Setting Up a Company in Dubai: What You Really Need to Know

If you've been thinking about starting a business in Dubai, you’re not alone—and you’re definitely not crazy. Dubai has become one of the most attractive places in the world for entrepreneurs and investors. But while the city is full of opportunity, the process of setting up a company here isn’t always as glamorous as the skyline.

Between the licenses, the approvals, and the choices you need to make early on, there’s a lot to unpack. The good news? You don’t need to have it all figured out on day one. And if you’ve got the right guidance, Setting up a company in dubai can be a smooth, even exciting, experience.

Here’s what you really need to know—without the corporate talk.

First Things First: Why Dubai?

Let’s start with the obvious. People choose Dubai to start businesses because the city just makes sense for it. You’ve got:

A tax-friendly environment

World-class infrastructure

A strategic location between Asia, Europe, and Africa

A lifestyle that attracts talent from all over the globe

And beyond the flashy reasons, Dubai is business-friendly at its core. The government encourages startups. There are initiatives and zones specifically built to support SMEs and international investors.

But here’s the catch—you need to know where and how to start.

Mainland vs. Free Zone vs. Offshore: Don’t Let This Trip You Up

This is the first big decision you’ll face—and it’s one that shapes everything else. Each setup comes with its own rules, costs, and benefits.

1. Free Zone

This is a popular choice for many startups and international businesses. There are over 40 free zones in Dubai, and each one caters to different industries—media, tech, logistics, healthcare, and so on.

The pros?

100% foreign ownership

No corporate tax (subject to change under new laws depending on size/income)

Easy visa and office setup

The catch?

You’re generally limited to doing business within the free zone or internationally. You’ll need a local distributor or partner to sell in the UAE mainland.

2. Mainland

This allows you to do business anywhere in the UAE—with locals, with government entities, with anyone.

You now get 100% foreign ownership for many activities, which used to require a local partner.

More freedom, but also slightly more paperwork and regulatory steps.

3. Offshore

This is more for holding companies, international investments, or asset protection. You don’t get a physical office or visas easily. It’s not ideal if you plan to actually trade or operate inside the UAE.

Paperwork, Licensing, and All That Not-So-Fun Stuff

Here’s what people don’t often say out loud: setting up a business in Dubai isn’t difficult, but it can be overwhelming if you try to do it all alone.

Here’s what the basic process often looks like:

Choose your business activity

This determines the kind of license you need (commercial, professional, industrial, etc.)—and some activities require extra approvals from certain departments.

Pick a legal structure

LLC? Sole Establishment? Branch Office? It depends on how many partners you have and the kind of activity you’re setting up.

Select your location

This ties back to Free Zone vs Mainland.

Get your trade name approved

Yes, even your business name needs to go through official checks.

Apply for your license

Once you have all the above sorted, you apply through the relevant authority—either DED (for mainland) or the free zone you’ve chosen.

Arrange visas and office space

Most businesses need employee visas and a lease agreement for an office—even if it’s a flexi-desk.

Open a business bank account

Sounds simple, but can be a bit of a process depending on your activity and nationality.

Timeframe and Cost: The Two Big Questions

How long does it take?

On average, if everything is in order, setting up a company in Dubai can take anywhere between 5 to 15 working days—though it depends on the type of license and approvals needed.

What’s the cost?

That’s like asking, “how much does a car cost?” It really depends.

A basic free zone setup could start around AED 12,000 to 20,000 for a license, while mainland setups might cost AED 15,000 to 30,000 or more, depending on the activity, visas, and office space.

And that’s just the basics. If you're bringing in multiple shareholders, need custom office space, or specific government approvals, the costs can shift.

The Human Side of It All

Here’s what often gets lost in the process: behind all the paperwork and licensing, there’s a dream. A vision. Maybe you’re launching your own brand, opening a consultancy, or bringing your startup to life in a new market.

Final Thought

There’s something exciting about Setting up a company in dubai. The city rewards ambition. But the early steps—the structure, the setup, the government paperwork—those aren’t the moments where you want to experiment.

Whether you’re a solo founder or part of a growing team, getting expert help in the beginning can save you time, money, and costly mistakes.

Dubai welcomes business owners. But you’ve still got to do it right.

Let the experts help. So you can focus on building the business you came here to start.