If you’ve searched “how to start a business in Dubai” and found ten different answers, you’re not alone. Many European entrepreneurs compare “easy setup” ads and free zone offers, only to end up more confused than when they started.
The reality is simpler than it seems. Business setup in Dubai is structured, transparent, and surprisingly manageable once you understand how the system works and make a few smart early choices. Here’s a clear step-by-step process of establishing a company in Dubai.
1. Choose Where You Want to Set Up Your Business
Your first major decision is choosing where your business will be registered. For founders coming from Europe, this choice determines whether you’ll operate remotely, relocate fully, or hire within the UAE.
Dubai offers two main options: Mainland and Free Zone. Each comes with its own regulations, setup fees, and opportunities.
Free Zone:
Free zones are designated areas that make starting a company faster and more flexible. You get 100% ownership, full profit repatriation, and no customs duties.
Free zones are ideal for international trading, tech, or consulting businesses that don’t need to sell directly inside the UAE. If you do plan to trade on the mainland, you’ll need specific permissions or a dual license.
Mainland:
Mainland companies, registered with Dubai’s Department of Economy and Tourism (DET), can trade anywhere in the UAE and work with government clients. Since 2020, most sectors allow 100% foreign ownership. Only a few strategic fields, such as oil and gas, still require a local Emirati business partner.
Freezon vs Mainland:
| Feature | Free Zone | Mainland |
| Market Access | International trade and limited UAE access (via dual/branch license) | Full UAE market access |
| Government Tenders | Possible with DET mainland license | Full eligibility |
| Ownership | 100% foreign ownership | 100% foreign ownership (most sectors) |
| Office Requirement | Flexi-desk or virtual office allowed | Physical office with Ejari required |
| Tax | 0% corporate tax on qualifying incomeExemptions from personal income tax and customs duties, provided they meet specific regulatory conditions. | 9% tax on profits above AED 375,000 |
| Setup Time | Around one week | 4–8 weeks (some instant licenses in 24 hours) |
| Setup Cost | AED 12,000–50,000 | AED 35,000–75,000 (instant licenses AED 5,000–18,000) |
| Best For | Consultants, service providers, traders, startups | Retail, B2B, or government-focused companies |
| Renewal | Annual | Annual (instant licenses valid for one year) |
2. Understand the Legal Framework of Business Setup in Dubai
After deciding on freezone or mainland, review Dubai’s ownership laws. Recent reforms have made business setup in Dubai much easier. Foreign investors can now hold 100% ownership in most sectors, without needing a local sponsor.
Check if your activity is listed on the government’s positive list; industries such as tech, education, renewable energy, consulting, and manufacturing are fully open. Only a few sensitive fields (such as oil and security) still require an Emirati partnership.
3. Start with the Basics: Name, Activity, and Initial Approval
Next, decide what your company will actually do. Dubai offers over 2,000 licensed business activities, so make sure the one you select matches your business model.
You’ll then register a trade name. It must be unique, professional, and free from political or religious terms. Once the name is approved, apply for initial approval, which confirms your activity is permitted.
At this stage, you’ll submit your passport copies, business plan, application forms, and sometimes proof of funds. Approval usually comes through within a week.
4. Apply for Your Trade License and Finalize Legal Documents
The trade license is your company’s official identity. It’s issued either by a free zone authority or by Dubai’s Department of Economy.
This stage of setting up a business in Dubai includes preparing your Memorandum of Association (MoA), a document that defines your company’s ownership and structure. It must be notarized and translated into Arabic if needed.
Once approved, you’ll receive your Business/Trade License, Certificate of Formation, and Establishment Card.
5. Secure an Office
Every registered business in Dubai must have a local address.
- Free Zone: You can often use a flexi-desk or shared office.
- Mainland: A physical office is mandatory and must be registered with the Ejari system.
6. Apply for Residence Visas and Emirates IDs
Once your company is registered, you can apply for visas for yourself, your partners, and employees. The process includes an entry/employment permit, medical tests, and biometric registration for the Emirates ID.
Most founders choose the Investor Visa, which is valid for two years and renewable. It allows you to live, work, open bank accounts, and invest freely in the UAE.
If your investment exceeds AED 2 million or your company qualifies under innovation or startup categories, you might also be eligible for a Golden Visa, valid for five to ten years.
7. Open a Corporate Bank Account
With your trade license and visa ready, open a UAE bank account. You’ll need your company documents, Emirates ID or passport, and proof of office address.
Traditional banks such as Emirates NBD or ADCB typically take two to four weeks for account approval. Digital banks like Wio or Mbank often complete this within a few days.
Most traditional banks ask for a minimum balance of about AED 50,000. For European entrepreneurs moving funds internationally, this requirement can feel high at first. If that’s the case, you can opt for digital banks, which often serve as a flexible starting point when setting up your business in Dubai.
8. Know Your Financial and Tax Responsibilities
Since June 2023, the UAE applies a 9% corporate tax on profits above AED 375,000. All companies, even free zone entities, must register with the Federal Tax Authority (FTA) within 90 days of receiving their license.
Free zones often qualify for partial tax exemptions, but you must still maintain proper accounts and audits for compliance with the FTA.
Hiring professional bookkeeping support early on helps you stay compliant and avoid fines.
9. Plan for Real Costs, Not Just Setup Fees
Online ads offering “business setup in Dubai for AED 5,000” rarely tell the full story. Here’s what realistic costs look like:
- Free Zone: AED 12,000–50,000
Includes registration, license, shared/flexi-desk or office deposit, and legal documentation.
- Mainland: AED 35,000–75,000
Includes DED registration, license fees, mandatory office lease, and legal documentation and consultation.
- Visa & Immigration: AED 5,000–8,000 per person
Covers entry permit, medical exams, Emirates ID, visa stamping, and basic health insurance.
Plan ahead for renewals, accounting fees, and rent so your annual costs remain predictable.
10. Understand the Timeline
If you prepare documents properly, free zone setups usually take 6–8 weeks, while mainland ones take 10–12 weeks. Many founders face delays because of incomplete paperwork or unclear guidance, rather than complex procedures.
Clarity Is the Real Advantage
Business setup in Dubai isn’t complicated once you know what to expect. The regulations are clear, but understanding them matters, especially if you’re managing the process from abroad.
At Advantia, we guide European entrepreneurs through every stage with transparency. From company registration to residency, we make each step simple, compliant, and clear so you can focus on building your business and life in Dubai.
If you’re ready to start your business in Dubai, reach out to our team. We’ll help you choose the right structure, secure your investor visa, and get your company fully operational without unnecessary confusion.
