Short answer: to start a business in Dubai, you choose your business activity, decide between a mainland or free zone company, pick a legal structure and trade name, get initial approval, sort out your office, and then get your trade license. After that, you can apply for residence visas, open a corporate bank account and register for tax.
Dubai is one of the most popular places in the world to set up a company. It offers 100% foreign ownership for many activities, a strong economy and access to markets across the Middle East, Africa and Asia. But if you're doing it for the first time, the process can feel confusing.
This guide explains how to start a business in Dubai, step by step, in plain English. Whether you want to set up a business in Dubai as a freelancer, a startup or an established company expanding abroad, the basic process is the same.
In this guide
Costs · Starting from abroad · Mistakes to avoid · FAQ
Before you start: three questions to answer
Before you begin, it helps to have rough answers to these three questions. They shape almost every decision that follows.
What will your business do? For example, trading goods, offering consultancy or selling online.
Who are your customers? People and companies inside the UAE, overseas, or both?
Do you need a UAE residence visa? Also, will you hire staff who need visas?
Step 1: Choose your business activity
Every UAE company is licensed for specific business activities, like "general trading," "management consultancy" or "e-commerce." You can only legally do the activities listed on your license.
Your activity decides:
which type of license you need (commercial, professional or industrial)
whether you can use a free zone or need a mainland company
whether you need extra approvals from other authorities, for example for food, health or education businesses
Many free zones let you combine several related activities on one license, so think about what you might add later, too.
Tip: choose activities that match what you'll actually do. Banks check your license activities when you open an account, and activities that don't fit your business can cause delays.
Step 2: Choose mainland or free zone
This is the biggest decision when you start a business in Dubai. You can set up on the mainland, licensed by the Department of Economy and Tourism (DET), or in one of the UAE's many free zones.
Mainland | Free zone | |
|---|---|---|
Trading in the UAE | Trade directly anywhere in the UAE | Usually limited to the free zone and international trade, unless extra permits apply |
Ownership | 100% foreign ownership for many activities | 100% foreign ownership |
Office | Physical office with Ejari usually required | Flexi-desk and shared office options are common |
Visas | Usually linked to office size | Usually set by your package |
Government contracts | Yes | Usually not directly |
Typical starting cost | Higher, mainly because of office costs | Lower, with package prices |
In short: if you'll sell directly to customers in the UAE, need a shop, or want government work, mainland is usually the better fit. If you work online, trade internationally or want a lower-cost start, a free zone is often a good choice.
You can also read more about mainland company setup in Dubai and free zone company setup, or see our full mainland vs free zone comparison.
Step 3: Choose your legal structure
Next, decide how your company will be structured. The options depend on whether you're on the mainland or in a free zone, but the most common are:
Limited Liability Company (LLC) or Free Zone Company (FZC/FZ-LLC): the most popular choice. Your personal assets are separate from the company's.
Sole establishment or Free Zone Establishment (FZE): owned by one person.
Civil company: for professional partnerships on the mainland.
Branch office: for an existing UAE or foreign company opening in Dubai.
The right structure depends on how many owners you have, your activity and your long-term plans.
Step 4: Choose and reserve a trade name
Your trade name is your company's official registered name. It has to follow UAE naming rules, which usually means:
no offensive or religious words
no names of governments, well-known organisations or other registered brands
if you use a person's name, it's usually the full name of a shareholder
the name should match your business activity
Once your name is approved, it's reserved for your company. Have two or three options ready in case your first choice isn't available.
Step 5: Get initial approval
Initial approval means the authority has no objection to you starting a business with your chosen activity and structure. For mainland companies, this comes from the DET. For free zones, the free zone authority reviews your application.
Some activities also need approval from other government bodies. For example, food businesses may need municipality approval, and health or education businesses need approval from the relevant regulator.
Step 6: Sort out your office space
Every UAE company needs a registered address.
Mainland: you'll usually need a physical office with a tenancy contract registered with Ejari. Your office size can affect how many visas you can get.
Free zone: most free zones offer flexi-desks, shared offices or dedicated offices. A flexi-desk is often included in the package price.
Choose an office that matches your visa needs. If you plan to hire several people, a flexi-desk may not give you enough visas.
Step 7: Prepare and submit your documents
You'll usually need:
passport copies of all shareholders
passport-size photos
a UAE visa or entry stamp, or your Emirates ID if you're a resident
your office tenancy contract or lease agreement
a Memorandum of Association (MOA), for LLCs and some other structures
attested corporate documents, if a shareholder is a company
Some free zones and activities ask for extra documents, such as a business plan or proof of address. See our full documents checklist.
Step 8: Get your trade license
Once your documents are approved and fees are paid, your trade license is issued. With it, you'll also receive your company documents, which can include:
certificate of incorporation
share certificate
Memorandum and Articles of Association
certificate of incumbency (in many free zones)
Your company now legally exists. But there are still a few steps before you're fully up and running.
