Starting a business in Dubai is an excellent opportunity to take advantage of one of the world’s most dynamic and business-friendly environments. However, starting a business can be complex and require several crucial steps and considerations. You can complete these steps efficiently and save valuable time and resources with careful planning.

At JustBusinessBlog, we have helped over 90,000 entrepreneurs successfully build their businesses in Dubai. Drawing on our years of experience, we have compiled this comprehensive guide that takes you step-by-step through starting a business in Dubai, including tips on business etiquette in the UAE.

This roadmap will help you understand the nuances of the local market and ensure that your business complies with all relevant regulations and cultural norms.

Are you ready to get started? JustBusinessBlog offers comprehensive company formation services in Dubai and guides you through all the steps of starting a business in Dubai: choosing the proper structure, obtaining your business license, and visa.

Why Start A Business In Dubai?

Dubai and the United Arab Emirates (UAE) offer an incredibly welcoming and stimulating business climate. In fact, more than 70,500 new companies were established in Dubai in 2024, a 3% increase compared to 2023.

Therefore, it is not surprising that many of these companies were registered by foreign entrepreneurs. An estimated 85 to 90 per cent of the UAE workforce is foreign.

There are many compelling reasons why thousands of entrepreneurs worldwide flock to the UAE and Dubai to start a business. The main benefits are:

100% Foreign Ownership

Foreign investors can now own 100% of Dubai’s onshore companies in almost all sectors. In 2021, the UAE abolished the previous 49% cap on foreign shareholding, eliminating the need for local sponsorship in most sectors. This reform gives entrepreneurs complete control over their companies, allowing them to retain all profits while benefiting from Dubai’s business-friendly policies.

Favourable Tax Climate

Despite introducing a 9% corporate tax rate in 2023, Dubai remains a low-tax jurisdiction. Companies with annual profits below AED 375,000 benefit from a 0% corporate tax rate, providing relief for start-ups and SMEs.

It is important to note that Dubai still has no income tax, capital gains tax, or withholding tax. Many companies operating in free trade zones can continue to benefit from a 0% corporate tax rate on qualifying income, including duty exemption and full profit repatriation.

In addition, a 5% VAT rate has been applied to most goods and services since January 2018. Businesses must register for VAT if their annual taxable turnover exceeds AED 375,000. Voluntary registration is also possible for companies with revenues or expenses exceeding AED 187,500.

Many export goods and international transactions remain duty-free, making Dubai attractive for global trade. Please refer to the UAE Government’s official implementing regulations for more information on VAT-free and VAT-exempt supplies.

Effective January 1, 2025, the UAE has introduced a 15% corporate tax rate for large multinational companies with consolidated global revenues of at least USD 793.50 million, in line with international tax standards. However, this higher rate does not apply to most companies operating in Dubai.

Dynamic Economy

The United Arab Emirates (UAE) continues to show robust economic growth, cementing its position as a leading destination for entrepreneurs and investors. The UAE’s real gross domestic product (GDP) grew by 3.9% in 2024 and is expected to grow by a further 6.2% in 2025.

This continued growth is driven primarily by non-oil sectors and reflects the country’s successful efforts at economic diversification.

Quality Of Life And Talent Development

Dubai’s high standard of living, safety, and modern amenities make it an attractive destination for professionals and entrepreneurs.

The introduction of long-term residency options, such as the Golden Visa for investors and entrepreneurs, provides stability for those looking to establish and expand their businesses in the UAE.

With a diverse population of over 200 nationalities, Dubai fosters an international business community with many opportunities for networking and expansion.

In the US News ranking of the best countries to live in 2024, the United Arab Emirates is in 17th place, reflecting its strong global position.

Top-Class Infrastructure And Connectivity

Dubai offers state-of-the-art infrastructure – from high-tech office parks to robust digital networks. Settling here means access to high-quality logistics (Dubai has one of the busiest airports and ports in the world), a pool of highly skilled international talent, and reliable energy companies.

