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Sohaib Ikram
Sohaib Ikram serves as the Director of Emerhub in Malaysia.
Thanks to its business friendly environment and low tax rates, Dubai is among the most popular destinations among foreign entrepreneurs and investors looking to expand their business operations. However, due to several complexities and considerations involved in the process, many people often wonder how to start a business in Dubai. If you’re one of them, this guide is for you.
In this article, we’ll walk you through the step-by-step process of starting a business in Dubai from choosing the right activity to business bank account and visas.
Documents Required to Start a Business in Dubai
Before you officially start your business operations in Dubai, you need to register your company and get the necessary approvals. To do that, there are a few essential documents that you will need to have in order.
Here are the general documents required to register your company in Dubai:
- Passport copies of all stakeholders with at least 6 months validity
- Memorandum of Association (MoA)
- Office Tenancy Contract (also known as Ejari in the UAE)
- Trade Name approval / Initial Approval
Along with these documents, you might need to obtain additional approvals depending on the business activity.
| Ministry/Authority | Business Activities Covered |
|---|---|
| Ministry of Interior | General transport – driving schools, fire equipment, alarm and safety systems, used-car dealers, used auto-parts, car rental. |
| Ministry of Justice | Legal activities and legal consultancy |
| Local Municipal Department | Architectural and engineering affairs |
| Telecommunications and Digital Government Regulatory Authority (TDRA) | Telecommunication activities |
| Executive Council | Travel and tourism, general services, charter trading, ship and maritime agencies, car clubs, charter air transport, foreign company branches |
| Ministry of Economy | Insurance activities and insurance consultancy |
| Local Health Departments | Health-related activities |
| Supreme Petroleum Council | Onshore and offshore gas and oil-field services, onshore and offshore oil drilling operations |
Process for Starting Your Business in Dubai, UAE
Setting up your business in Dubai involves several key decisions. You’ll need to define your business activity precisely, choose the right type of license, and decide whether a mainland or free zone company best suits your needs.
We’ve broken this down into seven key steps to guide you through the process:
1. Choose Your Business Activity
While this might seem like an obvious first step, its implications are slightly more complicated in the UAE.
When setting up your business in the UAE, your business license needs to have a specific pre-defined Activity or Activity Category. This is chosen from a list of business activities provided by the relevant business registration authority. Therefore, knowing which business activity is relevant to your business plan is crucial for properly setting up your business.
For example, if you want to start a business that offers plumbing services, the right activity category would be “Technical services”, or “technical contracting”. These categories then have activities under them for plumbing, electrical work, masonry, AC maintenance and installation, etc.
While you can opt for multiple activities under one business, adding activities significantly increases the cost of your license (depending on your jurisdiction and the chosen activities).
Moreover, choosing the right activity category also plays an important role in the next step, which is choosing the right jurisdiction to start your business in. That is because not all zones permit all activities, and some zones specialize in certain industries.
Emerhub helps you identify the correct activity codes and advises on any necessary external approvals required from the outset.
2. Choose the Right Jurisdiction for Company Setup in Dubai
After choosing your planned business activity, the next step is to choose between three jurisdictions to start a business in Dubai or anywhere else in the UAE. These jurisdictions are:
- UAE Mainland: Registered directly with the Department of Economic Development (DED) in Dubai. Allows you to trade freely anywhere within the UAE local market, work with government entities, and offers a wide range of activities. Mainland now allows 100% foreign ownership for many activities.
- Free zones: Designated economic zones (over 40 in the UAE, many in Dubai like JAFZA, DMCC, DAFZA) regulated by their own authorities. They often offer 100% foreign ownership, tax exemptions (like 0% corporate tax for qualifying income, subject to conditions), and industry-specific infrastructure. However, operating outside the free zone within the UAE mainland market usually requires a local distributor or agent.
- Offshore Company: Non-resident entities for international purposes and cannot operate within the UAE market or get visas.
Note: Due to scope and limitations of offshore companies in UAE, this guide focuses on Mainland and Free Zone setups for operational businesses.
Choosing the right jurisdiction significantly affects your business capabilities.
While specialized free zones like Jebel Ali (JAFZA) provide advantages for specific activities (e.g., import/export with unique infrastructure and duty benefits), only a mainland company setup allows you the freedom to trade and operate across the entire UAE local market without restrictions.
