Dubai is a global business hub. It attracts entrepreneurs and investors worldwide, offering many opportunities for business setup and growth. In 2025, the emirate remains an ideal destination for those looking to establish a new business. With various incentives, free zones, and tax advantages, Dubai is an attractive location. However, navigating the setup process can be complex without proper guidance. Therefore, hiring experienced consultants can save time and reduce risks. In this article, we’ll explore everything you need to know about starting a business in Dubai, including the benefits, process, and where to get expert assistance from business setup consultants in Dubai.
Why is Dubai the best place for business setup?
Dubai has long been recognized for its business-friendly environment, strategic location, and tax advantages. The city’s role as a global hub for trade, finance, and tourism has attracted a diverse range of businesses. Key reasons why Dubai remains an attractive option for entrepreneurs include:
- Tax Incentives: Dubai offers tax-free or low-tax regimes in many of its free zones, making it a prime location for businesses looking to minimize their tax burdens.
- Ease of Business Setup: The process of establishing a company is streamlined, especially for foreign investors, who can benefit from 100% ownership in many free zones.
- Strategic Location: Positioned as a gateway between the East and West, Dubai serves as a key logistics and transportation hub, perfect for businesses with global reach.
- Strong Infrastructure: Dubai is known for its world-class infrastructure, including ports, airports, and digital services, all of which contribute to a seamless business operation.
Step-by-Step Guide to Starting a Business in Dubai
Starting a business in Dubai requires careful planning and compliance with local regulations. Here’s a step-by-step roadmap for business setup in Dubai:
Step 1. Decide Your Business Activity
Before you register your company, you must decide on your business activity, as it determines what kind of license you need to obtain. Dubai classifies business activities into three main categories:
1. Commercial: Buying and selling goods
2. Professional: IT services, consulting, education.
3. Manufacturing: Production and manufacturing
Step 2. Choose Your legal structure
There are different legal structures for businesses in Dubai with different requirements and benefits.
-Limited Liability Company (LLC)
-Civil Company
-Limited Liability Partnership
-Branch of a Foreign company
-Branch of a local company
-Sole Proprietorship
-Branch of a GCC company
-Free Zone company branch
-A holding company
For many expats, an LLC is preferred, as it offers liability protection and flexibility.
3. Select a Business Location
At this stage, you must decide whether to operate in the Mainland or a Free Zone. There are 2 different types of business zones in Dubai:
1. Mainland – The Dubai Department of Economy licenses a mainland company and allows you to operate freely across the UAE.
2. Free Zone – They offer 100% ownership, tax exemptions, and simplified procedures.
4. Register Your Trade Name
After selecting the location, the next step is choosing an official trade name. Your business name should clearly reflect your activity and align with the UAE’s naming guidelines. It must be unique, meaning it should not resemble any existing company name registered in the UAE. To secure your trade name, you must submit multiple options to the Department of Economy and Tourism (DET) or the appropriate free zone authority for their review and approval.
5. Apply for Initial Approval
Once your trade name is approved, you must obtain Initial Approval to proceed, confirming that the government has no objection to your business setup.
6. Draft and Notarize Legal Documents
After receiving initial approval, you can now formalize your company with legal documents
1. Memorandum of association (MOA) for LLCs.
2. Shareholder agreements if multiple partners are involved
3. Notarization by a UAE public notary.
7. Lease Your Business Premises
Once your MOA is ready, you must have a business address to apply for the business license.
To get a license, a physical office or facility is required:
1. Mainland: Must have a commercial lease
2. Free Zone: Office space options may vary from flexi-desks to full offices
8. Obtain Your Business License
Once all documents are ready, you can now apply for your business license. If you’re establishing your company on the mainland, the application is submitted to the Department of Economy and Tourism (DET). For businesses in a free zone, it is submitted to the respective free zone authority. You will be required to submit the approved documents, settle the license fees, and complete the remaining formalities to finalize the process.
Dubai issues licenses according to your business activity, such as:
1. Commercial License
2. Professional License
3. Industrial License
9. Apply for a Visa
After obtaining your license, the next important step is obtaining a visa. Without valid visas, neither you nor your employees or family members are permitted to legally live or work in the UAE.
Types of Visa to Plan for
1. Investor Visa – Allows you to reside in the UAE and manage your business.
2. Family Visa – Lets you sponsor your spouse, children, so they can legally reside with you.
3. Employee Visa – Granted to employees within the visa limit assigned to your business.
10. Open a Corporate Bank Account
Finally, once your company is officially registered and licensed, the final step is to open a corporate bank account to manage your business finances. Most banks in Dubai require a set of documents, such as a Trade license, company incorporation documents, shareholders’ passport copies, a visa, and an Emirates ID ( if available). It’s important to choose a bank that aligns with your business needs. That offers international transfer facilities, a multi-currency account, and strong online banking support.
How can consultants help with business setup?
Starting a business in Dubai involves legal, financial, and regulatory requirements. Fortunately, business setup consultants can help. They provide:
End-to-end company registration services
Legal compliance and document notarization
Visa processing for owners and employees
Corporate bank account assistance
Partnering with experts like Dezibiz ensures a smooth and compliant business setup process.
Frequently Asked Questions
Q1. What are the main business structures in Dubai?
Ans: The main business structures are Mainland, Free Zone, and Offshore companies. Each has different ownership and operational requirements.
Q2. Do I need a local sponsor to start a business in Dubai?
Ans: Not necessarily — it depends on the business structure you choose:
- Free Zone Company: No local sponsor is required, and you retain 100% foreign ownership.
- Mainland Company: You can still have 100% ownership, but you may need to appoint a Local Service Agent (LSA) for administrative formalities. The LSA has no control or share in the company.
Q3. Do I need a physical office to get a license?
Ans: For Mainland companies, a physical office or shared workspace lease (Ejari) is mandatory. Free Zones often offer Flexi-desk or virtual office options for startups and small businesses.
Q4. What are the tax benefits of setting up a business in Dubai?
Ans: Dubai offers tax-free or low-tax regimes in many Free Zones, making it an attractive location for business owners.
Q5. How can a consultancy help me set up my business in Dubai?
Ans: A consultancy can provide end-to-end services, including business formation, legal compliance, visa applications, and banking setup, ensuring a smooth process. Business setup consultants in Dubai offer specialized services, and banking consultation services in the UAE can also help set up business accounts. Furthermore, business consultancy services in the UAE can guide you through every stage of the process.
Conclusion
Starting a business in Dubai in 2025 is a lucrative opportunity. However, it requires careful planning and an understanding of the local market and regulations. With its tax advantages, modern infrastructure, and supportive government, Dubai remains a top destination for global entrepreneurs. However, partnering with expert business setup consultants in Dubai like DeziBiz can ensure your business setup process is smooth, compliant, and successful. Whether you’re looking to set up a free zone, offshore, or mainland business, working with experienced professionals in business consultancy services in the UAE can help turn your entrepreneurial vision into reality in the UAE.
