How to Start a Business in Dubai

Starting a business in Dubai is an exciting opportunity to tap into one of the world’s most dynamic and business-friendly environments. The business setup process can be complex, involving multiple critical steps and important considerations. With careful planning, you can navigate these steps efficiently and save yourself valuable time and resources.

At Virtuzone, we have helped over 90,000 entrepreneurs successfully set up their businesses in Dubai. Drawing from our years of experience, we’ve created this comprehensive guide to walk you through the step-by-step process of how to start a business in Dubai, including some tips on business etiquette in the UAE. This roadmap will help you understand the nuances of the local market, ensuring that your business complies with all relevant regulations and aligns with cultural norms.

If you’re ready to get started, Virtuzone offers end-to-end business setup services in Dubai, guiding you through every stage of starting a business in Dubai—from choosing the right structure to securing your trade licence and visas.

Why Start a Business in Dubai?

Dubai and the United Arab Emirates (UAE) are incredibly welcoming and supportive business environments. In fact, over 70,500 new businesses were launched in Dubai in 2024, which is a 3% increase from 2023. Not surprisingly, many of these were registered by overseas entrepreneurs. It is estimated that between 85% to 90% of the UAE workforce are foreign nationals.

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 businesses in Dubai’s mainland (onshore) across almost all sectors. The UAE removed the previous 49% foreign ownership cap in 2021, eliminating the need for a local sponsor in most industries. This reform gives entrepreneurs full control over their businesses, allowing them to retain all profits while benefiting from Dubai’s pro-business policies.

Favourable Tax Environment

Despite the introduction of a 9% corporate tax in 2023, Dubai remains a low-tax jurisdiction. Businesses with annual profits below AED 375,000 benefit from a 0% corporate tax rate, providing relief for startups and SMEs. Importantly, Dubai still has no personal income tax, no capital gains tax, and no withholding taxes. Many businesses operating in free zones can continue to enjoy 0% corporate tax on qualifying income, along with customs duty exemptions and full profit repatriation.

Additionally, a 5% Value Added Tax (VAT) has been in place since January 2018, applying to most goods and services. Businesses are required to register for VAT if their annual taxable turnover exceeds AED 375,000. Voluntary registration is also available for businesses with revenue or expenses above AED 187,500. Many exports and international transactions remain tax-exempt, ensuring Dubai remains attractive for global trade. For full details on zero-rated and exempt VAT supplies, you can refer to the UAE’s official Executive Regulations of the VAT Law published by the UAE government.

As of January 1, 2025, the UAE implemented a 15% corporate tax for large multinational enterprises with consolidated global revenues of at least USD 793.50 million, aligning with international tax standards. However, this higher tax rate does not apply to the vast majority of businesses operating in Dubai.

Vibrant Economy

The United Arab Emirates (UAE) continues to demonstrate robust economic growth, solidifying 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 a further 6.2% during 2025. This continuing growth is predominantly driven by non-oil sectors, reflecting the nation’s successful economic diversification efforts.

Quality of Life and Talent Attraction

Dubai’s high standard of living, safety, and modern amenities make it an attractive destination for skilled professionals and business owners. The introduction of long-term residency options, such as the Golden Visa for investors and entrepreneurs, provides stability for those looking to establish and grow their businesses in the UAE. With a diverse population of over 200 nationalities, Dubai fosters an international business community where opportunities for networking and expansion are abundant.

In the 2024 U.S. News Best Countries rankings, the UAE is ranked 17th overall, reflecting its strong global standing.

World-Class Infrastructure & Connectivity

Dubai offers ultramodern infrastructure – from high-tech office parks to robust digital networks. Setting up here means access to top-notch logistics (Dubai is home to one of the world’s busiest airports and seaports), a highly skilled international talent pool, and reliable utilities. Whether you need state-of-the-art warehouses, media production studios, or fintech sandboxes, there’s likely a specialised free zone catering to that need. Plus, Dubai’s strategic location bridges time zones between the West and East, giving you easy access to markets across Europe, Asia, and Africa.

Startup Support

The UAE is home to numerous startup incubators, accelerators, and funding initiatives designed to foster business growth. Programs such as Hub71 in Abu Dhabi and Dubai Future Accelerators provide startups with access to mentorship, networking opportunities, and capital, reinforcing the country’s status as a regional startup hub.

If you want to learn how to start a business in Dubai, follow the steps in this guide to join the thousands of businesses incorporating in Dubai in 2025.

