If you want to set up a business, Dubai is one of the best places in the world! The city is the dream destination of many entrepreneurs and investors for a business setup. With all the advantages, this city provides entrepreneurs the perfect atmosphere for a business setup in Dubai. The strong economy, strategic location, and supportive government policies- there is no reason why any aspiring entrepreneur would think twice about a Dubai business setup. What may seem a little confusing is the process of a business setup. Several business setup company in Dubai can offer assistance but still, if you prefer to proceed on your own, this article will give the detailed steps to follow for a business setup in Dubai.
The first step in Dubai business setup is choosing the right jurisdiction. Dubai offers three main options:
Mainland – A business setup in Dubai in the mainland lets you trade anywhere in the UAE and internationally. This is a good option for retail, restaurants, and service businesses.
Free Zone – In the freezone, foreign investors can have full ownership of their business setup in Dubai. Usually Business setup in industries like trading, tech, consulting, and logistics are set up in the freezone.
Offshore – This is used mainly for holding companies or international business without local UAE operations.
Selecting the right jurisdiction for your Dubai business setup depends on your business goals, target customers, and operational needs.
2. Select Your Business ActivityBefore you apply for a license, you need to define the activity of your business setup in Dubai. Dubai has hundreds of licensed activities, including trading, consultancy, hospitality, real estate, and manufacturing. A business setup company in Dubai can help you choose the exact activity code for your business setup in Dubai approved by the Department of Economic Development (DED) or the Free Zone Authority.
Selecting the correct activity ensures you receive the right trade license for your Dubai business setup later.
3. Choose a Business NameYour business setup in Dubai needs a unique trade name. It should follow the UAE naming rules. Dubai does not allow names with offensive or religious words. When choosing a name for your business setup, do not limit to a single name, have two or three alternatives in case your first choice is unavailable. Registering a trade name is an essential part of a new business setup in Dubai.
4. Apply for Initial ApprovalInitial approval is a confirmation from the Dubai government that they do not have any objection to your business setup in Dubai. You are now allowed to proceed with the licensing process. For getting the initial approval for your business setup in Dubai, you don’t need complete documents, but you must provide passport copies of shareholders and a basic business plan.
5. Legal Documents and Agreements for Dubai business setupThe next step is to be ready with the legal paperwork required for business setup in Dubai. This include,
Memorandum of Association (MoA) or Local Service Agent Agreement (LSA)
Passport copies of shareholders
Visa copies (if applicable)
Passport-size photographs
For free zone setups, legal documents are usually simpler. Always ensure documents are attested if your partners are outside the UAE.
6. Choose an Office Space or Flexi DeskMost business setups in Dubai require a physical address. If you have a mainland business setup, a physical office is mandatory but in the freezone, co-working space or flexi desk will do.
Mainland companies need a tenancy contract, also known as Ejari.
A business setup in Dubai in the free zone can choose shared workspaces or virtual offices to reduce costs.
Affordable options are available for new business setup in Dubai, especially for small startups.
7. Submit License Application and Pay FeesOnce your documents and office details are ready, you must submit your trade license application. The cost of business set up in Dubai depends on the type of license,
Commercial License for trading business setup in Dubai
Professional License for consultancy or services
Manufacturing business setup in Dubai needs industry license
Fees vary based on jurisdiction, activities, and visas required for your Dubai business setup. After payment, the authorities will issue your business license.
8. Additional Approvals for Business Setup in Dubai(If Required)Some business setup in Dubai will need special approvals from certain specific UAE departments. For example,
Food businesses need approval from Dubai Municipality
Medical centers require approval from the Health Authority
Education business setup in Dubai needs approval from KHDA
If your business setup in Dubai belongs to any of these categories, you need to apply for all necessary approvals before finalizing your license.
9. Apply for VisasAfter receiving the trade license for your business setup in Dubai, you can apply for visas. The number of visas you can request depends on your office size and license type. You can apply for:
Owner/Investor Visa
Employment Visas for staff
Dependent Visas for family members
Dubai's immigration system is fast and organized, making the visa process easy when guided by a business setup company in Dubai.
10. Open a Corporate Bank AccountThe final step in Dubai business setup is opening a business bank account. You must provide your license, company documents, and shareholder details. Dubai has many local and international banks that support new business setup in Dubai. Choose a bank that suits your transaction needs and international operations. Some banks may ask for a minimum balance, so know all the requirements well before deciding a bank for your business setup in Dubai.
The city has all the favourable reasons for your business setup in Dubai to flourish. Main reasons are,
100% foreign ownership in many free zones
Tax-free income (0% personal tax)
World-class infrastructure
Access to global markets
Easy residency visas
ConclusionSetting up a business in Dubai is an easy process compared to many other countries in the world. The government has ensured to keep the procedures less complicated so as to encourage new business setup in Dubai. Moreover, professional business setup companies in Dubai help in the process, making it even easier. They explain every detail regarding your business setup in Dubai so that you do not end up making the wrong choices and waste time and money. If you plan your new business setup in Dubai wisely, you will enjoy long-term success in one of the most dynamic economies in the world.