How to start a business in Dubai: a founder's step-by-step guide

Search "business setup Dubai" and you'll find hundreds of agencies, each with its own package. Before you talk to any of them, it helps to know what the process actually is, in the government's own words. This guide follows the official UAE and Dubai sources step by step, so you can work out what you need, in what order, and which questions to ask.

General information only, not legal or tax advice. Requirements change and differ by authority. Always check the official source linked in each section.

Step 1: Decide what your business will actually do

Everything starts with the business activity. The UAE Government portal is clear that the activity is "the basis for selecting the legal form and type of licence", and notes that there are more than 2,000 business activities to choose from, and that one business can hold more than one (u.ae: Steps to start a business on the mainland).

Founders often skip this and pick a free zone or package first. Turn that round. Write one or two sentences on what you will sell, to whom, and from where. Then find the activity (or activities) on the authority's list that match it. If you will sell to UAE consumers, import goods, hire staff on site or need a shopfront, write that down too. Those details shape the next two decisions.

Step 2: Choose mainland or free zone

Dubai offers two broad routes:

• Mainland: licensed by the emirate's economic department (in Dubai, the Department of Economy and Tourism). A mainland company can trade across the UAE market.
• Free zone: licensed by the free zone's own authority. Each zone has its own activity list, legal forms, office and visa rules. The UAE Government portal explains how free zone setup works and notes that, after review and approval, a free zone licence is typically issued within 14 working days (u.ae: Starting a business in a free zone).

Invest in Dubai publishes the list of free zones in Dubai and an overview of setup options. If you are undecided, our longer read Free zone or mainland? walks through the trade-offs and the questions to ask.

A practical test: where are your customers, and how will you invoice them? If most of your revenue will come from UAE consumers or mainland businesses, ask each free zone exactly what it allows for mainland trade before you commit.

Step 3: Pick a legal form

The legal form decides which laws apply to you and how ownership works. For the mainland, the UAE Government portal lists general partnership, limited partnership, limited liability company (LLC), public joint stock company (PJSC) and private joint stock company (PrJSC), and stresses that "the legal form of the business must match the business activity" (u.ae).

Free zones use their own forms, such as FZ-LLC, FZCO or FZE, and each zone publishes which ones it registers. If you have co-founders, settle ownership, roles and what happens if someone leaves before you register. Changing shareholders later means paperwork and fees.

Step 4: Choose the licence type

On the mainland, the Ministry of Economy and Tourism lists six licence types: industrial, commercial, professional, tourism, agricultural and crafts. Invest in Dubai lists eight for Dubai: industrial, commercial, professional, eTrader, dual, instant, SME and Intelaq (u.ae).

The licence type usually follows from your activity, so this step is about checking, not choosing from scratch. If you plan to sell only online, read about the eTrader option on Invest in Dubai. If you are in a free zone, the zone's licence categories apply instead.

Step 5: Register a trade name

Your trade name is registered with the economic department of the emirate (or the free zone). The UAE Government portal lists the main rules. The name must:

• carry the legal-form acronym (for example LLC);
• not offend public morals or public order;
• fit the activity and legal status;
• not use names of religions, governing authorities or outside bodies;
• not already be registered.

The portal also points out a difference founders often miss. The trade name is registered locally, while a trademark is registered by the Ministry of Economy and Tourism (u.ae). Registering a trade name does not protect your brand as a trademark.

Step 6: Get initial approval

Initial approval means the government has no objection to the business being set up. It lets you move to the next steps, but it "does not grant the authority to run or practice the business activity". The portal adds that foreign investors need approval from the General Directorate of Residency and Foreigners' Affairs before initial approval (u.ae).

Step 7: Sign the founding documents and secure a location

Depending on your legal form, you will sign a Memorandum of Association (MoA) and, where required, a local service agent agreement. You also need a business location that meets the authority's rules. In Dubai, a mainland lease is registered through Ejari. Free zones offer their own office or desk options, and these often affect how many visas you can apply for.

Some activities need additional approvals from other government bodies (for example health, education or media regulators). The portal lists this as its own step, so check early whether your activity is one of them.

Step 8: Collect your licence

Once documents are submitted and fees paid, you collect your licence, often online. The UAE Government portal also mentions the Basher platform for setting up some businesses online, and Abu Dhabi's instant licence service (u.ae). Fees vary widely by authority, activity and office choice. Get an itemised quote from the authority itself and compare it with any agent's package.

Step 9: After the licence, open a bank account

Most UAE banks offer business accounts and run their own KYC checks. Expect to provide your trade licence, MoA, shareholder IDs and proof of address. Each bank decides eligibility itself, and approval isn't automatic. Our UAE setup and banking guide covers the main options and what they ask for.

Step 10: Register for tax on time

Two taxes matter from day one:

• Corporate tax. Companies, including free zone companies, must register with the Federal Tax Authority (FTA) and get a Corporate Tax Registration Number (FTA: corporate tax registration). Under FTA Decision No. 3 of 2024, a company incorporated on or after 1 March 2024 generally has three months from incorporation to register (FTA Decision No. 3 of 2024, PDF). Taxable income up to AED 375,000 is taxed at 0% and above that at 9% (Cabinet Decision No. 116 of 2022, PDF).
• VAT. Registration becomes mandatory when your taxable supplies and imports pass the FTA threshold, and voluntary registration is possible below it (FTA: VAT registration).

We explain corporate tax for early-stage companies in a separate post, including Small Business Relief.

Step 11: Visas

Company owners commonly apply for an investor or partner residence visa through their licensed company. The licensing authority sets how many visas your setup allows. If you have an innovative project, the UAE Golden visa has an entrepreneur category. Read the official criteria on the UAE Government portal. Residence visas are handled by ICP and, in Dubai, GDRFA.

A simple checklist before you pay anyone

1. One sentence on what you sell, to whom and from where.
2. The exact activity name(s) from the authority's list.
3. Mainland or free zone, and why (customers, invoicing, office, visas).
4. Legal form and ownership agreed with co-founders.
5. Three trade name options that follow the rules above.
6. Whether your activity needs extra approvals.
7. An itemised quote from the authority, not just a package price.
8. Your corporate tax registration date in the calendar.
9. Bank account documents ready.
10. A visa plan for yourself and your first hires.

Common mistakes to avoid

• Choosing the zone before the activity. The activity drives everything else.
• Forgetting mainland customers. Check what your licence lets you do before you sign a lease.
• Confusing a trade name with a trademark. Protect your brand separately.
• Missing the tax registration window. The FTA sets deadlines and penalties apply.
• Comparing packages, not line items. Ask what's included: licence, office, visas, establishment card, renewals.

Where Startup Roof fits

Setting up is one step on a longer journey: finding customers, building something people pay for, and growing it. Startup Roof is a UAE-first founder ecosystem that brings practical tools, source-checked guides and opportunities, and a founder network under one roof. Take a look around at startuproof.com and start with the step you're on.

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Sources (checked 15 Oct 2026)

• UAE Government portal: Steps to start a business on the mainland
• UAE Government portal: Starting a business in a free zone
• Invest in Dubai: Business set-up and Free zones in Dubai
• Federal Tax Authority: Corporate tax registration; FTA Decision No. 3 of 2024; VAT registration
• Cabinet Decision No. 116 of 2022
• UAE Government portal: Golden visa; ICP; GDRFA Dubai