Step 9: Apply for your establishment card and visas
If you want to live in the UAE through your company, or hire staff, you'll need visas.
Establishment card: registers your company with immigration so it can sponsor visas.
Entry permit or status change: lets you enter or stay in the UAE under your company's sponsorship.
Medical test and Emirates ID biometrics: these are done in person in the UAE.
Residence visa: issued once everything is approved. You'll also need health insurance.
Once you have a residence visa, you may be able to sponsor your family. Learn more about our visa services or read how to get a residence visa through your own company.
Step 10: Open a corporate bank account
You'll need a business bank account to receive payments and pay expenses. UAE banks do careful checks on new companies, so prepare:
your trade license and company documents
shareholder passports, visas and Emirates IDs
a short description of your business, expected turnover and main clients or suppliers
proof of address
Banks have different minimum balance and fee requirements, so compare them before applying. Approval is always at the bank's discretion. Read our guide on how to open a corporate bank account in the UAE.
Step 11: Register for corporate tax and VAT
Corporate tax: most UAE companies, including free zone companies, must register for corporate tax. The standard rate is 9% on taxable profits above AED 375,000, with 0% below that. Free zone companies may qualify for 0% on qualifying income. See how to register for corporate tax.
VAT: VAT is 5% in the UAE. Registration is mandatory once your taxable supplies pass AED 375,000 in 12 months, and voluntary from AED 187,500. See how to register for VAT.
Tax rules can change. Always check the latest guidance from the Federal Tax Authority.
Step 12: Stay compliant after setup
Starting a business in Dubai doesn't end with your license. To keep your company in good standing:
renew your trade license on time, usually every year
renew your office lease, establishment card and visas when they're due
file VAT and corporate tax returns if you're registered
keep proper accounting records
Read how to renew a trade license, or see our business support services.
How much does it cost to start a business in Dubai?
There's no single price, because the cost depends on:
mainland or free zone
your business activity and license type
office type and size
number of visas
license duration (1 year or multi-year)
extra approvals and services
As a guide, free zone trade license packages start from AED 4,888 without a visa, and from AED 10,800 with one visa. Mainland setups usually cost more, mainly because of office requirements. Remember to budget for health insurance if you're getting visas.
Example prices are based on selected UAE free zone packages and are subject to change. Prices vary by jurisdiction.
For a full breakdown, read: How Much Does It Cost to Start a Business in Dubai?
Can you start a business in Dubai from abroad?
Yes. Many steps, like choosing your activity, reserving a name and getting your license, can often be done remotely, especially in free zones. However, you'll usually need to be in the UAE for:
the visa medical test
Emirates ID biometrics
some bank account meetings
Read more: How to Start a Business in the UAE From Abroad.
Common mistakes to avoid
Choosing the wrong jurisdiction: picking a free zone when you need to trade locally, or the other way around.
Picking activities that don't match your business: this can cause problems with banks and renewals.
Choosing an office that's too small for your visa needs: upgrading later can cost more.
Forgetting extra costs: like health insurance, visa fees for staff and annual renewals.
Missing tax registration deadlines: late registration can lead to penalties.
Letting your license expire: this can lead to fines and affect your visas and bank account.
Frequently asked questions
Can a foreigner start a business in Dubai?
Yes. Foreigners can start a business in Dubai. Free zone companies allow 100% foreign ownership, and many mainland activities now allow full foreign ownership too.
How much does it cost to start a business in Dubai?
It depends on your jurisdiction, activity, office and number of visas. Free zone trade license packages start from AED 4,888 without a visa, while mainland costs are usually higher because of office requirements.
Can I start a business in Dubai without living there?
Yes. Many setups can be started from abroad. You'll usually need to visit the UAE for steps like the visa medical test, Emirates ID biometrics and some bank meetings.
Do I need a local partner to start a business in Dubai?
Not for most activities. Free zones allow full foreign ownership, and many mainland activities no longer require a local partner. Some strategic activities still have different rules.
Do I need an office to start a business in Dubai?
Mainland companies usually need a physical office with Ejari. Many free zones offer flexi-desk or shared office options, which can be a lower-cost way to start.
Can I get a residence visa by starting a business in Dubai?
Yes. Once your company is licensed and has an establishment card, it can sponsor a residence visa for you as an investor or partner, and for your employees.
Want a consultant to handle this for you?
Tell us about your business, and we'll connect you with a consultant who can help you choose the right setup and get your trade license, visas and bank account sorted.
This article is for general information only and isn't legal, tax or financial advice. Rules and fees in the UAE can change, so confirm the details with a qualified consultant or the relevant authority before making decisions.