How to Start a Business Setup in Dubai

Business Setup

One of the best ways to take advantage of one of the liveliest and most business-friendly cities in the world is to open a business setup in Dubai.
However, launching a business setup can be difficult and calls for several crucial steps and considerations. With careful planning, you can complete these steps efficiently and save valuable time and resources.

At G12, we have helped many entrepreneurs successfully build their businesses in Dubai. Based on our years of experience, we have produced this thorough guide to help you step-by-step through the process of starting a company setup in Dubai, along with some advice on UAE business ethics.

This road map will help you comprehend the subtleties of the regional market and guarantee that your company conforms to all applicable laws and cultural standards.

Suppose you are ready to start a business setup in UAE. In that case, G12 offers comprehensive company formation services in Dubai and will guide you through all the stages, from choosing the proper structure to obtaining your business license and visa.

HOW MUCH DOES IT COST TO BUSINESS SETUP IN UAE?

Why is business setup in Dubai?

The United Arab Emirates (UAE) and Dubai provide an incredibly welcoming and supportive business environment. In 2024, more than 70,500 new businesses were established in Dubai, a 3% increase compared to 2023.

Not surprisingly, many of these businesses were registered by foreign entrepreneurs. According to estimates, 85 to 90 percent of the UAE workforce is foreign.

There are powerful arguments for why thousands of business owners from all over the world are flocking to Dubai and the UAE to setup a company.

The main advantage is 100% foreign ownership, which permits foreign investors (onshore) to own 100% of businesses in practically every industry on the mainland of Dubai.

UAE In 2021

In 2021, the UAE abolished the requirement for local sponsorship in most industries by lifting the previous 49% foreign ownership cap. Thanks to this reform, entrepreneurs now have total control over their companies and can keep all profits while taking advantage of 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.

Companies, SMEs, and startups benefit from a 0% corporate tax rate for businesses with yearly profits under 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.

VAT Tax

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

Additionally, voluntary registration is offered for 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 UAE’s official VAT Implementation Regulations, which the UAE Government published.

In line with international tax standards, the UAE introduced a 15% corporate tax rate for large multinational companies with a consolidated worldwide turnover of at least USD 793.50 million on 1 January 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 show robust economic growth, cementing its standing as a top location for investors and business owners.

After expanding by 3.9% in 2024, the United Arab Emirates (UAE) actual gross domestic product (GDP) is expected to rise by 6.2% in 2025. The country’s continuous growth, which is mainly fueled by non-oil sectors, is indicative of its successful attempts at economic diversification.

Quality of Life and Talent Acquisition: Dubai is a popular destination for professionals and business owners because of its modern amenities, safety, and high standard of life.

The introduction of long-term residency permits. For those wishing to start and expand their enterprises in the United Arab Emirates (UAE), programs like the Golden Visa for Investors and Entrepreneurs offer stability. Dubai, home to more than 200 different nationalities, cultivates a global business community with many opportunities for networking and expansion.

According to US News of 2024, the UAE was ranked 17th in the US list of the best countries to live in, reflecting its strong global position.

Top-notch infrastructure and connectivity: Dubai offers state-of-the-art infrastructure, ranging from sophisticated office buildings to strong internet connections. By registering here, you have 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 specific free zones that can accommodate your needs, whether they are for financial sandboxes, media production studios, or modern warehouses. Furthermore, Dubai’s advantageous position allows you to easily connect markets in Europe, Asia, and Africa by bridging time zones between the West and East.

Business Setup Startup support:

The United Arab Emirates has numerous startup accelerators, incubators, and investment programs aimed at promoting business expansion.

Programs like Dubai Future Accelerators and Hub71 in Abu Dhabi Free Zone give companies access to funding, networking opportunities, and mentorship, enhancing the nation’s standing as a regional startup hub.
>To join the thousands of businesses that will open in Dubai by 2025, follow the instructions in this guide to discover how to start a business in Dubai. Eight Steps to Launching a Company in Dubai:

 

1. Select Your Business Purpose in Dubai: the first step in business setup in Dubai is to determine the exact nature of your business. Dubai offers a variety of industries, such as trading, consulting, manufacturing, and technology.

