Frequently Asked Questions About Business Setup in UAE

Answer:
Dubai CommerCity, IFZA, SHAMS, and RAKEZ are startup-friendly with flexible pricing and fast setup.

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Mainland allows trade within UAE, while free zones are for international trade and limited local operations.

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Commercial, professional, and industrial licenses are available based on your business’s primary activity and operations.

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Identify your business activity to determine the correct license type and jurisdiction for your company.

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• Special economic areas in the UAE designed to attract foreign investment.
• Allow 100% foreign ownership of businesses.
• Offer tax exemptions (e.g., corporate and import/export tax benefits).
• Provide simplified setup procedures and business-friendly regulations.
• Examples include:
• Dubai Internet City
• Dubai International Financial Centre (DIFC)
• Dubai Multi Commodities Centre (DMCC)

Answer:
Passport copy, passport-size photo, trade name, and activity description are commonly needed for application.

Mainland Business Setup:

• Allows operation anywhere in the UAE.
• Can engage in government contracts and local business freely.
• Requires registration with the Department of Economy and Tourism (DET).
• Suitable for companies targeting the UAE domestic market.

Free Zone Business Setup:

• Offers 100% foreign ownership.
• Ideal for businesses focused on international trade or e-commerce.
• Provides tax exemptions and simplified regulations.
• Usually restricted from direct trade within the UAE mainland without a local distributor or dual license.

Answer:

• 0% income tax (for most businesses)
• Strategic location between Asia, Europe, and Africa
• World-class infrastructure
• Full repatriation of profits
• Fast and easy visa process
• Government incentives for SMEs and startups

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Yes, most business types require a registered office or flexi-desk space as part of licensing.

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Prices start around AED 12,000, depending on activity, location, visa, and office space requirements.

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• The cost depends on several factors:
• Type of business activity
• Chosen jurisdiction (mainland or free zone)
• Required office space or facilities
• Costs typically start from AED 5,000 in select free zones.
• Expenses may increase based on licensing, visas, and operational needs.

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Business setup in UAE usually takes between 3 to 5 working days if documents are submitted correctly.

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• Yes, for mainland companies, having a physical office is mandatory as per government regulations.
• Free zones offer flexible options like:
• Flexi-desk (shared workspace)
• Shared office packages
• The type of office required depends on your business activity and chosen setup package.

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No, local sponsors are no longer required for most business activities in UAE’s updated regulations.

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Absolutely. E-commerce licenses from various zones allow you to operate digital platforms across multiple regions.

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Yes, once licensed, you can apply for a business account with UAE’s local or international banks.

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Yes, you can apply for investor and employee visas after obtaining your business trade license.

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Yes, most business activities now allow full foreign ownership in both mainland and free zones.

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Yes, but it requires a local distributor or dual license for legal mainland operations and sales.

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Yes, many free zones offer 0% corporate and income tax, plus customs exemptions and full repatriation.