Setting up a business in Dubai has become easier than ever. Thousands of entrepreneurs from different countries choose Dubai every year. Why? The city offers low taxes, fast business setup, and 100 percent foreign ownership in many sectors. You also get access to markets across the Middle East, Asia, Africa, and Europe.
But how do you actually start a company here? The process sounds simple, but there are key steps you must follow carefully. Missing even one small detail can lead to delays or extra costs.
First, you need to choose your business activity. Dubai has over 2,000 approved activities. Each one comes with its own set of rules and license types. Next, you will pick the right jurisdiction. Should you go for a mainland setup? Or would a free zone or offshore company work better? This depends on your target market, ownership goals, and budget.
Your legal structure is also important. Whether you form an LLC, a sole proprietorship, or a branch office, each choice affects your liability and daily operations. After that comes trade name reservation. Dubai has strict naming rules that you must follow to avoid rejection.
Government approvals are another step. Some businesses need extra permissions from industry regulators like Dubai Municipality, DHA, or DTCM. You will also need to arrange your office space. Mainland businesses require physical offices with Ejari registration. Free zones offer cheaper flexi-desk and virtual office options.
Documentation is a big part of the process. Passport copies, lease agreements, MOA, and more are needed for approval. After submitting, you’ll receive your business license. Then, the final steps include visa applications and opening a corporate bank account.
9 Simple Steps to Establish a Business in Dubai
Below is a quick list of the 9 essential steps you need to follow. Later in this guide, we’ll explain each step in detail so you can establish a company in Dubai with confidence. Each stage has its own rules, costs, and paperwork. If you follow the correct order, you can avoid delays, extra expenses, or legal problems later. From picking the right business activity to opening your bank account, every step plays a key role.
- Choose Your Business Activity
- Select Your Business Jurisdiction (Mainland, Free Zone, or Offshore)
- Decide the Legal Structure of Your Company
- Reserve Your Business Trade Name
- Obtain Initial Government Approvals
- Secure Office Space or Business Premises
- Prepare and Submit All Required Documents
- Apply for Your Business License
- Apply for Visas and Open a Corporate Bank Account
1. Choose Your Business Activity
The first thing you need to do is decide exactly what your business will do. Dubai’s Department of Economy and Tourism (DET) and various free zones offer more than 2,000 approved business activities. These include trading, manufacturing, consulting, IT services, education, real estate, healthcare, and more.
Why is this important? Your chosen activity will decide your license type, required government approvals, and even the kind of office space you’ll need. For example, running a restaurant requires approvals from Dubai Municipality, while a medical clinic needs permission from the Dubai Health Authority (DHA).
If you pick the wrong activity or misclassify it, your application can get delayed or rejected. Worse, operating outside your licensed activity later could lead to heavy fines.
2. Select Your Business Jurisdiction
Once you know your business activity, the next step is choosing where to register your company. Dubai offers three business jurisdiction options: Mainland, Free Zone, and Offshore.
If you want to trade directly within the UAE market, the Mainland is the right choice. You get full access to local clients and government contracts.
Free Zones are best if you want 100 percent foreign ownership, lower setup costs, and flexible office options. However, free zone companies cannot trade directly with the mainland unless they use a local distributor.
Offshore companies are mainly used for international trading, holding assets, or wealth management. They can’t lease office space or get UAE residence visas.
Each jurisdiction has its own rules, costs, and benefits. Your decision here affects your license type, visa options, and tax obligations. Before choosing, compare your target market, business goals, and budget. If unsure, speak to a registered business setup consultant.
3. Decide the Legal Structure of Your Company
Now that you’ve picked your jurisdiction, the next decision is your company’s legal structure. This choice affects your ownership rights, liability, number of shareholders, and how you operate daily.
If you choose the Mainland, the most popular option is a Limited Liability Company (LLC). It allows multiple shareholders and protects your personal assets from business debts. For Free Zone setups, you can register as a Free Zone Establishment (FZE) if you’re a single owner, or a Free Zone Company (FZCO) if you have multiple partners.
If you’re a solo professional offering services like consulting or coaching, a Sole Proprietorship might suit you. Large international firms often choose to open a Branch Office if they want to expand into Dubai without forming a new entity.
Each structure has specific rules on ownership, visas, and capital requirements. Before deciding, check the legal differences and get advice from a business setup expert.
