as the import of raw materials, processing and conversion into finished goods, and the assembly of components. Say you want to start a textile manufacturing firm in Dubai, you will need this license then.

Professional license:

Let us assume you are a professional looking to render services to clients. Or maybe you want to open a salon or a restaurant, where experiences are sold. In such cases, you will need a professional license in Dubai. It covers services such as engineering, consultancy, legal, and accounting services, offered by individuals or companies.

How to Open a Business in Dubai?

To open business in Dubai, whether as a local or a foreigner, you need to formally acquire a trade license from the Department of Economy and Tourism (DED) or a free zone authority. To do that, you will need to finalize the legal structure, register a trade name, obtain necessary approvals, and apply to the authority with accurate documents.

Although the Dubai company formation process is simple, opening a business in Dubai with an expert by your side makes it much easier. Professional business setup consultants in Dubai understand the local business laws better than most people. They manage all, including your trade license, document approvals, government liaison, bank account opening, and UAE residency visas. Thus, ensuring faster and uncomplicated business setup.

Process of Setting up a Business in Dubai – Step-by-Step Guide

Setting up a business in Dubai is not difficult, provided all the legal steps are fulfilled. Here is how to start a business in Dubai in 2026:

Step 1 – Choose your business activity:

Before starting any business in Dubai, one obvious question arises: what business? It is therefore essential to first determine the business activity you wish to pursue. The Dubai government permits more than 3,500 economic activities for businesses. These belong to a wide range of sectors, including finance, education, retail, hospitality, healthcare, artificial intelligence, food & beverages, technology, entertainment, and media.

Related activities can often be combined under a single business license in Dubai. You can check out the full list on government websites like DET or free zone websites. The nature of your chosen activities will determine the type of license you will require.

Step 2 – Choose the right jurisdiction:

Dubai offers three jurisdictions for business setup: mainland, free zone, and offshore. Each economic zone has its own set of laws and regulations regarding business licensing and permitted activities. The type of jurisdiction that you choose will depend on your business requirements, activities chosen, and trade license sought.

If you require personalized guidance regarding jurisdiction selection, please speak directly to our company formation specialists.

Step 3 – Decide the business’s legal structure:

The legal structure of your business defines how you run it. You should choose a structure that fits your business needs. It is an important decision and determines how your business assets and liabilities are organised. A strong corporate structure ensures legal compliance, tax efficiency, liability protection, and operational flexibility of your business.

Dubai allows several types of legal structures across its economic zones, including:

Step 4 – Finalize and register your trade name:

It is essential to choose an appropriate and suitable name for your Dubai business. The UAE has strict naming conventions and regulations that you need to follow. To obtain the trade name registration certificate from the DET or specific authorities, make sure your proposed name:

• does not violate the public morals or public order of the nation
• is followed by the legal form of the company, e.g., XYZ “ltd”
• 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 DET-mainland or the respective freezone means that the UAE government has no objections to your company’s establishment. You will need to submit your business plan, planned business activities, trade name certificate, and basic identification documents to the authorities. This approval lets you proceed with the business setup process in Dubai.

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 business in Dubai. As you progress through the application process, it is 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 a sole proprietorship.

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

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

Whether you require a local sponsor in Dubai or not 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 case you need one, look for a reliable and trustworthy local sponsor to start a business in Dubai successfully. But in free zones, 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 must get a suitable office space in Dubai. It can be a private office space, a rented office unit, or you can choose a flexi desk or shared workplaces.

If you rent out a 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.

Please note that in the mainland, a physical office (Ejari) is often a mandatory requirement for company registration. Alternatively, free zones allow businesses to operate through virtual office addresses.

Step 9 – Get external approvals (if needed):

Many sectors in Dubai are regulated by specific government departments. In such cases, businesses need to get special permits from the relevant authorities. For example, legal activities and consultations typically require approval from the Ministry of Justice, while a healthcare business in Dubai may need clearance from local health departments.

Step 10 – Apply for the business license:

Apply for the necessary trade license for your business with the DET (for mainland) or the relevant free zone authority. The process includes filling out the license application form, so make sure to provide accurate personal and business details.

Submit all required documents (approval receipts, identification documents, address proof, trade name reservation, etc.) and pay the applicable fees to obtain your trade license. Once your application is approved, you can collect your business license from the respective authority. With a trade license, you can open a business bank account, hire employees, and apply for UAE residency.

Please note that business licensing and company registration in Dubai are simultaneous processes. You will also receive your company incorporation certificate along with your business license.

Step 11 – Apply for a UAE visa:

If you or your employees require visas to live and work in the UAE, initiate the visa application process.

The residence visa process in Dubai typically includes:

1. Getting an entry permit
2. Completing medical testing
3. Obtaining your Emirates ID
4. Submission of passport copies, photos, and other relevant documents to the GDRFA
5. Receiving your visa stamping

Once you get your residence visa, you can sponsor visas for your spouse, children, parents, and domestic helpers. Here is something interesting – if you meet the set eligibility criteria, you can even secure a 10-year Golden Visa for yourself and your family!

