How‌ ‌To‌ ‌Set‌ ‌Up‌ ‌A‌ ‌Business‌ ‌In‌ ‌Dubai?‌

Business,Business Setup
How‌ ‌To‌ ‌Set‌ ‌Up‌ ‌A‌ ‌Business‌ ‌In‌ ‌Dubai

The United Arab Emirates has undergone an incredible transformation over the past several decades. With thriving industries in a variety of fields, it has evolved from a nation known for fishing and pearls to a financial powerhouse. Its political system is stable, its capital flow is strong, and its taxes are business-friendly. Due to its increasing popularity, the country has recently become a popular investment destination.

The ease of doing business in Dubai and all over the UAE, is attracting many investors and entrepreneurs. So, if you want to set up a business in Dubai and are having trouble figuring out what to do?…….. We have the answer for you!

By examining the present economic picture of Dubai from a bird’s eye view, we are able to answer questions such as WHAT, WHY, and HOW, which aids in answering the big question of HOW.

By the end of this article, you will have a better understanding of “how to Open a Company in Dubai


Choose the appropriate legal entity type

You need to decide whether you want to set up your business in a free zone or mainland or offshore before you get started. It depends on your requirements which option is suitable for you.

1. Free Zone

Those seeking 100% ownership of their business should apply for Business Setup in Dubai Freezone. The Dubai government introduced the concept of free zones to generate foreign investment in the city. This is an economic region in which owners of businesses can benefit from 0% taxation and many ownership benefits.

A key limitation of operating in a free zone is the fact that you aren’t allowed to directly trade with the local market in the UAE.

You can set up one of two types of companies in a free zone:

  • Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
  • Free Zone Establishment (FZE)
2. Offshore

An offshore company can also be registered in a free zone and may receive many of the same benefits. But it’s not a substitute for a free zone company. Free zone companies and offshore companies differ mostly in how they operate. Companies located offshore are only allowed to do business outside of the UAE. The minimum capital to be deposited prior to incorporation is not required by these companies.

However, unlike operating as a free zone business, a sponsor is required, which will restrict your foreign ownership to only 49%.


Types of business licenses in Dubai

Dubai has several types of trade licenses, the most common of which are commercial, industrial, and professional.

1. Commercial license

In Dubai, you need a license to set up a business that involves trading activities or the purchasing and selling of goods. This license can be used by businesses engaged in import & export, sales, logistics, travel & tourism, general stores, and real estate.

2. Industrial license

A license of this type is granted to businesses involved in the manual or mechanical conversion of natural resources and resources into final products. Manufacturers of textiles, metals, and papers are included in this license.

3. Professional license

Service providers, artisans, and craftsmen are authorized to apply for a professional license. Medical services, beauty salons, and repair services are examples of businesses that apply for this type of license.

Depending on what category your business will fall under, you will know the licensing requirements. In many cases, 100% foreign ownership of mainland enterprises is now allowed, so it is best for overseas entrepreneurs to start a free zone business where they can own 100% of the business.


Choose an office space

For free zones, you can either buy or lease office space. A company’s office requirements are determined by the number of employees and also by the type of business the company conducts.


In the process of setting up a business, what documents are required?

Having completed the basics, we will move on to the next step. The next step is to gather all the documents needed to establish the business.

The following types of business licenses are available:

  • Commercial/trade
  • Consultancy/services
  • Industrial
  • Educational
  • Media
  • eCommerce
  • Offshore
  • Freelancer
  • Warehousing
  • Manufacturing



Existing local and foreign companies may set up a branch of their company in free zones.


Capital requirement

It is not necessary to have a minimum capital requirement. The cost of a trade license can vary from 8,000 to 75,000 AED.


You’ll need pre-approvals, an online business registration, and a license to operate

In the free zone, there are different rules for different regions. Your free zone application can be completed by sending some basic information and describing your business to an agent and they’ll handle the rest.

  • A completed application
  • Business plan
  • Copies of existing trade license/registration certificates (if you are an existing company, applicable to local companies only)
  • Copies of the passports of the company’s shareholders and the appointed manager/director of the new company
  • Signatures of shareholders and the appointed managers/directors for the new corporation
  • An audited financial report for the previous two years or a personal bank reference form from a shareholder
  • NOC from current sponsor (for individuals)

Those who work as freelancers have fewer documents to submit. Most of the time, they need to provide:

  • Application for registration
  • CV
  • Bank reference letter
  • RIC (Registry Identification Code) (Original and notarized)

External authorities may need to approve some special activities.

We can help you set up your businesses anywhere in the UAE without any of the hassles this is what makes us the best business setup consultants in the UAE. For more details contact us today!

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