Want to set up a company in Dubai? The city offers three main jurisdictions for business setup—Mainland, Free Zone, and Offshore. Each caters to different business goals. Whether you’re starting a new venture, expanding, or seeking an offshore base, this guide will help you get started in 2025. Understanding these options is key to making the right choice for your business

Set Up a Company: Choosing Your Business Type and Jurisdiction

Dubai provides three distinct setups:

1. Mainland Company: Ideal for trading within the UAE market. Requires a local sponsor (UAE national) holding 51% ownership, though recent reforms allow 100% foreign ownership in select sectors.
2. Free Zone Company: Perfect for international businesses. Offers 100% ownership, tax exemptions, and no customs duties in zones like Dubai Multi Commodities Centre (DMCC) or Jebel Ali Free Zone (JAFZA).
3. Offshore Company: Best for asset protection or global operations. Managed through a registered agent with no physical office in Dubai.

Decision Tip: Choose Mainland for local trade, Free Zone for exports, or Offshore for privacy and cost-efficiency.

Define Your Business Activity

First, specify what your company will do—for example, trading, IT services, or hospitality. Next, note that the Dubai Department of Economic Development (DED) for Mainland or the relevant Free Zone Authority regulates these activities. However, some sectors, such as healthcare or education, may need additional approvals from specific bodies.

Select a Company Name

Pick a unique trade name that complies with UAE rules:

• No offensive or religious references.
• Reflects your business activity (e.g., “ABC Tech” for technology).
• Avoid abbreviations or existing trademarks.

First, for Mainland, check availability with the DED. Then, for Free Zones, confirm with the chosen zone’s authority.

Obtain Initial Approval and Licenses

Submit your business plan and documents to the relevant authority:

• Mainland: Apply to the DED for initial approval. You’ll need a local sponsor unless your activity qualifies for full ownership.
• Free Zone: Register with the Free Zone Authority (e.g., DMCC, DAFZA). No sponsor required.
• Offshore: Work through a registered agent like Buraqs CNP for approval.

Required documents typically include:

• Passport copies of shareholders.
• Proposed name and activity details.
• Application form and fees.

Once approved, you’ll receive a license:

• Commercial: For trading goods.
• Professional: For services (e.g., consultancy).
• Industrial: For manufacturing.

Secure a Business Location

• Mainland: Rent a physical office or shop. Then, obtain an Ejari (tenancy contract) registered with the Dubai Land Department.
• Free Zone: To begin, lease a facility—for example, a flexi-desk, office, or warehouse—within the chosen zone. Moreover, many zones provide affordable packages.
• Offshore: Firstly, no physical presence is required; instead, you only need a registered agent’s address.

Costs Vary: Initially, a small Mainland office might start at AED 20,000/year. In contrast, Free Zone flexi-desks can be as low as AED 10,000/year.

Finalize Legal Documents

• Mainland: Draft and notarize a Memorandum of Association (MOA) with your sponsor and shareholders at a Dubai public notary.
• Free Zone: Sign the incorporation documents provided by the Free Zone Authority.
• Offshore: The agent prepares incorporation papers, including the Certificate of Incorporation.

Submit these with your approval certificate and lease agreement to finalize registration.

Pay Fees and Get Your License

License fees depend on your setup:

• Mainland: AED 15,000–25,000 (including sponsor fees).
• Free Zone: AED 12,000–30,000 (varies by zone and facilities).
• Offshore: AED 8,000–15,000.

After making the payment, you’ll receive your official business license and trade registry number.

Open a Corporate Bank Account

Visit a Dubai bank (e.g., Emirates NBD, Mashreq) with your:

• Business license.
• MOA or incorporation certificate.
• Shareholder passports and Emirates IDs (if applicable).

Deposit any required share capital—Mainland LLCs may need AED 50,000–300,000, while Free Zones and Offshore setups often have no minimum.

Apply for Visas

Secure residency visas for yourself and employees:

Mainland: Visa quotas depend on office size. Apply via the DED and General Directorate of Residency and Foreigners Affairs (GDRFA).

Free Zone: Visa allocations come with your package (e.g., 1–6 visas). Processed through the Free Zone Authority.

Offshore: No visas included, as it’s non-resident.

Visa costs are approximately AED 3,000–5,000 each.

Register for Taxes (If Applicable)

While Dubai offers a 0% corporate tax in Free Zones and most Mainland activities, you must register for VAT (5%) with the Federal Tax Authority if your annual turnover exceeds AED 375,000. Moreover, offshore companies are typically exempt, making them an attractive option for certain businesses.

Benefits of Setting Up in Dubai

Tax-Free Environment No personal income tax and minimal corporate tax.

Global Connectivity Access to over 200 destinations via Dubai International Airport.

Business-Friendly Policies Moreover, we offer simplified processes and, in many cases, 100% ownership options

Costs to Expect

• Mainland: AED 25,000–50,000 (including office and sponsor).
• Free Zone: AED 15,000–40,000 (depending on zone and package).
• Offshore: AED 10,000–20,000.

Tips for a Smooth Setup

Hire Experts: Partner with a consultancy like Buraqs CNP to navigate regulations and paperwork.

Check Reforms: Confirm if your industry qualifies for 100% ownership to skip the sponsor.

Plan Ahead: Budget for renewals (annual license and lease fees).

Contact Us

For starters, setting up a company in Dubai in 2025 is a gateway to growth, whether you’re targeting the local market or international trade. Additionally, with its dynamic economy and supportive ecosystem, Dubai becomes a launchpad for success. Next, begin by choosing the right jurisdiction, then follow these steps, and also consider professional assistance to ensure a hassle-free process. So, are you ready to begin? Ultimately, your Dubai business journey awaits!