How to Start a Business in Dubai: Complete Guide to Company Setup
If you’re planning to start a business in Dubai, you’re making one of the best strategic decisions for global expansion. Known as the trading hub of the Middle East and North Africa (MENA) region, Dubai offers unmatched opportunities for entrepreneurs, SMEs, and multinational corporations alike. From tax advantages to a thriving economy, the city continues to attract investors looking to succeed and connect to the world.
According to the Central Bank of the UAE (CBUAE), the UAE economy recorded a 3.6% GDP growth in early 2024 with projections of 4% growth by year-end. With its stable, low-risk environment (EKN risk category 2 out of 7), Dubai company formation remains a highly secure and profitable choice for investors.
Mainland vs. Free Zone vs. Offshore
Before starting your business setup in Dubai, you must decide whether to operate as a mainland company, free zone entity, or offshore company. Each option comes with distinct benefits:
Mainland Companies
- 100% foreign ownership (for most activities since 2020)
- Trade directly with the UAE local market and internationally
- Subject to 5% VAT and 9% corporate tax on profits above AED 375,000
- Requires office space (minimum 200 sq ft)
Free Zone Companies
- 100% ownership without a UAE national sponsor
- 0% personal income tax and repatriation of profits
- Over 30 free zones in Dubai
- Restrictions on direct trade with the UAE mainland
Offshore Companies
- Ideal for international operations outside the UAE
- No minimum capital requirement
- Enhanced privacy and asset protection
- Restrictions on trading within the UAE market
Types of Business Licences in Dubai
Depending on your activity, you will need to apply for the right licence through the Department of Economic Development (DED) or the free zone authority. The main categories include:
- Commercial Licence – trading, import/export, logistics
- Industrial Licence – manufacturing activities
- Professional Licence – consultancy, IT, legal services
- Tourism Licence – hotels, travel agencies, restaurants
- Agricultural Licence – farming, fertilisers, pesticides
- Crafts Licence – carpentry, printing, blacksmithing
Step-by-Step Process to Set Up a Business in Dubai Free Zones
- Define your business activity – over 2,100 activities available
- Select the right free zone – e.g., company setup
- Choose a trade name – must comply with UAE naming rules
- Apply for initial approval – submit documents to DED/free zone authority
- Open a corporate bank account in Dubai
- Secure office space – flexible options available in JLT, Uptown Dubai, and Almas Tower
- Apply for final approval – receive your business licence
Why Choose Dubai for Your Business Setup?
- 0% personal tax and competitive corporate tax rates
- Strategic location connecting East and West
- Advanced infrastructure and global connectivity
- Over 25,000+ companies already established
Get Started with My Emirates Company
At BMIC, we simplify the process of business setup in Dubai by handling documentation, licensing, office solutions, and banking support. Whether you need to register a free zone company, establish a mainland company, or incorporate an offshore company, our team of experts ensures a smooth and compliant process.
Ready to launch your business in Dubai? Contact us today and let our specialists guide you step by step through the company formation process.