Ultimate Guide to Business Setup in Dubai: Costs, Steps & Best Free Zones

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Ultimate Guide to Business Setup in Dubai: Costs, Steps & Best Free Zones
  •  May 23, 2025

Dubai has earned its reputation as one of the top global hubs for business and innovation. With a strategic location, tax benefits, and world-class infrastructure, Dubai offers many options for new business setups. Whether you’re an entrepreneur, investor, or freelancer, understanding the business setup in Dubai is key to long-term success.

This comprehensive guide covers everything from the business setup procedure in Dubai, including free zone options, required documents, and costs, to strategic locations such as the Dubai World Trade Centre, Silicon Oasis, and Dubai Media City.

Why Choose Dubai for Business Setup?

Dubai provides a business-friendly environment backed by:

  • 0% income tax in most cases
  • 100% foreign ownership (in many sectors)
  • Multiple free zones with specialized benefits
  • Strategic location between Europe, Asia, and Africa
  • Top-tier infrastructure and logistics
  • Easy visa and residency processes for investors

Types of Business Setup in Dubai

1. Mainland Business Setup in Dubai

This is ideal for businesses wanting to operate directly within the UAE market. Foreigners can own 100% of many business types without needing a local sponsor.

2. Free Zone Business Setup in Dubai

Perfect for expats looking for 100% ownership, no import/export duties, and full profit repatriation. Examples:

3. Offshore Business Setup

Perfect for expats looking for 100% ownership, no import/export duties, and full profit repatriation. Examples:

Great for international trade and holding companies. No need for a physical office in Dubai.

Steps to Take for Business Setup in Dubai

Step 1: Choose Business Activity

Different activities require different licenses. For instance, an e-commerce business in Dubai requires an e-commerce license.

Step 2: Decide Jurisdiction (Mainland vs. Free Zone)

Free zones offer benefits such as tax exemptions, while mainland companies have greater local market access.

Step 3: Choose a Legal Structure

Options include:

  • Sole Proprietorship
  • LLC (Limited Liability Company)
  • Branch Office
  • Free Zone Company

Step 4: Register the Trade Name

Make sure your business name is unique and complies with UAE regulations.

Step 5: Apply for Initial Approval

This confirms the government has no objection to you starting the business.

Step 6: Submit Required Documents

To proceed with registration, you’ll need the following items (see the list below).

Step 7: Lease Office Space

Free zones often offer flexible desks, virtual offices, or entire premises.

Step 8: Finalize Licensing and Pay Fees

Once approved, pay the license and registration fees.

Step 9: Apply for Visas

This includes investor, employee, and family visas if applicable.

Documents Required for Business Setup in Dubai

  • Passport copies of shareholders and managers
  • Visa and entry stamp copies (if applicable)
  • Passport-sized photographs
  • Business plan (for some activities)
  • NOC from current sponsor (if already residing in UAE)
  • Trade name reservation certificate
  • Memorandum of Association (MOA)
  • Lease agreement for office space

Cost of Business Setup in Dubai

The business setup cost in Dubai depends on the location, type of license, and business activity.

Approximate Costs:

  • Free Zone License: AED 10,000 – AED 25,000
  • Mainland License: AED 15,000 – AED 30,000
  • E-commerce License: AED 11,000 – AED 20,000
  • Shared Office Space: AED 5,000 – AED 15,000/year

Setting up a low cost business in Dubai is possible through shared spaces and packages in zones such as Dubai International City or Dubai Media City.

Best Free Zones for Business Setup in Dubai

  1. Dubai World Trade Centre (DWTC): Strategically located for international companies, this area is ideal for trade and event businesses.
  2. Dubai Silicon Oasis (DSO): Tech and innovation hub ideal for IT startups and engineering firms.
  3. Dubai World Central (DWC): Located near Al Maktoum Airport, this area is ideal for logistics and aviation businesses.
  4. Dubai Media City: Special for media, marketing, publishing, and creative industries.
  5. Dubai International City: Affordable and diverse zone with simplified procedures.

Final Thoughts

New business setup in Dubai is more accessible than ever. Whether you’re launching a startup, relocating your company, or looking for a strategic regional hub, Dubai offers tailored options across mainland, free zone, and offshore setups. From Dubai Silicon Oasis Free Zone to Dubai Media City, there’s a solution for every industry and budget.

Take the next step now! Contact a trusted business setup consultant and start your confident entrepreneurial journey in Dubai with confidence. Set up in Dubai

Start your dream business in Dubai today! We assist with trade license registration, legal paperwork, and identifying the optimal free zone for your specific needs. Affordable packages start from AED 10,000.

👉 Book a free consultation now and launch your company in 7 days!

FAQs Ultimate Guide to Business Setup in Dubai And Costs, Steps

What is the easiest business for expats to start in Dubai?

Digital services like freelance writing, web design, or e-commerce are among the easiest due to low initial costs and flexible setup.

Can expats own 100% of a business in Dubai?

Yes. Recent reforms allow full foreign ownership in many business categories, especially in free zones.

Which business sectors are most profitable in Dubai?

Real estate, e-commerce, and consultancy services are among the top profitable sectors, depending on your niche and execution.

Is a local sponsor required for mainland business setup?

In many cases, no. With new UAE laws, certain activities allow 100% foreign ownership even on the mainland.

How long does it take to start a business in Dubai?

Typically, 5–10 working days if all documents are in order and you choose the right jurisdiction.

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