Dubai continues to attract global entrepreneurs with its strategic location, tax-friendly environment, and ease of doing business. If you’re a foreign investor planning to set up your business in Dubai, here’s a comprehensive breakdown of the process:
Step 1: Choose Your Business Activity
- The type of business you want to run (consulting, trading, e-commerce, etc.) determines the kind of license you need.
- Some activities are regulated and require special approvals (e.g., legal, education, healthcare).
Step 2: Select the Right Jurisdiction
Dubai has three main business jurisdictions:
- Mainland: Allows business across the UAE and internationally. Suitable for companies requiring local market access.
- Free Zone: Offers 100% foreign ownership, tax exemptions, and sector-specific benefits. Ideal for exporters and service providers.
- Offshore: Mainly for holding companies or international trading without operating in the UAE market.
💡 Tip: Each option has its pros and cons—choose based on your target market and ownership preferences.
Step 3: Choose a Company Name
- The trade name must comply with UAE naming regulations (no offensive or religious terms, etc.).
- It must reflect your business activity and be unique.Â
Step 4: Apply for Initial Approval
- This is a green light from Dubai’s Department of Economy and Tourism (DET) or Free Zone authority, allowing you to proceed.
- You’ll need a passport copy and basic application form.
Step 5: Finalize a Business Location
- Mainland: Requires a physical office space (can be virtual/shared depending on activity).
- Free Zones: Offer flexi-desks, smart offices, or warehouses depending on your needs.
Step 6: Submit Legal Documents & Finalize Licensing
- Documents typically include:
- Passport copies of shareholders
- MoA (Memorandum of Association)
- Lease agreement or tenancy contract
- Board Resolution (for corporate shareholders)
- Once submitted, the trade license is issued.
Step 7: Open a Corporate Bank Account
- Choose from local banks like Emirates NBD, ADCB, or international options like HSBC.
- Banks require full company documentation and may request a business plan.
Step 8: Apply for Residency Visa(s)
- Once the company is established, you can apply for your investor/residency visa.
- Also allows you to sponsor visas for employees and family members.
Step 9: Register for Corporate Tax (If Applicable)
- As of 2023, a 9% corporate tax applies to businesses earning over AED 375,000 annually.
- You must register with the UAE Federal Tax Authority (FTA) if eligible.
 Step 10: Maintain Compliance
- Ensure timely renewals, annual audits (if required), VAT filings, and economic substance compliance.
Some businesses also need UBO (Ultimate Beneficial Owner) registration and AML compliance.