Setting up a company in Dubai offers incredible opportunities: full foreign ownership, zero tax zones, and access to global markets. This step-by-step guide explains exactly how to start your business in Dubai in 2025, optimized for clarity, accuracy, and results.
Why Set Up a Company in Dubai?
Dubai remains one of the world’s most attractive hubs for entrepreneurs. With 100% foreign ownership now available across most business types and the continued absence of personal income tax, it’s a magnet for global founders. Add to that world-class infrastructure, direct trade access to Europe, Asia, and Africa, and a tech-forward economy—Dubai is more than a destination; it’s a launchpad.
Step 1: Choose Your Business Activity
Every business in Dubai must clearly define its core activity. Whether you’re launching a consulting firm, opening an online store, or establishing a logistics brand, your declared activity will shape the legal form and licensing you’ll need.
Some of the most in-demand activities in 2025 include e-commerce, fintech, import/export, and wellness services.
Step 2: Select the Right Jurisdiction
You have three main options for company formation in Dubai: mainland, free zone, and offshore. Each serves a distinct purpose and offers its own benefits.
Mainland companies are allowed unrestricted trade across the UAE and are eligible for government contracts. Since 2021, many sectors have permitted 100% foreign ownership without requiring a local sponsor.
Free zone companies offer tax holidays, 100% ownership, capital repatriation, and a fast-tracked setup process. They’re ideal for international trade and businesses that don’t need a local UAE market presence.
Offshore structures, like those in Ras Al Khaimah (RAK) or JAFZA, are best for asset protection or global investment holding, but cannot trade directly in the UAE.
Step 3: Choose a Legal Structure
Dubai offers a flexible menu of company structures. An LLC is common for most operational businesses, while Free Zone Establishments (FZEs) work well for solo founders. Branch offices are available for foreign entities looking to expand into the region. The choice impacts liability, compliance, and costs.
Step 4: Register a Trade Name
Your business name must be unique, align with local naming standards, and reflect your activity. You’ll register this name through the DED for mainland businesses or via the relevant free zone authority.
Step 5: Apply for Initial Approval
Once your name is secured, you’ll apply for initial approval by submitting shareholder documents and your business model. This stage confirms that your activity and business plan align with UAE regulations.
Step 6: Draft the MOA (Memorandum of Association)
This document defines your company’s ownership structure and management responsibilities. It’s required for LLCs and helps clarify partner roles.
Step 7: Choose an Office Space
You can opt for physical premises or a flexi-desk/virtual office, especially if you operate in a free zone. Some free zones offer bundled packages that include licensing, office space, and visa quotas.
Step 8: Get Final Approvals & Pay Fees
With your documents in place and office confirmed, you’ll submit everything for final government approval. This includes payment of licensing, registration, and immigration fees. Once completed, you’ll receive your official business license.
Step 9: Register for VAT (If Applicable)
If your annual turnover exceeds AED 375,000, VAT registration is mandatory. This process is handled through the Federal Tax Authority’s portal.
Step 10: Open a Corporate Bank Account
Opening a business account requires submitting your license, MOA, proof of office, and shareholder documents. Due to tightened regulations, UAE banks have strict compliance checks. A business consultant can help you navigate the process efficiently.
What Does It Cost to Set Up a Company in Dubai?
While exact figures vary by jurisdiction and business type, here’s what you should budget for in 2025:
Expect your business license to cost between $3,000 and $7,000, depending on the type of activity and whether you opt for a free zone or mainland structure. If you’re looking for a flexible package with minimal infrastructure needs, shared or flexi-desk offices in a free zone typically start at around $2,000 annually, increasing to $5,000 for more premium locations.
Trade name registration is relatively affordable, ranging between $150 and $300. You’ll also need to factor in residency visas and medicals, which usually cost between $1,000 and $1,500 per applicant, including the company’s owner or manager.
When it comes to corporate bank accounts, some banks charge a one-time onboarding fee up to $500, especially for foreign shareholders. Monthly account minimums may also apply.
Remember, these are core setup costs. Additional expenses, such as professional services, legal fees, customs codes, or extra visa quotas, could increase your budget.
Taxation for Companies in Dubai in 2025: What You Must Know
The UAE remains tax-friendly, but 2025 brings a few rules you must understand:
- Corporate tax of 9% applies to net profits above AED 375,000. If you operate in a qualifying free zone and follow compliance requirements, you may still benefit from a 0% rate.
- Personal income tax does not exist in the UAE.
- VAT at 5% applies to most goods and services and requires timely registration if you cross the revenue threshold.
Launch Your Company with Expert Help
Dubai offers incredible potential, but the process can feel overwhelming if you’re doing it solo. From selecting the right free zone to navigating unexpected documentation delays, having expert help makes all the difference.
We partner with the best local consultants who can fast-track your launch, avoid mistakes, and handle your paperwork, licensing, and bank account from start to finish.
Ready to launch your Dubai company?
Get a free consultation with our Dubai business setup experts and start your journey toward tax-optimized global business success.
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