Whether you need state-of-the-art warehouses, media production studios, or fintech sandboxes, there is likely to be a specialist free zone to meet your needs. Moreover, Dubai’s strategic location bridges the time zones between the West and the East, giving you easy access to markets across Europe, Asia, and Africa.

Starting Aid

The UAE has several startup incubators, accelerators, and funding initiatives designed to boost business growth. Programs like Hub71 in Abu Dhabi and Dubai Future Accelerators provide startups with access to mentorship, networking opportunities, and capital, solidifying the country’s status as a regional startup hub.

Want to learn how to start a business in Dubai? Then follow the steps in this guide and join thousands of companies setting up in Dubai by 2025.

8 Steps To Starting A Business In Dubai

Choose Your Business Activity

The first step in starting a business in Dubai is to determine the exact nature of your business. Dubai offers a wide range of industries, including trading, consulting, manufacturing, and technology.

You must align your chosen activity with Dubai’s licensing requirements for businesses on the mainland or in the relevant free zone, issued by the Dubai Department of Economy & Tourism (DET). Dubai’s official list of approved activities includes over 2,000, ensuring comprehensive coverage of various business activities.

For Example:

• Dubai Media City (DMC): DMC caters to media and advertising companies and is home to global names such as BBC, CNN, and Thomson Reuters.
• Dubai Multi Commodities Centre (DMCC): DMCC hosts various business activities, including commodity trading, technology companies, and financial services.
• Dubai Silicon Oasis (DSO): Specifically designed for technology-oriented companies, DSO provides state-of-the-art infrastructure and support services for startups and established technology companies.
• Dubai Airport Free Zone (DAFZA): DAFZA is ideal for businesses in aviation, logistics, and trade that need proximity to international logistics centres.
• Dubai CommerCity (DCC) specializes in e-commerce and provides tailored infrastructure and services for online retail businesses.
• Dubai Design District (d3) focuses on the fashion, design, and luxury industries and offers a creative ecosystem for designers and artists.
• Dubai Internet City (DIC) is a hub for information technology and telecommunications companies that promote innovation and collaboration in the technology sector.
• Dubai Knowledge Park (DKP): DKP focuses on educational institutions and supports learning and human resource development initiatives.

Many sector-specific free trade zones have recently expanded their scope for general business activities. Consider transport links and proximity to industry peers: Companies that rely on imports or exports should prefer free trade zones near airports or ports.

Key growth sectors in the UAE include renewable energy, fintech, artificial intelligence (AI), logistics, and e-commerce. These sectors are consistent with the country’s commitment to economic diversification.

Choose The Right Legal Form

When winding up your business, choosing the proper legal structure is crucial as it affects ownership, liability, and the scope of your business. Dubai offers a variety of business structures, including mainland and free zone options:

Mainland Corporate Structures (Licensed By DET)

With a mainland company, businesses can operate anywhere in the UAE and trade freely in local and international markets. Mainland companies must comply with UAE commercial laws and regulations, but are given flexibility in their business operations.

• Private Limited Company (BV) – The most common corporate form on the mainland, now available for most businesses with 100% foreign ownership. Ideal for trade, retail, and professional services.
• Sole Proprietorship – A business structure with one owner commonly used by freelancers, consultants, and individual service providers.
• Registered partnership – This type of partnership is Suitable for professional service providers (e.g., doctors, engineers, and legal advisors) as multiple partners can operate under the same license.
• Incorporation of a foreign company – This allows international companies to establish a wholly owned subsidiary in Dubai while retaining the legal identity of the parent company.

Business structures in free trade zones (with a license from the free trade zone authorities).

A company in a free trade zone allows 100% foreign ownership and offers tax benefits and duty exemptions. However, direct trade with the UAE mainland may require a local distributor or additional permits.

