Business Setup in Dubai
Launch your company in Dubai with expert guidance through mainland and free zone business setup. Get your trade license in 7-14 days, secure 100% ownership, access tax benefits, and establish your presence in the world’s fastest-growing business hub. From company formation to visa processing and bank account opening, we handle every step of your Dubai business registration with transparent pricing and guaranteed results.
Start Your Business Setup in Dubai with Expert Guidance
Looking to start a business in Dubai? You’re making a smart move. The UAE processed over 847,000 new business licenses in 2024; a clear sign that Dubai has become the go-to destination for entrepreneurs worldwide. But here’s what most guides won’t tell you upfront: successful business setup in Dubai isn’t just about paperwork; it’s about making the right structural choices from day one.
Whether you’re a first-time founder or expanding an existing empire, this guide breaks down everything you need for company formation in Dubai.
Partnered with 50+ Dubai-Based Companies
Why Dubai Is the #1 Global Hub for Business Setup in 2025
Dubai remains the strongest business destination in the Middle East and one of the fastest-growing hubs globally. Investors choose Dubai because it offers a safe business climate, tax benefits, foreign ownership freedom, and access to regional and international markets.
The Numbers Don’t Lie
Dubai ranks 8th globally and 1st in the Middle East for business attractiveness. But beyond rankings, here’s what matters: you can establish a company in 7-14 days, own 100% of your mainland business (in most sectors), and access a market of 2+ billion consumers within a 4-hour flight radius.
The corporate tax? Just 9% on profits above AED 375,000 (around $102,000). Everything below that stays tax-free. No personal income tax means you keep more of what you earn. VAT is 5%, among the world’s lowest.
Strategic Location That Actually Matters
Dubai’s position isn’t just geographic, it’s logistical gold. GMT+4 timezone means your workday overlaps with both Asian and European markets. Dubai International Airport is the busiest airport for international passengers globally. Jebel Ali Port handles more cargo than any Middle Eastern port. When time and connectivity equal money, location becomes your competitive advantage.
Real Business Freedom
Since 2021, foreign entrepreneurs have been able to own 100% of mainland companies in 122 economic activities. No mandatory local partner. No hidden ownership splits. Free zones already offered full foreign ownership; now you get it in the mainland too, which means access to the entire UAE market without restrictions.
Company Setup in Dubai: Understanding Your Options
Most entrepreneurs stumble here. They rush into company setup in Dubai decisions without understanding how structure impacts everything, market access, costs, compliance, and even visa allocations. Let’s fix that.
Mainland Company Setup: Full Market Access
Your company operates under the Dubai Department of Economic Development (DED) jurisdiction. You can trade anywhere in the UAE, serve local customers directly, and bid on government contracts.
Best for:
- Retail businesses need walk-in customers
- Companies targeting UAE consumers
- Businesses pursuing government contracts
- Service providers needing a local market presence
Mainland business setup in Dubai costs more (AED 25,000-40,000 for basics) and requires a physical office. But if your revenue comes from UAE residents or businesses, this is your only real option.
Free Zone Company Formation: Tax Benefits & Speed
Operate from one of 45+ specialized free zones, each targeting specific industries. You get 100% ownership, zero corporate tax (often for 50 years), and fast-track setup in 5-7 days.
You can’t trade directly with mainland UAE customers without a distributor. Most of your business should be international, with other free zone companies or B2B services.
Best for:
- E-commerce and digital businesses
- International trading companies
- Consultants and professional services
- Tech startups and SaaS companies
- Businesses not needing a local retail presence
Cost reality: AED 15,000-25,000 for basic packages. Many offer flexi-desk options that significantly cut overhead.
Popular choices for business setup in Dubai:
- IFZA (Fujairah): Cost-effective, fast processing
- Meydan: Dubai-based, great for consultants
- DMCC: Prestigious, commodity trading focus
- SHAMS (Sharjah): Budget-friendly, close to Dubai
Offshore Company Setup: International Operations
A corporate entity that can’t conduct business within the UAE but is perfect for international trading, asset holding, and IP protection.
Best for:
- Holding companies managing international assets
- International trading (outside the UAE)
- Intellectual property protection
- Business owners needing a corporate structure without UAE operations
Reality check: Lowest costs (AED 10,000-15,000) but zero UAE business activity allowed. This isn’t a loophole; it’s a specific tool for specific needs.
Step-by-Step: New Company Setup in Dubai
Here’s exactly how business formation in Dubai works, based on 1,000+ successful launches.
Step 1: Choose Your Business Activity & Structure
List every activity you'll do, adding later costs extra. Match activities to correct license type (commercial, professional, industrial). Decide mainland vs. free zone based on your customer location, not what sounds cooler.
Timeline
-
2-3 days for research and consultation.
Cost
-
AED 0-2,000 for professional consultation
Step 2: Reserve Your Company Name
Submit 3 name options. Names can't conflict with existing trademarks, contain restricted words, or be too generic. Approval takes 1-2 days. Your name reservation is valid for a limited period, start it when you're ready to move fast.
