How to Start a New Company in Dubai: A Step-by-Step Guide (2025)
Rajinder Singh Nagiyal
February 3, 2025
How to Start a New Company in Dubai: A Step-by-Step Guide (2025)

Types of Business Entities in Dubai
Mainland Company
Free Zone Company
Offshore Company
Benefits of Setting Up a New Company in Dubai
Tax-Free Environment
Strategic Location
Access to Global Markets
Step-by-Step Guide to Starting a New Company in Dubai
Step 1: Determine the Business Activity
Step 2: Choose a Business Jurisdiction
Step 3: Select a Legal Structure
Step 4: Get Initial Approval
Step 5: Register the Trade Name
Step 6: Prepare the Documents
Step 7: Obtain Licenses
Step 8: Open a Corporate Bank Account
Step 9: Arrange for Office Space
Step 10: Get Visas for Employees and Owners
Common Challenges and How to Overcome Them
Understanding Regulations
Dealing with Documentation
Finding the Right Local Sponsor
Costs Involved in Setting Up a Business in Dubai
Business Registration Costs
Licensing Fees
Office Rental Costs
Free Zones vs. Mainland: Which is Better?
Advantages of Free Zones
- 100% Foreign Ownership: You don’t need a local sponsor to set up a company.
- Tax Incentives: Enjoy 0% import/export duties and corporate taxes.
- Ease of Setup: The process is streamlined, with fewer regulatory hurdles.
- Industry-Specific Zones: Many free zones, such as Dubai Healthcare City and Dubai Silicon Oasis, cater to niche industries.
Benefits of Mainland Businesses
- Market Access: Mainland companies can operate across the UAE without restrictions.
- Government Contracts: Only mainland companies can bid for government projects.
- Flexibility: Mainland businesses can expand into diverse activities without relocating.
Why Hire a Business Setup Consultant?
Expertise in Local Laws
Hassle-Free Process
Conclusion
Frequently Asked Questions
What is the minimum capital requirement to start a business in Dubai?
Most businesses in Dubai no longer require a minimum capital deposit, but specific industries may have varying requirements. Always check the regulations for your sector.
Can a foreigner own 100% of a business in Dubai?
Yes, foreigners can own 100% of a business in Dubai, especially in free zones and certain mainland industries, thanks to recent reforms.
How long does it take to start a company in Dubai?
The process typically takes 1–3 weeks, depending on the type of business and the completion of documentation.
Do I need a local sponsor to set up a business in Dubai?
For mainland businesses, a local sponsor is required unless your business falls under industries allowing 100% foreign ownership.
What are the popular free zones in Dubai?
Popular free zones include Dubai Internet City, Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Centre (DMCC), and Dubai Healthcare City.

Have Any Questions?
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
- +971 4 342 3373
- +971 55 975 9746