Tips for Expats Setting Up a Business in Dubai Mainland in 2025

Ever dreamed of starting your own business in a city that combines modern infrastructure with global business appeal? Welcome to Dubai!

Dubai’s business ecosystem is thriving, and the numbers speak for themselves. In the first half of 2024, Dubai increased its global market share of Foreign Direct Investment (FDI) to 6.2%, up from 5.7% in the previous period, according to the Financial Times’ fDi Markets report. Moreover, the city’s population is projected to grow from 3.8 million to 5.8 million by 2040. Add to this the fact that Dubai now ranks 5th in the Brand Finance Global City Index, surpassing London, and it’s clear why it’s the go-to destination for expat entrepreneurs.

If you’re ready to join this growing league of visionaries, here are eight essential tips to help you set up your business in Dubai Mainland in 2025.

1. Research the Legal Framework and Business Structures

Dubai Mainland offers flexibility compared to Free Zones or Offshore setups. The Mainland allows you to operate across the UAE and internationally without geographical restrictions.

• For 2025, the Department of Economic Development (DED) has streamlined licensing processes, making it easier for expats to start businesses.
• Tip: Research whether you’ll need a sole proprietorship, a limited liability company (LLC), or a branch of a foreign company, as these structures determine ownership and operations.

Pro Insight: Choose an LLC if you’re looking for maximum ownership (100% foreign ownership is now possible for most activities).

Collaborate with a trusted mainland business setup consultant in Dubai to understand licensing requirements and regulations.

Give our detailed blog a read: The Future of Business in Dubai: Why 2025 is the Year to Start to make an informed decision!

2. Choose the Right Business Activity

Dubai Mainland requires you to specify your business activity when applying for a trade licence, and getting this right is critical.

• Tip: Use the DED’s updated list of business activities for 2025 to avoid delays in approvals or additional paperwork.
• Activities like e-commerce, tech solutions, and professional services remain in high demand.

A clear understanding of your activity ensures that you meet all regulatory requirements, saving you time and money.

Business setup companies in the UAE can guide you through this process to avoid costly errors.

3. Partner with the Right Sponsor (if required)

Although many activities now allow 100% foreign ownership, some businesses still require a UAE national sponsor.

• Tip: Opt for a corporate sponsor instead of an individual to avoid personal risks and ensure a professional relationship. A reputable business setup agency in UAE can connect you with reliable sponsors.
• A corporate sponsorship agreement provides you with flexibility while retaining your decision-making authority.

Quick Note: UAE laws in 2025 offer more transparency in sponsor agreements, making this a safer process for expats.

4. Budget Smartly for Startup Costs

Starting a business in Dubai Mainland comes with various costs, including trade licences, office space, and visa fees.

• Office rent is one of the most significant expenses. The Dubai Land Department projects an 18% increase in short-term rental prices and a 13% rise in long-term rental rates in 2025.
• Tip: Plan a financial buffer covering at least six months of operational costs. Consult with PRO services in the UAE to estimate accurate expenses and streamline budgeting.

Whether you’re leasing a small coworking space or setting up in a commercial district, financial foresight is key.

5. Secure Office Space Strategically

Physical office space is mandatory for Mainland businesses. In 2025, Dubai offers flexible options for expats.

• Tip: Consider coworking spaces or serviced offices as affordable solutions, especially for startups.
• Look for locations close to major business hubs like Business Bay or Downtown Dubai for better connectivity.

Pro Tip: The rise of shared office spaces tailored to startups makes Dubai an ideal location for small businesses. 

6. Understand Visa and Residency Processes

An investor visa is your gateway to starting a business and living in Dubai.

• Tip: Apply for your investor visa early to streamline the process, and don’t forget to secure visas for family members if needed.
• Residency visas for expats offer access to world-class healthcare, education, and other benefits.

Dubai’s government continues to make visa processes more accessible, particularly for entrepreneurs, with faster approval times and extended visa durations. A mainland business setup consultant in Dubai can expedite this process, ensuring all paperwork is in order.

7. Leverage Networking and Cultural Insights

In Dubai, relationships are everything. Networking and understanding the local culture can open doors for your business.

• Tip: Attend business expos and events such as the ongoing initiatives at Dubai Expo City, which remains a hub for global entrepreneurs.
• Dubai welcomed over 14 million visitors in the first three quarters of 2024 (Dubai’s Department of Economy and Tourism), many of whom extended their stays for professional opportunities.

Respect for UAE’s cultural norms, such as punctuality and understanding of Islamic traditions, goes a long way in establishing trust with local partners.

8. Stay on Top of Regulations and Compliance

Running a business in Dubai requires staying compliant with laws and regulations, including licence renewals and corporate taxes.

• In recent years, the UAE introduced a 9% corporate tax, making it essential to maintain updated financial records and proper audits.
• Tip: Hire a business consultant or accountant to manage compliance, so you can focus on scaling your business.

Failing to renew your trade licence or visas can lead to penalties and operational disruptions, so ensure your paperwork is always in order.

Partner with experienced business setup companies in the UAE to manage renewals, tax filings, and audits. Their PRO services in the UAE can ensure you remain compliant while focusing on scaling your business.

Read our detailed blog for expert insights on Maximising Profits: Tax Benefits of UAE Free Zone Business Setup in 2025!

Watch Your Business Thrive with G12

Setting up a business in Dubai Mainland as an expat in 2025 offers incredible opportunities, but the process requires careful planning and execution. From navigating legal structures to managing costs and embracing local culture, each step is imperative to building a successful enterprise in one of the world’s most dynamic cities.

By the way, the first best decision you’ve already made is choosing Dubai as your business destination. Now, let us tell you about the second best decision – partnering with G12. 

We’re not just another service provider offering cookie-cutter solutions. At G12, we’re experts in business setup in Dubai, and expertise doesn’t come cheap. It comes with a level of professionalism, experience, and dedication that guarantees your business gets the best start possible.