8 Steps to Starting a Business in Dubai

1. Choose Your Business Activity

The first step in starting a business in Dubai is determining the exact nature of your business activity. Dubai offers a diverse array of sectors, including trading, consulting, manufacturing, and technology. Aligning your chosen activity with the licensing requirements set by Dubai’s Department of Economy & Tourism (DET) for mainland businesses or the respective free zone authority is crucial. Dubai’s official business activity list encompasses over 2,000 approved activities, ensuring comprehensive coverage for various business pursuits.

For example:

• Dubai Media City (DMC): DMC caters to media and advertising companies, home to global names like BBC, CNN, and Thomson Reuters.
• Dubai Multi Commodities Centre (DMCC):  DMCC accommodates a wide range of business activities, including commodities trading, technology firms, and financial services. ​
• Dubai Silicon Oasis (DSO): DSO is tailored for technology-based enterprises, offering state-of-the-art infrastructure and support services for startups and established tech companies.
• Dubai Airport Free Zone (DAFZA): DAFZA is ideal for businesses requiring proximity to international logistics hubs, including sectors like aviation, logistics, and trading. ​
• Dubai CommerCity (DCC): DCC specialises in e-commerce, providing infrastructure and services tailored for online retail businesses. ​
• Dubai Design District (d3): d3 focuses on the fashion, design, and luxury sectors, offering a creative ecosystem for designers and artists. ​
• Dubai Internet City (DIC): DIC serves as a hub for information technology and telecommunications companies, fostering innovation and collaboration within the tech industry. ​
• Dubai Knowledge Park (DKP): DKP is dedicated to educational and training institutions, supporting learning and human resource development initiatives. ​

In recent years, many sector-specific free zones have expanded their scope to welcome general business activities. Consider transport links and proximity to industry peers—businesses relying on imports or exports should prioritise free zones near airports or ports.

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

2. Select the Right Legal Structure

Once your business activity is finalised, selecting the correct legal structure is essential, as it affects ownership, liability, and operational scope. Dubai offers several company structures, including mainland and free zone options:

Mainland Company Structures (Licensed by the DET)

A mainland company allows businesses to operate anywhere in the UAE and trade freely with both local and international markets. Mainland companies must adhere to UAE commercial laws and regulatory requirements but provide flexibility in business operations.

• Limited Liability Company (LLC) – The most common mainland business structure, now available with 100% foreign ownership for most activities. Ideal for trading, retail, and professional services.
• Sole Establishment – A single-owner business structure, typically used by freelancers, consultants, and individual service providers.
• Civil Company – Suitable for professional service providers (e.g., doctors, engineers, legal consultants), allowing multiple partners to operate under a single license.
• Branch of a Foreign Company – Allows international businesses to set up a 100% owned branch in Dubai while maintaining their parent company’s legal identity.

Free Zone Company Structures (Licensed by Free Zone Authorities)

A free zone company allows 100% foreign ownership, and provides tax incentives, and customs duty exemptions. However, direct trade with the UAE mainland may require a local distributor or additional licensing.

• Free Zone Establishment (FZE) – A single-shareholder company structure, ideal for small businesses and startups.
• Free Zone Company (FZCO) – Designed for multiple shareholders (typically 2 to 50), offering full foreign ownership and simplified regulations.
• Branch Office in a Free Zone – A foreign or UAE-based company can establish a branch in a free zone while retaining its parent company’s identity.

For most industries, recent reforms have made it possible for foreign entrepreneurs to own 100% of their businesses on the mainland. However, there are specific sectors—including security and defence, banking and insurance, and oil and gas—where a local partner must legally hold 51% ownership.

To meet this requirement while maintaining full control of your business, we offer a Local Corporate Nominee Shareholder service at Virtuzone. This arrangement ensures compliance with UAE regulations while allowing foreign business owners to retain 100% operational and financial control of their mainland company. It’s a seamless way to meet legal obligations without compromising your authority over your business.

3. Choose Your Company Name

Once you have determined your business structure and activity, you’ll need to reserve a trade name for your company. The UAE enforces strict naming conventions to ensure compliance with local regulations. Key guidelines include:

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

Consult the Department of Economic Development (DED) or an expert like Virtuzone to confirm your name complies with regulations.

For a full rundown of how to choose a company name, visit this guide.

4. Register Your Business

With your business activity and location decided, it’s time to register your business. This typically includes:

• An application for your business name and activity.
• Shareholders’ passport copies.
• Additional documents for certain free zones, such as a business plan or a Non-Objection Certificate (NOC) from a current sponsor.
• For mainland companies, a Memorandum of Association (MoA) detailing capital requirements.

Mainland businesses must register their trade name and business activity with the Dubai Department of Economy and Tourism (DET) in their chosen emirate. You can find links to the respective DET offices on the UAE government website under the Information and Services section.

