Business setup in dubai: costs, requirements, and the easiest ways to get started

Dubai stands out as one of the world’s most appealing destinations for global entrepreneurs and investors. The UAE now ranks first globally for entrepreneurship for the fourth consecutive year, according to the Global Entrepreneurship Monitor 2024-2025 report issued by the Ministry of Economy. This achievement reflects a long-term commitment to pro-business reforms, economic diversification, and consistent government support for startups and SMEs. For anyone launching a consultancy, e-commerce venture, or trading company, business setup in Dubai offers advantages in taxation, international reputation, and global reach.

Before moving forward, understanding the cost of setting up a company in Dubai, the legal framework, and the available jurisdictions is essential. This guide walks through everything required for company setup in Dubai, including registration steps and compliance requirements in 2025.

Why entrepreneurs choose Dubai for business setup

Dubai’s location between Asia, Europe, and Africa makes it a global business hub. With no personal income tax, modern infrastructure, and a clear legal system, Dubai attracts startups, SMEs, and multinationals.

The government continuously enhances the ease of starting a business in Dubai, introducing digital platforms and investor-friendly regulations. Entrepreneurs can now open a company in Dubai in a matter of days, often without visiting the UAE physically.

Entrepreneurship & business environment

The UAE ranks #1 worldwide for ease of starting a business in the IMD World Competitiveness Report 2024.
SMEs make up 96% of all businesses in Dubai and contribute roughly 40% of the emirate’s GDP (Dubai SME reports).
The UAE secured $23 billion in FDI in 2023, placing it among the top 20 global investment destinations (UNCTAD).

Digital & remote setup

More than 80% of business formation steps can now be completed digitally due to government-led digitalization.
Leading free zones such as IFZA and DMCC report steady double-digit growth in new company registrations, driven by simplified remote setup options.

Tax & regulatory climate

The UAE maintains 0% personal income tax and 0% corporate tax for qualifying free zone entities, continuing to attract global founders.
Dubai hosts over 40 free zones, forming the largest free-zone ecosystem in the world.

Understanding business setup options in Dubai

Before you calculate your business setup cost in Dubai, you need to choose the right type of structure. The three main options are:

1. Mainland company

A mainland company allows you to operate anywhere in the UAE and internationally. You can work with both government and private sector clients. LLC formation in Dubai is the most common business model for mainland businesses.

Key features include:

100% foreign ownership in most activities
Flexibility in office location and operations
Licensing through the Department of Economy and Tourism (DET)
Ability to trade directly within the UAE market

Mainland licenses suit consulting, retail, and professional service companies planning long-term expansion.

2. Free zone company

Free zones offer simplified rules, fast setup, and tax exemptions. Each zone targets specific industries, including IT, media, logistics, crypto, and manufacturing.

In 2024, Dubai’s free zones demonstrated exceptional performance. The Dubai Integrated Economic Zones Authority (DIEZ) reported record growth in its financial results, reflecting increased investor demand and expanding economic activity across the emirate’s free zone ecosystem.
Official source: https://dmo.dof.gov.ae/en/news-and-publications/latest-press-releases/dubai-integrated-economic-zones-authority-achieves-exceptional-growth-in-its-2024-financial-results/

Advantages of company formation in Dubai free zones include:

100% foreign ownership
No customs duties on imports and exports
Simplified visa process for shareholders and employees
Fully digital registration system

If you are exploring how to set up a company in Dubai remotely, free zones are often the best choice.

3. Offshore company

An offshore structure is suitable for asset protection, investment holding, and global trade. It provides confidentiality and zero corporate tax for non-UAE activities.

Offshore company formation in Dubai is commonly used by international investors who want to hold shares, manage intellectual property, or conduct global transactions efficiently.

Business setup requirements in Dubai (2025 update)

Every new business setup in Dubai must comply with specific regulations that vary depending on the chosen jurisdiction. In 2025, the UAE government continues to modernize its business laws to ensure alignment with international compliance standards.

Here are the main Dubai business setup requirements 2025:

Select a legal structure – LLC, branch, sole establishment, or holding.
Choose a business activity from the DET or Free Zone Authority list.
Reserve a trade name that meets UAE naming conventions.
Obtain initial approval from the relevant authority.
Lease office or flexi-desk space depending on license type.
Submit incorporation documents (passport copies, Memorandum of Association, NOC if applicable).
Receive a business license and register for corporate tax (if applicable).

