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Business setup ยท Updated January 2026

Starting a business
in Dubai 2026

Free zone or mainland, the eight steps in order, what each stage costs, and the mistakes that send people back to the beginning.

A business team planning a Dubai company setup, with records boxed on the shelves behind
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Why Dubai

Four reasons people set up here.

0% Tax on IncomeNo personal income tax. Corporate tax only 9% on profits above AED 375,000
Strategic LocationGateway between East and West. Access to 2 billion consumers within 4-hour flight
Growing EconomyDiversified economy beyond oil. Strong in tourism, trade, finance, and tech
100% Foreign OwnershipOwn 100% of your business in free zones and most mainland activities
Pick the licence first

Free zone, mainland or freelance.

The licence decides what you may sell, where you may sell it, and most of the first-year bill.

Free Zone Company

  • Ownership100% foreign ownership
  • OfficeMust have office/flexi-desk in the free zone
  • TradingCan trade worldwide, limited UAE mainland trading
  • CostAED 15,000 - 50,000/year

Best for E-commerce, consulting, tech startups, import/export

Mainland Company

  • Ownership100% foreign ownership (most activities)
  • OfficeMust have physical office or tenancy contract
  • TradingFull access to UAE market and worldwide
  • CostAED 25,000 - 60,000/year

Best for Retail, restaurants, construction, local services

Freelance Permit

  • Ownership100% ownership
  • OfficeNo physical office required
  • TradingProvide services only, no trading
  • CostAED 7,500 - 15,000/year

Best for Consultants, designers, photographers, writers

The setup

Eight steps, in order.

1-2 days

Choose Your Business Activity

Decide what business you'll do. This determines your license type (trading, professional, industrial).

  • E-commerce needs trading license
  • Consulting needs professional license
1-3 days

Select Free Zone or Mainland

Free zones are faster and easier. Mainland gives you full UAE market access.

  • Free zones available across Dubai with different specializations
  • Mainland: Need local service agent (no ownership share required)
2-3 days

Reserve Your Trade Name

Choose and register your company name. Must be unique and follow UAE naming rules.

  • No offensive or religious words
  • Can't use 'Dubai' or 'UAE' without approval
3-7 days

Get Initial Approval

Submit documents and get initial approval from Dubai government or free zone authority.

  • Passport copies of all shareholders
  • Proof of address (utility bill)
1-7 days

Find Office Space or Use Flexi-Desk

You need a registered business address. Can be physical office, flexi-desk, or virtual office.

  • Flexi-desk: AED 5,000 - 15,000/year (cheapest)
  • Virtual office: AED 8,000 - 20,000/year
5-10 days

Apply for Business License

Submit all documents, pay fees, and get your trade license issued.

  • License valid for 1 year, renewable
  • Fees: AED 10,000 - 40,000 depending on activity
7-14 days

Get Visas for Yourself and Staff

Apply for investor/employee visas. Each license has visa quota based on office size.

  • Investor visa: AED 5,000 - 8,000 per person
  • Employee visa: AED 4,000 - 6,000 per person
7-21 days

Open Business Bank Account

Open corporate bank account with UAE bank. Required for doing business.

  • Need: Trade license, passport, proof of address, business plan
  • Initial deposit: AED 10,000 - 50,000 minimum

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First-year costs

What you will actually pay for.

Government and market figures in AED, not ours โ€” ask each provider for their own quote.

License & Registration

  • Free Zone License (basic package)15,000 - 30,000/year
  • Mainland License25,000 - 50,000/year
  • Freelance Permit7,500 - 15,000/year

Office & Address

  • Flexi-desk (shared workspace)5,000 - 15,000/year
  • Virtual office8,000 - 20,000/year
  • Small physical office (200 sqft)30,000 - 60,000/year

Visas

  • Investor visa (owner)5,000 - 8,000
  • Employee visa4,000 - 6,000 per person
  • Medical test300 - 500 per person

Banking & PRO

  • Bank account opening (PRO fee)2,000 - 5,000
  • PRO services (annual)6,000 - 15,000
  • Initial bank deposit10,000 - 50,000
Avoid these

Five mistakes that cost time.

Choosing Wrong License Type

Research your activity carefully. E-commerce needs trading license, not professional license. Getting it wrong means starting over.

Not Planning for Visa Delays

Bank account opening can take 2-4 weeks. Budget extra time and money for unexpected delays.

Underestimating Costs

First year costs AED 50,000 - 100,000 minimum. Include license, visa, office, PRO, bank, storage, and living expenses.

No Business Plan

Banks and authorities may ask for business plan. Have a simple 2-3 page plan ready with revenue projections.

Ignoring Document Storage

Trade licenses, contracts, invoices, customs documents must be kept for 5 years. Use secure storage from day 1.

Business storage

Records and stock,
off the office floor.

Every business here keeps five years of paperwork and, sooner or later, stock it has nowhere to put. Both are cheaper with us than with a bigger office.

Documents and licences

UAE law asks you to keep business records for five years. Store them clean and secure.

Stock and samples

Hold inventory without renting a whole warehouse โ€” pay only for the space it uses.

Back when you need it

Ask for a delivery and we bring the boxes you name, to your office or your door.

FAQ

Setting up in Dubai.

How long does it take to set up a business in Dubai?

Free zone businesses: 2-4 weeks. Mainland businesses: 4-8 weeks. Freelance permit: 1-2 weeks. Banking can add 2-4 weeks to any option.

Do I need to live in Dubai to own a business?

No. You can own and operate a Dubai business while living anywhere in the world. However, you'll need to visit Dubai to complete initial setup (visa medical test, Emirates ID, bank account opening).

What's the minimum investment required?

Free zone: AED 50,000-80,000 all-in (first year). Mainland: AED 60,000-120,000. Freelance: AED 25,000-40,000. This includes license, visa, office, banking, and PRO services.

Do I need an office or can I work from home?

You need a registered business address (flexi-desk, virtual office, or physical office). You cannot use your home address. Flexi-desks start from AED 5,000/year and you can work from anywhere.

How do I store my business documents and inventory?

UAE law requires keeping business records for 5 years. Store licences, contracts and invoices in clean, secure storage, and keep stock there too โ€” you pay only for the space you use, and ask for a delivery when you need something back.

Opening in Dubai? Keep the paperwork safe.

Tell us what the business needs to store โ€” records, stock or office furniture between addresses โ€” and we will send a free, itemised quote.

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