Once your paperwork has been submitted and processed, you will receive your company licence, officially establishing your business in Dubai.

Navigating paperwork can be time-consuming and complex. Partnering with Virtuzone ensures accuracy, efficiency, and peace of mind, saving time and avoiding costly delays.

5. Arrange Office Space

Every business in Dubai (mainland or free zone) must have a registered physical address. You can choose to rent an office or shop or opt for flexible coworking or virtual office solutions if allowed for your licence type. Mainland companies typically need a lease and an Ejari (official lease registration) before final licence issuance. Free zones often provide flexi-desk or virtual packages for startups at lower costs.

6. Pay Fees and Receive Trade Licence

You can now pay the final fees and obtain your business licence. Dubai’s fee structure will include the licence fee, name reservation, initial approval, and in some cases a market fee or a local agent fee (if an agent is mandatory for the activity). The Unified License (DUL) initiative launched in late 2023 means you will also be issued a Dubai Unified License number – a unique ID that links your company across government departments​.

At this stage, mainland companies will be recorded with Dubai’s Business Registry and get a Dubai Chamber of Commerce membership automatically. Free zone companies may separately register with Dubai Chamber if they intend to do business with local companies.

 7. Open a Bank Account

Once your paperwork has been returned, you will have all the documentation you need to open your corporate bank account. You will need a bank account before you can begin trading in the UAE. The UAE is home to many banks, both local and international, including:

• Emirates NBD, 
• Abu Dhabi Commercial Bank, 
• Commercial Bank of Dubai,
• Noor Bank,
• Emirates Islamic,
• Mashreq,
• RAKBANK,
• Ajman Bank, and 
• Wio Bank, which is a UAE-based digital banking platform designed for startups and small businesses.

There are also global names such as HSBC, Citibank and Barclays. Choosing the one that’s right for you will depend on your specific requirements. 

Documents Required to Open a Bank Account in Dubai

Each bank may have slightly different requirements, but in general, you will need the following:

• Trade licence (issued by DET or the free zone authority).
• Memorandum of Association (for LLCs).
• Passport copies of shareholders and authorised signatories.
• Emirates ID copies (if applicable).
• Proof of company address (Ejari lease agreement or free zone office agreement).
• Business plan (sometimes required, especially for new startups).
• Shareholder resolution authorising account opening (if applicable).
• Expected cash flow and turnover details.
• Reference letters from business partners or a personal bank account (optional, depending on the bank).

Virtuzone offers a premium bank account opening service, including a detailed individual client assessment to ensure we choose the right bank for your services. During the process, we will liaise with the bank and assist you with document submissions. The process generally takes 2-4 weeks.

8. Apply for a Visa

The final step in starting your business in Dubai is applying for the necessary visas. Whether you’re applying for your own investor visa, employee visas, or dependent visas for family members, the process requires attention to detail. Below are the key 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 generally has a validity of 3 years for mainland companies and 2 years for free zone businesses.

Golden Visa (10-Year Residency)

For high-value investors and entrepreneurs, Dubai offers a 10-year Golden Visa. This visa is ideal for business owners making a substantial financial commitment to the UAE.

To qualify, you must:

• Own or be a partner in a UAE-registered business with a minimum capital investment of AED 500,000 (approximately USD 136,100); or
• Found or lead a startup that is approved by an accredited UAE business incubator, confirming its innovation, viability, and contribution to the local economy.

You will need to follow the below steps to secure your visa/s:

I. Prepare Your Documents

Regardless of whether you are applying for a Golden Visa or a Partner Visa, compile the following:

• Passport (valid for at least 6 months).
• Recent passport-sized photograph (white background).
• Company trade licence (if applying as a shareholder/partner).
• Medical insurance (complying with UAE requirements).
• Proof of investment:

Golden Visa: Evidence of investment (e.g., proof of AED 500,000 (~USD 136,100) investment, or documentation of your substantial business contribution).

Partner Visa: Memorandum of Association (MoA), Share Certificate, or other proof of partnership in the company.

II. Obtain an Entry Permit (if outside the UAE)

If you are currently outside the UAE, your first step is to secure an Entry Permit. This is a temporary visa that allows you to enter the UAE to finalise your residency application.

• Submit your passport, photograph, and company’s trade licence (Partner Visa) or investment proof (Golden Visa).
• Once approved, use the Entry Permit to travel to the UAE.

III. Adjust Your Visa Status

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

IV. Medical Fitness Test

All visa applicants must undergo a medical fitness test. This involves a blood test and chest X-ray to screen for communicable diseases like tuberculosis or HIV.

