Starting a business in Dubai can be a great opportunity. Dubai is one of the fastest-growing business hubs in the world, attracting entrepreneurs, freelancers, and companies looking to expand internationally.
Starting a business in Dubai can be a great opportunity. Dubai is one of the fastest-growing business hubs in the world, attracting entrepreneurs, freelancers, and companies looking to expand internationally. We will explain the different types of business setups, licences, costs, and benefits, so you can make the right decision.
Types of Company Setups in Dubai
There are three main ways to set up a business in Dubai:
Free Zone Company
Free zones are areas in Dubai that allow 100% foreign ownership and have special regulations to make business setup easier. These zones are suitable for startups, freelancers, and small to medium-sized companies. Examples include Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), and Dubai Silicon Oasis.
Pros:
- 100% foreign ownership
- Simplified registration process
- Easy access to visas for owners and employees
- Tax-free business environment
Cons:
- Limited ability to trade directly in the UAE mainland without a local distributor or agent
Mainland Company
Mainland companies allow you to operate anywhere in Dubai and across the UAE. You may need a local partner holding 51% for certain business types unless you are in a professional licence category. Mainland setup is ideal if your business targets customers directly in Dubai.
Pros:
- Trade anywhere in UAE
- Full access to government contracts and local markets
Cons:
- May require a local partner (depending on licence type)
- Slightly longer registration process compared to free zones
Offshore Company
Offshore companies are set up in Dubai but are not meant for local trading. They are mainly for international business, holding assets, and tax planning.
Pros:
- Full foreign ownership
- Privacy and asset protection
Cons:Cannot conduct business inside the UAE directly
Types For Business Setup Licencein Dubai
Choosing the right licence is important. Here are the main types:
- Commercial Licence: For businesses that buy, sell, import, or export products. For example, trading electronics, furniture, or fashion items.
- Service Licence: For businesses offering professional services such as consulting, marketing, IT, or design.
- Industrial Licence: For manufacturing, warehousing, or production businesses.
- E-Commerce Licence: For businesses that operate online. This is suitable for dropshipping stores, digital products, or online retail. Read more about the business setup ecommerce licence in Dubai.
- Freelancer Permit :For individuals working independently in media, IT, consultancy, or creative services.
Costs of Business Setup in Dubai
The costs can vary depending on the type of company, licence, and office setup. Here is an approximate breakdown:
- Free zone setup: AED 15,000 – AED 25,000 per year, including licence and basic office.
- Mainland setup: AED 15,000 – AED 30,000 per year, licence and office not included.
- Freelancer permit: AED 7,000 – AED 12,000 per year.
Other costs include visas, office rent, and government fees. Renewal costs are similar to the initial setup and should be budgeted for every year.
Benefits of Setting Up a Business in Dubai
- 100% foreign ownership in most free zones
- Tax advantages and zero corporate tax in many cases
- Access to international markets
- Professional infrastructure including offices, warehouses, and coworking spaces
- Easy visa processing for owners and employees
Step-by-Step Process to Set Up a Business
- Decide your business type and licence
- Choose a free zone or mainland setup
- Apply for initial approval from the relevant authority
- Choose an office or workspace
- Submit documents for licence registration
- Apply for visas for yourself and employees
FAQs About Dubai Business Setup
Q.1 Can a foreigner own 100% of a company in Dubai?
Yes, in most free zones, you can have full foreign ownership. Mainland ownership may require a local partner for some business types.
Q.2 Do I need a physical office?
For mainland and some free zone licences, yes. Many free zones offer flexi desks as an affordable option.
Q.3 How long does it take to register a company?
Usually 1–4 weeks, depending on licence type and approval process.
Q.4 Can I run an online business in Dubai?
Yes, with an e-commerce licence, you can operate online and sell products digitally.
Q.4 What are the ongoing costs?
Licence renewal, office rent, visa renewals, and any additional services like accounting or bank charges.
