Are you exploring business setup in Dubai but not sure where to begin? You’re not alone. Every year, thousands of entrepreneurs choose Dubai as their launchpad for global success, drawn by zero income tax, 100% foreign ownership in free zones, and its reputation as a business-friendly hub.

This guide walks you step-by-step through company formation in Dubai, so you can avoid costly mistakes and launch faster.

Why Set Up Your Business in Dubai?

Dubai is a strategic global hub. Here’s why so many companies are starting a business in Dubai:

1. Tax Advantages: No personal income tax and highly competitive corporate tax rates.
   
2. Full Foreign Ownership: Available in all free zones in Dubai and for many mainland activities.
   
3. World-Class Infrastructure: Offices, warehouses, and logistics tailored for global trade.
   
4. Ease of Setup: Many Dubai free zones offer fast-track incorporation in as little as 7 days.
   
   

Step 1: Choose the Right Jurisdiction

Your choice of jurisdiction determines how your company operates.

Mainland

1. Direct access to the UAE market.
2. Requires a Dubai trade license issued by the Department of Economic Development (DED).
3. In some cases, a UAE national is needed as a local service agent.
   
   

Free Zone

For entrepreneurs focused on international trade and 100% ownership, free zones in UAE offer:

1. Tax exemptions on imports and exports.
2. Affordable setup packages for SMEs.
3. Access to over 40 specialised zones such as DMCC and DIFC.
   
   

Example Search Term: “how to start a business in Dubai free zone”

Offshore

Ideal for holding companies and international operations, but not for trading within the UAE.

Step 2: Identify Your Business Activity and License

Before setting up a business in Dubai, define what you’ll do. This determines your license:

1. Commercial license: for trading goods and services.
   
   
2. Professional license: for consultancy or service businesses.
   
   
3. Industrial license: for manufacturing and production.
   
   

You’ll also need to secure a unique trade name and ensure compliance with UAE naming laws.

Step 3: Secure Your Business License and Office

1. Apply for a trade license Dubai or register in your chosen free zone.
   
   
2. Rent office space: Free zones often offer flexible desk options for startups.
   
   

Pro Tip: Many free zones in Dubai provide bundled packages that include visas, licensing, and workspace which is ideal for small businesses.

Step 4: Open a UAE Corporate Bank Account

Opening a bank account is mandatory for trading in the UAE. You’ll need:

1. Your Dubai trade license.
2. Passport copies and incorporation documents.
3. Proof of address for shareholders.
   
   

Step 5: Apply for UAE Visas

As a business owner, you can sponsor visas for yourself, employees, and family members. The number of visas depends on your office size and jurisdiction.

Why Free Zones in Dubai Are Popular

With over 40 UAE free zones, entrepreneurs can choose one that fits their industry.

1. DMCC: Best for commodities and trade.
2. Dubai Internet City: Ideal for tech startups.
3. DIFC: Tailored for finance and professional services.
   
   

Each zone offers unique benefits like 100% repatriation of profits, no customs duties, and full foreign ownership.

Common Questions About Business Setup in Dubai

How much does company setup Dubai cost?

Setup costs vary depending on jurisdiction, license type, and office requirements. Some free zone packages start from AED 12,500.

How long does company formation in Dubai take?

Free zone setups can be completed in 5–10 working days. Mainland registrations may take slightly longer due to approvals.

Do I need a UAE sponsor?

For business setup in Dubai free zone, no sponsor is required. Mainland companies sometimes require a local agent.

‍