V. Emirates ID Registration

Register for your Emirates ID, a mandatory identification card for all UAE residents. This process includes biometric data collection (fingerprints and a photo). You must also pay the fee, which varies based on visa validity.

VI. Visa Stamping (Residency Permit)

The final step is to have your residency visa stamped into your passport, officially granting you UAE residency.

After it is stamped or issued, you can start the sponsorship process for dependants or employees.

Virtuzone Makes It Simple

At Virtuzone, we handle the business setup process for you, including the entire visa application process, from submitting documents to tracking approvals. Whether you’re applying for your own visa, employee visas, or family sponsorships, our experts ensure the process is fast, efficient, and hassle-free.

How Virtuzone Can Help You Start Your Business in Dubai

Starting a business in Dubai offers incredible opportunities, but navigating the setup process can be complex. That’s where we come in, as the UAE’s leading company formation specialists.

Here’s how we can simplify and streamline your business setup journey at Virtuzone:

1. Expert Business Setup Consultation

Choosing the right type of business setup, whether in a free zone or on the mainland, significantly impacts your success. Virtuzone provides tailored guidance to help you decide on:

• The best jurisdiction for your business activity.
• Whether to opt for a mainland or free zone setup.
• Compliance with UAE’s legal and regulatory frameworks.

2. Hassle-Free Licensing and Registration

Navigating the legalities of licensing and registration can be time-consuming. Virtuzone handles all the necessary paperwork, from trade licence applications to government approvals, ensuring your business is licensed efficiently and accurately.

3. Comprehensive PRO Services

Virtuzone offers extensive Public Relations Officer (PRO) services, managing:

• Visa applications and renewals for you, your employees, and dependents.
• Emirates ID processing and medical fitness tests.
• Trade licence renewals and amendments.

4. Corporate Sponsorship Solutions

As mentioned earlier, some businesses operate in sectors that require a local partner; Virtuzone provides Local Corporate Nominee Shareholders. This service ensures compliance with UAE regulations while giving you 100% operational and financial control over your company.

5. Corporate Bank Account Assistance

Opening a corporate bank account in Dubai can involve significant documentation and regulatory checks. Virtuzone simplifies this process by preparing all necessary paperwork and liaising with leading UAE banks to help you secure an account quickly and efficiently.

6. Ongoing Corporate Services

Virtuzone’s support doesn’t end with company formation. Our suite of services includes:

• VAT registration and compliance.
• Bookkeeping and financial reporting.
• Payroll management and more.

Why Choose Virtuzone?

With over 16 years of experience, Virtuzone has built a reputation for reliability, efficiency, and expertise. By partnering with Virtuzone, you eliminate the complexities of the business setup process, allowing you to focus on launching and growing your venture in Dubai’s thriving business ecosystem.

Business Etiquette in the UAE: Do’s and Don’ts

Now that you know how to start a business in Dubai, it makes sense we should take a moment to examine some of the avoidable pitfalls of doing business in this complex, multicultural and fast-moving environment.

DO: Dress right, play nice and smile

Yes, Dubai residents love their brands but it should also be noted that people here have also become very savvy about subtlety and sophistication. And while Dubai is very Western in some regards, it has strong Islamic roots. Add these factors together and it’s clear that whether you’re male or female, being smart, stylish and modest in your dress is a must. For example, a suit and tie is more or less compulsory for men attending meetings, especially if you’re in the process of looking for a local sponsor.

Happy, positive energy is also a major characteristic of social, entrepreneurial and even corporate trends in Dubai. No one moves here to immerse themselves in gloom. So top your outfit off with a smile.

When learning how to start a business in Dubai, it’s important to understand how to deal with local Emiratis. Firstly, you should know that it is customary to treat any introductions in meetings with utmost respect. You might not immediately know the ranks of the people in the meeting room so best be aware of etiquette when it comes to addressing people and social interaction: For example, never shake hands with the opposite gender unless they extend their hand first, and always use your right hand.

Finally, don’t dive too quickly into business matters. While you may be in a hurry, spending some time to enquire about a person’s day, health, and family will pay dividends. A good tip is to wait for the other party to start the business chat and keep any European corporate bluntness at bay. Small talk is more than just courtesy; it’s a non-intrusive way of finding out whether someone would be a suitable business partner.

DON’T: Boast about your achievements

Dubai has become crowded with show-offs who claim to have the first, the best, the only, the biggest, the wildest. Don’t add to the noise.

The city is now leaning towards modern minimalism, clean design and elements rooted in taste and humility, and quality over quantity. So when disseminating any business collateral – from pamphlets to online event invites – try to market yourself without using overused Dubai clichés. 

DO: Get out there

When starting a business, you will not get very far with simple email introductions and online transactions. 

