Step by Step Guide to Starting a Business in Dubai

Planning to start a company formation in Dubai, you are already on the right path. The city is one of the easiest places in the world to register a new company and reach both local and global clients. But the process can still feel confusing if you’re doing it for the first time. This step-by-step guide breaks down what you actually need to do, how much it might cost, and what to watch out for, whether you’re setting up in the Dubai Mainland or a Free Zone.

1. Decide Your Business Activity

Before you even start paperwork, make a clear decision about what you’ll be doing.
Dubai authorities require you to select your business activity from their approved list.
This could be anything: trading, consulting, digital marketing, construction, education, or e-commerce.

Tip: Choose your activity carefully. Some activities are only allowed in certain Free Zones or require extra approvals.

Examples:

• Trading: Buying and selling products locally or internationally
• Services: Consultancy, marketing, IT, accounting, design
• Industrial: Manufacturing, packaging, logistics
• Freelancing: Media, tech, or creative work

2. Choose Between Mainland or Free Zone

Once you know your business activity, decide where you’ll register it. Dubai Free Zone Business setup is great if you mostly serve international clients or want lower setup costs. Dubai Mainland setup is better if you want to work directly in the UAE market, open a shop, or sign contracts with local companies.

Free Zone benefits:

• 100% foreign ownership
• 0% tax on qualifying income
• Fast setup and low cost

Mainland benefits:

• Full access to the UAE market
• No trade restrictions
• Easier to expand and hire more staff

3. Choose a Company Name

This seems simple, but Dubai has specific rules for naming your business. Avoid anything offensive or religious, and don’t use abbreviations of personal names (like “A.R. Consultants”).

Your name should:

• Match your business activity
• Be unique and easy to remember
• End with the legal structure (like “LLC,” “FZE,” or “Consultancy”)

Once you decide, your business setup agent or the authority will reserve it for you.

4. Prepare the Required Documents

Here’s what you’ll usually need:

• Passport copies of all shareholders
• Passport-size photos
• Visa or entry stamp copy (for UAE residents)
• Business plan (for some activities)
• NOC (No Objection Certificate) if you already have a UAE residence visa under another company

If you’re applying through a Free Zone, the paperwork is lighter. Mainland setup may require extra approvals, depending on your activity.

5. Choose Your Office Type

Both Mainland and Free Zone setups require some kind of office, but it doesn’t have to be large. Options include:

• Flexi Desk: A shared workspace with basic amenities lowest cost option
• Dedicated Office: Your own private office in a business center
• Warehouse / Land Plot: For industrial or logistics businesses

The size of your office also affects how many visas you can apply for.

6. Apply for Your Business Licence

Once your documents are ready and your location is confirmed, you can apply for your Dubai trade licence.
This is the official document that allows you to legally operate your business in Dubai.

Free Zone: Apply directly through the respective Free Zone authority.
Mainland: Apply through the Dubai Department of Economy and Tourism (DET).

You’ll receive your licence within 5–10 working days (Free Zone) or around 10–14 days (Mainland), depending on approvals.

7. Apply for Residence Visas

After your licence is issued, you can apply for residence visas for yourself, your employees, and your family members. The number of visas you can get depends on your licence type and office space.
You’ll go through medical tests, Emirates ID registration, and visa stamping.

Tip: Most Free Zones allow 1–6 visas under basic packages. Mainland companies can apply for more depending on office size.

8. Open a Business Bank Account

Once your company and visa are ready, you can open a UAE business bank account. Banks may ask for:

• Your trade licence
• Office tenancy contract
• Passport and visa copies
• Business plan or website

Some Free Zone businesses face difficulty opening bank accounts if the package is too basic, so choose your setup carefully.

9. Plan for Renewals and Long-Term Costs

Your licence must be renewed every year. Don’t forget to budget for: A good setup plan includes not just your first-year cost but also renewal costs for at least 2–3 years ahead.

• Licence renewal fee
• Visa renewal
• Office lease renewal
• Accounting and compliance (if applicable)

10. Promote Your Business

Once your company is live, start marketing.

• Build a simple website
• Add your business to Google Maps
• Run SEO or social media ads to get clients
• Use platforms like LinkedIn or Instagram to connect with potential customers

Real growth happens only when you consistently promote your business, not just register it. Starting a business in Dubai is much easier than most people think. The key is planning properly.

• Don’t just go for the cheapest package; instead, pick one that matches your real business goals.
• If your target clients are global and you want a quick setup, Free Zone is perfect.
• If you want local clients and long-term flexibility, Mainland is worth the investment.

Once you’re registered, focus on building your online presence, providing great service, and staying consistent. That’s what truly leads to success in Dubai.

FAQs About Business Setup in Dubai

Q1. Can I get 100% ownership on Mainland?
Yes. Since 2021, most business activities have allowed full foreign ownership in the Dubai Mainland.

Q2. How long does it take to start a business in Dubai?
Usually between 5 to 14 working days depending on the setup type and approvals.

Q3. What is the cheapest Free Zone in Dubai?
IFZA, Shams, and RAKEZ are among the most affordable options for startups and freelancers.

Q4. Can I run my business from home?
You need at least a flexi desk or office to meet licence requirements, even if your operations are online.

Q5. Can I change my licence type later?
Yes, you can upgrade or modify your licence type if your business grows or changes.