Understanding these steps is vital for accurately estimating your company setup cost in Dubai and the overall timeline.

Cost of setting up a company in Dubai

The cost of company registration in Dubai depends on factors such as activity type, jurisdiction (mainland, free zone, or offshore), visa requirements, and office space.

Average Company Setup Cost in Dubai

The business setup cost in Dubai generally includes:

Government registration fees
Trade name and initial approval
License issuance
Office lease or business address
Visa allocation and establishment card

Packages vary widely, but investors can expect flexible solutions starting from affordable packages, depending on activity and jurisdiction.

LLC company cost in Dubai

For entrepreneurs establishing an LLC company formation in the Dubai mainland, fees depend on the number of shareholders, business category, and required visas. The cost of doing business in Dubai is competitive compared to other major international business hubs.

Free zone company formation cost

If you prefer a more flexible, remote setup, the cost of company registration in Dubai free zones often includes workspace, a license, and immigration services in a single bundle. This makes Dubai company formation costs in free zones particularly attractive for startups.

Offshore company setup cost

Offshore business setup in Dubai is typically the most cost-efficient option. Since it does not require a physical office or a visa quota, the offshore company setup in Dubai suits investors seeking flexibility in asset management and international trade.

Step-by-step guide: how to set up a company in Dubai

Define your business model.

Determine whether you’ll operate locally, in a free zone, or offshore.

Select the right jurisdiction.

Compare benefits, regulatory requirements, and pricing.

Choose your business activity and trade name.

Ensure compliance with UAE standards.

Submit incorporation documents.

Passport copies, proof of address, and corporate structure details.

Sign legal documents.

Such as the Memorandum of Association (MoA) or local service agreement (if applicable).

Obtain your license.

Depending on the activity type-commercial, professional, or industrial.

Open a corporate bank account.

Once your company license is issued.

This framework simplifies the process of setting up a business in Dubai for both local and foreign investors.

Can I open a company in Dubai without living there?

Yes. Many foreign entrepreneurs ask: Can I open a company in Dubai without living there?

Thanks to the UAE’s digital transformation, you can complete almost all procedures remotely. Free zones and offshore jurisdictions offer e-signatures and digital document submission for incorporation.

Residency becomes optional, though obtaining an investor visa offers additional benefits, such as easier banking and greater local access. This flexibility makes companies set up in Dubai highly accessible to international founders.

Cheapest and most efficient options for new business setup in Dubai

The cheapest UAE company setups maintain quality. Some free zones offer affordable shared offices and limited visa packages for startups and digital businesses.

Key recommendations for new business setup in Dubai in 2025:

Start in a free zone with your industry focus (for example, IFZA, DMCC, Meydan).
Opt for e-commerce or consulting licenses that require minimal physical presence.
Work with company formation consultants in Dubai to compare jurisdictions and avoid unnecessary costs.

For expert support, explore Manimama’s company formation services in UAE free zones.

How Manimama helps with business setup in Dubai

At Manimama, we assist entrepreneurs in navigating every stage of business setup in Dubai. Our legal and corporate specialists provide full-cycle support-from selecting the right jurisdiction to handling banking, compliance, and post-incorporation services.

We help with:

Company formation in Dubai mainland, free zones, and offshore jurisdictions
Licensing and legal documentation
Investor and partner visa support
Bank account opening guidance
Corporate governance and tax registration

Our approach ensures your Dubai company formation complies with UAE corporate and AML regulations while saving you time and resources.

Final thoughts

Dubai remains one of the world’s most dynamic destinations for business expansion. Its investor-friendly ecosystem, competitive company setup cost in Dubai, and simplified incorporation procedures make it ideal for both startups and established enterprises.

Whether you plan to establish an LLC company formation in Dubai, explore offshore company setup in Dubai, or register in a free zone, choosing the right legal and strategic partner ensures a smooth launch and long-term compliance.

Manimama provides tailored guidance for every type of business setup in the UAE, helping entrepreneurs build sustainable and legally protected structures.

Ready to begin your journey?

Start your business setup in Dubai today with professional legal support and transparent processes.