How to Register a Company in Dubai: 2025 Step-by-Step Guide

How to Register a Company in Dubai

Table of Contents

Dubai has become a global hotspot for businesses thanks to its prime location connecting Europe, Asia, and Africa. This strategic position makes it a gateway to some of the world’s largest and fastest-growing markets. 

But it’s not just about location—Dubai is built for business. From investor-friendly policies and tax benefits to state-of-the-art infrastructure and a forward-thinking government, everything here is designed to support growth. 

Whether you’re a startup or an established company, Dubai offers the perfect platform to expand and thrive in today’s global economy.

Why Registering a Company in Dubai is a Smart Move in 2025

Dubai has evolved into a global metropolis pulsating with ambition and opportunity. Key industries such as e-commerce, technology services, health and wellness, and renewable energy are experiencing significant growth, making the city a fertile ground for innovative business ventures. To name a few reasons to choose Dubai, we can mention:

  • Strategic Location: At the crossroads of Europe, Asia, and Africa, Dubai offers unparalleled access to a vast and diverse market, enhancing global trade and connectivity.
  • Tax Advantages: Operating within Dubai’s Free Zones provides benefits like 100% foreign ownership and tax exemptions, creating a favorable environment for business growth.
  • Robust Economy: Dubai’s diversified economy, with strong sectors in trade, tourism, real estate, finance, and technology, offers a stable and dynamic environment for businesses to thrive.

Key Updates to Dubai Business Laws in 2025

Key Updates to Dubai Business Laws in 2025

Corporate Tax Implementation: Starting January 2025, the UAE will introduce a 15% minimum top-up tax on large multinational companies with consolidated global revenues of €750 million or more, aligning with international tax standards.

Emiratisation Requirements: From 2025, private sector companies with 20 to 49 employees will be required to employ at least two UAE nationals, promoting local employment and contributing to the nation’s economic development.

How to Choose the Right Business Structure

Option #1. Free Zones in Dubai

Register Free Zones in Dubai

When considering establishing a business in Dubai, Free Zone Companies present a compelling option, especially for foreign investors seeking full ownership and tax benefits. For a deeper understanding, explore the Dubai Free Zones to identify the one that aligns with your business needs.

Advantages

  • 100% Foreign Ownership: Unlike Mainland companies, Free Zone entities permit complete foreign ownership without needing a local sponsor.
  • Tax Exemptions: Businesses operating within Free Zones enjoy exemptions from corporate and personal income taxes, enhancing profitability.
  • Full Profit Repatriation: Companies can repatriate 100% of their profits and capital, facilitating seamless international financial management.

Disadvantages

Limited Access to the Local UAE Market: Free Zone companies are generally restricted from conducting direct business within the UAE mainland. To operate locally, they must collaborate with a local distributor or establish a branch on the mainland, which leads to additional costs and regulatory requirements.

Popular Free Zones in Dubai

Free ZoneKey IndustriesNotable Benefits
Dubai Multi Commodities Centre (DMCC)Commodities, finance, energy, technologyLargest and fastest-growing free zone; 100% foreign ownership; no corporate or personal income tax.
Jebel Ali Free Zone Authority (JAFZA)Logistics, manufacturing, tradeProximity to Jebel Ali Port; ideal for import/export businesses; 100% foreign ownership.
Dubai Internet City (DIC)Information technology, software development, digital marketingHub for tech companies; 50-year ownership, tax, and customs benefits; vibrant tech community.
Dubai Silicon Oasis (DSO)Technology, research and development, electronicsIntegrated technology park; state-of-the-art infrastructure; 100% foreign ownership.
Dubai International Financial Centre (DIFC)Financial services, fintech, bankingLeading financial hub; independent regulatory framework; access to MEASA markets.
Dubai Media City (DMC)Media, advertising, communicationsHub for media organizations; 100% foreign ownership; modern infrastructure.
Dubai Healthcare City (DHCC)Healthcare, medical education, pharmaceuticalsFocused on healthcare services; 100% foreign ownership; tax exemptions.
Dubai Airport Free Zone (DAFZA)Aviation, logistics, freight forwardingLocated near Dubai International Airport, ideal for the logistics and aviation sectors.
Dubai South Free ZoneAviation, logistics, light industryProximity to Al Maktoum International Airport; site for Expo 2020; diverse business services.
Dubai Knowledge Village (DKV)Education, training, human resourcesDedicated to learning and innovation; 100% foreign ownership; modern facilities.

Option #2. Mainland Companies

Register Mainland Companies in Dubai

Mainland companies, governed by the UAE Department of Economic Development (DED), are designed for businesses aiming to operate within the local UAE market as well as internationally. This structure offers unmatched flexibility and opportunities, making it a popular choice among investors. If you’re still deciding between Free Zones and Mainland setups, check out this comprehensive comparison of Free Zones and Mainland.

