Category: Business Setup

Dubai has become a popular and important place for business, both in the region and around the world. Its recent policy of zero income tax, along with business-friendly laws and strong political stability, makes it a very attractive place for both new and existing businesses.

However, many entrepreneurs find it hard to ignore the benefits of moving their business to Dubai, especially since it is located in such a key global position. This guide will help you understand how to open a business in Dubai. It will also highlight the main benefits of starting a business in the UAE. So, let us dive right in!

Why start a business in Dubai, UAE?

Dubai has a high population and a strong, growing economy. This creates many opportunities and promises a good quality of life. The year 2025 is considered a great time to enter the Dubai market, especially for new business owners and investors looking to start small.

Dubai also has one of the busiest airports and seaports in the world, which makes it a major international hub for trade and travel. Here are some benefits of starting a business in the UAE:

• Quality of life: Modern infrastructure, a diverse lifestyle and good healthcare attract talented workers. 
• Low taxes: No personal or corporate income tax, only 5% VAT, which allows businesses to keep more profit. 
• Start-up support: Many incubators and accelerators offer help and resources for new businesses to succeed. 
• Strong economy: A growing company with booming sectors like trade, tourism and innovation creates a stable environment for new businesses. 

These factors make Dubai an ideal place to start a business in UAE and grow successfully. 

Different ways to register a business in Dubai

You can start your business in Dubai in several ways in Dubai, depending on your needs and goals. The main types of business setups include:

Starting a business in a free zone

Free zones in Dubai are special areas with their own rules for taxes, customs and ownership. A major benefit is that foreign investors can own 100% of the business. There are two main types of free zone companies: a Free Zone Establishment (FZE) for a single owner and a Free Zone Company (FZC or FZ-LLC) for two to five shareholders.

Both individuals and companies can set up either type. Since each free zone has its own rules, it is important to review the specific requirements before setting up a business in Dubai. 

Mainland (Onshore) company in Dubai

A mainland company is a business set up outside the free zones managed within Dubai. Previously, foreign owners could only hold 49%, with a local partner owning 51%. Now, most mainland companies can be 100% foreign-owned.

The only exceptions are businesses in seven key sectors important to the national economy, where local ownership rules still apply. This change makes it easier for foreign investors to fully own and run companies on Dubai’s mainland. This is great for those starting a business in UAE and planning to operate within the local market. 

Branch office in Dubai

A branch office is an extension of an existing company. Foreign companies can open a branch office in mainland Dubai or most of the Free Trade Zones (FTZs).

This is a good choice for businesses that want to grow and offer their products or services in the UAE market without starting a completely new company. The branch operates under the name and business activities of the parent company. 

Limited Liability Company (LLC) in Dubai

A Limited Liability Company, or LLC, is a common type of business setup in Dubai. It can be formed by at least two people and can have up to 50 owners (called shareholders). Each shareholder’s responsibility for the company’s debts is limited to the amount of money they put into the business.

An LLC can operate in most industries, but it is not allowed to offer banking, financial investment services or insurance. If you are wondering how to start business in UAE, forming an LLC is one of the most flexible options. 

Offshore company in Dubai

An offshore company is a type of business that is registered in Dubai but operates from outside the country. It does not carry out business activities within the UAE. These companies are fully owned by foreign investors, meaning you can have 100% ownership as a non-UAE national.

Offshore companies are mainly used for international trade, protecting wealth or holding assets, and they usually have their office or base in another country. This is suitable for those interested in starting business in UAE for global operations. 

How to register a company in Dubai

Choose your business type

First, decide the type of business you want to set up. Options include a Free Zone company, a mainland (onshore) company, an LLC, a branch office or an offshore company. Your choice depends on capital, shareholders and business activities. If you are still unsure how to open a business in Dubai, consult professional business setup consultants for guidance. 

Reserve a company name

Pick a unique name that follows Dubai’s rules. Check name availability with the Dubai Economic Department (DED) of the Free Zone Authority. The name must be respectful, match your business type and avoid using names of authorities or religions. 

Get a business license

Apply for a license based on your business activities. There are three main types: Commercial (trading), Professional (services) and Industrial (manufacturing). 

Select your office location

Choose and lease or buy office space based on your business needs and budget. Free zones offer various office sizes. 

Open a bank account

After registration, open a corporate bank account to manage your company’s finances. It is a required step when you start your business in Dubai.

Documents needed to register a company

You will need the following documents to start business in UAE:

• The company’s Memorandum of Association and Articles of Association.
• Information about the company’s share capital. 
• Copies of passports for all shareholders and directors.
• A recent bank statement, credit card statement or utility bill showing the name and address of the shareholders and directors. 
• A signed and certified contract appointing the company or service provider. 
• Copies of national ID cards for shareholders and directors.
• A board resolution with details about setting up a branch or subsidiary and naming the authorized manager. 

These documents help prove the identity of the owners and directors, explain the company’s structure and confirm official approvals needed for registration. Having all these ready will make setting up a business in Dubai faster and easier. 

Also Read: How to Select the Best Audit Firm in Dubai for Your Business

The bottom line

Starting a business in the UAE might seem like a long process, but it can be done in just a few weeks if you do it right. Dubai’s location and strong economy, combined with its forward-thinking government policies make it a special place to start and grow a business.

