How to Start a Company in Dubai: A Step-by-Step Guide

Dubai has become one of the world’s most attractive business hubs thanks to its strategic location, tax benefits, and supportive government policies. Entrepreneurs from around the globe choose Dubai to launch their ventures—whether in trading, technology, real estate, or services. If you’re considering starting a company in Dubai, here’s everything you need to know.

Why Start a Business in Dubai?

Tax benefits – No personal income tax and attractive corporate tax structures.
Global connectivity – Dubai serves as a gateway between Europe, Asia, and Africa.
Business-friendly policies – Simplified registration processes and strong government support.
Diverse opportunities – Thriving industries like tourism, finance, logistics, and tech.
Modern infrastructure – State-of-the-art facilities, ports, and free zones.

Step 1: Choose Your Business Jurisdiction

Dubai offers three main jurisdictions for setting up a company:

Mainland
- Operates under the UAE’s Department of Economy and Tourism (DET).
- Allows you to do business anywhere in Dubai and across the UAE.
- Best for companies targeting the local market.
Free Zone
- Over 40 specialized free zones across Dubai.
- 100% foreign ownership allowed.
- Tax exemptions and simplified processes.
- Ideal for international trade, import/export, and online businesses.
Offshore
- Registered mainly for international business outside the UAE.
- No need for a physical office in Dubai.
- Provides confidentiality and asset protection.

Step 2: Select a Business Activity

The UAE authorities provide a list of over 2,000 business activities—from trading and consulting to e-commerce and hospitality. Your chosen activity determines licensing requirements and fees.

Step 3: Choose a Legal Structure

Popular company structures in Dubai include:

Limited Liability Company (LLC)
Free Zone Company
Branch Office
Sole Establishment

Each structure has different ownership rules, liability levels, and documentation requirements.

Step 4: Get a Trade Name & Initial Approval

Propose a unique trade name that follows UAE naming rules (no offensive words, religious references, or abbreviations of your name).
Apply for initial approval from the Department of Economy or relevant free zone authority.

Step 5: Prepare Legal Documents

Depending on the setup, you may need:

Memorandum of Association (MOA)
Lease agreement for office space (mandatory for mainland businesses)
Passport copies of shareholders
Business plan (for certain activities or free zones)

Step 6: Obtain Your Business License

The type of license depends on your activity:

Commercial License – Trading and retail businesses.
Professional License – Service providers, consultants, freelancers.
Industrial License – Manufacturing and industrial activities.
Tourism License – Travel agencies, hospitality, and tourism-related businesses.

Step 7: Set Up Office Space

Mainland companies require a physical office.
Free zone businesses can often use flexi-desks or virtual offices.

Step 8: Open a Corporate Bank Account

Dubai has both local and international banks. Requirements usually include your business license, incorporation documents, and shareholder details.

Step 9: Apply for Visas

You and your employees can apply for residence visas linked to your company license. Free zones often provide a set number of visas depending on office size.

Costs of Starting a Company in Dubai

Costs vary based on jurisdiction, license type, and business activity.
Typically, setup costs can range from AED 12,000 to AED 50,000+.

Final Thoughts

Starting a company in Dubai is straightforward when you understand the process and choose the right jurisdiction for your goals. Many entrepreneurs also work with business setup consultants who handle paperwork and legal requirements, saving time and effort.

Dubai is more than just a business hub—it’s a launchpad to global markets. With the right planning, your company can thrive in one of the world’s fastest-growing economies.