Keep in mind that not all activities are available in every free zone option. While mainland companies can choose from over 2k activities, free zones offer specialized versions of those activities.
Refer to our detailed comparison of on mainland vs free zone companies to help you decide on the right jurisdiction for your business.
3. Choose a Company Name
Choosing your company name is an important part of setting up your business in Dubai or anywhere in the UAE. To ensure smooth registration, it’s essential you understand and follow the UAE’s specific naming guidelines.
Key guidelines for naming your UAE Company include:
- Uniqueness: The name must not be identical or too similar to any existing company registered in the UAE.
- Appropriateness: It must align with the UAE’s public morals and cultural values, avoiding offensive or controversial terms.
- Relevance: The name should generally relate to the nature of the business activities you intend to undertake.
- Legal Form Suffix: It must include the abbreviation indicating the company’s legal structure (e.g., LLC, FZE, PJSC).
- Restricted Words: Terms like “Bank,” “Insurance,” “University,” “Dubai,” “UAE,” or names indicating specific governing bodies require special approvals and justification.
We recommend preparing at least three name options in order of preference for submission. This increases the chance of quick approval if your first choice isn’t available.
Emerhub assists with checking name availability and managing the trade name reservation process to ensure compliance with all regulations.
4. Prepare Necessary Documents and Secure Office Space
Depending on your chosen jurisdiction, the process for this step may vary.
For the mainland, Emerhub fills out the required forms from the Department of Economic Development in your chosen Emirate, along with copies of your shareholder passports.
Another important consideration at this point is your office space. When registering for most company types, you will need to show a tenancy contract or “Ejari”. The address on your Ejari will be considered your official office location, which is why you need to find the right office for your company before you begin the registration process. Alternatively, you can also get a virtual office. Emerhub assists you in acquiring either of the two, depending on your specific business needs.
Some free zones may require additional documentation, such as NOCs or your business plan. And in most cases, your documents may have to be translated into Arabic
Emerhub assists you in compiling the exact document set, completing necessary forms, and finding suitable office solutions (physical leases, Ejari registration, or compliant virtual offices) tailored to your license needs.
5. Secure Your Business License
With documents prepared and address secured, the formal application is submitted to the relevant authority (DED or Free Zone).
Following a successful submission of your documents, relevant authorities will review your application for approval.
In the rare case of any objections arising, Emerhub submits additional clarification documents on your behalf.
If all documents are in order, the process for business license takes between 4-6 working days.
6. Open Your Business Bank Account
Your business license is the key to unlocking every service that you may need in the UAE, the first of which is a bank account. There are multiple options to choose from, and you can’t go wrong with any of them. The options include.
- Emirates NBD
- Commercial Bank of Dubai
- Mashreq Bank
- Abu Dhabi Commercial Bank
The process for opening and managing a bank account in the UAE requires a few compliances though. Both the government and the banks monitor monetary activities very strictly, and not knowing about certain requirements can result in penalties or disapproval of your account opening application.
For example, a bank account can be closed down because of 6 months of activity.
Having a local partner like Emerhub helps foreign entrepreneurs navigate these compliances to avoid any financial or time losses in the future.
7. Apply for Visas
Depending on your chosen jurisdiction, your business can be eligible for Visas for you as the investor, as well as your employees and their families (dependents).
While investor visas are generally available for all companies right away, employee visas require companies to be registered with immigration/labor authorities. Moreover, there are often limits that depend on having adequate office space (mainland) or falling within free zone quotas.
The general process for visa applications is similar:
- Emerhub submits the visa application and supporting documents via verified government portals on your behalf.
- Once a visa is approved, Emerhub schedules your medical examination. Generally, appointments are up to 2 days in advance.
- Once completed, Emerhub then applies for your Emirates ID. This stage could require you to visit a verified center for biometric verification.
- After submission, Emirates IDs are issued within 2-4 working days.
For an employee visa, the process has two additional steps that happen before the aforementioned steps. The company needs to procure a Labor Card from the Ministry of Human Resources and Emiratisation (MoHRE).
