Smart Business Setup in Dubai: Complete 2025 Guide to Costs, Company Types & Process

business setup in Dubai for foreigners

CONTENTS

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Introduction

Looking into business setup in Dubai? You’re not alone. With tax-free income, investor-friendly laws, and a booming global economy, Dubai is now one of the world’s top destinations for entrepreneurs and startups.

This guide covers everything you need to know — from business setup UAE rules to company types, Free Zone vs Mainland options, estimated costs, and visa paths.

Why Set Up a Business in Dubai?

When considering business setup in Dubai, entrepreneurs are drawn to its thriving economy and world-class infrastructure from around the globe. Here’s why so many choose company setup in Dubai:

  • 100% Foreign Ownership (Free Zones + many mainland sectors)
  • 0% Personal Income Tax
  • Strategic Global Location between Europe, Asia & Africa
  • Safe, modern city with excellent infrastructure
  • Fast-growing digital & service economy

Whether you’re scaling your startup or launching a new venture, business setup UAE offers unmatched long-term potential.

Mainland vs Free Zone Company Setup

dubai free zone vs mainland

Key Differences When Setting Up a Company in Dubai

Feature Mainland Free Zone
Ownership 100% foreign ownership allowed 100% foreign ownership
Market Access UAE + international International only
Office Space Required Optional (many allow Flexi-desks)
Cost Range AED 15,000–30,000+ AED 5,750–25,000
Licensing Body DED (Department of Economic Development) Various Free Zone Authorities

Compare Dubai Free Zone license cost

Company Formation in Dubai – Step-by-Step

Thinking of setting up a business in Dubai? Here’s a simplified 8-step process:

  1. Choose Your Business Activity
    Select from over 2,000 permitted activities (consulting, trading, tech, etc.)
  2. Select Jurisdiction
    Mainland vs Free Zone — based on your ownership and target market
  3. Pick a Company Name
    Must meet UAE naming guidelines (no religious/political names)
  4. Apply for Initial Approval
    Obtain preliminary approval from the chosen authority
  5. Draft MOA / LAA
    Especially required in Mainland setups — outlines structure, ownership
  6. Lease Office Space
    Required for license issuance (Flexi-desk often acceptable for Free Zones)
  7. Submit License Application
    Submit all documents + pay licensing fees
  8. Receive Trade License
    Once approved, your business is officially legal and operational

More on company formation in Dubai

Business Setup in Dubai: Cost Breakdown for 2025

company setup Dubai cost chart

Use this cost table to estimate your expenses:

Setup Type Approximate Cost (AED) Notes
Free Zone – No Visa 5,750–9,000 Basic license only
Free Zone – With Visa 10,000–15,000 1–2 visa allocation
Mainland – Standard 15,000–25,000+ Office space + trade license
E-commerce or Consultancy Custom Varies by scope; ask SetHub team

Looking for a low cost business setup in Dubai? We’ll guide you to the right zone and license type based on your goals.

See Dubai Free Zone company setup cost breakdown

Business Setup Packages by SetHub

SetHub makes business setup in Dubai easy with transparent pricing and done-for-you support.

Our Packages:

  • Starter Package: License + 1 Visa + Flexi-desk (Ideal for freelancers)
  • Growth Package: Multi-visa + premium Free Zone + office support
  • Premium Package: Company setup, multiple visas, PRO support, corporate bank assistance

Our business setup consultants in Dubai will walk you through every step — from choosing the jurisdiction to submitting final paperwork.

Talk to a consultant now

Visas & Residency Through Business Setup in Dubai

investor visa through business setup

Starting a company in Dubai can also help you secure UAE residency. Options include:

  • Partner/Investor Visa – 2–3 years residency for business owners
  • Freelance Visa – For independent professionals
  • Golden Visa – 5–10 years for investors, founders, and top professionals

Explore our UAE Golden Visa blog

Common Mistakes to Avoid

  • ❌ Choosing the wrong license type
  • ❌ Not budgeting for renewals or office lease
  • ❌ Overlooking local bank setup timelines

SetHub helps you avoid these pitfalls with pre-launch consultation and support while your business setup in dubai.

Why Work With SetHub

business setup consultants in Dubai

  • 10,000+ businesses launched
  • Fast, multilingual support team
  • Transparent pricing — no hidden fees
  • Corporate bank setup and visa services

Ready to begin your business setup in Dubai? Contact SetHub for a free consultation

FAQ

How much does it cost to set up a business in Dubai?
Free Zone costs start from AED 5,750; mainland setup ranges from AED 15,000–30,000+.

Can foreigners own 100% of a company in Dubai?
Yes — 100% ownership is now allowed in most sectors and Free Zones.

Is Dubai a good place for startups?
Absolutely. Tax-free income, global access, and strong infrastructure make it ideal.

How long does the setup process take?
With SetHub, you can be fully licensed in 5–10 working days.

Do I need to live in the UAE to own a company here?
No, but it helps if you’re applying for a visa and opening a local bank account.