If you've been thinking about launching a business in one of the world’s fastest-growing economies, Dubai should be at the top of your list. With its 0% personal income tax, strategic location, and pro-business policies, setting up a company in Dubai is more than just a smart move—it’s a game changer.
Whether you're an entrepreneur, a freelancer, or an investor looking to expand, here's everything you need to know about business setup in Dubai in 2025.
Why Choose Dubai to Start a Business?
Dubai is more than a luxury destination. It’s a global business hub that connects the East and the West. Here’s why it’s ideal for business:
Tax Benefits: 0% personal income tax and competitive corporate tax (9%)
Full Foreign Ownership: Available in most Free Zones and even for certain Mainland licenses
Business-Friendly Regulations: Quick licensing, minimal paperwork
Global Connectivity: Dubai International Airport is one of the busiest in the world
World-Class Infrastructure: From tech parks to free zones to futuristic smart cities
Types of Business Licenses in Dubai
When setting up your business, choosing the right license is key. Here are the main types:
Commercial License – For trading and retail businesses
Professional License – For services, consultancy, or freelancing
Industrial License – For manufacturing and production
Tourism License – For businesses in the travel and hospitality sector
Where to Start: Free Zone vs Mainland vs Offshore
Each jurisdiction offers unique benefits:
| Jurisdiction | Ideal For | Key Benefits |
|---|---|---|
| Free Zone | Startups, SMEs | 100% ownership, quick setup, no customs duties |
| Mainland | Local business, government contracts | No restrictions on business within UAE |
| Offshore | Holding companies, international trade | Tax optimization, asset protection |
Step-by-Step Guide to Business Setup in Dubai
Choose your business activity
Select your jurisdiction (Mainland / Freezone / Offshore)
Pick a trade name and get approval
Apply for initial approval and submit documents
Lease an office (or use Flexi-desk/Virtual office)
Get your trade license issued
Apply for residency visas (if needed)
Open a business bank account
Required Documents
copyright copies of all shareholders
Entry visa or UAE copyright copy (if applicable)
copyright-size photos
Business plan (for some activities)
Emirates ID (for UAE residents)
How Much Does It Cost?
The cost depends on your license type and location. Here's a rough estimate:
| License Type | Estimated Starting Cost (AED) |
|---|---|
| Free Zone Setup | 12,000 to 18,000 |
| Mainland Company | 15,000 to 30,000 |
| Offshore Company | 10,000 to 15,000 |
???? Note: Costs may include license fee, visa processing, office rent, and more.
Can Foreigners Start a Business in Dubai?
Absolutely. In fact, Dubai welcomes foreign investors. With many free zones offering 100% foreign ownership, and the mainland now allowing the same for most sectors, there has never been a better time to set up your business in Dubai.
Final Thoughts
Setting up a business in Dubai in 2025 is faster, easier, and more rewarding than ever before. Whether you're launching a side hustle or a full-scale operation, Dubai provides the tools, infrastructure, and audience to help you grow.
???? Thinking of starting your journey? Talk to a business setup expert at Vista Corporate Group today and explore custom packages tailored to your needs.