Looking to start a business in the UAE’s most popular city? Starting a business in Dubai is a popular choice for foreign entrepreneurs. However, it can be difficult to understand the emirate’s regulations and business requirements.
In this guide, we’ll discuss how business setup in Dubai works, how much it costs, and how working with a local consultant can streamline the process.
Why Dubai Is Still the Top Choice for Entrepreneurs in 2026
- Low tax responsibility: There is a 9% corporate tax in the UAE only for businesses with over AED 375,000 in annual taxable income.
- Full foreign ownership: Entrepreneurs can completely own their business without a local sponsor in free zones. Most mainland business activities also allow full ownership.
- Thriving economy: The UAE has a rich and developing structure of economy, a high GDP, and increasing tendencies that develop in spheres including tourism, trade, and innovative activities. This economic stability is the right atmosphere for starting a business in Dubai.
- Quality of life: Dubai is ranked competitively in global quality of life due to increased infrastructure, efficient healthcare, and a diverse cosmopolitan lifestyle. It helps in getting talented human capital and promotes business goodwill.
Step-by-Step Guide to Setting Up a Business in Dubai in 2026
| Mainland | Free zone |
| Regulated by Department of Economy & Tourism | Regulated by respective free zone authority |
| Trade with local and international markets | Trade with international markets. Trade with the local market only through an agent. |
| Full foreign ownership (for most activities) | Full foreign ownership |
| Participate in government tenders | Cannot participate in government tenders |
| Physical office is mandatory | Office or flexi-desk permitted |
| 9% corporate tax on profits above AED 375,000 | 0% or 9% corporate tax depending on qualifying income and activity |
2. Select Your Business Activity
The next step is choosing a business activity. If you already have an idea in mind, you can speak to a local consultant about the best location for your business. There are over 2,500 business activities permitted in the UAE. Some popular choices include:- Dropshipping
- Consultancy
- E-commerce
- AI & machine learning
- General trading
- Cloud kitchens
3. Register a Trade Name
You will need to present three name options in both English and Arabic. When choosing your business name:- Make sure it is unique and not already registered.
- Avoid religious or offensive terms.
- If using a personal name, include the full name.
4. Apply for a Trade License
You will need to get initial approval from the relevant regulatory authority before you can apply for a trade license in Dubai. You will need to submit some personal identification documents, a trade name reservation certificate, and a business plan. Once you get approval, you can apply for a trade license. There are three main types of trade licenses:- Commercial
- Professional
- Industrial
5. Get an Office Address
The next step in setting up a business in Dubai is getting a physical address. The main options include:- Flexi-desk (shared or smart desk)
- Dedicated private office
- Warehouse or industrial space
6. Apply for Your Visa
After you get your trade license, you can apply for a visa, if needed. A visa allows you to sponsor your dependents. If you plan to hire employees, you will need to sponsor their visas, too. Certain entrepreneurs may be eligible for a Golden Visa, a 10-year residency permit that lets you live and work in the country with a sponsor.7. Open a Corporate Bank Account
Every business owner needs a separate bank account to manage their company finances. There are multiple bank options available to entrepreneurs like RAKBANK, Dubai Islamic Bank, Emirates NBD, Mashreq Bank, and Wio. We can help you find a bank that matches your needs and handle the entire application process.Cost of Setting Up a Business in Dubai in 2026
The cost of business setup in Dubai depends on the jurisdiction and your business activity. Free zone licenses start around AED 12,500, while mainland licenses start around AED 18,000. Additional costs include:
- Office space
- Visa requirements
- Attestation and notarization fees
- Trade name registration
- Initial approval fees
Our cost calculator can help you get an accurate estimate of your business setup price.
Documents Needed to Start Your Business in Dubai
These are the main documents you will need for your license application:
- Passport and visa copies of owners
- Passport-size photo
- Business plan
- Trade name reservation
- Initial approval certificate
- Certificate of Incorporation (if applicable)
- Memorandum of Association (if applicable)
- Ejari or office address proof
Best Free Zones for Setting Up a Business in Dubai in 2026
There are over 20 free zones in Dubai. Each free zone offers its own benefits and license packages. Meydan Free Zone and IFZA offer the cheapest license packages for entrepreneurs. These are some of the popular free zones in Dubai:
Name of free zone | Popular activities |
Dubai Multi Commodities Centre (DMCC) | Commodities trading, financial services, General trading |
Jebel Ali Free Zone Authority (JAFZA) | Logistics, trade, manufacturing, industrial |
Dubai International Financial Centre (DIFC) | Financial services, banking, insurance |
Dubai Internet City | Tech & ICT, e-commerce, telecoms |
Dubai Studio City | Media, TV & film production, arts & entertainment |
Dubai Healthcare City | Healthcare, medical tourism, pharmaceuticals |
Dubai Airport Free Zone | Trade, logistics, aviation |
Dubai South | Logistics, aviation, e-commerce, manufacturing |
Dubai Silicon Oasis | Tech & ICT, electronics, Research & Development (R&D) |
Dubai World Trade Centre | Events management, real estate, trade |
Dubai Design District (D3) | Fashion & design, arts & entertainment, luxury goods |
Meydan Free Zone | General business, consultancy, trade |
Do I Need a Business Setup Consultant in Dubai?
Having a consultant handle your business setup can make life much easier for foreigners new to the country or the city’s regulations. A&A Associate is the UAE’s largest business setup advisory, providing end-to-end company formation support to entrepreneurs.
We’ve helped over 25,000 businesses launch in the country across both free zones and the mainland. Here’s what you can expect if you choose to work with us:
- We advise you on the cost of setting up a business in Dubai and help you budget.
- We handle your trade name approval, recommend a business activity, and compare mainland vs free zone options.
- We apply for a trade license after preparing the necessary paperwork and getting government approvals.
- We guide you through visa applications, bank account setup, and finding an office.
We provide additional post-setup services like accounting, bookkeeping, tax advisory, and auditing.
Start Your Business in Dubai with A&A Associate
The geographical and economic realities of Dubai coupled with the pioneering government policies make it a unique place for doing business. Therefore, there is no reason for entrepreneurs not to take the next step forward. For more information and consultation, contact Business Setup Consultant – A&A Associate.
