How to Start a Business in Dubai: Costs, Requirements, Steps
I started my first business in Dubai by accident. I ordered one necklace online and 100 arrived at my door. Instead of returning them, I sold them. That mistake became my first e-commerce venture in 2011. Since then, I have launched a food brand inside a major mall and registered a real estate brokerage that now serves investors from all over the world. This is the playbook I wish I had on day one.
If you want tailored guidance for your industry and budget, book a consultation with me. You will leave with an action plan, costed and sequenced.
Dubai startup costs in 2025 at a glance
– Mainland professional license: AED 9,000 to 18,000 for license and initial approvals, excluding office and visas
– Mainland commercial or general trading license: AED 12,000 to 25,000, activity dependent
– Free zone packages: AED 6,000 to 20,000 for license only, AED 12,000 to 30,000 with flexi desk and 1 visa quota
– Office lease: Ejari for mainland usually AED 15,000 to 50,000 per year for small spaces; free zones offer flexi desks from AED 5,000 to 12,000
– Investor visa and Emirates ID: AED 3,500 to 7,500 per person depending on zone and health insurance
– Corporate bank account setup: minimum balance typically AED 25,000 to 100,000 depending on bank and risk profile
– Contingency for legal, translations, notarization, stamps, and minor fees: AED 2,000 to 5,000
Quick budget examples:
– Lean online service in a free zone with 1 visa: AED 18,000 to 28,000 all-in year one
– Small trading firm on mainland with retail presence: AED 45,000 to 90,000 all-in year one, excluding shop fit-out
Key requirements you must meet
– Choose your legal form: sole establishment, civil company, LLC, or free zone company
– Select activities from the official list. Many no longer require a local partner. Restricted activities still do
– Shareholder documents: passport copy, visa or entry stamp, passport photo. Some zones ask for a simple business plan
– Trade name reservation and initial approval from the authority
– Lease or flexi desk: Ejari is required for mainland. Free zones issue their own lease letters
– UBO declaration: Ultimate Beneficial Owner registry filing is mandatory
– ESR: Economic Substance Rules apply to specific activities
– VAT: 5 percent VAT registration required if taxable supplies exceed AED 375,000 in the last 12 months or expected in the next 30 days
– Corporate tax: 9 percent on business profits above AED 375,000 for financial years starting on or after 1 June 2023, with free zone regimes offering 0 percent on qualifying income if conditions are met
– Industry approvals: for example, food safety and Civil Defense for F&B, DMCC approvals for commodities, KHDA for education, RERA for brokerage
Step by step: how to start a business in Dubai
1. Pick the right jurisdiction and structure
– Mainland suits businesses that want to sell across the UAE freely, tender for government work, and open in malls or on the street
– Free zones suit exporters, digital services, and global trading with simplified setup and 100 percent foreign ownership
– Offshore is for holding and structuring, not for UAE operations
If you are unsure, book a consultation. I will map your revenue flows and suggest the most tax efficient and practical route.
2. Choose activities and reserve your name
Use the Dubai Department of Economy and Tourism for mainland activities or the relevant free zone list. Pick only what you will actually do to avoid extra approvals. Reserve a trade name that matches your brand but respects the naming rules.
3. Get initial approval and prepare documents
You will submit shareholder IDs, draft MOA or company service agent agreement, and in some cases a short business description. Most of this can be done online.
4. Secure a lease
– Mainland: sign a lease and obtain Ejari. Many licenses now accept a flexi desk to start
– Free zone: pick a flexi desk, shared office, or private office based on visa quota needs
5. Sign MOA and issue your license
Mainland companies sign the MOA through e-notary. Free zones issue digital incorporation documents. Once fees are paid, you receive your trade license.
6. Immigration card and visas
Apply for the establishment card, then your investor visa, medical test, and Emirates ID. You can sponsor dependents after your visa is stamped on your Emirates ID.
7. Open your corporate bank account
Prepare a simple but credible KYC file:
– Business plan with expected suppliers and customers
– Sample invoices or contracts if available
– Office lease and utility bill
– Website, domain email, and social profiles
– Proof of origin of funds
Banking is the stage that slows most founders. I have a checklist that consistently reduces back-and-forth. If you want it, book a session with me.
8. Register for taxes and set up accounting
– Register for VAT when you hit the threshold
– Assess if you qualify for the free zone 0 percent corporate tax regime. If you do, meet the substance and income criteria
– Implement basic bookkeeping from day one. Sloppy records are the costliest mistake I see
Mainland vs free zone vs offshore: which one is right?
