Dubai Company Setup with
Tax-First Strategy
Shunyatax Global structures your Dubai entity for 0% personal tax, optimized 9% UAE corporate tax, and long-term cross-border compliance. More than 100+ entrepreneurs have trusted our team to build Mainland, Free Zone, and Offshore entities in an average of 7–14 days.
100% compliant structures • No hidden “sponsor” traps • Banking + VAT + ESR covered
Dubai Setup Snapshot • 2025
One team for Mainland, Free Zone & Offshore structures.
Entities Structured
100+ companies
Average Setup Time
7–14 days
Jurisdictions Covered
Mainland • Free Zone • Offshore
Structured by Shunyatax Global — finance, tax & cross-border advisory in one place.
Business Setup in Dubai | Start Your Company with Shunyatax
How to Legally Start a Business in Dubai in 2025: A Complete Step-by-Step Guide
Introduction
Dubai remains one of the world’s most attractive destinations for business formation, consistently ranking among the top global hubs for ease of doing business. With 0% personal income tax, 100% foreign ownership across most sectors, excellent infrastructure, and global connectivity, the city attracts more than 55,000+ new companies annually.
However, Dubai is a regulated jurisdiction. To establish and operate your company legally, every step—activity selection, licensing, documentation, and banking—must comply with UAE laws.
This 2025 guide provides a complete, compliant, and structured roadmap for entrepreneurs, investors, NRIs, and international founders planning to set up a business in Dubai.
Step 1: Identify Your Business Activity
Dubai’s Department of Economy & Tourism (DED/DET) offers over 2,000 approved business activities.
Your selected activity determines:
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Licence type
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Jurisdiction (Mainland, Free Zone, Offshore)
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Regulatory authority
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Additional approvals
High-demand activities in 2025 include:
Management consultancy, general trading, e-commerce, real estate brokerage, software/technology, financial services, logistics, and media.
Regulated sectors such as healthcare, education, food, legal services, and financial services require approvals from authorities like DHA, KHDA, Municipality, or DFSA.
Step 2: Choose Your Jurisdiction
A. Mainland (Onshore – DED Licence)
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100% foreign ownership (most sectors)
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Operate anywhere in the UAE
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Eligible for government tenders
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Mandatory physical office with Ejari
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Cost: AED 15,000–30,000
Best for: Consulting, services, retail, contracting, UAE-wide business operations.
B. Free Zone (Complete Ownership + Tax Advantages)
Dubai has 40+ free zones offering:
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100% foreign ownership
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0% corporate tax on qualifying income
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Full profit repatriation
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Quick incorporation timelines
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Flexi-desk and virtual office options
Popular free zones: DMCC, Meydan FZ, IFZA, DSO, JAFZA, Dubai South
Cost range: AED 12,000–20,000
Limitation: For mainland sales, a local distributor or onshore branch is required.
C. Offshore (Non-UAE Operating Entity)
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Ideal for international trade, asset holding, and tax-efficient structures
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Cannot trade inside UAE
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High confidentiality and low reporting
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Options include RAK ICC and JAFZA Offshore
Cost: AED 10,000–15,000
Step 3: Select Your Legal Structure & Reserve Trade Name
Common structures in Dubai include:
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Limited Liability Company (LLC)
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Sole Establishment
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Civil Company
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Branch of a Foreign Company
Trade name requirements:
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Must reflect business activity
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No religious, political, or offensive references
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No numbers or abbreviations
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Must be approved by DED/free zone authority
Average reservation fee: AED 620
Step 4: Obtain Initial Approvals & Prepare Documentation
Accurate documentation is essential. Errors cause 28–33% of application delays.
Required documents:
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Passport copies (shareholders & managers)
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Memorandum of Association (MoA)
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Ejari tenancy contract (mainland only)
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Initial approval certificate
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Business plan (for certain sectors)
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Additional authority approvals if regulated
Authorities involved may include Dubai Municipality, DHA, KHDA, DFSA, Ministry of Economy, etc.
Step 5: Secure Office Space
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Mainland: Physical office required + Ejari
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Free Zone: Flexi-desk, shared desk, private office, or warehouse options available
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Offshore: Office not required
Step 6: Apply for Trade Licence, Visa, and Bank Account
Once documents and approvals are complete, the Trade Licence is issued. This allows you to process:
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Establishment Card
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Investor/Partner Visa
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Emirates ID
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Corporate Bank Account
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VAT Registration (if revenue exceeds AED 375,000)
Timeline: 2–4 weeks
Bank Account Opening: 7–14 days
Top UAE banks in 2025:
Emirates NBD, ADCB, FAB, Mashreq NeoBiz
Dubai Licence Categories (2025)
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Commercial Licence: Trading, import–export, e-commerce
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Industrial Licence: Manufacturing and industrial operations
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Professional Licence: Consultancy and service activities
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Tourism Licence: Travel agencies and hospitality operations
Costs, Timelines & Common Challenges
Estimated Costs (2025)
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Free Zone: AED 12,000–20,000
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Mainland: AED 15,000–30,000
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Offshore: AED 10,000–15,000
Common Delays
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Incorrect activity selection (22% rejection rate)
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Ejari-related issues (17% of delays)
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KYC & compliance checks for banking (7–14 days)
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Missing documents or incorrect MoA pages
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Misunderstanding regulated approvals
Compliance Risks & Penalties
Operating without proper approvals may lead to:
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Fines up to AED 50,000
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Licence suspension
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Bank account rejection
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Blacklisting
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Visa restrictions
Shunyatax Global: Your Trusted Business Setup Partner
Shunyatax Global provides end-to-end, compliant Dubai company formation services, including:
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Mainland, Free Zone, and Offshore company formation
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Trade licence issuance
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Corporate bank account assistance
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Visa & immigration processing
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VAT registration
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ESR & Corporate Tax compliance
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Annual renewals & PRO services
Our team ensures transparent pricing, faster incorporation timelines (7–14 days), and tailored advisory for global entrepreneurs and investors.
