How to Start a Business in Dubai

Business in Dubai

One of the best ways to take advantage of one of the most vibrant and business-friendly cities in the world is to start a business in Dubai.

However, starting a business can be difficult and requires several necessary steps and considerations. With careful planning, you can complete these steps efficiently and save valuable time and resources.

At ExpressPRO, we have helped many entrepreneurs successfully build their businesses in Dubai.

Based on our many years of experience, we have created this detailed guide that will take you step by step through the process of starting a business in Dubai and also provide you with some advice on business ethics in the UAE.

This roadmap will help you understand the regional market’s intricacies and ensure that your business complies with all applicable laws and cultural norms.

Let’s say you are ready to start a business in the UAE. In this case, ExpressPRO offers comprehensive Dubai company formation services, and they will help you at every stage, from choosing the proper structure to obtaining your business license and visa.

HOW MUCH DOES IT COST TO START A BUSINESS IN THE UAE?

Why start a business in Dubai?

The United Arab Emirates (UAE) and Dubai offer an incredibly welcoming and supportive business climate. In 2024, more than 70,500 new companies were established in Dubai, a 3% increase compared to 2023. Not surprisingly, many of these companies were registered by foreign entrepreneurs. An estimated 90% per cent of the UAE workforce is foreign.

There are good reasons why thousands of entrepreneurs from all over the world flock to Dubai and the UAE to start a business.

The main advantage is that the company is 100% foreign-owned, allowing foreign investors (onshore) to own 100% of companies in virtually all industries in mainland Dubai.

In 2021, the UAE abolished the requirement for local financing in most sectors by removing the previous limit of 49% foreign participation. Thanks to this reform, entrepreneurs now have complete control over their businesses and can keep all profits while benefiting from Dubai’s business-friendly regulations.

Favorable tax climate Despite the introduction of a 9% corporate tax rate in 2023, Dubai remains a low-tax jurisdiction.

Businesses, SMEs and startups benefit from a 0% corporate tax rate for companies with annual profits below AED 375,000. It is important to note that there is still no income tax, capital gains tax or withholding tax in Dubai.

Many companies operating in free trade zones can continue to benefit from 0% corporate tax on qualifying income, duty exemption and full repatriation of their profits.

In addition, since January 2018, a 5% VAT rate has been applied to most goods and services. If a company’s taxable turnover exceeds AED 375,000 per year, it must register for VAT.

In addition, voluntary registration is offered to companies with revenues or expenses exceeding AED 187,500. Many exports and international transactions remain duty-free, making Dubai attractive for global trade.

For detailed information on zero-rated and VAT-free supplies, please refer to the official UAE VAT Implementation Regulations published by the UAE Government.

In line with international tax standards, the UAE has introduced a corporate tax rate of 15% for large multinational companies with a consolidated worldwide turnover of at least USD 793.50 million, effective January 1, 2025. However, this higher rate does not apply to the vast majority of companies operating in Dubai.

Dynamic Economy:

The United Arab Emirates (UAE) continues to experience robust economic growth, confirming its position as a top destination for investors and entrepreneurs.

The United Arab Emirates (UAE) actual gross domestic product (GDP) is predicted to expand by 6.2% in 2025 after growing at a rate of 3.9% in 2024. The nation’s ongoing growth, which is mostly driven by non-oil sectors, demonstrates its successful attempts at economic diversification.

Quality of Life and Talent Recruitment:

Dubai’s excellent level of living, contemporary amenities, and security make it a popular destination for professionals and businesspeople.

Introduction of a long-term residency permit. For those looking to start and grow a business in the United Arab Emirates (UAE), programs like the Golden Visa offer stability for investors and entrepreneurs. Home to over 200 different nationalities, Dubai fosters a global business community with many opportunities for networking and expansion.

According to US News, the UAE was ranked 17th in the US’s list of most livable countries in 2024, reflecting its strong global position.