After that, Emerhub submits your employee’s job description, as well as your tenancy agreement to get approval for the Visa. You will need to make a bank deposit of AED 3,000 to the ministry as well against each Visa issued for employees.
To get visas for your dependents, the process is relatively simple.
The sponsor must meet the minimum salary threshold of AED 4,000 or AED 3,000 plus accommodation, and all visa holders need to go through a medical examination.
Partner with Emerhub to Start Your Business in Dubai and the UAE
Starting a business in a new country like the UAE can seem overwhelming, especially with unfamiliar documentation and government procedures. Which is why, you need a reliable partner to help you navigate the complexities.
Emerhub has successfully guided thousands of foreign entrepreneurs worldwide through setting up businesses in emerging markets. Our advisors in the UAE understand the specific challenges you face and provide practical support to overcome them.
Fill out the form below to connect with our company formation experts in the UAE.
FAQs on Setting Up a Business in Dubai, UAE
The total cost for company setup in Dubai varies significantly based on several factors. Key elements influencing the cost include your chosen business activity, the type of license (commercial, professional, etc.), the jurisdiction (mainland vs. specific free zone), your office requirements (physical office vs. virtual), and the number of visas needed.
Generally, you should budget for government registration fees, license fees, office setup/rental costs, potential external approval fees, visa processing costs, and professional service fees if using an agent. While free zones can sometimes offer lower initial setup packages, mainland setup provides broader market access.
Emerhub provides transparent, tailored cost estimates based on your specific business setup requirements in Dubai or other Emirates.
Yes, foreigners can own 100% of their business in Dubai in most cases depending on their business activity and choice of jurisdiction. For UAE Free Zone companies, 100% foreign ownership has long been the standard.
For UAE Mainland companies, regulations have updated significantly, now allowing 100% foreign ownership for a wide range of commercial and industrial activities (over 1,000 activities previously required a local Emirati partner).
However, some strategic sectors might still have restrictions, and professional service licenses often require appointing a Local Service Agent (LSA), who doesn’t hold shares but provides specific services for a fee.
We help you determine the optimal ownership structure based on your chosen activity and jurisdiction.
Registering your company in Dubai generally follows these key steps, though specifics vary by jurisdiction:
- Define your business activities and check for any pre-approvals needed.
- Choose the appropriate jurisdiction (Mainland or a specific Free Zone).
- Select and get approval for your company trade name.
- Prepare and submit required documents (shareholder info, application forms, potentially business plan). Secure necessary office arrangements (like Ejari).
- Obtain initial approval and any required external regulatory approvals.
- Pay fees and receive your final business license.
- Open a corporate bank account.
- Apply for residence visas for owners and employees.
Emerhub guides you through each step of the Dubai business setup process.
While the exact list depends on your specific setup (activity, jurisdiction, shareholders), you will typically need to provide at least:
- Completed registration application form.
- Clear passport copies for all shareholders and managers.
- Proof of residential address for individual shareholders/managers.
- Proposed company trade names.
- Details of the business activities.
Additional documents often required include attested parent company documents (if a corporate shareholder), No Objection Certificates (if individuals hold current UAE visas), a detailed business plan (especially for certain free zones or activities), and proof of office address (Ejari). Documents from outside the UAE usually need attestation and potentially Arabic translation.
If all documents are in order, the time needed to start your business in Dubai is typically 4-6 working days.
However, the overall timeline from start to finish depends heavily on factors like: securing any necessary external approvals for specific activities (which can take weeks or months), document attestation times (if needed), name approval, finding office space, and crucially, the time required for opening the corporate bank account (which often takes several weeks post-licensing).
It is often realistic to Plan for one to three months for the entire end-to-end process (including banking and visas).
Emerhub helps expedite the process by managing each stage efficiently.
For most business activities, no, you likely do not need a local Emirati sponsor (partner holding 51% shares) anymore.
- Mainland: 100% foreign ownership is now permitted for the majority of commercial and industrial licenses.
- Free Zones: Have generally always offered 100% foreign ownership.
However, for Mainland Professional Licenses (e.g., consultancies, clinics, law firms), you typically still need to appoint a UAE national as a Local Service Agent (LSA).
The LSA does not hold shares in your company but acts as a representative for certain governmental procedures for an annual fee.
