With the UAE’s GDP projected to grow by 6.2% in 2025 and initiatives like the Dubai Economic Agenda (D33) aiming to double the city’s economy by 2033, there’s no better time to set up a company in Dubai. Whether you’re a startup founder, freelancer, solopreneur, or an investor expanding into the Middle East, Dubai offers unparalleled opportunities.
At Express Business Formation, we specialize in consulting businesses through the company formation process in Dubai, ensuring a seamless and cost-effective setup. This comprehensive guide covers every step, from choosing a business structure to obtaining licenses, costs, benefits, and expert tips. You’ll be ready to launch your business confidently in Dubai by the end of the year.
Get Our Services to Set Up a Company in Dubai
Why Set Up a Company in Dubai in 2025?
Dubai’s appeal as a business destination is unmatched. Here are the key reasons entrepreneurs are flocking to the city:
- Strategic Location: Dubai is a hub for global trade due to its prime location and world-class ports and airports, like Jebel Ali Port and Dubai International Airport. Dubai connects Asia, Europe, and Africa, offering access to over 2 billion consumers.
- Tax Advantages: Enjoy a 9% corporate tax rate for taxable income above AED 375,000 (~USD 102,000), with zero tax in free zones for qualifying businesses. No personal income tax exists, and 120+ double taxation treaties prevent double taxation.
- 100% Foreign Ownership: Most sectors allow full foreign ownership, eliminating the need for a local sponsor in free zones and many mainland activities.
- Robust Economy: Dubai’s non-oil sectors drive growth, with e-commerce, technology, and digital economies projected to contribute significantly to GDP by 2031.
- Business-Friendly Policies: Streamlined processes like the Basher online service allow company setup in as little as 15 minutes.
- World-Class Infrastructure: Dubai has the world’s most modern infrastructure. It has modern roads, a telecommunication system, and Freezone sectors tailored to tech, media, and finance businesses.
- Diverse Workforce: With expats from over 200 nationalities, Dubai offers a skilled, multilingual talent pool.
Step-by-Step Guide to Setting Up a Company in Dubai in 2025
Business setup in Dubai is effortless and straightforward if you follow the correct legal process. Below are the eight steps to set up a company in Dubai in 2025.
1. Determine Your Business Activity
The first step is identifying your business activity, which dictates your license type and jurisdiction. Dubai’s Department of Economic Development (DED) lists over 2,000 approved activities, including trading, consulting, e-commerce, and manufacturing.
- Examples: Food trading, legal consulting, or tech development may require specific approvals from relevant authorities.
- Tip: Contact Express Business Formation for help aligning your activity with DED or free zone requirements.
2. Choose Your Jurisdiction: Mainland, Free Zone, or Offshore
Dubai offers three jurisdictions, each with unique benefits:
- Mainland:
- Operate anywhere in the UAE and bid for government contracts.
- 100% foreign ownership in most sectors, though some strategic industries (e.g., oil) require an Emirati partner.
- Requires a physical office (minimum 200 sq. ft.).
- Free Zone:
- 100% foreign ownership, zero corporate tax (for qualifying income), and full profit repatriation.
- Ideal for industries like tech (Dubai Internet City), media (Dubai Media City), or commodities (DMCC).
- Cannot trade directly in the UAE mainland without a local distributor.
- Offshore:
- Suited for international trade or asset protection, not local UAE operations.
- No visas or physical office is required, but no trade license was issued.
Express Business Formation’s Expertise: We analyze your business goals to recommend the best jurisdiction, whether it’s DMCC’s industry-specific ecosystems or mainland flexibility.
3. Select a Legal Structure
Your legal structure impacts liability, ownership, and costs. Common options include:
- Limited Liability Company (LLC):
- 2–50 shareholders, with liability limited to their investment.
- It is ideal for businesses with multiple owners and no banking or insurance activities.
- Sole Proprietorship:
- Single owner with complete control, suitable for small businesses.