You must align 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 business activities includes over 2,000 approved activities, ensuring comprehensive coverage of a variety of business activities.
For example:

• Dubai Media City DMC Free Zone: Global brands, including the BBC, CNN, and Thomson Reuters, are housed inside DMC, which concentrates on media and advertising firms.
• Dubai Multi Commodities Centre (DMCC): DMCC Free Zone hosts a wide range of business activities, including commodity trading, technology companies, and financial services.
• Dubai Silicon Oasis (DSO): DSO Free Zone is tailor-made for technology-oriented companies and offers state-of-the-art infrastructure and support services for startups and established technology companies.
• Dubai Airport Free Zone (DAFZA): For businesses in the trade, logistics, and aviation industries that need to be close to global logistics hubs, DAFZA is the perfect location.
• Dubai CommerCity (DCC): DCC Free Zone specializes in e-commerce and provides bespoke infrastructure and services for e-commerce companies.
• Dubai Design District (D3): D3 Free Zone provides artists and designers with a creative space that focuses on the luxury, fashion, and design industries.
• Dubai Internet City (DIC Free Zone): By serving as a hub for telecom and IT companies, DIC fosters innovation and collaboration in the technology sector.
• Dubai Knowledge Park (DKP): DKP Free Zone promotes learning and human resource development activities and is committed to education and training establishments.

In recent years, many industry-specific trade free zones have expanded their reach to enable general business operations. Consider transportation connections and proximity to industry peers:

Dubai Free zones

close to ports or airports should be preferred by companies that depend on imports or exports.

In keeping with the nation’s commitment to economic diversification, the UAE’s primary growing industries include e-commerce, fintech, artificial intelligence (AI), renewable energy, and logistics.

2. Choose the proper legal form: After you have ceased your business operations, choosing the appropriate legal structure is crucial as it affects ownership, liability, and the scope of the business.
   Dubai offers a variety of business structures, including mainland and free zone options.

Mainland Company Structures (licensed by DET): Businesses can operate and trade freely anywhere in the United Arab Emirates with a mainland corporation in both local and international markets.

Mainland companies must comply with UAE commercial laws and regulations but must offer flexibility in how they conduct their business.

• Limited Liability Company (LLC)—the most common business setup structure on the mainland, it is now available to most 100% foreign-owned businesses. 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.
• Civil Partnerships are 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 allows international companies to establish wholly owned branches in Dubai while preserving the parent company’s legal identity.

Free Zone Company Structures (licensed by the Free Zone Authority)

• A company in free zone allows 100% foreign ownership and offers tax benefits and duty exemptions. Direct trade with the UAE mainland, however, might necessitate additional permission or a local distributor.
• Free Zone Establishment (FZE) – a company structure with just one shareholder that is perfect for startups and small enterprises.
• Free Zone Company (FZCO)—this type of company is designed for multiple shareholders (typically 2 to 50), with full foreign ownership and simplified regulations.
• Free Zone Branch – Establishing a branch in a free zone allows a foreign or UAE-based business to keep the identity of the parent company.

Recent reforms have allowed foreign entrepreneurs to own 100% of their businesses setup in mainland in most industries. However, in specific sectors, including security and defense, banking and insurance, and oil and gas, a local partner is required by law to hold 51% of the shares.

To meet this requirement while maintaining complete control over your company, we at G12 offer a local company nominee shareholder service.

This agreement ensures compliance with UAE regulations while foreign company owners retain 100% operational and financial control over their mainland companies.

This allows you to seamlessly 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 stringent naming guidelines to guarantee adherence to regional laws. Important rules consist of:

• Steer clear of derogatory remarks or allusions to political or religious organizations.
• If you are naming your company after an individual, use their full name (no initials or abbreviations).
• Contact the Department of Economic Development (DED) or an expert like G12 to confirm that your name complies with the regulations.

See this guide for a comprehensive discussion of business name selection.

4. Business setup in Dubai: Once your business and location have been determined, it’s time to register your company. These typically include:

• An application stating your business name and activity.
• Copies of shareholders’ passports.
• Additional documents for certain 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 needs for mainland businesses.

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

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

Once your documents have been submitted and processed, you will receive your business license and officially establish your business in Dubai.

Sifting through paperwork can be time-consuming and complicated. Working with G12 ensures accuracy, efficiency, and security, saving time and avoiding costly delays.

5. Prepare the workspace. Both mainland and free zone businesses in Dubai are required to have a registered physical address.

You can rent an office or retail space or opt for flexible co-working or virtual office solutions, provided your license type allows for this.

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

6. Pay fees and obtain a business license. The remaining fees can now be paid, and you can get your business license. Dubai’s fee structure includes the license charge, first approval, name reservation, and, occasionally, a

Marketing fee or local agent fee (if the activity requires an agent).

As part of the Unified License (DUL) initiative launched in late 2023, you will also receive A Dubai Unified License number, which is a unique identification number that connects your business to government authorities.

During this phase, mainland 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.

