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- Most foreign founders can own 100% of their Dubai company, on the mainland or in a free zone.
- Your business activity decides which license and authority you need, so choose it first.
- The core steps are: activity, setup type, authority, trade name, documents, office, license, visas, bank.
- Costs depend on your activity, visas and office, so compare itemised quotes before you commit.
Why set up a business in Dubai?
Dubai combines a central location between Europe, Asia and Africa with a business-friendly setup. Most foreign founders can own 100% of their company, there’s no personal income tax, and corporate tax is 9% on taxable profit above AED 375,000, with 0% possible on qualifying free zone income. A company can also sponsor UAE residence visas for you, your team and your family.
The trade-off is choice. Dubai alone has more than 20 free zones, plus the mainland, and each has its own rules, activity lists and packages. Getting the first few decisions right saves time and money later.
Step 1: Choose your business activity
Everything starts with your activity, the official description of what your company does. It decides the type of license you need (commercial, professional or industrial), which authorities can issue it, and whether you need extra approvals, for example for healthcare, education or financial services.
Pick activities that match what you’ll actually do. Many authorities let you combine related activities on one license, which keeps costs down.
Step 2: Decide between mainland, free zone and offshore
This is the biggest decision. In short:
- Mainland: trade directly with customers anywhere in the UAE and bid for government work. You’ll need a physical office.
- Free zone: 100% ownership, flexible office options and simple setup. Best for international clients, services, tech and e-commerce.
- Offshore: for holding assets or trading outside the UAE. No office and no visas.
Our full comparison of mainland, free zone and offshore goes into the details, or try the setup finder for a quick suggestion.
Step 3: Pick the right free zone or authority
If you choose a free zone, compare zones on five things: whether they allow your activity, how many visas you need, what office you want, total cost over the first few years, and location. A logistics company is usually happiest near a port, like JAFZA; a consultancy might prefer the flexible packages of IFZA or Meydan Free Zone.
For the mainland, your license comes from the Department of Economy and Tourism (DET) in Dubai, or the economic department of another emirate.
Step 4: Choose your legal structure
Common structures include a limited liability company (LLC) on the mainland, a sole establishment for one owner in some activities, and free zone companies, often called FZE, FZCO or FZ-LLC depending on the zone and number of shareholders. Existing companies can also open a branch. The right choice depends on how many owners you have and how you want to manage liability.
Step 5: Reserve your trade name
Your company name must follow the authority’s naming rules. For example, it can’t include offensive or religious terms or the names of public bodies, and it may need to show the legal form, such as LLC or FZCO. Have two or three options ready in case your first choice isn’t available.
Step 6: Submit documents and get approvals
Most setups need passport copies of each shareholder and manager, a passport photo and, for some authorities, proof of address or a short business plan. Regulated activities may need approval from another government body before the license is issued.
Step 7: Sort out your office
Free zones offer everything from a flexi-desk to private offices, and your choice usually sets how many visas you can apply for. Mainland companies need a physical office or shop with a registered lease, which in Dubai means an Ejari-registered tenancy contract.
Step 8: Collect your license and establishment card
Once approved and paid, the authority issues your trade license. You’ll also get an establishment card, which opens your company’s immigration file so you can sponsor visas.
Step 9: Apply for residence visas and Emirates ID
Next come visas for you and your team: an entry permit or status change, a medical test, Emirates ID biometrics, then the residence visa itself. Our guide to getting a UAE residence visa through your company walks through each step.
Step 10: Open your corporate bank account
Banks review new companies carefully, so a clear, consistent application makes all the difference. See how to open a corporate bank account in the UAE for the documents and tips.
After setup: tax and renewals
Register for corporate tax on time, and for VAT if your taxable supplies pass the threshold. Keep proper books, and renew your license, lease and visas before they expire.
How long does it take, and what does it cost?
Timelines depend on your setup type, activity and how quickly documents are ready. Free zone setups are often the fastest, while regulated activities and mainland setups with an office search take longer.
Costs depend on the license, the number of visas, your office, government fees and any approvals. The cheapest-looking package isn’t always cheapest once visas and renewals are added, so compare itemised quotes. Our guide to the cheapest free zones in the UAE explains what to look for.