• Free Zone Establishment (FZE) – A corporate structure with a single shareholder, ideal for small businesses and startups.
• Free Zone Company (FZCO)—Designed for multiple shareholders (usually 2 to 50), it offers full foreign ownership and simplified regulations.
• Branch in a free zone – A foreign or UAE-based company can establish a branch in a free zone while maintaining the parent company’s identity.

Recent reforms have allowed foreign entrepreneurs to own 100% of their companies in China in most sectors. However, in some industries—such as security and defence, banking and insurance, and oil and gas—a local partner must own 51% of the shares.

JustBusinessBlog offers a local nominee shareholder service. This agreement ensures compliance with UAE regulations while foreign entrepreneurs retain 100 per cent operational and financial control over their operations on the mainland. This allows you to smoothly meet your legal obligations without compromising control over your business.

Choose Your Business Name

Once you have established your business structure and activities, you must reserve a trade name for your company. The UAE has strict naming conventions to comply with local regulations. Key guidelines include:

• Avoid offensive language or references to religious or political groups.
• If you name the company after a person, use their full name (no initials or abbreviations).

Contact the Economic Development Service (DED) or an expert like JustBusinessBlog to check that your name complies with the regulations.

For a complete overview of choosing a business name, see this guide.

Register Your Business

Once your business activity and location have been determined, it is time to register your business. These typically include:

• An application with your company name and activity.
• Copies of the shareholders’ passports.
• Additional documents for certain free trade zones include a business plan or a no-objection certificate (NOC) from a current sponsor.
• Chinese companies must have a Memorandum of Association ( MoA ) that includes detailed information on capital requirements.

Mainland companies must register their trading name and business activities with the Dubai Department of Economy and Tourism (DET) in the emirate of their choice. The UAE Government website’s “Information and Services” section provides links to the relevant DET offices.

Once your documents have been submitted and processed, you will receive your business license, and your company will be officially formed in Dubai.

Going through paperwork can be time-consuming and complicated. A partnership with JustBusinessBlog ensures accuracy, efficiency, and security, saving time and avoiding costly delays.

Set Up Office Space

Every business in Dubai (mainland or free zone) must have a registered physical address. If your license type allows, you can rent an office or retail space, or opt for flexible coworking or virtual office solutions.

Mainland businesses usually require a lease agreement and an Ejari (official tenancy registration) before issuing the final license. Free zones often offer startups flexible spaces or virtual packages at lower costs.

Pay Fees And Obtain A Business License

You can now pay the final fees and receive your business license. Dubai’s fee structure includes license fees, name reservation, initial approval, and sometimes, a marketing or local agent fee (if the activity requires an agent).

As part of the Unified License (DUL) initiative launched in late 2023, you will also receive a Dubai Unified License number – a unique identifier that links your business to all authorities.

During this phase, mainland companies are registered with the Dubai Commercial Registry and automatically gain the Dubai Chamber of Commerce membership. Free zone companies can register separately with the Dubai Chamber of Commerce to do business with local companies.

Open A Bank Account

Once your documents have been returned, you will have all the documents you need to open your business bank account. You will need a bank account before trading in the UAE. Many local and international banks are located in the UAE, including:

• Emirates NBD,
• Abu Dhabi Commercial Bank,
• Dubai Merchant Bank,
• Noor Bank,
• Islamic Emirates,
• Mashreq,
• RAKBANK,
• Ajman Bank and
• Wio Bank, a digital banking platform based in the United Arab Emirates for startups and small businesses.

There are also international names like HSBC, Citibank, and Barclays. Which choice is best for you depends on your specific needs.

Documents Required To Open A Bank Account In Dubai

The requirements may vary from bank to bank, but generally, the following apply:

• Trade permit (issued by DET or the free trade zone authority).
• Certificate of incorporation (for LLC).
• Passport copies for shareholders and authorised signatories.
• Copies of Emirates ID (if applicable).
• Proof of business address ( Ejari lease or office agreement in a free zone).
• Business plan (sometimes mandatory, especially for new startups).
• Shareholder resolution approving account opening (if applicable).
• Expected cash flow and sales data.
• Reference letters from business partners or a personal bank account (optional, depending on the bank).

