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!