This makes it a great opportunity for entrepreneurs to move ahead with their plans. For more details and consultation on how to set up a business in Dubai, reach out to Asad Abbas & Co. Chartered Accountants today!

Are you considering starting a business in Dubai? If so, you are not alone! Dubai has become one of the top destinations for entrepreneurs and investors worldwide. The good news here is that business setup cost in Dubai today is more affordable than ever.

The UAE government continues to reduce the cost of setting up a business in Dubai to attract more businesses and create a thriving economy. This makes it easier for new business owners to take their first steps without being burdened by high initial expenses.

The business setup consultants at Asad Abbas & Co. Chartered Accountants are here to help business owners like you navigate the entire business setup process with ease. This ensures that you won’t face any unexpected costs and can start your dream business in the UAE without any hassle.

In this blog, we will break down the business setup Dubai cost and cover the expected expenses before and after your company is established so you can plan accordingly. So, let us begin!

Understanding the business environment in Dubai

Dubai has become a global business hub thanks to its strategic location, business-friendly policies and modern infrastructure. Entrepreneurs and companies from around the world are drawn to Dubai for its growing economy and vast opportunities.

If you are planning to start a business in Dubai, it is essential to understand the cost of setting up a company in Dubai. Knowing these setup costs is crucial for anyone looking to establish a business in the UAE. Moreover, a clear understanding of the business setup cost in Dubai and the required steps can help you save both time and money.

Before you look into the details of  UAE business setup cost, it is important to understand that Dubai has different business zones, each with its own set of rules, regulations and cost structures. These zones include Free Zones, Mainland and Offshore. 

• Free zone companies: Great for businesses that focus on international trade. They offer benefits like 100% foreign ownership and tax exemptions. 
• Mainland Companies: Perfect for those who want to do business directly with the local UAE market without restrictions. 
• Offshore Companies: Best for businesses that want to operate outside the UAE or act as holding companies. They offer advantages like tax benefits and privacy. 

Your choice of business zone will play a big role in determining both your registration costs and the flexibility of your operations. 

Cost of setting up a business in Dubai

The UAE business setup cost depends on several factors, including the type of business, the location, the license required, and more. In some cases, you can get a business license for as low as AED 12,900. Generally, the cost to register a company in Dubai ranges from AED 15,000 to AED 28,000. However, the cost may increase if you need special permits or privileges.

For example, if you require a foreign trading name or government approval, these factors can raise the overall cost. You can consult with the experts at Asad Abbas & Co. Chartered Accountants to ensure you do not pay more than necessary. We will offer you the best business setup services in UAE and guide you through the process to ensure you stay within your budget. 

Four main costs when setting up a business in Dubai

Company registration fee

The company registration fee is a one-time cost paid to the free zone authority when you first set up your company. The exact fee depends on your company’s legal structure and the free zone you choose. 

License fee

Choosing a business license is an important step when setting up your company in a Dubai-free zone. The three most common types of licenses are for trading, services and industrial businesses. Unlike the one-time company registration fee, the license fee is an annual cost, typically ranging from AED 10,000 to AED 50,000 per year. 

Office rental fee

You need to rent office space to obtain your business license in Dubai. Each free zone in Dubai offers different types of office setups, such as serviced desks, flexi-desks and smart desks, with prices typically ranging from AED 15,000 to AED 20,000. 

Share capital

The required minimum share capital varies across different free zones, ranging from as low as AED 1,000 to as high as AED 1,000,000, depending on the type of business and the licenses you need. On average, the share capital requirement in most free zones in Dubai is around AED 50,000.

Additional expenses

Several other costs can impact the total investment needed to register a company in Dubai:

Professional fees

Hiring business setup consultants, accountants and legal experts can provide valuable support but will add to the setup costs. These fees can range from a few thousand AED to tens of thousands, depending on the complexity of your business and its ongoing needs. 

Compliance and approvals

Some businesses may require additional approvals, compliance and certifications with specific regulations, which can add extra costs during the planning stage. 

Visa costs

You will need to obtain a visa for yourself, your employees and your dependents. It includes expenses for processing, medical tests and Emirates ID registration. 

Insurance

Depending on your business, you may need various types of insurance, such as worker’s compensation, property insurance or liability. The costs will vary depending on the level of coverage and the risks involved.

How can you reduce costs when starting a business in Dubai?

Managing business setup Dubai cost effectively and planning strategically is essential for a smooth business setup in Dubai. Here are some tips to help:

• Do your research: Make sure you understand the specific costs related to your chosen business type and location.
• Get expert advice: Hiring experienced business setup consultants can help you save money when starting your business in Dubai. Therefore, consult with business setup specialists to help you navigate the registration process and identify ways to save on costs. 
• Create a flexible budget: It is important to have a detailed budget that includes all potential costs. Do not forget to set aside extra funds for unexpected expenses to ensure your business stays financially stable in the early stages.

Asad Abbas & Co. Chartered Accountants is a top consultancy firm in Dubai known for providing the best business setup services in UAE. We can simplify the process and ensure your business follows all local regulations while keeping your setup costs low.

Our experts offer customized solutions to help you negotiate better office space deals and share useful strategies to save money throughout the setup journey. Get in touch with us today to start your business setup in Dubai with ease and confidence!

Also Read: Why Every Business in the UAE Should Consider a Financial Audit