• 07 Feb 2026
• Business Setup

Dubai Business Setup Checklist for First-Time Founders

Dubai has become a favorite destination for entrepreneurs and investors to set up their business. Dubai has the natural advantage of its location and a supportive government- two main reasons why Dubai is the ideal place for a business set up. The government has made the rules and regulations for a business setup in Dubai easier and faster. Any small business, a startup or a large enterprise, the benefits of business set up in Dubai are endless. The city is literally designed for growth, but for a first time founder, the administrative side of things can feel like a maze. You have to understand a unique legal ecosystem. A new business setup in dubai requires a very specific sequence of events to ensure that by the time you open your doors, your foundation is rock solid.

1. The Activity Audit

In the UAE, your license is defined by the Activity of your Dubai business setup. The Department of Economy and Tourism has a massive list of specific business activities. You need to pick the ones that most accurately describe your business setup in Dubai.

If you choose the wrong activity, you might find yourself unable to open a specific type of bank account or limited in the types of contracts you can sign. Many founders consult a business setup company in Dubai at this stage just to make sure they aren't accidentally pigeonholing themselves into the wrong category.

2. Choosing Your "Home" (Jurisdiction)

This is the most critical fork in the road. You have to decide between Mainland and Free Zone.

Mainland: A mainland business set up in Dubai is perfect if you want to trade directly with the local market or bid for government projects. You have the freedom to set up an office anywhere in the city.

Free Zone: This is often the go-to for Dubai business setup for tech startups or international consultants. It offers 100% ownership and tax benefits, but you are generally confined to doing business within that zone or outside the country.

3. Naming and "Initial Approval"

Naming your Dubai business setup is fun, but the rules are strict. You cannot use names that are offensive, religiously sensitive, or already taken by a major global brand. Once you have your name, you apply for "Initial Approval." This is the government’s way of saying, "We like your idea, go ahead and move to the next step." It’s the first real "win" in your business set up Dubai journey.

4. The Legal Handshake (MOA)

If you have partners, you need a Memorandum of Association (MOA). This document is the "constitution" of your business setup in Dubai. It spells out who owns what and how the company will be run. Even if you are the only owner, you still need legal documents that satisfy the local court systems. For a new business setup in Dubai, having these papers drafted professionally is the best insurance policy you can buy.

5. Finding a Physical Address

Unlike the "virtual" business world in some other countries, every business setup in Dubai requires a physical space. For Mainland companies, this means a registered tenancy contract called an "Ejari." For Free Zones, it might be a "Flexi-desk." You cannot skip this step; the authorities need to know exactly where your Dubai business setup "lives" before they grant you a final license.

6. The Trade License and Establishment Card

Once your office is sorted and your fees are paid, you get your Trade License. This is your Dubai business setup birth certificate. Simultaneously, you’ll get an Establishment Card. This is a vital piece of the business set up in Dubai puzzle because it’s the document that allows the Ministry to recognize you as an employer who can sponsor visas for yourself and your team.

7. Visas and Emirates IDs

Now that the company exists, you need to exist within it legally. You will apply for an Investor or Partner visa. This involves a medical check-up and a visit to a center for your fingerprints and eye scan for the Emirates ID.

8. The Banking Hurdle

I’ll be honest with you: opening a corporate bank account for a new business setup in Dubai can be a test of patience. Banks are very thorough with their "Know Your Customer" (KYC) checks. They want to see your business plan, your invoices, and proof of where your startup money came from. This is where a business setup company in dubai can really save your life by introducing you to bankers who specialize in your specific industry.

9. Tax and Compliance

Even in a city famous for being tax-friendly, the rules are changing. In 2026, you need to be aware of Corporate Tax (9% on profits over 375k AED) and VAT if your turnover is high enough. Part of your Dubai business setup checklist must include hiring a basic bookkeeper or using accounting software. The fines are strict and so you have to be very cautious.

Frequently Asked Questions