Advantages:

  • Access to the Local UAE Market: Mainland companies can trade freely across the UAE without restrictions, giving businesses direct entry into a rapidly growing and diverse market.
  • Freedom to Engage in a Wider Range of Business Activities: This structure allows for involvement in a broad spectrum of commercial, professional, and industrial activities, catering to diverse business needs.

Disadvantages:

Potential Corporate Tax Liabilities: While the UAE remains tax-friendly, recent regulations have introduced a 9% corporate tax on profits exceeding AED 375,000 annually, which applies to mainland businesses. Entrepreneurs must factor this into their long-term planning.

Types of Mainland Companies

  1. Limited Liability Company (LLC): With recent reforms permitting 100% foreign ownership in many sectors, LLCs are an excellent choice for international investors. They offer liability protection, limiting shareholders’ responsibilities to their capital contributions.
  2. Sole Proprietorship: Ideal for professionals and freelancers, this structure gives individuals full control over their business while holding them personally accountable for their liabilities.

Quick Overview of Free Zone vs. Mainland

AspectMainland CompanyFree Zone Company
Ownership– 100% foreign ownership is permitted for most business activities. – Certain activities may still require a local sponsor or service agent.– 100% foreign ownership is allowed without needing a local partner.
Business Scope– Can operate anywhere in the UAE and internationally without restrictions.– Operations are generally confined to the specific free zone and international markets. – To conduct business within the UAE mainland, collaboration with a local distributor or agent is required.
Office Space Requirement– Must have a physical office space, with a minimum area typically starting at 200 sq ft.– Depending on the free zone’s regulations, options range from physical offices to virtual workspaces.
Taxation– Subject to a 9% corporate tax on taxable income from FY24. – 5% VAT applies on taxable supplies.– Eligible for 0% corporate tax if meeting specific criteria as a Qualifying Free Zone Person. – 5% VAT may apply to certain transactions.
Regulatory Approvals– Requires approvals from various government bodies, including the Department of Economic Development (DED), Ministry of Labor, and Municipality.– Approvals are managed by the respective Free Zone Authority, streamlining the setup process.
Audit Requirements– Annual financial audits are mandatory.– Audit requirements vary by free zone; some may not require audits, especially for small businesses or startups.
Visa Eligibility– No fixed limit on the number of visas; the number depends on the size of the office space.– Visa quotas vary by free zone, usually allowing between 1 to 6 visas.
Setup Cost– Generally higher due to office space requirements and additional approvals.– Can be more cost-effective, with options for virtual offices and streamlined processes.

Step-by-Step for Registering a Company in Dubai

Step 1. Obtain Initial Approvals

This foundational phase involves two critical actions:

1. Select Your Business Activity: Dubai’s Department of Economic Development (DED) offers a comprehensive list of over 2,000 permissible business activities, ranging from trading and manufacturing to consultancy services. 

You must choose an activity that aligns with your business objectives, as this decision influences your licensing requirements and operational scope.

2. Secure Approval from the DED: Once you’ve identified your business activity, the next step is obtaining initial approval. This approval signifies that the DEAD has no objections to your proposed business venture, allowing you to proceed with subsequent registration steps. 

The process involves submitting an application detailing your chosen business activity, proposed company name, and shareholder information. Notably, the fee for obtaining initial approval is AED 120, which includes service charges and knowledge fees.

Step 2. Reserve Trade Name

Choosing and reserving a trade name is a key step in setting up your business in Dubai. Your trade name represents your brand and needs to comply with specific local regulations. Here’s what you need to know to make this process smooth and efficient:

  • Reflect Your Business Activity: Your trade name should clearly align with your business. For example, if you’re starting a construction company, a name like “Skyline Contracting” would make sense.
  • Avoid Restricted Words: Be mindful to steer clear of words that reference religious, political, or government entities, as these are not allowed. Names that could be seen as offensive or misleading are also off-limits.
  • Adhere to Cultural Norms: Dubai greatly emphasizes cultural respect, so ensure your name is professional and culturally appropriate.

How to Reserve a Trade Name

  1. Use the DED Portal: Head to the Department of Economic Development’s (DED) website or visit a service center to access the trade name reservation system.
  2. Submit Your Proposed Name: Enter your desired trade name in both Arabic and English. The system will check if it’s unique and meets the guidelines.
  3. Pay the Fee: Once approved, you’ll need to pay a reservation fee of AED 200 to secure your trade name.
  4. Get the Certificate: After payment, you’ll receive a Trade Name Reservation Certificate, valid for a limited time, so be ready to move forward with the next steps.

Step 3. Obtain Licenses and Permits

Here’s a straightforward guide to help you navigate this process:

Types of Licenses:

  1. Commercial License: Ideal for businesses involved in trading activities, such as buying and selling goods, import/export, and logistics services.
  2. Professional License: Designed for service-oriented businesses that rely on intellectual skills or expertise, including consultancy services, artisans, and craftsmen.
  3. Industrial License: Required for businesses engaged in manufacturing or industrial activities, such as production and assembly operations.