Step 12 – Open a corporate bank account:

Once you have secured your business license and received all your documents, it is time to open a business bank account in Dubai. Every business in Dubai needs a corporate bank account to carry out transactions.

Dubai has a large number of banks, including both local and international institutions. To open a corporate bank account, you will need to provide your business license, shareholders’ passport copies, and other required documents to your chosen bank.

Related Insight: How to start a business in Dubai from India

Documents Required to Open Business in Dubai

To open business in Dubai, you need the following documents:

• License application form
• Passport copies of shareholders and the appointed manager
• 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
• Financial statements
• NOC from the local sponsor or partner (if applicable)
• Any additional documents requested by the DED/respective authority

Dubiz’s document clearance services help you prepare and submit the right documents for your business approvals in Dubai.

What is the Cost of Setting Up a Business in Dubai?

The average cost of setting up a business in Dubai is between 5,999* and AED 24,500*. Dubai business setup costs vary depending on the jurisdiction:

• Mainland: AED 17,900* (professional license) and AED 22,500* (commercial license)
• Free zone: AED 5,999* to AED 18,900*
• Offshore: Around AED 19,000*

Also, you should know that setting up a business in UAE involves various expenses, including:

• License fees
• Registration fees
• Visa application charges
• Office space expenses
• Share capital
• UAE visa renewal charges
• DED fees
• Typing/document processing charges
• Other miscellaneous costs

Therefore, costs can vary for investors. We encourage you to use our free cost calculator to get an accurate cost plan for your business idea in Dubai.

Cost Calculator

How to Start a Business in Dubai With No Money?

Starting a business in Dubai with no money means doing it with minimal spending, starting small, and choosing cost-effective license packages. “No money” does not mean zero investment. Let us get this clear first. You cannot get your business license or approvals in Dubai for free. There will always be some minimal costs.

However, there are smart payment plans and free zone options that make business setup in Dubai affordable. Dubai highly encourages startups. You do not need to take on fixed costs early. For example, you can choose shared workplaces, hire fewer employees, or start an online business. Afterwards, you can expand once profits start coming in.

Here is how to start business in Dubai with no money:

• Start with low-capital business models: Consulting, e-commerce, freelancing, drop shipping – such businesses need very low investment in office space, employees, or equipment.
• Consider free zones for value license packages: Free zones give you better budget flexibility compared to the mainland. You get options like remote operations, flexi desks, and minimal capital requirements.
• Pick the business you want to do now: Do not add unnecessary business activities to your trade license. Start small. Pick 1 – 2 business activities to focus on. You can add activities to the trade license later if you wish to expand.
• Keep your visa plan limited: Do not pick the maximum visa plan once you get your license. It is not required in the beginning. Waiting helps you save expenses on medicals, Emirates ID, and renewals.

Free zones like DWTC, IFZA, Meydan Free Zone, JAFZA, DSO, ADGM, and many others offer some of the cheapest business licenses in the UAE. With smart decision-making, you can keep your business setup costs in Dubai to a minimum. And in case you are wondering, do not let budget become a constraint in the way of your dreams. Dubai does not do it that way.

Related Insights: Low-cost business setup in Dubai

Benefits of Business Setup in Dubai for Foreigners

Setting up a business in Dubai as a foreigner comes with endless opportunities, a promising future, high earnings, and unlimited advantages. Key benefits include:

• Tax benefits: Dubai has one of the most relaxed tax environments across the globe. There is zero personal income tax and a low corporate tax rate of 9%. Businesses with an annual taxable income below AED 375,000 pay 0% corporate tax.
• Vibrant and growing economy: The economy of the city is stable, affluent, and flourishing. Many sectors, including finance, media, marketing, IT, and 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, without any local sponsor, in freezones as well as for many mainland activities.
• Business-friendly policies: The UAE government is incredibly supportive of 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 synonymous 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 will not be cumbersome.

Real Examples of Profitable Businesses in Dubai for 2026

In Dubai, every business, literally any business, can shine. Here are the businesses that are expected to earn high and see a surge in demand in the year 2026:

• Real estate
• Ecommerce
• Tourism
• Cryptocurrency
• Food and beverages
• Construction
• Consultancy
• Digital marketing
• Beauty salon
• Freelancing
• Fashion boutique

Related Insight: Top business opportunities in Dubai

Legal Requirements for Starting a Business in Dubai – Final Checklist

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

Save this list of to-do-things when starting 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 of 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.

Dubiz Helps in Starting a Business in UAE

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

Our company formation experts in Dubai 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 full range of business services in UAE:

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

Want to open a business in Dubai? Let’s do it together!

Contact us today:

📞 Call: +971 56 369 5485 

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

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