JustBusinessBlog offers a premium service for opening bank accounts. We include a detailed individual customer assessment to ensure we choose the right bank for you.

We will contact the bank throughout the process and help you submit the documents. The procedure usually takes 2-4 weeks.

Apply For A Visa

The final step in establishing your business in Dubai is to apply for the necessary visas. Whether you are applying for a personal investor visa, a work visa, or a visa for a family member, the process requires great care. Below you will find the main visa options:

Investor/Partner Visa

As a business owner (mainland or free zone), you are eligible for an investor visa (also known as a partner visa for LLC shareholders). This visa is generally valid for three years for mainland businesses and two years for firms in free trade zones.

Golden visa (10-Year Stay)

For worthy investors and entrepreneurs, Dubai offers a 10-year Golden Visa. This visa is ideal for entrepreneurs who make a significant financial investment in the UAE.

To Qualify, You Must:

• You must be the owner or co-owner of a company registered in the UAE and have a minimum capital investment of AED 500,000 (approximately USD 136,100); or
• Founded or run a startup that has been approved by an accredited incubator in the UAE to validate its innovation, viability, and contribution to the local economy.

To obtain your visa(s), you must follow the following steps:

Prepare Your Documents

Whether you are applying for a Golden Visa or a Partner Visa, you will need to collect the following:

• Passport (valid for at least 6 months).
• Recently used passport photo (white background).
• Business license (if you are applying as a shareholder/partner).
• Health insurance (meets UAE requirements).
• Proof of investment:

Golden Visa: Proof of investment (e.g., proof of investment of 500,000 AED ($136,100) or documentation showing your significant contribution to the company).

Partner Visa: Foundation agreement, share certificates, or other proof of partnership in the business.

Obtain An Entry Permit (If You Are Outside The UAE)

If you are outside the UAE, you must apply for an entry permit first. This temporary visa allows you to enter the UAE to complete your residency application.

• Submit your passport, photo, and trade permit (Partner Visa) or investment certificate (Golden Visa).
• Once your application has been approved, you can travel to the United Arab Emirates with the entry permit.

Adjust Your Visa Status

Upon entry (or if you are already in the UAE), you must change your visa status to the appropriate type of stay. After paying the relevant status change fees, this can usually be done in-country, without leaving the UAE.

Medical Fitness Test

All visa applicants must undergo a medical fitness test. This includes a blood test and a chest X-ray to screen for infectious diseases such as tuberculosis or HIV.

Registration Of Emirates ID

Register for your Emirates ID, a mandatory ID for all UAE residents. This process involves collecting biometric data (fingerprints and a photo). You will also need to pay fees that vary depending on the validity period of your visa.

Visa Stamp (Residence Permit)

The final step is to stamp your residency in your passport, giving you official residency in the UAE.

Once the document is stamped or issued, you can start the sponsorship process for your family members or employees.

Justbusinessblog Makes It Easy

At JustBusinessBlog, we handle the entire process of starting a business for you, including the entire visa application process, from submitting documents to maintaining permits. Whether you are applying for an individual visa, a work visa, or family sponsorship, our experts will ensure that the process is fast, efficient, and hassle-free.

How Justbusinessblog Can Help You Start Your Business In Dubai

Starting a business in Dubai offers fantastic opportunities, but it can be complex. As leading company formation specialists in the UAE, we can help.

JustBusinessBlog simplifies and streamlines the establishment of your company:

Expert Advice On Company Formation

Choosing the proper business structure, whether in a free zone or on the mainland, will majorly impact your success. JustBusinessBlog offers tailored advice to help you decide:

• The best jurisdiction for your business.
• Choose a branch on the mainland or in a free trade zone.
• Compliance with the UAE legal and regulatory framework.

