How to Set Up a Business in Dubai: A Complete Guide for 2025

1. Decide on the Business Activity

Before registering your company, identify the type of business activity you intend to carry out. Dubai offers a wide range of business categories, including:

• Trading (import/export, wholesale, retail)

• Services (consulting, IT, marketing)

• Industrial (manufacturing, assembly)

• Freelancing (media, design, education)

• E-commerce (online retail, dropshipping)

Your chosen activity will influence license requirements, location, and approvals needed.

2. Choose the Right Jurisdiction

Dubai offers three main jurisdictions for business setup, each with its own advantages:

a. Mainland (Dubai Economic Department - DED)

• Allows you to operate anywhere in Dubai and the UAE.

• Ideal for businesses that want to serve the local market.

• Requires office space in Dubai.

• No restrictions on the number of visas (depending on office size).

b. Free Zones

• Over 30 Free Zones, including DMCC, IFZA, Dubai South, and DIFC.

• 100% foreign ownership allowed.

• Full repatriation of profits and capital.

• No import/export duties within the Free Zone.

• Quick and efficient company setup process.

c. Offshore

• Ideal for international business operations.

• No physical office or staff required in Dubai.

• Not allowed to do business within the UAE.

• Commonly used for holding companies, asset protection, or global trading.

3. Select a Legal Structure

Depending on your business activity and jurisdiction, you can choose from the following legal structures:

• Sole Proprietorship

• Limited Liability Company (LLC)

• Civil Company

• Free Zone Company (FZC or FZE)

• Branch Office or Representative Office

For most foreign entrepreneurs, an LLC or a Free Zone Company is the most suitable structure.

4. Reserve Your Trade Name

Choose a unique and appropriate trade name that reflects your business activity and complies with Dubai’s naming regulations. The name must not:

• Violate public morals or public order.

• Include religious or political references.

• Duplicate existing company names in the UAE.

Once approved, the name is reserved with the relevant authority for a specific period.

5. Apply for Initial Approval

This is a no-objection certificate (NOC) from the government allowing you to proceed with the business setup in Dubai. It signifies that the authorities have no objection to you starting the business, though it is not the final license.

You’ll need to submit:

• Passport copies of shareholders

• Business activity details

• Trade name reservation

6. Secure a Business Location

If you’re setting up a Mainland company, renting office space in Dubai is mandatory. You must sign a tenancy contract (Ejari) with a registered commercial property.

For Free Zone businesses, most zones offer flexible options such as:

• Shared desk

• Flexi-desk

• Dedicated office

• Warehouse or industrial space

Your office space also influences your visa eligibility (more space = more employee visas).

7. Draft the Memorandum of Association (MOA)

An MOA is a legal document that outlines:

• The ownership breakdown

• Profit/loss distribution

• Responsibilities and powers of partners

For Mainland LLCs, the MOA must be notarized through a UAE notary. Free Zone companies usually have their own standard templates.

8. Finalize Government Approvals and License

Depending on your activity, additional approvals may be needed from:

• Dubai Municipality

• Dubai Health Authority

• Ministry of Economy

• Roads & Transport Authority (RTA)

• Knowledge and Human Development Authority (KHDA)

Once you’ve received all required clearances, you can submit the final application and pay the license fee.

License types include:

• Commercial License – for trading businesses

• Professional License – for service providers and professionals

• Industrial License – for manufacturing or production

License fees can range from AED 10,000 to AED 50,000 depending on activity and jurisdiction.

9. Register for Visas

Once your company is registered, you can apply for visas for:

• Owners or shareholders

• Employees

• Dependents (spouse, children, domestic help)

The number of visas depends on your business size, office space, and jurisdiction rules. Free Zones often offer visa packages bundled with company formation.

10. Open a Corporate Bank Account

You’ll need a corporate bank account to run your operations. Choose from leading banks like:

• Emirates NBD

• ADCB

• Mashreq

• RAKBANK

• HSBC or Standard Chartered (for international businesses)

To open the account, submit:

• Trade license copy

• MOA

• Shareholder passport copies

• Business plan or invoices (in some cases)

Approval can take from a few days to a few weeks depending on the bank’s KYC (Know Your Customer) process.

Additional Tips

• Hire a business setup consultant: Navigating licenses, approvals, and paperwork can be complex. A consultant can simplify the process.

• Understand tax obligations: As of 2023, UAE introduced a 9% corporate tax on business profits over AED 375,000. Free Zone companies may still benefit from tax exemptions.

• Stay compliant: Renew your license annually, maintain financial records, and stay up to date with regulatory changes.

Final Thoughts

Setting up a business in Dubai is a streamlined process if approached methodically. Whether you want to trade globally, offer services locally, or launch a tech startup in a Free Zone, Dubai offers an ecosystem that nurtures growth and innovation.

By following the steps outlined in this guide and choosing the right setup based on your needs, you can establish a successful business presence in Dubai in 2025 and beyond.