How to start business in dubai

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Starting a business in Dubai in 2025 is fast, affordable, and fully open to foreign investors. Whether you want to enter travel, shipping, logistics, tourism, real estate, or vehicle rental, Dubai offers the legal frameworks and infrastructure to grow your business.

The UAE now allows 100% foreign ownership in most sectors. You can register in a mainland or free zone setup and get licensed in a few working days. Dubai also offers 0% income tax, strong international connectivity, and over 40 specialized free zones.

Can Foreigners Open a Business in Dubai?

Yes, foreigners can fully own and operate businesses in Dubai. No local sponsor is needed for most activities. Both mainland and free zone setups allow you to legally register and run your company with full control.

TopicDetails
Ownership100% foreign ownership allowed
Setup TypesMainland, Free Zone, Offshore
Visa SponsorshipYou can sponsor yourself and employees
Startup CostFrom AED 15,000 depending on setup

What Are the Business Setup Options in Dubai?

Dubai offers three major business setup types, each with unique benefits:

1. Mainland Company

2. Free Zone Company

  • Ideal for international trade and online services
  • No customs duties within the zone
  • 100% foreign ownership
  • Cannot sell directly to UAE market without a local distributor

3. Offshore Company

  • Used for asset protection, holding companies, or international trade
  • Cannot operate within UAE domestic market
  • No physical office required

Step-by-Step: How to Start a Business in Dubai

Follow this checklist to set up your business in Dubai in 2025:

  1. Choose your legal structure (LLC, FZCO, Sole Proprietorship)
  2. Pick your business activity (tourism, logistics, e-commerce, etc.)
  3. Reserve your company name
  4. Get initial approval from DET or Free Zone Authority
  5. Sign the MOA or agent agreement
  6. Lease an office or virtual desk
  7. Apply for the trade license
  8. Open your UAE business bank account
  9. Apply for investor and employee visas

Business Ideas for Foreigners Aligned with Al Rais Domains

Here are practical business ideas that match both foreign ownership rules and the core industries of Al Rais Group:

Business IdeaRelated Al Rais DomainBest Setup
Inbound Tour OperationsAl Rais Tours & HolidaysMainland or Free Zone
Air & Sea Freight CompanyAl Rais Cargo AgenciesFree Zone (e.g., DAFZA)
Vehicle Leasing PlatformAl Rais Rent a CarMainland
Travel Visa & Documentation ServiceAl Rais Travel AgenciesFree Zone
Holiday Homes & Property ManagementReal EstateMainland (DTCM licensed)
E-commerce Logistics FulfillmentAl Rais ShippingFree Zone (Dubai South)
Group Corporate Travel ManagementTravel & ShippingMainland (for government tenders)

What Documents Do You Need?

Here are the common documents required for business setup:

  • Valid passport copy
  • Entry visa or visit stamp
  • 2–3 company name options
  • Passport-size photo
  • MOA or agent contract (if mainland)
  • Tenancy contract or virtual office agreement

Free zone setups often need fewer documents and can be processed remotely.

Business Setup Costs in Dubai (2025)

Cost ItemMainland (AED)Free Zone (AED)
Trade License10,000–20,0007,000–15,000
Office/Desk15,000+0–5,000
Investor Visa3,000–6,0002,500–4,000
MOA, Documents, Names1,000–3,000500–1,500

Best Free Zones in Dubai for Foreign Entrepreneurs

Free ZoneBest ForKey Benefits
DMCCCrypto, Trade#1 Global Free Zone
IFZAFreelancers, SMEsCheapest packages
DAFZAFreight & AviationNext to DXB Airport
Dubai SouthLogistics, EcomWarehousing support
DIFCFinance & LawCommon Law system

Do You Still Need a Local Partner?

No, not anymore. You can fully own your company under most business activities, especially in free zones and many mainland sectors.
Sectors that still require local agents include:

  • Legal & court-related services
  • Oil & gas
  • Medical clinics

How to Get a UAE Investor Visa in 2025

Visa TypeValidityEligibility
Investor Visa2 yearsCompany owner
5-Year Visa5 yearsCapital above AED 500,000
Golden Visa10 yearsAED 2M+ investment or expert talent

Opening a Business Bank Account in UAE

Popular Banks:

  • Emirate NBD
  • Mashreq
  • HSBC Middle East
  • ADCB
  • RAKBANK

Required documents:

  • Trade License
  • MOA
  • Office lease
  • Passport & Emirates ID

What Taxes Will You Pay?

Tax TypeRateConditions
Corporate Tax9%Profits over AED 375,000/year
VAT5%Turnover over AED 375,000
Income Tax0%No personal tax in UAE

Many free zones still offer 100% corporate tax exemption, especially for companies operating only within the zone.

Who Can Help You Start Your Business?

You don’t need to handle all the legal work yourself. Setup firms can simplify your launch.

Top Setup Advisors:

  • Virtuzone
  • Creative Zone
  • Shuraa
  • Meydan Free Zone
  • Commitbiz

         “Al Rais Group will provide you consulting if you want to invest in UAE”

Ready to Launch?

  • Once your license is approved:
  • Open your business bank account
  • Apply for UAE residence vis
  • Hire staff (if needed)
  • Register for VAT (if required)
  • Start operations and marketing

Book a Free Consultation: Get Business Setup Help

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