- Low setup costs but an unlimited liability.
- Civil Company:
- For service-oriented businesses (e.g., consulting, legal services).
- It allows 100% foreign ownership in most cases except in sectors like engineering, which require a local partner.
- Branch of a Foreign Company:
- 100% foreign-owned, with no minimum capital and simple regulations.
- Perfect for multinationals expanding into Dubai.
- Free Zone Establishment (FZE) or Free Zone Company (FZC):
- FZE for single shareholders; FZC for up to 5 shareholders.
- Governed by free zone laws, offering tax exemptions.
Pro Tip: At Express Business Formation, our consultants ensure that your company structure aligns with your long-term goals and help you minimize the overall cost of company registration in Dubai.
4. Choose and Register a Trade Name
You must reserve a unique trade name for your business that complies with Dubai’s naming conventions.
- Avoid offensive, religious, or political terms (e.g., FBI, Emirates).
- Include the legal structure as a suffix (e.g., Express Business Formation LLC).
- Register online via the DED website, smart apps, or free zone portals.
Express Business Formation handles name approval, ensuring compliance and uniqueness to avoid delays.
5. Obtain Initial Approval
Submit your application to the DED (for the mainland) or free zone authority. Required documents include:
- Passport copies of shareholders and managers.
- Proposed trade name and business activity.
- Business plan (if required).
The authority reviews compliance with local laws and issues an initial approval certificate valid for 6 months. This allows you to proceed further but doesn’t permit trading yet.
6. Secure Office Space and Tenancy Contract
All businesses require a registered address:
- Mainland: Lease a physical office (minimum 200 sq. ft.) and register the tenancy contract via Dubai’s Ejari portal.
- Free Zone: Options include co-working spaces, serviced offices, or warehouses, depending on the free zone.
- Offshore: No physical office is required.
Express Business Formation partners with top free zones, such as DMCC and IFZA, to secure cost-effective office solutions tailored to your needs.
7. Submit Documents and Obtain Your Trade License
Finalize your setup by submitting the following:
- Initial approval certificate.
- Memorandum of Association (MOA) for LLCs or civil companies.
- Attested lease contract (Ejari for mainland).
- Additional approvals are required for specific activities (e.g., food trading and legal consulting).
Pay the license fee (which varies by jurisdiction and activity) to receive your trade license. Depending on approvals, the process takes 4–10 days for free zones and 1–3 weeks for the mainland.
8. Open a Corporate Bank Account and Apply for Visas
Open a corporate bank account with banks like Emirates NBD or Mashreq. Required documents include:
- Trade license.
- Shareholder passport copies.
- MOA and lease contract.
Owners and employees can apply for residence visas through the General Directorate of Residency and Foreigners Affairs (GDRFA). Free zones like DMCC offer visa packages, while mainland companies have no visa limits.
Costs of Setting Up a Company in Dubai in 2025
Costs vary based on jurisdiction, business activity, and visa requirements. Here’s a breakdown:
- Mainland:
- License fees: AED 10,000–30,000 (~USD 2,700–8,200).
- Office lease: AED 20,000–100,000/year (~USD 5,500–27,200).
- Visa costs: AED 3,000–5,000/visa (~USD 800–1,360).
- Total (first year): AED 33,000–135,000 (~USD 9,000–36,700).
- Free Zone:
- License fees: AED 12,500–50,000 (~USD 3,400–13,600).
- Office space: AED 5,000–50,000/year (~USD 1,360–13,600).
- Visa costs: AED 3,000–5,000/visa.
- Total (first year): AED 14,900–100,000 (~USD 3,800–27,200).
- Offshore:
- Setup costs: AED 10,000–18,000 (~USD 2,700–4,900).
- No office or visa costs.
- Total: AED 10,000–18,000 (~USD 2,700–4,900).
Express Business Formation’s Cost-Saving Packages: We offer transparent, all-inclusive packages starting at AED 14,900, covering licenses, visas, and banking support.