7. Open a bank account.

8. Once you have returned your documents, you will have all the necessary documents to open your business account. A bank account is required before you may start trading in the UAE. There are many local and international banks in the UAE, including

• Emirates NBD,
• Abu Dhabi Commercial Bank,
• Commercial Bank of Dubai,
• Noor Bank,
• Emirates Islamic,
• Mashreq,
• RAKBANK,
• Ajman Bank, and
• Wio Bank,

A digital banking platform in the UAE designed for startups and small businesses.

There are also global names, such as:

• HSBC,
• Citibank and
• Barclays.

Which one is best for you will depend on your requirements.

The paperwork needed to open a bank account in Dubai Individual bank requirements may vary slightly. Still, in general, you will need the following:

• Trade License (issued by the 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 associates or a personal bank account may be required.

G12 offers a first-class bank account opening service, along with a thorough evaluation of each client to ensure bank account opening service and a thorough review of each client to make sure we select 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 phase of starting a company in Dubai is to apply for the necessary visas. Whether you are applying for your 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 called a partner visa for LLC shareholders, is available to you as a business owner in a free zone or the mainland.

Generally speaking, this visa is good for two years for businesses in free trade zones and three years for mainland businesses.

Dubai offers a 10-year Golden Visa (10-year stay)

For worthy investors and entrepreneurs. This visa is ideal for entrepreneurs who have significant financial commitments in the UAE.

To qualify, you must:

• Be an owner or partner of a business with a minimum capital that is registered in the UAE investment of AED 500,000 (approximately USD 136,100).
• Have founded or run a startup that an accredited incubator in the UAE has approved.
• verifying its inventiveness, sustainability, and economic impact on the community.

To obtain your visa(s), follow these steps: I. Prepare your documents. Whether you are requesting a Partner Visa or a Golden Visa, you will need to bring the following:

• A passport (valid for at least 6 months).
• Recent passport photo (white background).
• Business license (if applying as a shareholder/partner).
• Health insurance (meets UAE requirements).
• Proof of Investment: Golden Visa: Proof of investment (e.g., proof of investment of AED 500,000 (~$136,100) or documentation of your significant corporate contribution).

Partner Visa: A share certificate, memorandum of association (MoA), or other document attesting to your affiliation with the business.

1. Obtain an Entry Permit (if not in the United Arab Emirates). Getting an entry permit is the first thing you should do if you are currently outside the United Arab Emirates. With this short-term visa, you can enter the United Arab Emirates to complete 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 United Arab Emirates after it has been authorized.

III. Modify your visa status: You must update your visa status to reflect the appropriate type of stay upon arrival in the UAE or if you are currently there. If you pay the proper status change fees, you can complete this within the UAE.

1. Medical fitness test: Every applicant for a visa must pass a medical fitness exam. This comprises a chest x-ray and blood test to check for infectious disorders like HIV or tuberculosis.
2. Create an account to register for an Emirates ID, which is a mandatory ID for all UAE residents. This process involves collecting biometric data (fingerprints and a photo). You will also need to pay fees, which vary depending on the validity of the visa.
3. Visa stamp (residency permit): the final step is to get your residency visa stamped in your passport, which will grant you official residency in the UAE.

Once stamped or issued, you can start sponsoring your relatives or employees. G12 makes it easy. We take care of your company formation, encompassing every stage of the visa application process, from submitting documentation to keeping track of approvals.

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

How G12 can help you start your business setup in Dubai: Although there are many excellent chances to start a business setup in Dubai, the incorporation procedure might be complicated. We can assist since we are the top company creation experts in the United Arab Emirates (UAE).

Here’s how G12 can make your company formation easier and more efficient:

1. Expert advice on company formation and choosing the proper business structure, whether in a Your success will be significantly affected by whether you are on the mainland or in a free zone. G12 provides customized guidance to aid in your decision-making:

• the best jurisdiction for your company.
• Whether you decide to set up 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. G12 handles all the necessary documentation, including regulatory clearances and business license applications, to guarantee that your company is correctly and quickly licensed.
3. Comprehensive Public Relations (PRO) services are provided by Advanced PRO Services G12, which manages:

• Visa applications and extensions for you, your employees, and family members.
• Emirates ID processing and medical fitness tests.
• Marketing permit extensions and amendments.

4. Corporate Sponsorship Solutions: As mentioned above, Some companies work in industries that call for a local partner.

G12 offers local company managers. This service ensures compliance with UAE regulations and gives you 100% operational and financial control over your business.

5. Business Bank Account Assistance Opening a business bank account in Dubai can involve extensive documentation and regulatory checks.

G12 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 G12’s support doesn’t end with the incorporation of your company. Our service package includes:

• VAT registration and compliance.
• Accounting and financial reporting.
• Payroll and more.

Why choose G12?