Timeline
-
1-2 days
Cost
-
AED 200-600
Step 3: Initial Approval & Documentation
Submit an initial approval application with your activity, structure, and shareholders. Prepare your MOA (Memorandum of Association) outlining ownership and governance. Get documents notarized and attested if foreign.
Timeline
-
3-5 days for the mainland, 1-2 days for the free zone.
Cost
-
Document attestation AED 500-2,000 (if needed)
Step 4: Secure Your Office Space
Sign a lease agreement for physical office (mainland) or desk space (free zone). Get Ejari registration (tenancy registration system). This is mandatory, no office, no license.
Timeline
-
1-3 days
Cost
-
Based on your space choice
Step 5: Trade License Issuance
Submit a complete application with all documents: MOA, lease agreement, passport copies, initial approvals, and NOC (if employed in the UAE). Authorities review and issue your trade license, your official permission to operate.
Timeline
-
2-7 days for the free zone, 7-14 days for the mainland.
Cost
-
Included in license fees above
Step 6: Establishment Card & Immigration File
Register your company with immigration to sponsor visas. Create an establishment card linking the company to the immigration system. This unlocks your ability to hire and sponsor employees or yourself.
Timeline
-
3-5 days
Cost
-
AED 1,000-3,000
Step 7: Visa Processing
Apply for an investor visa first, then employee visas. Each needs: medical tests (AED 300-500), Emirates ID application (AED 370), visa processing (AED 2,000-3,000), and status change if already in the UAE.
Timeline
-
2-4 weeks total
Cost
-
AED 3,000-5,000 per visa
Step 8: Corporate Bank Account Opening
The bottleneck everyone faces. Banks want: detailed business plan, proof of activities, source of funds documentation, contracts or invoices (if available), personal and company financials.
Timeline
-
2-8 weeks (frustratingly variable)
Cost
-
AED 5,000-25,000 initial deposit, varies by bank
Documents You’ll Need for Company Formation in Dubai
Proper documentation ensures your application processes smoothly without delays.
For Individual Shareholders:
- Passport copy (valid 6+ months)
- Passport photos (specific dimensions, recent)
- Current UAE visa/entry stamp
- NOC from current employer (if employed in the UAE)
- Proof of address (utility bill, bank statement)
Attestation Requirements
Foreign documents need the attestation chain: home country notary → UAE embassy in home country → UAE Ministry of Foreign Affairs. Some free zones accept simpler notarization. This process takes 2-4 weeks. Start early.
For Corporate Shareholders:
- Certificate of Incorporation
- Memorandum & Articles of Association
- Board resolution authorizing a new company
- UBO (Ultimate Beneficial Owner) declaration
- Corporate structure charts
- Good standing certificates
Choosing the Right Free Zone for Your Dubai Business Setup
Not all free zones are created equal. Here’s how to choose smartly.
Dubai Multi Commodities Centre
Best for: Commodity trading, import/export, corporate headquarters.
Pros: Prestigious address, strong banking relationships, comprehensive facilities.
Cons: Higher costs, more corporate-focused
International Free Zone (IFZA)
Best for: Budget-conscious entrepreneurs, general trading, and consultancies.
Pros: Lowest costs, fast setup, flexible packages.
Cons: Located in Fujairah (1.5 hours from Dubai)
Meydan Free Zone
Best for: Small businesses, consultants, service providers.
Pros: Dubai-based, reasonable costs, good support.
Cons: Less prestigious than DMCC/DIFC
RAKEZ – Ras Al Khaimah Economic Zone
Best for: Manufacturing, warehousing, and industrial activities.
Pros: Lowest costs in the UAE, large industrial spaces available.
Cons: Further from Dubai (45-60 minutes)
Dubai Airport Free Zone (DAFZA)
Best for: High-value trading and logistics.
Pros: Premium location, fast
customs, strong banking trust.
Cons: Higher setup cost.
Sharjah Publishing City
Best for: E-commerce, online services, and freelancers.
Pros: Low-cost setup, quick licensing, wide activity list.
Cons: Located in Sharjah, not as premium as Dubai zones.
Packages & Pricing for Business Setup Dubai
Starter Package
- Free zone company formation
- Trade license (1 business activity)
- Flexi-desk office space (1 year)
- 1 investor visa
- Establishment card
- Basic PRO services
- Company documentation
Growth Package
- Mainland or free zone setup (your choice)
- Trade license (up to 3 activities)
- Dedicated office or desk space (1 year)
- 3 investor/employee visas
- Full PRO services (1 year)
- Banking assistance
- Company documentation & attested copies
Enterprise Package
- Mainland license with full activities
- Premium office location
- 5+ visas
- Complete PRO services (1 year)
- Guaranteed banking support
- Accounting system setup
- Compliance management (1 year)
Custom Solutions
Every business is different. Need warehouse space? Multiple locations? Specific free zone? We build custom packages matching your exact requirements.
Banking, Tax & Compliance After Business Setup Dubai
Getting the license is just the beginning. Here’s what keeps you compliant and operational.
Corporate Banking Reality
UAE banks are conservative post-compliance crackdowns. They want proof you’re a real business: detailed business plans, contracts, invoices, clear revenue sources, and economic substance in the UAE.
