How to Set Up a Company in Dubai

Introduction

Set up a company in Dubai is one of the hottest discussion topics when arriving to Dubai. Dubai’s growth as a global business hub has made it a top choice for entrepreneurs and companies looking to expand into the Middle East, Africa, and Asia. With a stable economy, tax advantages, and a clear legal framework, setting up a company in Dubai offers an attractive entry point for businesses across various sectors.

However, choosing the right structure and understanding the procedural requirements is essential to ensure a smooth setup, avoid delays, and position your business for long-term success.

1. Choose the Right Jurisdiction: Mainland, Free Zone, or Offshore

Mainland:
Allows you to trade directly within the UAE market without restrictions and bid for government contracts. A local service agent or Emirati shareholder may be required depending on your business activity, but you gain maximum market access.

Free Zone:
Offers 100% foreign ownership, streamlined setup processes, and the ability to repatriate profits fully. Free Zones are ideal for companies focused on international trade, consultancy, or tech businesses not requiring direct onshore operations.

Offshore:
Best suited for holding structures, asset protection, and international trade, but offshore entities cannot operate within the UAE market directly or rent local office spaces.

2. Identify Your Business Activity

Dubai’s authorities maintain approved lists of business activities tied to each licensing authority. Choosing the correct activity ensures compliance, the correct licensing fee calculation, and the ability to secure appropriate visas for your team.

3. Decide on Your Company Structure

The appropriate structure will depend on your business goals, required licenses, and operational plans. Common structures include:

• Limited Liability Company (LLC): For commercial and trading activities in the mainland, typically with shared ownership between foreign investors and UAE nationals.
• Free Zone Establishment (FZE) / Free Zone Company (FZCO): For 100% foreign-owned operations within Free Zones.
• Branch Office: Allows foreign companies to operate under the parent entity’s name while conducting business in Dubai.
• Sole Establishment: For individuals providing professional services under their name

4. Reserve Your Trade Name When you Set Up a Company in Dubai

Choose a trade name that complies with UAE naming conventions, aligns with your activity, and is unique within your chosen jurisdiction.

5. Obtain Initial Approval

This step confirms there are no objections to your proposed business activity and trade name, allowing you to proceed with the setup process.

6. Secure Your Office Space When You Set Up a Company in Dubai

Depending on your jurisdiction, you may require:

• Physical office space (mainland and some Free Zones).
• Flexi-desk solutions for consultancy or service businesses.
• Warehouse space for trading and logistics companies.

Having the correct lease agreement in place is typically a prerequisite for license issuance.

7. Draft and Sign the Memorandum of Association (MOA)

For mainland companies, the MOA outlines ownership structures and operational guidelines, often notarized before a UAE public notary. Free Zone setups will require signing the incorporation documents provided by the Free Zone authority.

8. Submit Documents and Pay Fees

Submit the signed documents, lease agreement, initial approval, and other required paperwork to the relevant authority. Pay the applicable license fees, which will vary based on your jurisdiction, business activity, and office size.

9. Receive Your Trade License – Key Step Set Up a Company in Dubai

Once approved, your trade license will be issued, allowing you to legally commence your business activities.

10. Apply for Establishment Card and Visas

After obtaining the trade license, you will need to apply for:

• Establishment (Immigration) Card to sponsor employee and investor visas.
• Investor and Employee Visas for yourself and your team.
• Labour Card Registration for mainland companies.

Additional Considerations on Set Up a Company in Dubai

Opening a Bank Account:

Once your license is issued, you can open a corporate bank account in the UAE. Requirements vary by bank, and professional support can expedite this step.

VAT Registration:

If your business meets the UAE’s VAT threshold (currently AED 375,000 annually), registration with the Federal Tax Authority is mandatory.

Corporate Tax Registration:

As of June 2023, the UAE has introduced a 9% corporate tax on taxable business profits exceeding AED 375,000. All companies, including Free Zone entities not qualifying for exemptions, must register with the Federal Tax Authority, maintain proper accounting records, and file annual tax returns.

Ongoing Compliance when Set Up a Company in Dubai:

Businesses in Dubai must maintain up-to-date records, renew licenses annually, and comply with AML and ESR regulations where applicable.

Wrap up Thoughts on Set Up a Company in Dubai

Setting up a company in Dubai offers entrepreneurs and businesses a gateway to a dynamic, tax-efficient, and globally connected market. Whether you plan to operate locally, expand your international footprint, or establish a holding structure, Dubai’s clear legal frameworks and world-class infrastructure provide a strong foundation for your business.

However, ensuring you select the right jurisdiction, understand your licensing obligations, and comply with VAT and corporate tax requirements is crucial for a smooth setup and sustainable operations.

At Rubert & Partners, we guide clients through each stage of the setup process, from initial planning to operational launch, allowing you to focus on building your business while we handle the complexities of UAE regulations.

If you are considering starting your business in Dubai, now is the time to leverage its opportunities and position your business for long-term growth in the region.

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We hope this post will help you and remain available for any questions regarding this post of general application.

For more publications on Business in Dubai you may click on the following link that will guide you to information about doing business in Dubai and UAE and for specific topic videos with information about doing business in Dubai and UAE. For more information, feel free to explore all our publications, as well as video insights by Maria Rubert, our Managing Partner.

*The information on this page is not intended to be legal advice. This article is intended to provide an initial introduction to the key aspects of company set up in the UAE.