Hassle-Free Licensing And Registration

Obtaining permits and registrations can be time-consuming. JustBusinessBlog handles all the necessary paperwork, from applying for a business license to obtaining regulatory approvals, to ensure your business is licensed efficiently and correctly.

Advanced PRO Services

JustBusinessBlog offers comprehensive services as a Public Relations Manager (PRO), including:

• Visa applications and extensions for you, your employees, and your family.
• Processing of Emirates ID details and medical fitness tests.
• Renewals and amendments to trading licenses.

Corporate Sponsorship Solutions

As mentioned above, some companies operate in sectors that require a local partner. JustBusinessBlog offers local shareholders on request. This service ensures compliance with UAE regulations and gives you 100% operational and financial control over your business.

Help With Business Bank Accounts

Opening a business bank account in Dubai can involve extensive documentation and regulatory checks. JustBusinessBlog simplifies this process by preparing all the necessary documents and partnering with leading banks in the UAE to help you open an account quickly and efficiently.

Ongoing Business Services

JustBusinessBlog doesn’t stop with the company’s founding. Our service package includes:

• VAT registration and compliance with VAT regulations
• Accounting and financial reporting.
• Payroll management and more.

Choosing JustBusinessBlog?

JustBusinessBlog has built a reputation for reliability, efficiency, and expertise. By partnering with JustBusinessBlog, you can avoid the complexities of starting a business and focus on establishing and growing your business in Dubai’s thriving business ecosystem.

Business Etiquette in the United Arab Emirates: Do’s and Don’ts

Now that you know how to start a business in Dubai, consider some pitfalls you can avoid when doing business in this complex, multicultural, and rapidly changing environment.

DO: Dress Nicely, Be Nice, and Smile

Yes, Dubai residents love their brands, but it must also be said that the people here have developed a great sense of subtlety and sophistication. While Dubai is very Western in some ways, it has strong Islamic roots.

When you combine these factors, it is clear that you should look bright and understated, whether you are a man or a woman. For example, a suit and tie are more or less mandatory for men attending meetings, especially if you are looking for a local sponsor.

Happy, positive energy is also a key element of Dubai’s social, entrepreneurial, and even business trends. No one moves here to wallow in gloom, so complement your outfit with a smile.

If you want to learn how to start a business in Dubai, you must understand how you will interact with local Emiratis. First, you should know that it is customary to treat every introduction during a meeting with the utmost respect.

You may not immediately see the rank and position of the people in the meeting room. Therefore, pay attention to etiquette when greeting and socialising: for example, never shake hands with the opposite sex unless the person extends their hand first, and always use your right hand.

Finally, don’t rush into business matters too quickly. Even if you’re in a hurry, it’s worth checking in on a person’s day, health, and family. A good tip is to wait until the other person initiates the business conversation and avoid being direct. Small talk is more than just politeness; it’s a discreet way to determine if someone is a suitable business partner.

DON’T: Brag About Your Achievements

Dubai is full of boastful markets claiming to have the first, the best, the only, the biggest, and the wildest. Don’t add to the excitement.

The city is now trending towards modern minimalism, simple design, and elements based on taste, modesty, and quality over quantity. So when distributing your business communications – from brochures to invitations to online events – try to market yourself without using Dubai cliches.

DO: Go Out And Do Something

When you start a business, you won’t get very far with simple email presentations and online transactions.

Dubai is all about in-person networking events and meetups. Enjoy cocktails, talk to everyone in the room, and stay in touch afterwards. Since every industry is a small network, close personal relationships are essential.

Word of mouth is also very important here, and to expand your skills and client base, it is important to create as many positive contacts as possible. So, participate in groups, networking events, and conferences, and always carry a business card with an Arabic side on it.

DON’T: Expect Meetings And Negotiations To Go As Planned

Patience is the most valuable virtue you can develop while living and working in the region. Long group meetings can sometimes be chaotic: people often check their phones during discussions, join in unannounced, and then change the subject, or simply arrive late.

