Dubai is one of the most exciting places in the world to start a business in 2025. With its geographical location connecting the East and West, modern infrastructure, and business-friendly policies, it’s no wonder Dubai is becoming a top choice for entrepreneurs. In fact, more than 20,000 new businesses are registered in Dubai every year, and the numbers keep growing.
Not only this, but Dubai also ranks among the top global hubs for ease of doing business and innovation, maintaining its position as a magnet for entrepreneurs and investors worldwide.
So, why are so many people choosing Dubai? The city offers a tax-free environment, access to global markets, and a booming economy across industries like technology, tourism, real estate, and trade. Doesn’t matter if you are starting a small startup or planning to grow a big company, Dubai provides the tools, resources, and opportunities to help you succeed.
Therefore, we’ll guide you step by step on how to become an entrepreneur in Dubai.
What are the Benefits of Becoming an Entrepreneur in Dubai?
Becoming an entrepreneur in Dubai comes with numerous benefits, making the city a global hotspot for business innovation and growth. Here are some of the key advantages:
1. Tax Advantages
Dubai offers a favorable tax environment with no personal income tax and a low corporate tax rate (9% on taxable income exceeding AED 375,000), allowing entrepreneurs to maximize their profits. The UAE has an extensive network of double taxation avoidance agreements.
2. Ease of Doing Business
Dubai has consistently ranked high in global ease of doing business indices, thanks to its streamlined processes, efficient government services, and pro-business regulations.
3. Free Zone Advantages
Operating in Dubai’s free zones comes with perks like 100% foreign ownership, repatriation of profits, and zero customs duties.
4. Business Ownership Flexibility
Dubai offers 100% foreign ownership for businesses in free zones and in many mainland sectors, which removes the need for a local sponsor.
5. Openness to New Ideas
There’s a general openness to new ideas and business models in Dubai. This can be advantageous for entrepreneurs who are looking to disrupt traditional industries or introduce innovative solutions.
6. High Consumer Spending Power
The UAE has one of the highest GDPs per capita, with a population and expatriate community willing to spend on innovative products and services.
Types of Business Jurisdictions in Dubai
Dubai offers two primary types of business jurisdictions for entrepreneurs and investors. Here’s an overview:
1. Mainland Business Setup
A mainland business is registered under the Department of Economic Development (DED) of the respective emirate, providing significant flexibility for operations within and outside the UAE.
Features and Benefits:
- Mainland companies can trade anywhere within the UAE and internationally.
- As per recent reforms, most business activities in the mainland allow full foreign ownership without needing a local sponsor.
- Wide-ranging activities, including retail, trading, consultancy, and manufacturing.
- Mainland businesses can secure government contracts and participate in public tenders.
- Offers multiple visas, including investor visas for shareholders and employment visas for staff.
2. Free Zone Business Setup
Free zones are specialized economic zones that provide tailored incentives for businesses focused on international trade or niche industries.
Features and Benefits:
- Complete foreign ownership with no local partner required.
- Exemption from corporate and income taxes, as well as customs duties.
- Simplified company registration and administrative procedures.
- Full repatriation of profits and capital.
- Tailored zones cater to specific industries, such as technology, media, and logistics.
Documents Required to Become an Entrepreneur in Dubai
The documents required to become an entrepreneur in Dubai vary depending on the type of business you plan to establish and the nature of your business activity. Here’s a general overview of the essential documents:
- Valid passport copy of the business owners
- Passport-size photographs
- UAE visa or visit visa copy (if already in the UAE)
- Emirates ID copy (if applicable)
- Trade name approval certificate
- Local Service Agent Agreement, if required
- Tenancy contract or Ejari (for mainland businesses requiring office space
- NOC (No Objection Certificate) from current employer
- Additional permits or approvals from regulatory bodies
- Bank reference letter
It’s advisable to consult with a business setup expert like Shuraa Business Setup to ensure all documents meet the specific requirements of your chosen jurisdiction and business activity.
How to Become an Entrepreneur in Dubai, UAE? Step-by-step
To become an entrepreneur in Dubai you need to follow a series of structured steps to establish your business successfully. Here’s a step-by-step process:
1. Identify Your Business Activity
Choose the type of business activity you want to pursue. Dubai’s Department of Economic Development (DED) provides a comprehensive list of permitted activities for mainland companies. Free zones and offshore jurisdictions may have specific activity restrictions.
2. Choose the Right Jurisdiction
Dubai offers three types of business jurisdictions:
- Mainland: Ideal for local and international trading.
- Free Zone: Perfect for tax benefits and international trade.
- Offshore: Suited for asset management and global operations.
3. Decide on Your Company Structure
Choose the legal structure for your business. Popular options include:
- Free zone establishment (FZE).
The structure impacts ownership, liability, and other operational aspects.
4. Reserve a Trade Name
Select a trade name that reflects your business activity and meets the UAE’s naming regulations. Submit your preferred name for approval to ensure availability.
5. Obtain Initial Approvals
Apply for initial approvals from the relevant authority (e.g., DED for mainland businesses or specific free zone authorities). This step ensures that your business activity and trade name are approved.
6. Secure a Business Location
Every business in Dubai needs a registered office. Depending on your jurisdiction:
- Mainland businesses require an office in a DED-approved location.