Key Considerations for 2025
Tax Compliance
- Corporate Tax: 9% on taxable income above AED 375,000; free zone companies may qualify for 0% tax. Register with the Federal Tax Authority (FTA) within 3 months of licensing.
- VAT: 5% on goods and services if annual turnover exceeds AED 375,000. Exports and certain transactions are exempt.
- Tip: Express Business Formation’s tax consultants ensure compliance with FTA regulations, avoiding penalties.
Visa and Residency Options
- The UAE’s Golden Visa (10-year residency) is available for investors and entrepreneurs meeting specific criteria (e.g., AED 2M investment).
- Free zones like DMCC offer visa quotas based on office size, while mainland companies have no limits.
Industry-Specific Free Zones
Choose a free zone aligned with your industry for tailored support:
- DMCC: Commodities, tech, and crypto.
- Dubai Internet City: Technology and AI.
- IFZA: Cost-effective for startups and SMEs.
Digital Tools
Leverage platforms like Basher for online setup or the Dubai Unified Licence (DUL) for streamlined company information.
Case Study: How Express Business Formation Helped a Tech Startup Thrive in Dubai
Client: A UK-based tech startup seeking to expand into the Middle East.
Challenge: Navigating free zone regulations, securing visas, and minimizing setup costs.
Solution: Express Business Formation recommended IFZA Free Zone for its affordability and tech-friendly ecosystem. We:
- Secured a trade license and three visas within 7 days.
- Arranged a co-working space to reduce costs.
- Opened a corporate bank account with Emirates NBD.
- Provided VAT registration support.
Results:
- Setup completed in 10 days for AED 23,000 (~USD 6,300).
- 100% foreign ownership with zero corporate tax.
- Client launched regional operations, achieving 50% revenue growth in 6 months.
This case study highlights Express Business Formation’s ability to deliver fast, cost-effective solutions. Ready for your success story? Contact us today.
Common Challenges and How Express Business Formation Solves Them
- Complex Paperwork: We handle all documentation, from MOAs to Ejari registration.
- Choosing the Right Jurisdiction: Our experts analyze your business to recommend mainland, free zone, or offshore setups.
- Hidden Costs: Transparent pricing with no surprises.
- Regulatory Compliance: We ensure adherence to DED, FTA, and free zone rules.
FAQs About Setting Up a Company in Dubai in 2025
How long does it take to set up a company in Dubai?
With all documents ready, mainland setups take 1–3 weeks, free zones 4–10 days, and offshore setups 48 hours. External approvals may extend timelines.
How much does it cost to set up a company in Dubai?
Costs range from AED 10,000 (offshore) to AED 135,000 (mainland with office). Free zone setups start at AED 14,900.
Do I need a local sponsor to set up a company in Dubai?
No, 100% foreign ownership is allowed in free zones and most mainland sectors. Some strategic industries require an Emirati partner.
What are the benefits of free zones in Dubai?
Free zones offer 100% ownership, zero corporate tax (for qualifying income), and industry-specific infrastructure but limit mainland trading.
Can I set up a company in Dubai without living there?
Yes, you can incorporate remotely, but a registered office is required. Offshore setups don’t need a physical presence.
How can Express Business Formation help with company setup?
We provide end-to-end support, including business category selection, licensing, visa assistance, company bank account, and tax compliance services, ensuring a hassle-free process for our clients.
Summary: Why Choose Express Business Formation to Set Up Your Company in Dubai?
Dubai remains a top destination for business owners, entrepreneurs, and tech founders because it offers 0% tax and 100% foreign ownership. Setting up a company in Dubai requires careful planning, but with Express Business Formation’s expertise, the process is seamless, cost-effective, and tailored to your goals. We will handle every detail so you can fully focus on your business growth.
Don’t let complexity hold you back. Partner with Express Business Formation to launch your Dubai venture confidently. Contact us today for a free consultation and take the first step toward your entrepreneurial success in Dubai!