With over 10 years of experience, G12 has established a solid reputation for dependability, effectiveness, and knowledge. By collaborating with G12, you can avoid the complexities of company formation and focus on establishing and growing your business in Dubai’s thriving business ecosystem.

Business Etiquette in the UAE:

Dos and Don’ts It makes sense now that you know how to launch a business setup in Dubai for us to examine some of the pitfalls to avoid when doing business in this complex, multicultural, and fast-changing environment.

DO: Dress well, be pleasant, and smile. Yes, Dubaians love their brands, but it must also be noted that the people here have also developed a great sense of sophistication and nuance. Furthermore, although Dubai is mainly Western in some ways, it has strong Islamic roots.

When you combine these factors, it becomes clear that whether you are a man or a woman, you need to look elegant, classy, ​​and understated in your attire.

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

Cheerful, positive energy is also an essential part of Dubai’s social, entrepreneurial, and even business trends. No one moves here to wallow in gloom, so complement your outfit with a smile.

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

So be mindful of etiquette when greeting and interacting socially: for example, never shake hands with people of the opposite sex unless the person extends their hand first, and always use your right hand.

Finally, don’t rush into business matters too quickly. Even if you’re in a hurry, it’s worth taking some time to ask about the person’s day, health, and family.

A good tip is to wait until the other party starts the business conversation and avoid any European business directness. Small talk is more than just politeness; it’s a non-intrusive way to find out if someone would be a suitable business partner.

Don’t Brag about your achievements. Dubai is full of show-offs who 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 business information—from brochures to invitations to online events—try to market yourself without using Dubai clichés.

DO: Go outside. When starting a business in Dubai, simple email introductions and online transactions won’t get you very far.

In Dubai, it’s all about in-person networking events and meet-and-greets. Get there, enjoy cocktails, talk to everyone in the room, and stay in touch afterward. Since it’s a small network within each industry, close personal relationships are essential.

Word of mouth is also significant here, and to expand your skills and client base, it’s essential to make as many positive contacts as possible. So, when you attend groups, networking sessions, and conferences, always make sure you have a business card with you, even in Arabic.

Don’t: Negotiations and discussions should proceed according to schedule. The most helpful quality you can possess is patience to develop in your life and work in the region. Long group meetings can be chaotic: People often check their phones during discussions, drop 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 punctuality is still expected of most expats) will help you. Remember that doing business within the family is a way of life here.

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

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

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

Investigate the area, express concern for the welfare of the inhabitants, and attempt to pick up a few Arabic words—it is always appreciated.

Start your business in Dubai with G12. Establishing a company setup in Dubai is a lucrative endeavor full of opportunities. By following the proper steps – choosing your industry, location, and business structure, completing the required documentation, and following UAE business etiquette, you can successfully operate your company in one of the most active markets on the planet.

With G12’s expert support, you can navigate the entire procedure with ease and effectiveness, enabling you to concentrate on your business vision. Dubai’s thriving economy and supportive business climate await you—take Take the initial step now and get in touch with us for a free consultation.

Frequently Asked Questions: Is it possible for a non-resident of the United Arab Emirates to establish a company in Dubai?

Yes, you can start the company formation procedure from overseas. Often, you can turn in documents electronically and have a local service provider like G12 handle the paperwork for you.

However, if you plan to live or operate locally, you will ultimately need to visit the UAE to complete visa and banking formalities.

Are there any business activities that are restricted to UAE nationals?

Yes. Some sectors, such as security, oil and gas, defense, legal services, and Hajj and Umrah services, are restricted to UAE nationals or require majority ownership in the Emirates. If you are unsure, it is best to contact G12 to assess its suitability for your activity.

In the UAE, can I own several companies under one name?

Although each business requires a separate business license, the following are possible:

• Conduct multiple activities with one permit, depending on the classification.
• Own multiple businesses as shareholders.
• Create a holding structure for managing multiple businesses.

Is hiring employees necessary to maintain my UAE business license?

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

However, businesses on the mainland 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. G12 can pre-arrange your request and schedule meetings to minimize your time in Dubai.

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

Yes, some companies in the UAE mainland with more than 50 employees must meet 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 license renewal issues. G12 can advise you on obligations based on your company’s dimensions and activity.

In a free zone, how many employees can I sponsor?

The quantity of staff visas you are able to sponsor is determined by your office space and the regulations in your jurisdiction:

• Mainland companies: There is no fixed limit on employee visas, but approval is dependent on the size of your physical office space (typically 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.

• Free Zone companies: Visa restrictions are more strictly defined by the licensing package you choose. The majority of free zones provide packages with a set quantity 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. Some free trade zones also have stricter controls depending on the type of business or industry.

G12 can assess your institution, advise you on the number of visas you are eligible for, and help you increase them if necessary.