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Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
Nov 11, 2025
When it comes to doing business in the UAE, Dubai is often at the top of people's minds. Why? In this article, we will answer that question and also walk you through the steps to starting a business in one of the best places on the planet.
- Why start a business in Dubai?
- How to incorporate a company? Compare Mainland, Free Zones, and Offshore jurisdictions
- All business licenses available in Dubai
- How to start a business in Dubai – step-by-step guide
- Check-list: what documents you should have after your company is incorporated
- How much does it cost to start a business in Dubai?
- Common mistakes to avoid
- Some tips and tricks before starting a business in Dubai
- Business FAQ
Why start a business in Dubai?
The UAE has more than 40 jurisdictions, but why do businesses choose Dubai so often? There are a few reasons.
- Low to no taxesDubai offers a tax-free environment for natural persons and very friendly for businesses. Companies don't pay taxes on dividends, capital gains, or transactions between companies in the same group. The Corporate Tax rate is one of the lowest in the world (9%). In some cases, it can be 0%. The VAT rate is also low — 5%.1
- Strategic locationDubai is a bridge between the East and the West, connecting over 200 countries. It is placed in the middle of a market of over 2 billion people, all within a 4-hour flight. With its world-class infrastructure, like airports and ports, it's perfect for global trade.2
- Government supportThe UAE government helps business owners. They have a streamlined registration process, innovative hubs, and many funding opportunities. For example, the Dubai SME program helps startups and small businesses thrive.3
- Benefits for foreign investorsForeign investors can own 100% of their business in Free Zones and on Mainland. For example, in 2023 Dubai attracted around AED 39.26 billion (USD 10.7 billion) in foreign direct investment capital.4
- Legal complianceTo operate in Dubai, you need to follow UAE laws and International Financial Reporting Standards (IFRS). This gives you an edge when working within the country and abroad.5
While the rules seem pretty simple, following them can sometimes be a bit of a challenge. Choosing the right license, knowing when to file reports and how to fill them out, and figuring out what permits are required can be a headache for many business owners.
If you don't want to figure it out by yourself, we can help. Just drop us a line.😉
How to incorporate a company? Compare Mainland, Free Zones, and Offshore jurisdictions
- Businesses can operate across the UAE without restrictions.
- Best for: If you want to do business in the UAE market or internationally and have maximum operational freedom.
- Key feature: You'll need a local agent for some types of business.
- Jurisdictions with zero taxes for up to 50 years for businesses that meet the special criteria.
- Best for: Exporters, tech startups, and international businesses.
- Key feature: Limited to operating within the Free Zone or internationally.
- OffshoresOnly for businesses with an international focus.
- Best for: Companies that do not require a physical presence in the UAE. For companies focusing on international trade, tax savings, and asset protection.
- Key feature: You cannot do business in the UAE market.
All business licenses available in Dubai
- Commercial license: For trading and general business.
- Professional license: For service-oriented businesses such as design, law, development, etc.
- Industrial license: For manufacturing and industry.
- Tourism license: For travel agents, tour operators, and the hospitality industry.
Check-list: what documents you should have after your company is incorporated
Mandatory
✅ Business license;
✅ Memorandum of Association (MoA);
✅ Office lease agreement (yes, every entity registered in the UAE must have a valid business address in the UAE);
✅ Company stamp, not a document but you need it to issue official corporate documents
Optional/nice to have
✅ Establishment card (company registration at GDRDA (General Directorate of Residency and Foreigners Affairs) needed for the entity to have permission to issue residency visas);
✅ Owners’ residency visas (electronic since 2023) and Emirates IDs (not mandatory in Free Zones but requested by the banks later);
✅ E-signature card of the company’s official signatory
✅ Business license;
✅ Memorandum of Association (MoA);
✅ Office lease agreement (yes, every entity registered in the UAE must have a valid business address in the UAE);
✅ Company stamp, not a document but you need it to issue official corporate documents
Optional/nice to have
✅ Establishment card (company registration at GDRDA (General Directorate of Residency and Foreigners Affairs) needed for the entity to have permission to issue residency visas);
✅ Owners’ residency visas (electronic since 2023) and Emirates IDs (not mandatory in Free Zones but requested by the banks later);
✅ E-signature card of the company’s official signatory
How to start a business in Dubai – step-by-step guide
- Choose your business activity: In the UAE, there are tons of business activities to choose from. It depends on what kind of license you have and where you're located.
- You can't just throw all your business activities under one umbrella. Make sure they're all from the same industry. For example, social media management and marketing consulting go together, but social media management and photography do not.
- Select the jurisdiction: Mainland, Free Zone, or Offshore.
- Decide on business structure: LLC, branch office, or sole proprietorship.