World-class infrastructure and connectivity:

Dubai offers state-of-the-art infrastructure, from modern office buildings to strong internet connections. By registering here, you gain access to world-class logistics (Dubai has one of the busiest airports and ports in the world), a pool of highly specialized international talent and a reliable supply chain.

There is a dedicated free zone to meet your needs, whether you need financial sandboxes, media production studios, or modern warehouses. In addition, Dubai’s convenient location allows you to easily connect markets in Europe, Asia, and Africa by bridging the time zones between West and East.

Startup Support:

The United Arab Emirates has numerous startup accelerators, incubators, and investment programs that promote business expansion.

Programs like Dubai Future Accelerators and Hub71 in the Abu Dhabi Free Zone provide companies with access to funding, networking opportunities, and mentorship, strengthening the country’s position as a regional startup hub.

To join the thousands of companies set to open in Dubai by 2025, follow this guide to learn how to start a business in Dubai. Eight Steps to Starting a Business in Dubai: 1. Choose Your Business Purpose in Dubai: The first step in starting a business is to determine the exact nature of your business. Dubai offers a variety of industries, including trading, consulting, manufacturing, and technology.

You will need to coordinate your chosen activity with the licensing requirements of Dubai’s Department of Economy & Tourism (DET) for land-based businesses or the relevant free zone authority.

Dubai’s official list of approved business activities includes over 2,000 activities, ensuring comprehensive coverage of a wide range of business activities.

For example: • Dubai Media City DMC Free Zone: Global brands such as the BBC, CNN and Thomson Reuters are located in the DMC, which serves media and advertising agencies.

• Dubai Multi Commodities Centre (DMCC):

The DMCC Free Zone is home to a wide range of business activities, including commodity trading, technology companies and financial services.

• Dubai Silicon Oasis (DSO):

The DSO Free Zone is tailored for technology-oriented companies, offering state-of-the-art infrastructure and support services for startups and established technology companies.

• Dubai Airport Free Zone (DAFZA):

DAFZA is the perfect location for companies in the retail, logistics, and aviation sectors that need to be close to global logistics centers.

• Dubai CommerCity (DCC):

The DCC Free Zone specializes in e-commerce and offers tailored infrastructure and services for e-commerce companies.

• Dubai Design District (D3):

The D3 Free Zone offers artists and designers a creative space focused on the luxury, fashion, and design industries.

• Dubai Internet City (DIC Free Zone):

A hub for telecommunications and IT companies, DIC promotes innovation and collaboration in the technology sector.

• Dubai Knowledge Park (DKP):

The DKP Free Zone promotes learning and human resource development and is committed to education and training institutions.

In recent years, many industry-specific free zones have expanded their reach to allow general business operations. Consider transportation links and proximity to industry peers: Companies that rely on imports or exports prefer free zones near ports or airports.

In line with the country’s commitment to economic diversification, e-commerce, fintech, artificial intelligence (AI), renewable energy, and logistics are among the UAE’s key growth sectors.

2. Choose the proper legal form

Once you’ve established a business, choosing the appropriate legal structure is crucial as it affects ownership, liability, and the scope of your operations.

Dubai offers a variety of business structures, including onshore and free zone options.

Onshore business structures (licensed by the DET). Businesses can operate freely anywhere in the UAE and trade with a mainland company in both the local and international markets.

Mainland companies must comply with UAE commercial laws and regulations but must allow themselves flexibility in conducting their business.

• Limited Liability Company (LLC) – the most common corporate structure on the mainland, now available to most wholly foreign-owned companies. It is ideal for trading, retail and professional services.

• Sole Proprietorship – A single-owner business structure commonly used by freelancers, consultants and individual service providers.

• The registered partnership is suitable for professional service providers (e.g. doctors, engineers and legal advisors) as multiple partners can operate under one license.

• Branch of a foreign company—This enables foreign businesses to open wholly-owned branches in Dubai while preserving the parent company’s legal status.

