Entrepreneurs from around the world now see Dubai as a prime location to launch their ventures. With its modern infrastructure, tax benefits, and growing economy, entrepreneurs from all over the world look at Dubai as a dream destination for launching their ventures. But starting a business in a new country can be confusing, especially if you're not familiar with the legal process.
In this blog, we’ll walk you through a simple, step-by-step guide on how to start a business in Dubai, what documents you need, how much it may cost, and the best options available depending on your needs.
Let’s get started.
Why Choose Dubai to Start Your Business?
Before we go into the process, here are a few reasons why Dubai is a great place for entrepreneurs:
- Zero income tax on personal income
- Dubai's location supports global business growth by offering easy market access.
- World-class infrastructure
- Multiple jurisdiction options allow businesses to operate under the most suitable regulatory framework
- Access to a large, skilled workforce
- Supportive government policies for startups
Beginner’s Step-by-Step Plan to Open a Business in Dubai
Step 1: Understand and Select the Right Business Activity
First, think about what your business will sell or offer to customers. Your business activity will affect:
- The type of license you need
- The approvals required
- The cost involved
Examples of business activities:
- E-commerce
- Food & beverage
- Consultancy services
- Import/export
- Real estate
- IT services
The complete list of allowed business activities is available on the DED (Dubai Department of Economic Development) website.
Step 2: Pick the Most Suitable Jurisdiction for Your Company
Dubai offers three main types of jurisdictions. Each has its own rules, costs, and advantages.
|
Jurisdiction |
Best for |
Ownership |
Office Space |
Regulation |
|
Mainland |
Businesses that want to trade anywhere in UAE |
100% ownership (in most sectors) |
Required |
Regulated by DED |
|
Free Zone |
Businesses focused on international trade or online |
100% foreign ownership |
Often provided within zone |
· Step 2: Determine the Best Zone for Your Company Formation · by Free Zone Authority |
|
Offshore |
Holding companies, asset protection |
No physical office |
No physical presence |
For international business only |
If you want complete control and are planning to trade internationally, Free Zones are a great choice. But if you want to operate across the UAE, Mainland is better.
Step 3: Choose a Company Name
Your company name should:
- Match your business activity
- Follow naming guidelines (no offensive words, no names of religious or political groups)
- Be unique (not similar to another registered company)
Tip: It's always better to have 3–5 name options ready in case your first choice is already taken.
Step 4: Get Initial Approval
Once your trade name and activity are finalized, you must get initial approval from the relevant authority (like DED or Free Zone Authority). This confirms that the government has no objection to you starting the business.
You’ll need:
- Passport copies of all shareholders
- Proposed trade name
- Business activity details
Step 5: Draft the Legal Documents
You’ll need to prepare the following documents:
· MOA is a document that clearly outlines what each shareholder owns and what responsibilities they have.
· Local Service Agent Agreement – only if required
· Lease Agreement – official proof that you have a registered business location
Most Free Zones provide flexi-desk or shared office spaces that meet this requirement.
Step 6: Choose Your Office Space
Whether or not you need an office depends on the type of business zone you choose.
· If you choose Mainland, having a commercial office is a legal requirement.
· Free Zone companies often get affordable shared desks or virtual offices
If you're starting a small business, you can go for a flexi-desk option, which helps reduce startup costs.
Step 7: Apply for the Business License
This is the official step where your business becomes legal.
These are the four main licenses used to legally operate a business in Dubai:
- Commercial License – For trading activities
- Professional License – For services like consultancy, IT, etc.
- Industrial License – For manufacturing
- Tourism License – For travel-related businesses
5. If you register in the Mainland, the DED will issue your license; if in a Free Zone, it’s handled by that zone’s authority.
Step 8: Register for Visa
Once your company is officially licensed, you may proceed to apply for:
- Investor/partner visa
- Employee visas
- Dependent visas (for family)
This includes medical tests, Emirates ID, and entry permits.
📌 Many Free Zones allow 1 to 6 visa quotas depending on your office type.
Step 9: Open a Corporate Bank Account
Now that your business is licensed, you’ll need a corporate bank account in the UAE.
Top business-friendly banks in Dubai include:
- Emirates NBD
- ADCB
- RAK Bank
- Mashreq
- HSBC
You'll usually need:
- Trade license
- Shareholder passports
- Company documents (MOA, lease agreement)
- Business plan (in some cases)
Startup Expenses for Launching a Business in Dubai
The cost depends on:
- Your business activity
- License type
- Jurisdiction
- Visa requirements
- Office space
On average:
- Starting in a Free Zone can be budget-friendly, with setup costs typically ranging from AED 12,000 to 30,000.
- Mainland business registration fees usually range from AED 20,000 upwards.
- Offshore companies cost less but have limitations
Documentation Needed to Launch a Company in Dubai
- Passport copies of all partners
- Visa copy or entry stamp
- Passport-size photographs
- Business plan (in some cases)
- NOC (if on existing employment visa)
Frequently Asked Questions (FAQ)
🔸 Can foreigners own 100% of a company in Dubai?
Yes, especially in Free Zones. In Dubai Mainland, many industries no longer require a local sponsor as 100% foreign ownership is allowed.
🔸 Do I need a local sponsor?
For Free Zones, no. Depending on the industry, you may or may not need a local partner in the Mainland.
🔸 Can I run an online business from Dubai?
Yes, many Free Zones support e-commerce licenses.
🔸 How long does it take to register a business?
Usually, 5–10 working days if all documents are correct.
Final Thoughts
Starting a business in Dubai is not as complicated as it may seem, especially if you follow the process step by step. From choosing the right business activity to getting your license and visa, everything is manageable with the right guidance.
The key is planning, choosing the right jurisdiction, and understanding your needs. Whether you're a first-time entrepreneur or an experienced business owner, Dubai offers amazing opportunities for growth.
If you're planning to start your journey, make sure you gather the right information, compare different zones, and stay compliant with UAE rules.
A good start is half the journey — and Dubai is definitely a great place to begin!
