Dubai’s Economic Outlook: Why 2025 is the Right Time to Invest

• Dubai’s GDP grew by 3.6% in the first half of 2024, showing strong momentum across key sectors.
• The UAE Central Bank projects 4% real GDP growth for 2024.
• EKN ranks the UAE as a low-risk country for business (Risk Category 2 of 7).
• Dubai offers 0% personal income tax, cutting-edge infrastructure, and efficient business registration services.

Things to Know Before Setting Up Your Business

Before you begin the registration process, it’s important to understand the key factors that will influence your business setup. These include your business jurisdiction, type of license, and operational model.

Mainland vs. Free Zones vs. Offshore

Dubai offers three primary zones for setting up a business:

Mainland

If you want to trade directly with the UAE market and internationally, a Mainland license is the right choice. Mainland companies are registered with the Department of Economy and Tourism (DET) and allow:

• 100% foreign ownership for most activities
• Full access to UAE and global markets
• No restriction on office location

• Trade flexibility: Direct trading within the UAE and abroad
• Location freedom: Operate anywhere in the UAE
• 100% ownership: For most activities post-2020 reforms
• Taxation: 5% VAT, 9% corporate tax (if profits exceed AED 375,000), 0% personal income tax

• Must lease a physical office (minimum 200 sq. ft.; virtual offices not allowed)
• Stricter government regulations
• Emiratisation mandates:
  • Hire at least 1 Emirati for 25–49 employees
  • Hire 2% Emiratis for 50+ employees

Free Zone

Free zones offer 100% foreign ownership, streamlined procedures, and are industry-specific hubs. Ideal for international business and tech startups.

Popular zones include DMCC, Dubai Silicon Oasis, Dubai Airport Free Zone (DAFZA), and Dubai Internet City.

• 100% foreign ownership
• 0% corporate tax (up to AED 375,000 profit)
• 0% personal income tax
• Full repatriation of capital and profits
• No currency restrictions
• Tailored support for industry-specific activities

• Cannot trade directly with the UAE local market without a local agent/distributor
• Must operate within the designated free zone

Offshore

Offshore companies are typically used for international operations, asset protection, and holding purposes. They are not allowed to trade inside the UAE.

• 100% foreign ownership
• High privacy and confidentiality
• No minimum capital

• Cannot conduct UAE-based business
• May need a UAE sponsor for certain local services
• May face banking restrictions in opening UAE corporate accounts

Types of Licenses in Dubai

Choosing the correct license is crucial. Dubai issues six major license categories based on your business activity:

1. Commercial License
   For trading businesses: import/export, retail, logistics, real estate, general trading, etc.
2. Industrial License
   For manufacturing and industrial activities, such as textiles, metals, or paper products.
3. Professional License
   For individuals and firms offering specialised services: consultancy, IT, engineering, and legal services.
4. Tourism License
   For travel agencies, tour operators, hotels, resorts, and related tourism businesses.
5. Agricultural License
   For farming, plant nurseries, and agribusiness consultancies or trading (e.g., fertilisers, pesticides).
6. Crafts License
   For artisans or skilled businesses like carpentry, printing, and blacksmithing.

Note: Some activities may require additional approvals from relevant ministries (e.g., health, education, legal, or environment).

Step-by-Step Process to Setup Your Business in Dubai (2025)

Setting up a business in Dubai involves several administrative and regulatory steps. Here’s a comprehensive breakdown of each stage in 2025:

Step 1: Decide on Business Activity

The first step is to determine the nature of your business. Dubai’s Department of Economy and Tourism (DET) and various Free Zone Authorities offer a catalogue of over 2,000 permitted activities.

• E-commerce
• Real estate brokerage
• IT consultancy
• General trading
• Manufacturing
• Digital marketing
• Food services

Note: Some activities may require external approvals from regulatory bodies (e.g., health, legal, or financial authorities).

Step 2: Select the Right Jurisdiction

Dubai offers three business jurisdictions, and your choice will impact ownership rights, taxation, and trading scope:

• Mainland: Ideal for businesses targeting the UAE local market and international trade. Most sectors allow 100% foreign ownership.
• Free Zone: Best for businesses seeking full ownership, tax benefits, and export-focused operations.
• Offshore: Suitable for international business activities, asset protection, or holding companies. Cannot operate within the UAE.

Step 3: Choose a Legal Business Structure

Your legal structure defines your liability, ownership model, and operational flexibility. Common structures in Dubai include:

• LLC (Limited Liability Company):Most popular for mainland businesses. Allows multiple shareholders.
• Sole Establishment:Suitable for one-person ownership providing services (mainland or free zone).
• FZC / FZE:FZC allows multiple shareholders; FZE is for single-owner companies.
• Branch Office: For international firms expanding into Dubai without creating a new entity.
• Civil Company: For professionals such as doctors, engineers, or accountants.
• Holding Company (Offshore): Best for managing shares, assets, or intellectual property globally.