Free Trade Structures (licensed by the Free Zone Authority)

• In addition to providing tax advantages and duty exemptions, a business in a free trade zone permits 100% foreign ownership. However, extra approvals or a local distributor might be needed for direct trading with the UAE mainland.

• Free Zone Establishment (FZE) – a single-shareholder corporate structure ideal for startups and small businesses.

• Free Zone Company (FZCO) – this type of company is designed for multiple shareholders (usually 2 to 50), with full foreign ownership and simplified regulations.

• Establishment in a Free Zone – By establishing a branch in a free zone, a foreign or UAE-based company can retain the identity of its parent company.

Recent reforms have allowed foreign entrepreneurs in most industries to own 100% of their companies in China. However, in some sectors, including security and defence, banking and insurance, and oil and gas, the law requires a local partner to own 51% of the shares.

To meet this requirement while maintaining complete control over your company, we at ExpressPRO offer a local nominee service for corporate shareholders.

This arrangement permits international business owners to maintain complete operational and financial control over their mainland enterprises while guaranteeing adherence to UAE legislation.

This way, you can quickly meet your legal obligations without compromising your authority over your company.

3. Choose your company name

Once you have decided on your corporate structure and operations, you will need to reserve a trade name for your company. The UAE has strict naming guidelines to ensure compliance with regional laws.

Important rules include:

• Avoid derogatory comments or references to political or religious organizations.

• If you are naming your company after a person, use their full name (no initials or abbreviations).

• Contact the Department of Economic Development (DED) or an expert such as ExpressPRO to confirm that your name complies with the regulations.

For a detailed explanation of how to choose a company name, see this guide.

4. Register your company

Once your business and location have been decided, it is time to register your company. These typically include: • An application stating your company name and activity.

• Copies of shareholders’ passports.

• Additional documents for some free trade zones, such as B. a business plan or a No Objection Certificate (NOC) issued by an existing sponsor.

• A Memorandum of Association (MoA) outlining capital requirements for mainland companies.

Mainland companies must register their trading name and business activities with the Dubai Department of Economy and Tourism (DET) in the emirate of their choice.

The “Information and Services” section of the UAE government website provides links to the relevant DET offices.

Once your documents have been submitted and processed, you will be able to formally open for business in Dubai after obtaining your company license.

Going through the paperwork can be time-consuming and complicated. Working with ExpressPRO ensures accuracy, efficiency, and security, saving time and preventing costly delays.

5. Prepare your workspace. Both mainland and free zone companies in Dubai must have a registered physical address.

If your license type allows, you can rent an office or retail space or opt for flexible coworking or virtual office solutions.

Mainland companies usually require a lease agreement and an Ejari (official lease registration) before the final license is issued. Free trade zones often offer startups flexi-desk or virtual packages at lower costs.

6. Pay the fees and obtain a business license. You can now pay the remaining fees and receive your business license. Dubai’s fee structure includes the license fee, initial approval, name reservation, and a temporary marketing fee or local representative fee (if the activity requires a representative). As part of the Unified License (DUL) initiative launched in late 2023, you will also receive a Dubai Unified License number. This is a unique identification number that links your business to government authorities.

During this phase, land-based companies are registered with the Dubai Commercial Registry and automatically become members of the Dubai Chamber of Commerce. Free zone companies can register separately with the Dubai Chamber of Commerce if they wish to do business with local companies.

There are also global names, such as • HSBC, • Citibank and • Barclays.

Which one is best for you depends on your requirements. The paperwork required to open a bank account in Dubai. The requirements for individual banks may vary slightly. However, in general, you will need the following: • Trade License (issued by DET or Free Zone Authority).

• Articles of Association (for LLCs).

• Passport copies of shareholders and authorized signatories.

• Copies of Emirates ID (if applicable).

• Proof of business address (Ejari lease or office contract in a free zone).