While this can sometimes be frustrating if you come from the European or North American business world, patience (and punctuality, which are still expected of most expats) will serve you well.

Remember that doing business within the family is a way of life that can also change the dynamics of your business relationships with companies and the speed and style of their decision-making.

DO: Discover The Culture And Immerse Yourself In New Traditions

Face the heat, learn to live with it, and take advantage of its many positive aspects. Complaining about the heat (which can be quite intense in summer at 45 degrees Celsius) is pointless. It is a desert after all. But it also means windy nights in magnificent landscapes, dune climbing, and countless other activities to enjoy.

Find out more about the region, show interest in the well-being of the locals, and try to learn a few words of Arabic – it’s always appreciated.

Start Your Business In Dubai With Justbusinessblog

Starting a business in Dubai is a rewarding venture full of opportunities. By following the proper steps – choosing the industry, location, and business structure, completing the necessary paperwork, and following UAE business etiquette – you can make your business successful in one of the world’s most dynamic markets.

JustBusinessBlog’s expert support can help you navigate the entire process smoothly and efficiently, allowing you to focus on your business vision. Dubai’s thriving economy and stimulating business climate await you – take the first step today and contact us for a free consultation.

Frequently Asked Questions

Question: Can I Start A Business In Dubai If I Am Not A Resident Of The UAE?

Answer: Yes, you can start a business from abroad. You can often submit documents digitally and have a local service provider like JustBusinessBlog handle the paperwork for you. However, you must travel to the UAE to complete your visa and banking formalities and live or operate your business locally.

Question: Are Any Business Activities Only Available To UAE Nationals?

Answer: Yes. Some sectors, such as security, oil and gas, defence, legal services, and Hajj and Umrah, are restricted to UAE nationals or require participation from a majority of Emiratis. If you are unsure, it is best to contact JustBusinessBlog to check if your activity qualifies.

Question: Can I Own Multiple Companies Under One Name In The UAE?

Answer: Although a separate business license is required for each company, the following is possible:

• Perform multiple activities with one permit, depending on classification.
• As a shareholder, you own several companies.
• Create a holding structure to manage multiple companies.

Question: Do I Have To Hire Staff To Maintain My Business License In The UAE?

Answer: Not necessarily. You can hold a valid business license as a self-employed person in the UAE, especially in free zones that support freelancers and sole proprietorships. However, mainland companies may have minimum staffing requirements depending on their license and office space.

Question: Can I Open A Business Bank Account Without Being Physically Present In The UAE?

Answer: While some digital banks (like Wio ) offer remote onboarding, most traditional banks require the presence of an authorised signatory for identity verification. JustBusinessBlog can process your request in advance and schedule appointments to make your stay in Dubai as short as possible.

Question: Are There Any Emiratisation Requirements For Foreign Companies In The UAE?

Answer: The emiratisation quota requires a certain proportion of UAE nationals in the workforce. Free trade zone companies are generally exempt from this. Failure to comply with the rules may result in fines or problems with permit renewal. JustBusinessBlog can advise you on your obligations based on your company’s size and activities.

Question: How Many Workers Can I Sponsor In A Free Zone Compared To Mainland Dubai?

Answer: The number of employment visas you can sponsor depends mainly on your office location and the regulations in your jurisdiction:

• Mainland companies: There is no fixed limit for employment visas, but approval depends on the size of your physical office (usually 1 visa per 8-9 square meters ) and your business activities. The Ministry of Human Resources and Emiratisation (MOHRE) manages the visa quota for the mainland.
• Free Trade Zone Businesses: Visa restrictions are stricter depending on your chosen license package. Most free zones offer packages with a fixed number of visas (e.g. 1, 3, 5 or more). You can usually upgrade to a higher package or rent a larger room to increase your visa quota. Some free trade zones also have stricter controls depending on the type of business or industry.