Dubai has emerged as one of the top global destinations for entrepreneurs and investors. With its tax-friendly policies, world-class infrastructure, and strategic location between East and West, it’s no surprise that many choose to start a company in Dubai. Whether you’re a startup founder or an established business looking to expand, Dubai offers countless advantages.
In this complete guide, we’ll walk you through everything you need to know—from legal structures to licensing, visa requirements, and how our company, Ease To Compliance, can support your business setup in Dubai.
Why Start a Business in Dubai?
Dubai is attractive to businesses for many reasons:
- No personal or corporate income tax
- Access to a diverse, skilled workforce
- Excellent global connectivity via air and sea
- Strategic location that serves as a gateway to Asia, Africa, and Europe
- Modern infrastructure and tech-driven business environment
- Stable political climate and business-friendly regulations
Additionally, the UAE has signed numerous Double Taxation Avoidance Treaties (DTAs), helping international entrepreneurs avoid paying tax twice on the same income. The government’s consistent focus on innovation and economic diversification makes Dubai a stronghold for industries like finance, logistics, technology, healthcare, education, tourism, and e-commerce.
Dubai’s ecosystem supports entrepreneurs with accelerators, co-working spaces, innovation hubs, and government-backed funding programs. Initiatives like Dubai Future Accelerators and Expo 2020 legacies have further enhanced its image as a future-ready business hub.
Types of Business Jurisdictions in Dubai
Before you start a company in Dubai, it’s essential to understand the different jurisdictions available:
Mainland
Mainland businesses can operate anywhere in the UAE and internationally. A local sponsor was traditionally required, but recent reforms now allow 100% foreign ownership in many sectors. Mainland setups are ideal if you plan to work with government entities or expand across Emirates.
Free Zone
Perfect for full foreign ownership, tax exemptions, and ease of setup. Free zones are designed to support specific industries like tech, media, logistics, and healthcare. However, you’re typically limited to operating within the free zone or internationally unless a local distributor is appointed.
Popular Free Zones:
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- International Free Zone Authority (IFZA)
- Dubai Internet City (DIC)
- Jebel Ali Free Zone (JAFZA)
Offshore
Offshore companies are ideal for asset management or holding structures. No physical office is required, but these entities can’t conduct business within the UAE. Offshore setups offer privacy, tax benefits, and protection of intellectual property.
Steps to Start a Company in Dubai
Here’s a step-by-step guide to help you successfully start a company in Dubai:
1. Decide the Business Activity
Dubai offers 2,000+ approved business activities across sectors like trading, services, logistics, tourism, and manufacturing. Choose one that best suits your business goals. Regulated activities (e.g., insurance, legal, healthcare) may need extra approvals.
2. Choose the Right Jurisdiction
Your chosen activity and market will influence whether you should set up in Mainland, Free Zone, or Offshore jurisdictions.
3. Select a Legal Structure
Common options include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Free Zone Company (FZC or FZE)
- Branch Office
LLCs are the most popular for flexibility and limited liability protection.
Know More: LLC Formation in Dubai
4. Reserve a Trade Name
Pick a name that reflects your business activity, is not offensive, and hasn’t already been taken. The name is typically reserved for 6 months.
Recommendation– Trade Name Reservation in Dubai
5. Apply for a Business License
You must obtain the right license depending on your activity:
- Commercial License – for trading
- Professional License – for services
- Industrial License – for manufacturing
- Tourism License – for travel-related businesses
Recommendation:Â For Trade Licence
6. Find Office Space
You need a registered office address. Free zones offer flexi-desks and shared spaces, while Mainland businesses require a physical office with an Ejari certificate.
7. Get Initial Approvals
Authorities like the DED or Municipality may require approvals based on your activity. Some sectors also need inspections or special permits.
8. Submit Legal Documents
Essential documents include:
- Passport copies of shareholders
- Memorandum & Articles of Association (MoA & AoA)
- Tenancy contract (Ejari)
- Trade name reservation certificate
- No-Objection Certificate (NOC), if needed
- Application forms
9. Open a Corporate Bank Account
Once licensed, you can apply for a corporate bank account. Required documents include:
- Trade license
- Shareholder and director details
- Business plan (in some cases)
- Visa copies
The process typically takes 1–4 weeks.
10. Apply for Visas
Once you start a company in Dubai, you can apply for investor, employee, and dependent visas. The number of visas allowed often depends on your office size.
Cost of Starting a Company in Dubai
The cost to start a company in Dubai varies by business activity, jurisdiction, and office size. On average:
- Free Zone: AED 15,000–AED 25,000
- Mainland: AED 20,000–AED 35,000
- Visa & Medical: AED 3,000–AED 7,000 per person
- Office Rent: From AED 10,000 annually
Other potential costs include:
- Legal translations
- Document attestation
- Bank deposits
- Establishment card fees
Documents Required
- Passport copies of all shareholders
- Trade name reservation certificate
- Initial approval certificate
- Memorandum of Association (MoA)
- Tenancy contract / Ejari certificate
- Shareholder resolution (if corporate shareholder)
- Emirates ID and Visa (for residents)
Know More: Required Documents for Company Formation in Dubai
License Renewal
Business licenses must be renewed annually to remain valid. Failing to renew on time can lead to penalties. For renewal, you’ll usually need:
- Valid tenancy contract
- Updated documents
- Renewal fee
- Audit reports (if required)
Common Business Activities in Dubai
- General trading
- IT and software services
- Consulting
- E-commerce
- Manufacturing
- Real estate
- Digital marketing
- Import-export
- Tourism and hospitality
- Event management
Challenges to Consider
While Dubai offers tremendous opportunities, starting a company in Dubai can have its challenges:
- Navigating complex regulations
- Opening a business bank account can be time-consuming
- Finding the right office space in a competitive market
- Understanding the local labor laws and visa quotas
- Staying compliant with renewals, audits, and filings
How Ease To Compliance Can Help
At Ease To Compliance, we make it easy to start a company in Dubai by offering complete setup solutions:
- Business activity consultation
- Jurisdiction selection (Mainland, Free Zone, Offshore)
- Trade name reservation and license processing
- Document drafting and submission
- Office space solutions (flexi-desk, virtual, or full office)
- Visa assistance
- Bank account setup
- Compliance with DED, DMCC, IFZA, and other authorities
- Ongoing support for accounting, payroll, and renewals
Our services are designed to be fast, affordable, and fully compliant with UAE laws. Whether you’re a solo entrepreneur or a multinational, we tailor our support to your specific business needs.
Final Thoughts
If you’re ready to start a company in Dubai, now is the perfect time. With its pro-business environment, supportive ecosystem, and strategic global access, Dubai offers everything you need to grow and succeed.
The UAE’s progressive regulations, tax exemptions, and business incentives make it an ideal location for international entrepreneurs and multinational companies looking to set up a base in the region.
Contact Ease To Compliance today—and let us turn your business idea into a reality with expert guidance, fast setup, and continued support.
FAQs On How To Start A Company In Dubai
- Question. Can foreigners fully own a business in Dubai?
Answer: Yes, in many sectors, foreigners can own 100% of their business. - Question. What is the cost to start a business in Dubai?
Answer: Costs range from AED 15,000 to AED 35,000, depending on the business type and location. - Question. Is a local sponsor needed?
Answer: A local sponsor is required for some Mainland businesses, but not for Free Zones.