• Business plan (sometimes required, especially for startups).

• Shareholders’ resolution approving account opening (if applicable).

• Expected cash flow and sales data.

• Depending on the bank, reference letters from business partners or personal bank details may be required.

ExpressPRO provides a first-class bank account opening service, a comprehensive evaluation of every customer to guarantee bank account opening services, and a thorough review of each client to ensure we choose the right bank for your services. During the process, we will contact the bank and help you submit the documents. The process usually takes 2-4 weeks.

8. Apply for a visa. The last step in launching a business in Dubai is applying for the required visas. Whether you are applying for an investor visa, a work visa, or a visa for your family members, the process requires close attention to detail.

The primary visa options are listed below: Partner/Investor Visa An investment visa, also known as a partner visa for LLC partners, is available to you as a business owner in a free zone or on the mainland.

Generally, this visa is valid for two years for companies in free zones and three years for companies on the mainland.

Dubai offers a 10-year Golden Visa (10-year residency) to worthy investors and entrepreneurs. This visa is ideal for entrepreneurs with significant financial commitments in the UAE.

To qualify, you must: • Be an owner or partner of a company registered in the UAE with a minimum investment capital of AED 500,000 (approximately USD 136,100).

• Have founded or run a startup that an accredited incubator in the UAE has approved.

• Review the ingenuity, sustainability and economic impact on society.

To obtain your visa(s), follow these steps: I. Prepare your documents. Whether you are applying for a partner visa or a golden visa, you must bring the following: • A passport (valid for at least 6 months).

• A recent passport photo (white background).

• Business license (if registering as a shareholder/partner).

• Health insurance (meets UAE requirements).

• Proof of investment: Golden Visa: Proof of investment (e.g. proof of investment over AED 500,000 (approximately USD 136,100) or documentation of your significant corporate contribution).

Partner Visa: A share certificate, articles of association or other document confirming your affiliation with the company.

II. Obtain an entry permit (if you are not in the UAE). If you are currently outside the UAE, the first thing you need to do is obtain an entry permit. You can enter the UAE with this short-term visa to finish your residency application.

• Submit your passport, a photo, and your company’s business license (Partner Visa) or investment certificate (Golden Visa).

• Use the entry permit to enter the UAE once it has been approved.

III. Change your visa status: You must update your visa status to indicate the correct type of stay upon arrival in the UAE or if you are currently staying there. If you pay the proper change of status fees, you can do so from within the UAE.

IV. Medical Fitness Test: Every visa applicant must pass a medical fitness test. This includes a chest x-ray and a blood test to detect infectious diseases such as HIV or tuberculosis.

V. Create an account to register for an Emirates ID, a mandatory ID card for all UAE residents. This process involves collecting biometric data (fingerprints and a photo). Some fees vary depending on the validity period of the visa.

VI. Visa Stamp (Residency Permit): The final step is to get your residency visa stamped in your passport, which gives you official permission to stay in the UAE.

Once it is stamped or issued, you can start supporting your family members or employees. ExpressPRO makes it easy. We take care of setting up your business and cover all the processes of the visa application procedure, from submitting documents to tracking approvals.

Whether you are applying for an individual visa, a work visa or a family sponsorship, our experts guarantee a fast, easy and efficient process.

How ExpressPRO can help you start your business in Dubai: While there are many excellent opportunities to start a business in Dubai, the incorporation process can be complicated. We can help you as we are the best experts in company formation in the UAE.

Here’s how ExpressPRO can make starting your business easier and more efficient: 1. Expert advice on starting a business and choosing the proper corporate structure, whether you are located on the mainland or in a free trade zone. Your success will be significantly affected by whether you are located on the mainland or in a free trade zone. ExpressPRO offers you tailored advice to support you in your decision-making: • the best jurisdiction for your business.

• Whether you decide to establish a mainland or free trade zone.

• Compliance with UAE laws and regulations.

