How to Set Up a Business in Dubai

Introduction

Starting a business in Dubai is one of the smartest moves an investor or entrepreneur can make in 2025. The city offers full foreign ownership, zero income tax on profits under AED 375,000, and some of the fastest registration times in the world. Learn how to set up a business in Dubai, start a company in Dubai, explore the Dubai business setup process, and estimate the cost to start a business.

In this guide, you’ll learn:

• The full Dubai business setup process

• The cost to start a business in Dubai

• The most profitable industries to explore this year

Let’s walk through it step by step.

1. Define Your Business Activity

Before anything else, choose your business activity. It could be consultancy, real estate, e-commerce, retail, or another commercial sector.

Your business type will determine the required license, whether commercial, professional, or industrial.

2. Choose a Jurisdiction

Next, select the jurisdiction that fits your needs:

• Mainland – Best for trading within the UAE

• Free Zone – Offers full foreign ownership and tax incentives

• Offshore – Suitable for international companies without UAE operations

Each option has pros and cons. Consider your target market, tax goals, and whether you need a physical office space.

3. Reserve a Trade Name

Choosing a compliant trade name is important. Avoid religious or political references, and make sure the name reflects your business activity.

Once approved, the name is reserved and linked to your license and company bank account.

4. Apply for Initial Approval

After reserving the name, apply for initial approval. This confirms that the UAE government has no objection to your business concept or structure.

You can submit this through the Department of Economic Development (DED) or your Free Zone’s portal.

5. Submit Legal Documents

At this stage, gather your legal paperwork. You’ll typically need:

• Passport copies of shareholders

• Memorandum of Association (MOA)

• Office lease or Flexi-desk contract

Submitting complete and accurate documents will help you avoid delays.

6. Receive Your Business License

Once everything is approved, you’ll be issued a business license. With this, you can:

• Open a UAE corporate bank account

• Apply for your residency visa

• Begin operating in your selected market

💡 Pro Tip: Free Zone companies can often get licensed in just 3 to 5 working days.

Cost to Start a Business in Dubai (2025)

💡 Tip: Zones like IFZA, Meydan, and SHAMS offer all-inclusive packages for new businesses.

Top 3 Profitable Business Ideas in Dubai

1. Digital & E-Commerce Businesses

With high online demand and global reach, starting a digital agency, SaaS company, or e-commerce store is cost-effective and scalable.

2. Real Estate Consulting

Dubai’s luxury property market continues to grow. Real estate agencies, short-term rentals, and investment consultancies are highly profitable.

3. Tourism & Experience-Based Services

Dubai remains a top destination for global travelers. Consider launching a travel agency, private tour service, or F&B concept targeting visitors.

Why Dubai is the Best Place to Start a Company

Dubai provides unmatched benefits for entrepreneurs:

• ✔️ Full foreign ownership (in most zones)

• ✔️ 0% personal income tax

• ✔️ Quick licensing process

• ✔️ Global banking and logistics access

• ✔️ Residency for business owners and staff

These advantages make Dubai a top-tier destination for global business.

Conclusion

Now that you know how to set up a business in Dubai, you’re in a strong position to take action. The process is streamlined, the costs are clear, and the city supports growth across all industries.

At A N D LUXURY PROPERTIES, we help entrepreneurs like you find premium office spaces, investment properties, and setup services. From Free Zone selection to commercial leasing, our team is ready to guide you.

📞 Contact us today to launch your Dubai business the right way — with expert support and high-return opportunities.