Dubai is all about in-person networking events and meet-and-greets. Go to them, enjoy the cocktails, talk to anyone in the room and stay in touch afterwards. It’s a small network within each particular industry so close personal relations are key.

Word-of-mouth is also very strong here and making as many positive contacts as possible is key to expanding both your skills and client base. So join groups, networking sessions, conferences and always have a business card handy – with an Arabic language side printed as well. 

DON’T: Expect meetings and negotiations to go as planned

Patience is the most valuable virtue you can build throughout your life and work in the region. Lengthy group meetings can be somewhat chaotic at times: People will often check their phones during discussions, join unannounced and proceed to alter the conversation, or simply show up late.

While this may at times feel frustrating if you’re coming from a European or North American business environment, being patient (and remembering that punctuality is still expected of most expats) will serve you well. Don’t forget that keeping business in the family is a way of life here, so that may also change the dynamic of your dealings with companies, as well as the speed and style of their decision-making. 

DO: Explore the culture and immerse yourself in new traditions

Get into the heat, learn to live with it and embrace its many positive aspects. Complaining about the heat (which can become very intense at 45 degrees Celsius in the summer) is of no use to anyone. It is a desert after all… but this also means breezy nights in epic landscapes, dune bashing and a whole host of other activities to enjoy.

Find out about the region, show interest in the well-being of local populations, and try to learn a few words in Arabic – it is always appreciated.

Start Your Business in Dubai with Virtuzone

Starting a business in Dubai is a rewarding journey filled with opportunities. By following the right steps—choosing your industry, location, and company structure, completing the necessary paperwork, and adhering to UAE business etiquette—you can set your business up for success in one of the world’s most dynamic markets.

With expert support from Virtuzone, you can navigate the entire process smoothly and efficiently, leaving you free to focus on your entrepreneurial vision. Dubai’s thriving economy and supportive business environment await—take the first step today and contact us for a free consultation.

Frequently Asked Questions

Can I Start a Business in Dubai if I’m Not a UAE Resident?

Yes, you can initiate the business setup process from abroad. In many cases, you can submit documents digitally and appoint a local service provider like Virtuzone to handle the procedures on your behalf. However, you’ll eventually need to visit the UAE to finalise visa and banking formalities if you plan to reside or manage the business on-site.

Are There Any Business Activities Restricted to UAE Nationals?

Yes. Certain sectors—such as security, oil & gas, defence, legal services, and Hajj & Umrah services—are restricted to UAE nationals or require majority Emirati ownership. If you’re unsure, it’s best to consult Virtuzone to assess your activity’s eligibility.

Can I Own Multiple Businesses Under One Name in the UAE?

While each entity requires a separate trade licence, it is possible to:

• Operate multiple activities under a single licence, depending on their classification.
• Own multiple companies as a shareholder.
• Create a holding company structure to manage multiple businesses.

Do I Need to Hire Employees to Maintain My Business Licence in the UAE?

Not necessarily. You can maintain a valid business licence in the UAE as a sole operator, especially in free zones that support freelancers and solo entrepreneurs. However, mainland businesses may have minimum staff requirements based on their licence and office space.

Can I Open a Business Bank Account Without Being Physically Present in the UAE?

While some digital banks (like Wio) offer remote onboarding, most traditional banks require the authorised signatory to be present for identity verification. Virtuzone can pre-arrange your application and schedule meetings to minimise your time in Dubai.

Are There Any Emiratisation Requirements for Foreign-Owned Businesses in the UAE?

Yes, certain mainland companies in the UAE with 50+ employees must comply with Emiratisation quotas, requiring a percentage of UAE nationals in their workforce. Free zone companies are generally exempt. Non-compliance may result in fines or licence renewal issues. Virtuzone can advise on obligations based on your business size and activity.

How Many Employees Can I Sponsor in a Free Zone vs the Mainland in Dubai?

The number of employee visas you can sponsor depends largely on your office space and the rules of your jurisdiction:

• Mainland Companies: There’s no fixed limit on employee visas, but approvals are tied to the size of your physical office space (generally, 1 visa per 8–9 square metres) and your business activity. The Ministry of Human Resources and Emiratisation (MOHRE) handles mainland visa quotas.

• Free Zone Companies: Visa limits are more strictly defined by your chosen licence package. Most free zones offer packages that include a fixed number of visas (e.g., 1, 3, 5, or more). You can usually upgrade to a higher package or lease a larger space to increase your visa quota. Some free zones also apply stricter controls based on business activity or industry.

Virtuzone can assess your setup and guide you on how many visas you’re eligible for – and help you scale up if needed.