2. Hassle-free licensing and registration: Understanding the legal aspects of licensing and registration can be time-consuming. ExpressPRO handles all the necessary paperwork, including regulatory approvals and business license applications, to ensure your business is properly and quickly licensed.

3. Comprehensive Public Relations (PRO) services are provided by Advanced PRO Services ExpressPRO, which handles the following: • Visa applications and extensions for you, your employees and family members.

• Processing of Emirates ID and medical fitness tests.

• Marketing permit extensions and amendments.

4. Corporate Sponsorship Solutions: As mentioned above, some companies operate in industries that require a local partner.

ExpressPRO provides local managing directors. This service ensures compliance with UAE regulations and gives you 100% operational and financial control over your company.

5. Corporate Bank Account Support Opening a corporate bank account in Dubai can involve extensive documentation and regulatory checks.

ExpressPRO simplifies this process by preparing all the necessary documentation and working with leading banks in the UAE to help you open an account quickly and efficiently.

6. Ongoing Business Services ExpressPRO support does not end with the establishment of your company. Our service package includes: • VAT registration and compliance.

• Accounting and financial reporting.

• Payroll and more.

Why choose ExpressPRO?

With over 16 years of experience, ExpressPRO has established a strong reputation for dependability, effectiveness, and knowledge. By partnering with ExpressPRO, you can avoid the complexities of starting a business and focus on building and growing your business in Dubai’s thriving business ecosystem.

UAE Business Etiquette: Do’s and Don’ts After learning how to launch a business in Dubai, it makes sense to discuss some of the common mistakes people make when conducting business in this intricate, multicultural, and rapidly evolving setting.

DO: Dress well, be pleasant, and smile. Yes, Dubaians love their brands, but it’s also important to note that people here have also developed a strong sense of sophistication and nuance. Additionally, while Dubai is predominantly Western in some ways, it has strong Islamic roots.

When you combine these factors, it becomes clear that whether you’re a man or a woman, your attire should be elegant, classy, ​​and understated.

For example, a suit and tie is more or less mandatory for men attending meetings, especially if you’re looking for a local sponsor.

Happy, positive energy is also an integral part of Dubai’s social, entrepreneurial and even business trends. No one moves here to be boring, so complement your outfit with a smile.

If you want to learn how to start a business in Dubai, it is essential to understand how to interact with local Emiratis. First of all, you should know that it is customary to treat all ideas in meetings with the utmost respect. You may not immediately recognize the rank of the people in the meeting room.

Therefore, when greeting and interacting with each other, observe etiquette: for example, never shake hands with a person of the opposite sex unless they extend their hand first, and always use your right hand.

Finally, do not rush into anything. Even if you are in a hurry, it is worth taking a moment to ask about the person’s day, health, and family.

A good tip is to wait until the other party initiates the business conversation and avoid all European business directness. Small talk is more than just politeness; This way, you can find out in a non-intrusive way whether someone would be a suitable business partner.

Don’t brag about your successes. Dubai is full of show-offs that claim to be the first, the best, the only, the biggest and the wildest. Don’t contribute to the noise.

The city is now trending towards modern minimalism, simple design elements based on taste and modesty, and quality over quantity. So when distributing company information – from brochures to online event invitations – try to market yourself without resorting to Dubai.

DO: Get out there. When you’re starting a business, simple email introductions and online transactions won’t get you far.

In Dubai, it’s all about in-person networking events and meet-and-greets. Get there, enjoy cocktails, chat with everyone in the room, and stay in touch afterwards. Since every industry is a small network, close personal relationships are essential.

Word-of-mouth is equally crucial here. Therefore, it is critical to establish as many good relationships as possible to grow your clientele and skill set.

Therefore, when attending groups, networking sessions, and conferences, you should always carry a business card, even in Arabic.

