A Step-by-Step Guide to Setting Up a Business in Dubai in 2025

Dubai remains one of the world’s most attractive destinations for entrepreneurs and investors, thanks to its strategic location, business-friendly policies and robust infrastructure. Opening a business in Dubai requires following a series of prescribed steps to ensure compliance with the regulations set by the Department of Economic Development (DED) and other relevant authorities.

Setting Up a Business: Things to Know Before Opening Your Business in Dubai

Before embarking on your business set-up journey in Dubai, consider the following factors:

• Economic Zones: Businesses can be registered in the Mainland, Free Zones or Offshore jurisdictions, each offering distinct
  benefits.
• Visa and Sponsorship: Business owners must consider visa requirements for themselves and their employees.
• Taxation: The UAE has introduced corporate tax, but Free Zones may offer tax incentives depending on the activity and
  compliance requirements.
• Comparing Economic Zones: Mainland, Free Zones and Offshore

Dubai offers three economic zones with varying degrees of operational flexibility:

• Mainland: Ideal for opening businesses that require direct engagement with the Dubai, UAE market.
• Free Zones: Suitable for businesses targeting international markets. Free Zones provide 100% foreign ownership, tax benefits
  and simplified business set-up processes.
• Offshore: Designed for businesses seeking asset protection and international trade without engaging in local commerce.

Steps to open a Business in Dubai

• Identifying the Nature of the Business Activity
• Selecting the business activity determines the type of licence required.
• Dubai offers six types of licences:
• Commercial Licence: Trading and retail businesses.
• Industrial Licence: Manufacturing and production.
• Professional Licence: Service-oriented businesses such as consultancies.
• Tourism Licence: Travel and hospitality sectors.
• Agricultural Licence: Farming and agricultural activities.
• Crafts Licence: Artisanal and specialised trades.
• A single licence may cover multiple business activities. Dubai provides over 2,000 economic activities to choose from.

Determining the Legal Structure

The legal structure defines ownership and regulatory obligations.

Options include:

• Limited Liability Company (LLC)
• Sole Establishment
• Branch of a Foreign Company
• Partnership or Limited Partnership
• Private or Public Joint Stock Company

Each structure has distinct requirements, including ownership regulations and compliance obligations.

Reserving and Registering the Trade Name

The trade name should align with the business activity and legal structure.

Key conditions include:

• Must not include prohibited words or religious references.
• Should not infringe on trademarks or government authority names.
• Must be available and registered with the DED.
• Requires renewal as per the prescribed regulations.
• Obtaining Initial Approval.

Initial approval confirms that there are no objections from the UAE Government to establish the business. However, it does not permit operations. Foreign investors must obtain approval from the General Directorate of Residency and Foreigners Affairs (GDRFA).

Opening some businesses in Dubai require additional approvals, such as:

• Legal Activities: Ministry of Justice
• Telecommunications: Telecommunications Regulatory Authority
• Healthcare: Health Authority
• Tourism: Executive Council
• Drafting the Memorandum of Association (MOA)

Certain business structures require an MOA outlining ownership and operational terms. Businesses registered as LLCs, joint stock companies and partnerships must prepare an MOA as per UAE laws.

Set-up Your Office Location

A physical business address is required for company registration. The premises must comply with the zoning laws of the respective Emirate’s municipality. In Dubai, lease agreements must be registered through Ejari.

Obtaining Additional Government Approvals

Opening some businesses in Dubai requires special permissions from federal or local authorities.

Common examples include:

• Ministry of Interior: Transportation, security systems, car rentals.
• Municipality Department: Engineering and construction firms.
• Supreme Petroleum Council: Oil and gas services.
• Ministry of Economy: Auditing firms and private joint stock companies.
• Receiving the Business Licence

After obtaining all necessary approvals, the final step is securing the business licence.

This requires:

• Submission of all approved documents.
• Registration of the lease contract.
• Payment of prescribed fees within 30 days to avoid cancellation.
• The licence can be obtained via service centres or the DED online platform.
• Registering with the Chamber of Commerce

The process of opening a business in Dubai may be required to register with the relevant Emirate’s Chamber of Commerce to commence operations. Dubai businesses can complete this step via the Dubai Chamber website.

Ready to set-up your business in Dubai, UAE?

Open a business in the UAE, including Dubai, is a straightforward process when done with the right guidance. Whether you are looking to establish a mainland, free zone or offshore company, at GoBusiness, we simplify the entire process, from business registration to securing the right licence.

Visit gobusiness.ae to know more about us.