Effortles Business Setup in UAE

To open a small company in Dubai, you first need to choose the industry and specific activity. Then decide on the legal structure and jurisdiction—mainland or free zone. Register a trading name, prepare and submit the necessary paperwork, obtain initial approvals, apply for a licence, and once the business is registered open a corporate bank account.

The International Free Zone Authority (IFZA) is considered the most cost‑effective jurisdiction. The free zone offers inexpensive general trading licences and you can start a business for around AED 12,900.

Dubai’s strategic position as a global trading hub, world‑class infrastructure and low corporate tax rates make it attractive. Foreign entrepreneurs can own their companies outright and benefit from simplified import and export procedures.

Most businesses can be established in four or five working days, although the timeline may vary depending on the industry and licensing requirements.

Yes. Free zones have always permitted full foreign ownership and, following recent legal reforms, foreigners can now own 100 % of a limited liability company on the Dubai mainland.

Some of the best‑performing sectors include e‑commerce, digital payments, information technology solutions, real estate development and tourism services.

Entrepreneurs choose Dubai because it is a global trade centre, offers simple company formation procedures, allows full foreign ownership, has low corporate and zero personal income tax, allows unrestricted repatriation of profits, provides advanced infrastructure and has business‑friendly regulations.

Yes. A Dubai‑issued residence permit is valid throughout the United Arab Emirates, allowing you to move freely between emirates.

You must establish a company in Dubai, meet all registration requirements, obtain a trade licence and then complete the necessary immigration procedures to secure a residency visa.

There are six main licence categories: industrial, commercial, crafts, tourism, agricultural and professional. More than 2 000 activities are available across these categories.

No. Different business activities may require different licences. For example, trading goods requires a trading licence and manufacturing requires an industrial licence. However, if you sell a variety of goods, you can apply for a general trading licence.

Yes. Business owners must renew their trade licences annually, and the renewal application should be submitted about thirty days before the licence expires.

Yes. Every business operating in Dubai, regardless of size, requires a valid licence.

Professional activities are services that require specialised skills or qualifications, such as legal services, medical practice, consulting, accounting, marketing or IT services. These activities require a professional licence.

In most cases, you need to secure an office space for mainland registration. However, Dubai Economic Development (DED) offers virtual office licences, flexi‑desk facilities and an instant licence option that waives the office requirement for the first year.

A mainland company is a business registered with the Dubai Department of Economic Development (DED) that is permitted to operate anywhere in the UAE. On completion of registration you receive a trade licence authorising the business.

Whether you need a local partner depends on the business activity. For many professional services and small businesses, foreign owners can hold all the shares. However, general trading and certain regulated activities still require an Emirati partner who holds at least 51 % of the company.

Yes. A broad range of activities now allow 100 % foreign ownership. Only certain sectors still require a local shareholder.

No fixed quota exists. The number of employee visas you can obtain is determined by the size of your office space, allowing you to hire based on your needs.

The formation process can typically be completed within a few days, but depending on the nature of the business and any additional approvals, it may extend to a few weeks.

It is possible, but there is no direct transfer. You must cancel the free zone licence, apply for a new mainland licence with DED, obtain fresh visas, register for VAT and repeat the company‑formation steps. It is advisable to seek professional advice.

Yes. Mainland businesses are required to lease office space of at least 200 square feet (about 18.5 m²). Companies without an office are not authorised to operate.

Over 2 000 activities are available, covering professional, commercial, industrial and tourism categories. Some activities are prohibited; therefore, it is advisable to consult an expert before applying.

Employees need a standard work visa sponsored by the employer. Requirements include a valid company licence, no compliance violations, relevance of the employee’s skills to the company’s activities and at least a high school diploma.

Not all do. Many professional licences and small enterprises can be wholly foreign‑owned. Others, particularly general trading businesses, require a local sponsor.

A free zone is a designated economic area in the UAE offering tax incentives, 100% foreign ownership and simplified set‑up procedures. Businesses formed and operating within a free zone are referred to as free zone companies.

Most free zones allow single‑shareholder companies. A few zones require two or more partners, so it’s best to consult a business advisor to pick the right jurisdiction.

The timeframe ranges from a few days to a few weeks depending on the selected free zone, type of licence and completeness of documents.

Companies in free zones are exempt from customs duties and can import and export goods freely, except for prohibited items.

There is no simple transfer. You must terminate your free zone licence, apply for a new mainland licence, obtain new visas, register for VAT and complete the full set‑up process again.

Ajman Free Zone is one of the most affordable options, with company formation costs starting from AED 5 555.

The International Free Zone Authority (IFZA) in Dubai is considered the most budget‑friendly option.

In the IFZA free zone, a basic licence costs about AED 12 900 without visas and around AED 21 900 if you include an investor visa.

Yes. Once a free zone company’s taxable turnover exceeds AED 375 000 over the previous twelve months, it must register for VAT.

Only qualifying free zone companies enjoy a 0 % corporate tax on qualifying income. Non‑qualified income is taxed at 9 % once profits exceed AED 375 000.

Free zones offer affordable set‑up fees, tax incentives (zero corporate and personal income tax on qualifying income), full foreign ownership, flexibility to combine activities, prime locations with excellent infrastructure and other business‑friendly benefits.

The choice depends on the nature of your business. Each free zone has its own regulations and advantages. For example, IFZA is popular for e‑commerce, while DMCC is better suited to global trading.

Yes. Free zone investors can hold 100 % ownership of their companies.

No. Activities are limited to the free zone. To operate on the mainland you must work with a local distributor or consultant.

No, you can register and manage a free zone company remotely without being physically present or engaging a local partner.

You must register with UAE Customs. For imports you typically need an import permit, a certificate of origin, an import declaration form and a bill of lading or airway bill. Exports require documents such as an export permit, customs clearance declaration and a sales invoice.