Don’t: Negotiations and discussions should proceed according to plan. The most helpful trait you can have is patience to continue to develop your life and work in the region. Long group meetings can be chaotic: During discussions, people often check their phones, walk in unannounced and change the subject, or arrive late.

While this can be frustrating at times if you come from the European or North American business world, patience (and the fact that most expats are still expected to be punctual) will help you through. Remember that doing business within the family is a way of life here.

This can also change the dynamic of your business relationships with companies and the speed and style of their decision-making.

DO: Discover the customs and immerse yourself fully in the culture. Embrace the heat, learn to cope with it, and enjoy the many positive aspects. Complaining about the heat (which can be pretty intense in the summer at 45 degrees Celsius) doesn’t help anyone.

It’s a desert, after all… but it also means windy nights in epic landscapes and dunes, as well as many other fun activities.

Learn more about the area, show concern for the residents’ well-being, and try to pick up a few Arabic words—it’s always appreciated.

Start your business in Dubai with ExpressPRO. Starting a business in Dubai is a lucrative venture full of opportunities. By following the proper steps – choosing your industry, location and business structure, completing the necessary paperwork and adhering to UAE business etiquette – you can successfully operate your business in one of the world’s most active markets.

With ExpressPRO’s expert support, you can navigate the entire process quickly and efficiently, allowing you to focus on your business vision. Dubai’s thriving economy and supportive business climate await you – take the first step now and contact us for a free consultation.

Frequently Asked Questions: Is it possible for a non-UAE resident to start a business in Dubai?

Yes, you can start the company formation process from abroad. You can often submit documents electronically and have the paperwork done by a local service provider like ExpressPRO.

However, if you plan to live or work locally, you will need to travel to the UAE at some point to complete visa and banking formalities.

Are there any business activities restricted to UAE nationals?

Yes. Some sectors, such as security, oil and gas, defence, legal services, and Hajj and Umrah services, are restricted to UAE nationals or require majority Emirati ownership. If you are unsure, it is best to contact ExpressPRO to have your suitability for your job checked.

Can I own multiple businesses under one name in the UAE?

Although a separate business license is required for each business, the following activities are possible: • Carrying out multiple activities with one license, depending on the classification.

• You own multiple companies as shareholders.

• Create a holding structure to manage multiple businesses.

Is it necessary to hire employees to maintain my business license in the UAE?

Not necessarily. You can maintain a valid business license in the UAE as a sole proprietor, especially in free zones that support freelancers and sole proprietors.

However, mainland businesses may have minimum staffing requirements depending on their license and office space. Can I open a corporate bank account without being physically present in the UAE?

While some digital banks (such as Wio) offer remote onboarding, most traditional banks require the presence of the authorized signatory for identity verification. ExpressPRO can arrange your request in advance and schedule meetings to minimize your time in Dubai.

Are there any Emiratization requirements for foreign companies in the UAE?

Yes, some mainland UAE businesses with more than 50 employees are required to adhere to Emiratization quotas, which require a certain percentage of UAE nationals in their workforce.

Companies in free trade zones are generally exempt from this. Failure to comply may result in fines or problems renewing permits. ExpressPRO can advise you on the obligations that depend on your company’s size and activity.

How many workers can I sponsor in a free trade zone?

The number of employee visas you can sponsor depends on your office space and the regulations in your jurisdiction: • Mainland companies: There is no fixed limit on employee visas, but approval depends on the size of your physical office space (usually one visa per 8-9 square meters) and your business activity.

The Ministry of Human Resources and Emiratization (MOHRE) manages the visa quota for the mainland.

• Companies in free trade zones: Depending on the licensing package you choose, visa restrictions are more strictly defined. Most free zones offer packages with a fixed number of visas (e.g. 1, 3, 5 or more).

To increase your visa quota, you can upgrade to a higher package or rent a larger room. In some free trade zones, stricter controls apply depending on the type of business or industry.

ExpressPRO can assess your institution, advise you on the number of visas you are eligible for and help you increase this number if necessary.