Conclusion
Establishing a business in Dubai in 2025 is straightforward when each step—activity selection, legal structure, jurisdiction, documentation, and compliance—is handled correctly.
With professional guidance, you can launch your company smoothly, avoid regulatory risks, and position yourself for long-term success in one of the world’s most forward-thinking business markets.
FAQ's
What is the cost of starting a business in Dubai in 2025?
Free zone setup costs AED 12,000–20,000, mainland AED 15,000–30,000, and offshore AED 10,000–15,000.
How long does Dubai company registration take?
Typically 2–4 weeks, including approvals, licence issuance, visa processing, and banking.
Do I need a local sponsor?
No. As of 2024–2025, 100% foreign ownership is allowed across most mainland sectors and all free zones.
Can a free zone company operate in UAE mainland?
Not directly. A distributor or mainland branch is required.
Which documents are needed?
Passport copies, MoA, reserving trade name, Ejari (for mainland), initial approval, and sector-specific permits.
How long does bank account opening take?
7–14 days depending on compliance checks.
Is VAT registration mandatory?
Only if annual turnover exceeds AED 375,000.
What is the corporate tax rate?
0% on profits up to AED 375,000 and 9% above that threshold.
Dubai Business Setup Services
End-to-end UAE incorporation, banking, visa and compliance solutions — built for entrepreneurs, investors, NRIs and global founders.
UAE Company Formation
Mainland, Free Zone and Offshore entities with full ownership and legal compliance.
Business Trade Licence
Commercial, professional, industrial and ecommerce licences for UAE and global trade.
Visa & Residency Services
Investor, partner, employee and family visas — including medicals and Emirates ID.
Corporate Bank Account
Guidance for documentation, KYC and interviews with leading UAE banks.
Corporate Tax (9%) Setup
Corporate tax registration, impact analysis and tax-first structuring for global founders.
VAT Registration & Filing
VAT registration, return filing and ongoing compliance management.
ESR & UBO Compliance
Economic Substance Regulations, UBO and AML documentation handled end-to-end.
Offshore Holding Structures
Asset-holding and IP structures in RAK ICC, ADGM, JAFZA Offshore and other UAE hubs.
Choose the Right Dubai Structure
Select the structure that fits your business goals — Mainland, Free Zone or Offshore. Shunyatax Global helps you compare tax, control and compliance before you decide.
Mainland Company
🏙️- • Full access to UAE market and onshore clients
- • Eligible for government tenders & larger contracts
- • Physical office or flexi-desk required in most cases
Free Zone Company
🏢- • 100% foreign ownership and profit repatriation
- • 0% tax on most qualifying free zone income
- • Flexi-desk and virtual office options available
- • Typical setup cost: AED 12,000–20,000*
Offshore Entity
🌐- • Ideal for global holding, IP and asset structures
- • No onshore trading inside UAE mainland
- • Privacy, treaty access and flexible banking options
Process of Business Setup in Dubai
A clear, compliance-first roadmap designed by Shunyatax Global for smooth UAE company formation.
1. Strategy Call
Understand your business model, markets and tax residency.
2. Activity & Jurisdiction Mapping
Match activities with the right Mainland, Free Zone or Offshore options.
3. Documentation
KYC, passports, corporate docs and business plan (if required).
4. Name Reservation & Initial Approvals
Reserve trade name and secure initial authority permissions.
5. Trade Licence Issuance
Obtain your Mainland or Free Zone licence and incorporation documents.
6. Visa & Emirates ID
Entry permit, medicals, biometrics and Emirates ID activation.
7. Corporate Bank Account
Bank selection, KYC preparation and account opening assistance.
8. Tax, VAT & ESR Setup
Corporate tax, VAT and ESR registration plus ongoing compliance framework.
Frequently Asked Questions – Dubai Business Setup
How do I legally start a business in Dubai?
Choose your activity, select the right jurisdiction (Mainland, Free Zone or Offshore), reserve a trade name, obtain your licence, complete visa formalities and open a corporate bank account. Shunyatax Global manages this end-to-end.
What is the approximate cost of setting up a company in Dubai?
Free Zone packages usually start from around AED 12,000–20,000, while Mainland structures often range from AED 15,000–30,000 depending on activity, visas and office requirements.
How long does Dubai company formation normally take?
In most cases, Mainland or Free Zone company formation takes about 7–14 days once documentation is ready and approvals are in place.
Do I need to visit Dubai to set up my company?
Many Free Zone and some Mainland setups can be completed remotely. Physical presence is usually required only at the visa and Emirates ID stage; Shunyatax Global guides you on the most efficient route.
Can Shunyatax Global also handle tax and compliance after setup?
Yes. We help with UAE corporate tax registration, VAT, accounting, ESR and UBO compliance so that your Dubai structure remains fully legal and optimised long term.