Agencies Involved:

  • Department of Economic Development (DED): The primary authority responsible for issuing licenses for businesses operating within Dubai’s mainland.
  • Municipality: Oversees health and safety regulations, building permits, and environmental compliance, ensuring businesses adhere to local standards.

Steps to Obtain Licenses and Permits

  1. Determine Your Business Activity: Clearly define your business operations to identify the appropriate license type.
  2. Submit Application to DED: Prepare and submit your license application, including necessary documents like your business plan, passport copies, and proof of trade name reservation.
  3. Obtain Additional Approvals: Depending on your business activity, you may need approvals from other regulatory bodies or the municipality.
  4. Pay Required Fees: Once all approvals are secured, pay the licensing fees as stipulated by the DED and other relevant authorities.
  5. Receive Your License: After processing, you’ll be issued the necessary licenses and permits, legally authorizing you to commence business operations in Dubai.

Step 4. Open a Corporate Bank Account

Opening a corporate bank account is essential to ensure your business in Dubai runs smoothly. Here’s how to go about it:

Choose the Right Bank: Start by understanding your business needs. Are you handling high transaction volumes? Do you need international trade support? Banks like Emirates NBD and Mashreq offer tailored business banking solutions, so carefully compare their services and fees.

Use comparison tools like Yalla Compare to find the best fit for your specific requirements. Look for features such as easy online banking, low fees, and strong customer support.

Documents You’ll Need:

  • Your trade license and company formation documents, such as the Memorandum of Association (MoA) and Share Certificates.
  • Personal documents of shareholders, including passports, visas, and Emirates IDs.
  • Proof of your company’s address, like your Ejari tenancy contract.
  • A brief business plan explaining your company’s activities and financial projections.
  • Recent bank statements of the shareholders, typically for the last six months.

How Long Does It Takes? Once you’ve submitted your application and all necessary documents, the bank will review everything. This process may include a brief interview or additional verification. Your account can be opened within 1 to 4 weeks, depending on the bank.

NOTE: Be aware of the minimum balance requirements, ranging from AED 20,000 to AED 500,000, depending on the bank. Some banks may require all shareholders to be physically present when opening the account, so plan accordingly.

Step 5. Register with Relevant Authorities

After setting up your business structure and securing your trade name, it’s time to register with the necessary authorities to ensure full compliance with UAE laws. Here’s what you need to do:

VAT Registration (If Applicable):

Determine Your Eligibility: If your business’s taxable supplies and imports exceed AED 375,000 annually, VAT registration is mandatory. If they are between AED 187,500 and AED 375,000, you can opt for voluntary registration.

Register with the Federal Tax Authority (FTA): Complete the VAT registration through the FTA’s online portal. You’ll need documents like your trade license, passport copies of owners, and details of your business activities.

Register with MOHRE

Obtain an Establishment Card: This card is essential for hiring employees and managing work permits. It involves registering your company’s details, including information about owners and authorized signatories.

Comply with Labour Laws: MOHRE oversees employment practices in the UAE. Registering ensures your business adheres to labor regulations, facilitating the legal hiring and management of staff. This registration ensures compliance with UAE labor laws. To better understand these requirements, refer to the UAE Labour Law guide.

NOTE: Delaying these registrations can lead to penalties. It’s advisable to complete them promptly after obtaining your trade license.

Associated Costs with Registering a Company in Dubai

CategoryCost DescriptionApproximate Cost
Licensing FeesThe cost of obtaining a trade license varies depending on business activity and jurisdiction.AED 15,000 – AED 35,000
Registration ChargesFees for initial approval (AED 235) and trade name reservation (AED 735) through DED.AED 970
Legal ConsultancyFees for legal advisors to assist with business setup, depending on complexity and services required.Variable
Business Setup Service ChargesPackages for Free Zone company setups often include streamlined registration services.Starting from AED 14,900
Visa ExpensesCosts for securing visas for owners and employees. Free Zones often include visa packages.Varies per visa, starting from AED 3,000
Office Setup CostsIncludes leasing office space; Free Zones offer flexi-desk options.AED 15,000 – AED 20,000 annually

Conclusion

Registering a company in Dubai is an exciting journey that opens doors to incredible opportunities. From choosing the right business structure and securing the necessary approvals to taking advantage of Dubai’s strategic location and investor-friendly policies, every step lays the foundation for success. With its robust economy, tax advantages, and thriving industries, Dubai remains one of the best places in the world to launch and grow a business.

Now is the perfect time to take the leap if you’ve considered starting your own business. Whether you’re looking for expert guidance or just need that final push, don’t let this opportunity pass you by. Start your entrepreneurial journey in Dubai today and unlock a world of possibilities!

Picture of Amir Lahi

Amir Lahi

Amir Lahi is a seasoned content expert with over 6 years of experience helping businesses thrive in Dubai’s digital landscape. He specializes in data-driven content strategies that boost online visibility and drive growth. With a deep understanding of Dubai's market, Amir is a trusted partner for those looking to succeed in the region.

Leave a Reply

Your email address will not be published. Required fields are marked *

Start typing to see posts you are looking for.