Step 4: Reserve a Trade Name

You must register a unique and meaningful business name that aligns with UAE naming standards. This is a crucial step, as the name represents your brand identity and must comply with government regulations.

Guidelines include:

• Avoid religious or political references
• No abbreviations (e.g., using initials instead of full names)
• Must reflect your business activity
• Must not duplicate an existing registered name

Trade name registration is handled through the Dubai Economic and Tourism (DET) department for mainland businesses or through the relevant Free Zone authority for Free Zone entities.

Step 5: Apply for Initial Approval

This is a no-objection certificate (NOC) from the government to proceed with your company formation. It shows the UAE authorities have no objection to your chosen activity.

Documents required:

• Shareholder passport copies
• Trade name reservation
• Business activity list

Approval is usually valid for 6 months, giving you time to complete the setup.

Step 6: Draft the MOA or LSA Agreement

This step includes the legal documentation of your company:

• MOA (Memorandum of Association) – Defines ownership percentage, responsibilities of shareholders, capital, and profit distribution.
• LSA (Local Service Agent) Agreement – Required only for specific mainland service-based businesses. The agent has no ownership rights or control.

Documents must be notarised and attested by the Dubai courts or the free zone’s legal department.

Step 7: Secure Office Space

Dubai regulations mandate a registered business address.

• Mainland: Requires a physical office (minimum 200 sq. ft.) with an Ejari tenancy contract.
• Free Zone: Flexible options such as shared desks, flexi-desks, private offices, or smart offices.
• Offshore: Only a registered address within a free zone is needed—no physical office required.

The size and location of your office may affect your visa quota.

Step 8: Submit Documents & Pay Government Fees

Once all documents are in place, submit them to DET (for mainland) or the respective Free Zone authority. Required documents include:

• Trade name approval certificate
• Initial approval certificate
• MOA / LSA agreement
• Tenancy contract (Ejari, if mainland)
• Passport & visa copies of shareholders

Government and licensing fees vary by jurisdiction, activity, and office type.

Step 9: Obtain Your Business License

After submission and fee payment, the authority issues your Trade License, which legally allows you to operate your business in Dubai.

You will receive:

• Business/trade license
• Certificate of incorporation
• Chamber of Commerce registration (optional but recommended)

Step 10: Open a Corporate Bank Account

A local business license allows you to open a corporate bank account in the UAE. Choose from:

Top Banks:

• Emirates NBD
• Mashreq Bank
• RAKBank
• ADCB
• HSBC
• Standard Chartered

Required Documents:

• Trade License copy
• MOA
• Shareholders’ passport copies
• Residency visas (if applicable)
• Business plan or projected revenue (for some banks)

Processing may take 7–15 working days depending on the bank’s compliance.

Step 11: Apply for Visas

Once your license and office space are confirmed, you can apply for residency visas for yourself, employees, and dependents.

Visa Types:

• Investor/Partner Visa
• Employee Visas
• Dependent Visas (Family/Children)

Steps include:

• Entry permit issuance
• Medical test & biometrics
• Emirates ID application
• Visa stamping on passport

Visa quotas depend on your business activity and office size. Mainland firms often enjoy larger quotas.

Compliance and Taxation (2025 Update)

Stay compliant with the latest UAE regulations:

• Corporate Tax: 9% on profits above AED 375,000
• VAT: 5% applicable on most goods and services
• UBO Filing: Declare Ultimate Beneficial Owner
• ESR: Economic Substance Regulations compliance if applicable
• Audit & Bookkeeping: Mandatory for most businesses

How Long Does It Take to Register a Business in Dubai?

• Mainland: 5–10 working days
• Free Zone: 3–7 working days
• Offshore: 3–5 working days

Cost of Starting a Business in Dubai (2025) – Full Breakdown

Mainland Company Setup Cost Breakdown

Free Zone Company Setup Cost Breakdown

Cost depends on the Free Zone selected. DMCC, Dubai South, and IFZA have different pricing tiers based on business activity.

Offshore Company Setup Cost Breakdown

Offshore companies cannot trade within the UAE and are mainly for international holdings, IP rights, and asset management.

Additional Costs (Applicable to All Setups)

Partner with UBIXO for a Seamless Business Setup

UBIXO offers expert guidance, fixed-cost local sponsorship, and full legal support to help you launch confidently in Dubai. We handle:

• Legal structuring
• Business license application
• Document clearing
• Corporate banking
• Visas and office space

Ready to Set Up Your Business in Dubai?

Starting a business in Dubai might seem like a complex journey, but with the right support, the entire process can be completed in just a few weeks. Whether you're planning to launch a tech startup, a trading company, or an import-export business, Dubai offers everything you need—world-class infrastructure, investor-friendly policies, and a strategic gateway to global markets.

Our experienced team will assist you through each step—from choosing the right business activity and preparing documents, to handling government approvals, opening a corporate bank account, and securing visas. We ensure a smooth, transparent, and compliant setup experience.

📞 Contact Us today to turn your business idea into a reality in Dubai.