4. Reserve Your Business Trade Name
After choosing your legal structure, the next step is to pick and reserve your business name. Dubai has strict naming rules, so take your time with this step. Your trade name should match your business activity and must not include offensive, religious, or political words. Also, avoid using names that refer to global brands or government bodies unless you have approval.
If you want to use your name, it should appear in full, not just initials. For example, “Felix Happich Business Consulting” is fine, but “FH Business Consulting” would likely get rejected.
Once you choose your name, submit it for approval to the Department of Economy and Tourism (DET) or the relevant free zone authority. The approval process usually takes 1 to 2 business days, but popular names may take longer. Once approved, your trade name is reserved for up to 6 months, giving you enough time to complete the next steps.
5. Obtain Initial Government Approvals
Once your trade name is reserved, the next step is to get initial approval from the relevant government authority. This approval shows that Dubai has no objection to you starting this type of business.
For mainland companies, submit your application to the Department of Economy and Tourism (DET). If you’re setting up in a free zone, apply through the specific free zone authority.
Some business activities need extra approvals from industry regulators. For example:
- Restaurants need clearance from Dubai Municipality
- Healthcare clinics need approval from the Dubai Health Authority (DHA)
- Tourism companies require consent from Dubai Tourism (DTCM)
In most cases, the initial approval comes within 2 to 5 working days, but special activities may take longer. Without this step, you cannot proceed to licensing. It’s always a smart idea to double-check all paperwork before submitting to avoid rejection.
6. Secure Office Space or Business Premises
After getting your initial approval, the next step is arranging your office space. This is a legal requirement in most cases.
If you’re opening a mainland company, you must lease a physical office. The office lease should be registered with Ejari, which is Dubai’s official tenancy registration system.
For free zone businesses, you have more flexible options. Many free zones offer flexi-desks, shared offices, or virtual offices. This helps reduce startup costs. The size and type of office you need often depend on your business activity and the number of employee visas you plan to apply for. Some activities, like retail or manufacturing, require larger commercial spaces.
Before signing a lease, make sure the location meets Dubai’s zoning regulations for your business type. Get the tenancy contract and Ejari certificate ready. You’ll need these documents for your final license application.
7. Prepare and Submit All Required Documents
Once your office space is sorted, it’s time to gather and submit your business setup documents. This step is very important. Missing documents can cause delays or rejection.
For most companies, you’ll need:
- Passport copies of all shareholders and managers
- A recent passport-size photo of each partner
- Your trade name reservation certificate
- Initial approval letter from the government
- The signed Memorandum of Association (MOA) or Local Service Agent Agreement, if required
- Your Ejari tenancy contract for mainland businesses
- Any extra approvals from regulatory bodies for special activities
If you’re setting up in a free zone, check if they need additional forms or declarations. Submit all documents to the Department of Economy and Tourism (DET) or your free zone authority. Processing time is usually 3 to 7 working days.
8. Apply for Your Business License
After submitting all your documents, it’s time for the most important step—getting your business license. This license is your legal permit to start business activities in Dubai. The type of license you need depends on your chosen business activity. The main categories are:
- Commercial License for trading businesses
- Professional License for services and consultancy
- Industrial License for manufacturing or production
Submit your final license application along with the required fee. Costs vary widely, starting from around AED 5,750 for small free zone setups to AED 40,000 or more for mainland businesses with multiple activities.
After payment, the authority will issue your official Trade License Certificate. Once you get your license, you can legally sign contracts, hire staff, and start operations. Keep a copy of your license on display at your business premises as it’s a legal requirement in Dubai.
9. Apply for Visas and Open a Corporate Bank Account
Once you have your business license, the final step is handling visas and banking. Start by applying for your Investor Visa, which allows you to stay and run your business in Dubai. After that, you can sponsor employee visas or family visas if needed. The visa process includes medical tests, Emirates ID registration, and sometimes health insurance proof.
Next, open your corporate bank account. Dubai banks have strict KYC (Know Your Customer) procedures. They’ll ask for your trade license, MOA, passport copies, and business plan. Some banks may require a minimum balance, often between AED 10,000 to AED 50,000, depending on the bank and your business type.
Opening a bank account may take 2 to 4 weeks, sometimes longer if extra verification is needed. Once your account and visas are ready, you’re fully set to start business operations in Dubai.