Strategy: Apply to 2-3 banks simultaneously. Commercial banks (like Emirates NBD, ADCB) are easier for startups than international banks (like HSBC, Citi). Business setup companies in Dubai with banking relationships can fast-track this.
VAT Registration (5%)
Mandatory if annual revenue exceeds AED 375,000. Voluntary below that threshold (sometimes smart for claiming back VAT on expenses). File quarterly returns even with zero transactions. Penalties for late filing start at AED 1,000.
Corporate Tax (9%)
Applies to profits above AED 375,000. Below that threshold = 0% tax. Free zones often have extended exemptions (check specific zone terms). Maintain proper accounting from day one, retroactive bookkeeping is expensive and painful.
Economic Substance Regulations (ESR)
If your business is in banking, insurance, investment fund management, lease finance, headquarters, shipping, IP holding, or distribution centers, you must prove economic substance in the UAE. Real offices, actual employees, genuine decision-making locally. Regulators audit this.
Accounting & Audit Requirements
Mainland companies need annual audits. Many free zones require audits based on revenue or activities. Budget AED 5,000-20,000 annually for professional accounting. Clean books make tax filing, renewals, and bank relationships dramatically easier.
Why Choose Incorpyfy for Your Business Setup Dubai
We Handle What Others Complicate
Most business setup consultants in Dubai stop at license issuance and wish you luck. We stay until you’re banking, hiring, and operating. Our team includes PRO specialists, banking liaisons, and compliance experts who’ve processed 500+ company formations.
Transparent Pricing, Zero Surprises
Every package shows exactly what’s included and what’s extra. No “oh, by the way” charges mid-process. We quote realistic timelines, not marketing promises. You’ll know your total investment before signing anything.
Local Expertise That Matters
Our Dubai-based team navigates DED, free zone authorities, and banks daily. We speak Arabic, English, Hindi, Urdu, and French. When issues arise (they always do), our relationships and presence solve them fast.
End-to-End Support
From initial consultation through bank account opening, visa processing, office setup, and first-year compliance, we’re your single point of contact: one team, complete solution, zero coordination headaches.
FAQs: Business Formation in Dubai
How long does a company's setup in Dubai actually take?
Free zones: 5-7 days for license, 8-10 weeks total, including visas and banking. Mainland: 3-4 weeks for license, 10-14 weeks total. The bottleneck is always banking. Anyone promising a “48-hour complete setup” is selling you a license without the operational necessities.
Can I set up a company while outside the UAE?
Yes. You can complete 80% remotely through the power of attorney. You’ll likely need one visit for bank account opening (some banks now do video calls). We handle everything else while you’re abroad.
Mainland or free zone, how do I actually choose?
Simple test: Do you need to sell directly to UAE customers or do retail business? Mainland. Is your business international, consulting, e-commerce, or B2B services? Free zone. Still unsure? Talk to us, wrong choice costs AED 50,000-150,000 to fix later.
Can I sponsor my family on a business visa?
Yes, once your investor visa is processed. You can sponsor spouse, children, and parents. Each visa costs AED 3,000-5,000, including medical and Emirates ID. Your company needs an adequate visa quota (based on office size).
What if my business activity isn't on the license?
You can’t legally conduct that activity. Adding activities later costs AED 2,000-5,000 per activity plus amendment fees. List everything upfront, even activities you might do later.
Do I need a local partner for mainland business?
Not anymore for most activities. 100% foreign ownership is now allowed in 122 economic activities. Some sectors still need local partners: defense, oil & gas, utilities. Check your specific activity.
How much does it really cost?
Free zone minimum: AED 35,000-45,000 first year (setup + visa + basic operation). Mainland minimum: AED 50,000-70,000 first year, add AED 5,000-10,000 per additional employee visa.
What happens if I don't renew my license?
Your company becomes inactive. You face fines (AED 1,000-10,000+). Your visas get cancelled. Banks freeze accounts. Reactivating costs more than renewing. Mark renewal dates clearly, they’re non-negotiable.
Start Your Dubai Company Setup Today
Free 30-Minute Consultation
Let’s discuss your specific business. We’ll evaluate your requirements, recommend the optimal structure, and provide transparent pricing. No sales pressure, just expert guidance from consultants who’ve done this hundreds of times.
Get Accurate Cost Estimate in 24 Hours
Tell us your industry, structure preference, and visa needs. We’ll provide itemized pricing covering setup, first-year operation, and hidden costs others don’t mention. You’ll know your exact investment before deciding anything.
Ready to Launch?
The UAE processed 847,000+ new licenses last year. Your competitors are already here. Dubai isn’t just business-friendly, it’s business-optimal for entrepreneurs who position themselves correctly.
Contact Incorpyfy: 📞 Call us directly for immediate consultation
+971 52 650 6950
📧 Email your requirements for detailed proposal
info@incorpfy.com
💬 WhatsApp for quick questions and guidance
+971 52 650 6950
Business setup in Dubai works when you have expert partners handling the complex parts while you focus on building your venture. Let’s make your Dubai business formation smooth, compliant, and strategically sound.
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