Dubai Business Setup: Complete Guide to Starting a Business in Dubai 2026
Dubai continues to rank among the world's most attractive destinations for entrepreneurs and investors. With zero personal income tax, 100% foreign ownership, a strategic location bridging Europe, Asia, and Africa, and a government that actively courts international business, the emirate processed over 45,000 new business license applications in 2025 alone. Whether you are a solo consultant, an e-commerce founder, or a multinational expanding into the Gulf, this guide covers every step of the Dubai business setup process in 2026—from choosing between a free zone and the mainland to securing your trade license and residence visa.
Why Start a Business in Dubai?
The UAE's appeal goes far beyond the headline “no income tax.” Entrepreneurs benefit from a mature legal framework modelled on English common law (particularly in DIFC and ADGM), world-class infrastructure, a multilingual workforce, and direct connectivity to 260+ cities through Dubai International and Al Maktoum airports. The country's corporate tax rate, introduced in June 2023 at 9% on profits above AED 375,000, remains one of the lowest in the world. Free zone companies with qualifying income can still enjoy a 0% rate for up to 50 years under their zone charter.
Dubai's regulatory environment is increasingly digital. The Dubai Economy and Tourism (DET) portal, MOHRE labour system, and individual free zone platforms allow you to complete nearly every step online—from name reservation to visa stamping. Most free zone setups are fully operational within 5 to 10 business days, which is faster than incorporating a company in many European and Asian jurisdictions.
Free Zone vs Mainland: Choosing Your Jurisdiction
The first and most consequential decision when setting up a business in Dubai is selecting your jurisdiction. The UAE offers two primary structures: free zone companies and mainland (also called “onshore”) companies. Each comes with distinct advantages depending on your business model, target market, and budget.
Free zones are designated economic areas with their own licensing authorities. They offer 100% foreign ownership, streamlined registration, exemption from import and export duties, and the ability to repatriate 100% of profits. The trade-off is that free zone companies are generally restricted from conducting business directly with UAE mainland consumers unless they appoint a local distributor or establish a dual license. Dubai alone has over 30 free zones, each tailored to specific industries.
Mainland companies, licensed through DET (formerly DED), can trade freely throughout the UAE and the wider GCC without restriction. Since the 2020 ownership reforms, foreign nationals can hold 100% of a mainland LLC in most commercial activities. Mainland setup costs tend to be higher—typically AED 25,000 to AED 50,000—because of mandatory office lease requirements and additional government fees. For a full comparison, see our Free Zone vs Mainland guide.
Dubai Business Setup Costs by Free Zone (2026)
Startup costs vary dramatically across zones. The table below compares all-inclusive first-year packages for a standard professional or general trading license with one visa allocation:
| Free Zone | Starting From | Includes Visa | Processing Time |
|---|---|---|---|
| SHAMS (Sharjah) | AED 5,750 | Optional add-on | 2-3 days |
| Ajman Free Zone | AED 6,500 | Optional add-on | 3-5 days |
| RAKEZ (Ras Al Khaimah) | AED 8,500 | 1 visa included | 3-5 days |
| IFZA (Dubai) | AED 12,000 | 1 visa included | 3-5 days |
| DMCC (Dubai) | AED 25,000 | 1 visa included | 5-10 days |
| Mainland (DET) | AED 25,000+ | Separate application | 2-4 weeks |
Prices reflect first-year all-in packages as of February 2026. Renewal costs are typically 10-20% lower. Use our AI recommendation tool to get a personalised cost breakdown.
Step-by-Step: How to Set Up a Business in Dubai
1. Choose Your Business Activity
Every UAE business license is tied to specific activity codes. You can select one or multiple activities (most free zones allow 1-3 in a base package). Common categories include general trading, management consultancy, IT services, e-commerce, and media production. The activity determines which free zones you are eligible for—for example, media businesses gravitate to Dubai Media City or SHAMS for e-commerce.
2. Select Your Jurisdiction and Package
Based on your activity, budget, visa needs, and whether you need to trade with mainland UAE, narrow down your jurisdiction. If you are unsure, Maya AI's AI-powered recommendation engine compares 22+ free zones and 49 packages in under two minutes. It considers cost, banking ease, reputation, and timeline to surface your best-fit options.
