Dubai has become a global business hub, attracting entrepreneurs from all over the world. With its tax-friendly policies, strategic location, and business-friendly regulations, setting up a company here is an attractive option for expats. But where do you start?

This step-by-step guide will walk you through everything you need to know about starting a business in Dubai in 2025.

Before starting, decide on your business activity. Dubai allows various types of businesses, but some require special approvals.

Popular industries for expats:

• E-commerce
• Real estate
• Tourism and hospitality
• Financial services
• Technology and IT solutions
• Health and wellness services
• Education and training centers
• Retail and trade businesses

Check the Department of Economy and Tourism (DET) website for a full list of approved business activities. Ensuring that your chosen activity is legally recognized is crucial for a smooth registration process.

Dubai offers different business structures, and choosing the right one depends on your goals and industry.

1. Free Zone Company

• 100% foreign ownership
• No customs duties
• No personal or corporate tax (varies by free zone)
• Restrictions on trading within the UAE mainland
• Access to free zone incentives like simplified visa processes and networking opportunities

2. Mainland Company

• Allows trading directly with the UAE market
• Requires a Local Service Agent for certain business activities
• Subject to corporate tax (9% for businesses exceeding AED 375,000 in profits)
• Offers more flexibility for business expansion

3. Offshore Company

• Ideal for international trade and holding assets
• No physical office required
• No corporate tax
• Cannot conduct business within the UAE mainland

Choose a name that aligns with Dubai’s naming regulations:

• No offensive or religious terms
• Must be unique and available
• If using personal names, they must be in full (e.g., "John Smith Consulting")
• Cannot include well-known brand names without authorization

Register your business name with the Dubai Department of Economic Development (DED) or the Free Zone Authority.

Dubai offers different types of licenses based on your business activity:

• Commercial License (for trading businesses)
• Professional License (for service-based businesses)
• Industrial License (for manufacturing businesses)
• Freelancer License (for self-employed professionals in various sectors)

The licensing authority depends on your chosen structure:

• DED: For mainland businesses
• Free Zone Authorities: For free zone businesses

Ensure that all necessary approvals and documentation are submitted correctly to avoid delays.

As a business owner, you need a residency visa to live and work in Dubai. You can also sponsor visas for employees and family members.

Visa process includes:

1. Entry permit application
2. Medical test and Emirates ID registration
3. Visa stamping on passport

Free zones typically include visa quotas as part of their business packages. If you’re setting up a mainland business, the visa quota may depend on the size of your office space.

To operate legally, you’ll need a UAE-based bank account. Banks such as Emirates NBD, ADCB, and Mashreq offer business accounts for expats.

Requirements for opening an account:

• Business license
• Passport copies of shareholders
• Proof of residency
• Minimum deposit (varies by bank)
• Business plan and financial projections in some cases

• Corporate Tax: 9% (for profits above AED 375,000)
• VAT: 5% (if turnover exceeds AED 375,000 per year)
• Bookkeeping: Businesses must maintain financial records for at least 5 years
• Audits: Some free zones require annual audits for compliance

Many companies outsource accounting services to stay compliant and reduce administrative burdens.

Certain businesses require additional approvals:

• Food & Beverage: Dubai Municipality approval
• Healthcare: Dubai Health Authority (DHA) license
• Financial Services: Approval from the UAE Central Bank
• Education & Training: Knowledge and Human Development Authority (KHDA) approval

Always check with local authorities to ensure compliance and avoid legal complications.

Once your business is registered and compliant, focus on:

• Branding & Online Presence: Build a website, create social media profiles, and invest in SEO.
• Networking & Partnerships: Attend business events, connect with potential clients, and join business councils.
• Digital Marketing & Lead Generation: Use Google Ads, social media, and email marketing to attract customers.
• Business Growth Strategies: Leverage Dubai’s networking opportunities and government-backed incentives for expansion.

Dubai is a land of opportunities for expat entrepreneurs. With the right steps and proper planning, you can successfully launch your business in 2025. From choosing a legal structure to obtaining a business license and setting up operations, this guide provides everything you need to know.

If you’re looking for a seamless business setup experience, leveraging expert legal and financial consultation can make the process much smoother. Take advantage of Dubai’s growing economy and start your entrepreneurial journey today!