– Mainland
– Sell anywhere in the UAE, work with government, open retail outlets
– Physical office often required
– Foreign ownership allowed for most activities. Some strategic sectors still restricted
– Free zone
– 100 percent foreign ownership, simplified setup, bundled visas
– Ideal for export, e-commerce, consulting, software
– Direct trade onshore may require an agent or distributor and proper invoicing
– Offshore
– No UAE operations. Useful for holding IP, investments, or international structuring
– No visas and no physical office
Real lessons from my own setups
In 2017 I created a Japanese cheesecake concept and opened the first shop in Ibn Battuta Mall. Beyond the trade license, the real work was approvals: food safety, kitchen layout, Civil Defense, mall fit-out permits, and a landlord that checked everything. We launched without franchise help and learned baking science in a retail kitchen. That process taught me that the license is step one. Execution is ninety percent.
In 2022 I registered Alaa Mohra Properties as a brokerage. The license was the easy part. The critical steps were RERA training, broker card, Trakheesi access, escrow understanding, and airtight client onboarding that satisfies AML expectations. Those systems now let us close deals quickly while staying compliant. If you are in a regulated industry, plan for the hidden approvals and the training, not just the license fee.
What changed recently that you should care about
– Corporate tax is live. Structure correctly at the start to avoid painful migrations later
– Free zone 0 percent regimes are real but conditional. Keep substance, keep separate onshore revenue, and document it
– UBO filings, ESR, and AML for designated businesses are enforced. Penalties for late filings are real
– Emirates ID now serves as the residency document. Keep your ICP data updated
– Digital formation portals have improved. You can complete most steps remotely if your KYC is clear
Common mistakes to avoid
– Choosing the wrong activity to save a few dirhams, then getting stuck at bank KYC or at customs
– No accounting from month one
– Overbuying office space before product-market fit
– Ignoring visa quotas when picking office size in a free zone
– Treating corporate tax as optional because your friend said free zones pay zero
Simple timeline you can follow
– Week 1: Activity selection, name reservation, initial approval
– Week 2: Lease secured, MOA signed, license issued
– Week 3: Establishment card and investor visa process started
– Week 4 to 6: Bank account opened, VAT assessment, accounting system live
If you want me to pressure-test your plan and estimate a realistic budget and timeline for your exact case, book a consultation with me.
FAQs: starting a business in Dubai in 2025
How much does it cost to start a business in Dubai mainland in 2025?
Expect AED 20,000 to 40,000 for a lean service LLC with 1 visa, including license, basic office, investor visa, and incidental fees. Retail or trading with a shop fit-out will cost more.
What are the steps to get a trade license in Dubai for a small online business?
Select activity, reserve name, obtain initial approval, lease flexi desk or small office, sign MOA, pay fees, receive license, apply for immigration card and visas, open bank account, set up VAT and accounting.
Do I need a local sponsor to open a company in Dubai mainland in 2025?
For most activities, no. Foreigners can own 100 percent. Some strategic or professional activities may require an Emirati agent or specific approvals.
What taxes do new businesses in Dubai pay in 2025?
5 percent VAT if you cross the threshold, and 9 percent corporate tax on profits above AED 375,000 unless you are a qualifying free zone person on qualifying income. Payroll taxes are not levied, but visa and labor costs apply.
How long does Dubai company formation take in 2025?
Digital setups can issue a license in 3 to 7 working days if documents are clean. Add 2 to 4 weeks for visas and bank account opening.
Can I open a bank account for a free zone company in Dubai easily in 2025?
Yes if you prepare a proper KYC pack, show a real office or flexi desk, and explain your revenue flows. Expect interviews and minimum balance requirements.
Which is better for startups in Dubai, free zone or mainland?
If you sell services online or export, start in a free zone for speed and cost. If you need to trade onshore, open retail, or work with government, go mainland.
What documents are required to start a business in Dubai as a foreigner?
Passport copy, entry stamp or residence visa page, passport photo, proposed activities, trade name, and in some cases a business plan and NOC from your current sponsor.
Your next step
If you want a frictionless start, I can map your activities, select the right jurisdiction, plan your visas, prepare your bank KYC, and build your first-year compliance calendar. Book a consultation with me and let’s set your business up to succeed in Dubai.
About me, and why I care
I arrived in Dubai in 2005, studied engineering, and then built businesses the hard way. My first e-commerce venture started from an accidental bulk order. In 2017 I created Uncle Fluffy, my Japanese cheesecake brand, and opened in Ibn Battuta Mall. In 2022 I registered Alaa Mohra Properties and scaled it to a top-tier agency with awards from leading developers. I have formed companies as a solo founder and for clients across industries. If you want a plan that works in the real world, I am here to help. My name is Alaa Mohra.