3. Reserve Your Company Name
Submit a trade name reservation through your chosen authority. Names must comply with UAE naming conventions: no offensive terms, no names identical to existing companies, and the suffix must match your legal structure (e.g., “FZ-LLC” for free zone LLCs). Name approval usually takes 1 to 2 business days.
4. Submit Documents and Pay
Required documents typically include a passport copy (with at least six months' validity), a passport photo, proof of address, a completed application form, and a business plan or activity description. Free zones process applications digitally, so you can complete this from anywhere in the world. Payment for the license, visa deposit, and establishment card triggers your application.
5. Receive Your Trade License
Once approved, you receive your trade license, which is the legal document authorising you to operate. Your free zone will also issue a certificate of incorporation, share certificates (if applicable), and your lease agreement for your registered address.
6. Apply for Your Residence Visa
With a valid trade license, you can apply for a UAE residence visa. The process involves an entry permit, medical fitness test, Emirates ID registration, and visa stamping. The entire visa process takes roughly 2 to 3 weeks after license issuance. Explore visa options including freelance visas to understand what works best for your situation.
7. Open a Corporate Bank Account
Bank account opening is often cited as the most challenging step. UAE banks conduct extensive due diligence, and approval can take 2 to 6 weeks. Zones like DMCC and IFZA have banking facilitation departments that can expedite introductions. Digital banks (Wio, Mashreq Neo) now offer faster onboarding for free zone companies, often within 5 business days.
Top Free Zones for Business Setup in Dubai
Not all free zones are created equal. Here are the most popular choices by business type:
- IFZA — Best value for Dubai-based professionals, consultants, and e-commerce operators. Packages from AED 12,000 with excellent banking support.
- DMCC — Ideal for commodities trading, crypto businesses, and companies that need maximum international credibility. Named “Global Free Zone of the Year” nine times.
- SHAMS — The most affordable option for freelancers and media professionals. Packages from AED 5,750 in Sharjah.
- RAKEZ — Strong for industrial, manufacturing, and trading businesses in Ras Al Khaimah. Cost-effective with packages from AED 8,500.
- Meydan — Budget-friendly Dubai-based zone popular with startups and tech companies, offering packages from AED 9,500.
For a deeper dive into free zone options, read our complete guide to free zone company setup.
Visa and Residency Benefits
A UAE trade license is your gateway to residency. Standard investor and employment visas are issued for 2 years (renewable). The Golden Visa, available to investors committing AED 2 million or more, grants a 10-year residence. All visa holders can sponsor dependents (spouse and children), and most can obtain a UAE driving license. The Emirates ID you receive doubles as a government-issued identification card accepted across GCC countries.
Frequently Asked Questions
How much does it cost to set up a business in Dubai?
Business setup costs in Dubai range from AED 5,750 (SHAMS free zone) to AED 50,000+ (DMCC or mainland). The total depends on your chosen jurisdiction, license type, visa requirements, and office space. Most entrepreneurs budget between AED 15,000 and AED 30,000 for a standard free zone setup including one visa.
How long does it take to register a business in Dubai?
Free zone company registration typically takes 3 to 7 business days once all documents are submitted. Mainland registration through the DED can take 2 to 4 weeks. Some free zones like IFZA and SHAMS offer expedited processing within 48 hours for an additional fee.
Can a foreigner own 100% of a company in Dubai?
Yes. Since the 2020 amendment to the UAE Commercial Companies Law, foreign nationals can own 100% of both free zone and mainland companies in most sectors. Free zones have always allowed full foreign ownership, and mainland companies now permit it for over 1,000 commercial activities.
Do I need a physical office to start a business in Dubai?
Not necessarily. Many free zones offer flexi-desk or virtual office options that satisfy licensing requirements without a full physical lease. A flexi-desk at IFZA starts from around AED 5,000 per year, while co-working memberships are available from AED 3,000 per year in certain zones.
What visa benefits come with a Dubai business license?
A Dubai business license entitles you to a UAE residence visa (typically 2 years, renewable) for yourself and allows you to sponsor visas for employees and dependents. Some packages include the visa cost, while others charge AED 3,500 to AED 7,500 per visa. The Golden Visa (10-year) is available for qualifying investors.