- Free zone companies may use shared or leased office spaces provided within the zone.
7. Apply for a Business License
Submit your application for the appropriate business license. The license type depends on your activity and jurisdiction, such as:
Depending on your business activity, you might need additional permits or approvals from specific government authorities.
8. Open a Corporate Bank Account
Choose a reputable UAE bank and open a corporate account. This step is essential for managing your business transactions.
9. Apply for Visas
Apply for your UAE residency visa and visas for your employees or dependents. The number of visas allowed depends on your office size and jurisdiction.
The process can be complex due to varying regulations across jurisdictions. Partnering with business setup experts like Shuraa Business Setup simplifies the process, ensures compliance, and saves time and effort.
Essential Considerations to Become an Entrepreneur in Dubai
Becoming an entrepreneur in Dubai is an exciting journey, but it requires careful planning and understanding of the local business environment. Here are some essential considerations to keep in mind:
- Don’t just assume there’s demand for your product or service. Conduct thorough market research to validate your idea and ensure there’s a viable market.
- Business etiquette in Dubai values personal relationships and professionalism. Learn about local customs and regulatory requirements, such as Emiratisation for hiring local talent in certain business categories.
- Dubai offers a tax-friendly environment, but compliance with VAT regulations is critical for eligible businesses.
- Adhere to the UAE’s anti-money laundering (AML) laws, which ensure transparency and integrity in business dealings.
- Dubai offers excellent access to global markets, especially through its Jebel Ali Port and Dubai International Airport. However, being aware of tariffs, customs duties, and trade agreements is crucial.
- Look into Dubai’s Innovation Hub, the Mohammed Bin Rashid Innovation Fund, or specific industry-focused initiatives that provide funding, resources, and training for new businesses.
How Much Does It Cost to Become an Entrepreneur in Dubai, UAE?
The total cost of becoming an entrepreneur in Dubai can range from AED 10,000 to AED 50,000+ for a small business, depending on the type of business, location, and the licenses required. However, the costs can be significantly higher for larger operations or those requiring additional services (additional permits, higher office space, and more employees).
Business license fees for a mainland company typically range from AED 10,000 to AED 30,000. This can increase depending on the business activity and the number of visas required. In free zones, the cost is generally more affordable, with licenses ranging from AED 7,000 to AED 20,000, depending on the free zone and business activity.
Besides, other costs should also be taken into consideration, which may include:
- Office space or rental costs
- Visa & immigration costs (typically range from AED 3000 to 7000 per person)
- License renewal cost
- Ongoing operational expenses
- Trademark registration cost
For more detailed and updated information, it’s recommended to consult with Shuraa business setup experts in Dubai who can provide personalized cost breakdowns based on your specific needs.
How Shuraa Business Setup Can Help You
Dubai is a fantastic place for entrepreneurs, thanks to its growing economy, strategic location, and business-friendly environment. Becoming an entrepreneur in Dubai might seem like a big step, but with the right support, it can be a smooth and rewarding journey. Don’t let the challenges hold you back, take the first step toward making your business dreams a reality.
At Shuraa Business Setup, we make the process easy. From registering your company and getting your license, to securing office space and visas, we handle everything so you can focus on growing your business. With years of experience, our expert team helps you understand the process and ensures everything is in place for a successful launch.
By partnering with Shuraa, you’ll have a trusted advisor who knows the ins and outs of doing business in Dubai. We’re here to guide you every step of the way, saving you time and effort while setting you up for success.
Contact us now at +971 4 4081900, WhatsApp at +971 50 7775554, or [email protected], and let’s build your future in Dubai.
Frequently Asked Questions
1. Can foreigners become entrepreneurs in Dubai?
Yes, foreigners can become entrepreneurs in Dubai. In fact, Dubai encourages foreign investments by offering 100% business ownership in free zones. Recent changes to the Commercial Companies Law also allow for 100% foreign ownership in many mainland business sectors, making it even easier for foreigners to become entrepreneurs in Dubai.
2. How to become an entrepreneur in Dubai?
To become an entrepreneur in Dubai:
- Choose a business activity
- Select a jurisdiction (mainland, free zone, or offshore)
- Obtain approval from DED or Freezone Authority
- Apply for a business license
- Open a bank account
- Obtain a visa for yourself and your employees
Partnering with a business setup consultancy like Shuraa can streamline this process by guiding you through every step.
3. What is the best business to start in Dubai?
Popular sectors for businesses in Dubai include e-commerce, tourism, real estate, construction, and technology. Your choice should depend on your expertise, market demand, and investment capacity.
4. What are the tax benefits for entrepreneurs in Dubai?
Dubai offers no personal income tax and no capital gains tax. A VAT of 5% applies to most goods and services, but corporate tax only applies to businesses making over AED 375,000 annually.
5. Can I start a business without being physically present in Dubai?
Yes, you can appoint a PRO (Public Relations Officer) or an agent to handle the paperwork and setup process on your behalf. However, you will still need to visit for the final licensing and visa procedures.
6. What is the cost of becoming an entrepreneur in Dubai?
The cost varies based on the type of business and location. The license cost for Free zone setups can range from AED 7,000 to AED 20,000, while mainland businesses can cost AED 10,000 to AED 30,000. Additional costs may include office rent, visas, and additional approvals & permits.