- Reserve a trade name: Ensure it complies with UAE naming regulations.
- Get the initial approval: Submit your application to the Department of Economic Development (DED) or the relevant Free Zone authority.
- Prepare your documents: Draft Memorandum of Association (MOA) and other required documents.
- Lease an office: Choose a workspace suitable for your license type. This is crucial for setting up a business and getting a bank account.
- Apply for the license.
How much does it cost to start a business in Dubai?
Mainland
Free Zone
- Trade License: Approx. AED 15,000 — AED 25,000.
- Office: from AED 10,000.
Free Zone
- Trade License: Approx. AED 10,000 — AED 12,500.
- Office/coworking: from AED 2,000.
- Trade License: Approx. AED 12,500 — AED 15,500.
- Office: from AED 20,000
- Visas & employees hiring expenses: AED 4,000 — AED 6,000 per person.
- Accounting: from AED 400/month
Common mistakes to avoid
- Choosing the wrong jurisdiction. For example, you want to set up a Free Zone company but without export facilities. This will have a big impact on your workflow and taxes.
- Underestimating costs: Not accounting for office rent, visa expenses, and bank fees.
- Non-compliance: Missing deadlines for renewals or not meeting legal requirements can get you into serious trouble and fines of up to AED 50,000.
To avoid that, you could benefit from some timely advice from people who have been involved in company registrations in the UAE for a long time. We've helped over 400 companies so far and we are always just a phone call away.
Some tips and tricks before starting a business in Dubai
Create 3 company name options
When you apply to get registered, your company name has to follow the rules of the place you're registering it in. For example, if you have a mainland company, you can't use names that start with "universal", "middle east", "global", or "international".
Do some research on the countries' culture before you move
Before moving to the UAE, it's important to do some research on the local culture and customs, especially if you have any religious beliefs. Knowing these things will help you adapt more easily and avoid any cultural misunderstandings that might arise.
There are over 200 different nationalities here, so communication styles can be flexible. Take the time to learn about your partner's background and values to make interactions smoother and relationships stronger.
Corporate communication rules are fine, but you need to do more chat
When you move to the UAE, you'll want to get involved in some casual conversations. You don't always need to talk about business. In fact, it's important to just chat about life and get to know people. That's part of the culture here. So, don't expect all your communication to be formal emails. It's better to meet people in person and have a casual chat before getting down to business.
There are a lot of social events in the UAE. You can go to informal get-togethers and make friends or discuss work.
Keep a balance
Not all negotiations go as planned. Sometimes people get sidetracked during a conversation or suddenly change the subject to talk to someone else. Just be patient and your goal will eventually be achieved.
When you apply to get registered, your company name has to follow the rules of the place you're registering it in. For example, if you have a mainland company, you can't use names that start with "universal", "middle east", "global", or "international".
Do some research on the countries' culture before you move
Before moving to the UAE, it's important to do some research on the local culture and customs, especially if you have any religious beliefs. Knowing these things will help you adapt more easily and avoid any cultural misunderstandings that might arise.
There are over 200 different nationalities here, so communication styles can be flexible. Take the time to learn about your partner's background and values to make interactions smoother and relationships stronger.
Corporate communication rules are fine, but you need to do more chat
When you move to the UAE, you'll want to get involved in some casual conversations. You don't always need to talk about business. In fact, it's important to just chat about life and get to know people. That's part of the culture here. So, don't expect all your communication to be formal emails. It's better to meet people in person and have a casual chat before getting down to business.
There are a lot of social events in the UAE. You can go to informal get-togethers and make friends or discuss work.
Keep a balance
Not all negotiations go as planned. Sometimes people get sidetracked during a conversation or suddenly change the subject to talk to someone else. Just be patient and your goal will eventually be achieved.
So, as you can see, setting up a business in Dubai can be a great way to make some serious cash. If you stick to the plan and listen to what the experts have to say, you'll definitely be successful. Good luck!
Business FAQ
You can do your own research online, or you could just talk with us 😉
To start a company in the UAE you just need a passport and movingo’s support. Our team has prepared a detailed article about all the steps you’ll go through when incorporating an entity in the Emirates. Check it out here.
The average business license costs in Dubai start from AED 10,000 and can reach up to AED 25,000 for certain business activities when getting an office and additional permits become mandatory. Check out movingo platform to find out the exact price for your type of business.
There are over 50 jurisdictions in the UAE, and it might get confusing which one is actually right for you. movingo platform is your answer: we’re gathered all of them in one place so you don’t need to spend hours browsing the internet trying to understand what’s right for you.
The Corporate Tax in the UAE is 0% to 9% based on your turnover and business activity. Check out our Ultimate Guide to Corporate Tax in the UAE.
