Company Formation in Dubai offers unmatched advantages: 100% foreign ownership, 0% personal income tax, fast-tracked digital licensing, and a globally connected business environment. Whether you’re planning to start a business in the UAE, open a limited liability company, or explore other options, this 2025 guide walks you through every step to set up a business in Dubai or anywhere in the UAE.
Table of Content
Table of Contents
Why Start a Business in Dubai in 2025?
Dubai offers a competitive edge for global entrepreneurs:
- Strategic Location: Access to Asia, Africa, and Europe within a 4-hour flight
- 100% Foreign Ownership across most sectors
- 0% Personal Income Tax, and competitive Corporate Tax regime
- World-Class Infrastructure: Jebel Ali Port, Dubai Airports, smart cities
- Pro-Business Governance: Reforms like 100% mainland ownership and 9% CT cap
- Business Needs Alignment: Wide range of license options tailored to specific sectors
- Access to the UAE Market: Both local and international trade channels open
- Smooth and Efficient Business Setup: Dubai and the UAE provide streamlined services to help entrepreneurs set up your company and conduct business successfully within the UAE
Mainland vs Free Zone vs Offshore
| Structure | Ownership | Market Access | Tax Profile | Ideal For |
|---|---|---|---|---|
| Mainland Company | Up to 100% | UAE & GCC | 9% CT > AED 375k; 5% VAT. No access to QFZP 0% rate | Local trade, government projects |
| Free Zone Company | 100% | Free zone + global | 0% CT if qualifying income; 9% CT on non-qualifying income; 5% VAT | E-commerce, consulting, tech startups |
| Offshore Company | 100% | International only | 0% CT & VAT; No visa/office required (typical use) | Asset holding, IP, holding structures |
Note: Income from mainland UAE activities for Free Zone companies may be subject to 9% Corporate Tax.
10-Step Company Formation in Dubai Process
- Choose Your Business Activity – Match to approved DET/free zone lists
- Select Jurisdiction & Legal Form – LLC, FZCO, Sole Proprietorship, IBC
- Reserve Trade Name – Follow naming rules, ending in legal structure. Avoid religious, generic, or duplicate names.
- Initial Approval – Authority reviews business type and structure
- Draft MoA or AoA – Notarized (mainland) or digital (free zone). Include capital, shareholders, activities.
- Lease Office/Flexi Desk – Required for license issuance
- External Approvals – Needed for education, health, security sectors
- Issue Trade License – Upon fee payment and submission
- Register for Tax – CT and VAT (if applicable)
- Apply for Establishment Card, Visas, Bank Account
Prolink Tip: We pre-verify your activity codes and prepare name suggestions that meet authority criteria. Our business setup consultants streamline every step of the business setup process.
Types of Business Licenses
| License Type | Common Uses | Use Case Example |
| Commercial License | Trading, general commerce | Import/export, e-commerce |
| Professional License | Service-based industries | Consulting, IT, education, design firms |
| Industrial License | Manufacturing, logistics | Factories, food processing, industrial R&D |
Choosing the wrong license can restrict your business activities or lead to fines for operating outside your permitted scope.
Prolink Tip: We help you select the license that aligns with your long-term goals and scalability whether it’s company formation in Dubai free zone in the UAE, and Dubai mainland.
Cost to Start a Company Formation in Dubai
| Company Type | Typical Setup Cost (AED) | Includes |
| Free Zone Company | 12,000 – 23,000 | License, flexi-desk, 1 visa |
| Mainland Company | 30,000 – 50,000 | License, Ejari, MoA, PRO, visa |
| Offshore Company | 7,000 – 11,000 | No visa/office; ideal for asset protection |
Sample: IFZA Free Zone – From AED 14,500 for license, flexi-desk, and visa
Free zones often offer cost-effective bundles due to simplified procedures and optional physical office.
Prolink Tip: We offer bundled packages with guaranteed pricing, so you avoid surprise government fees. Set up your business with peace of mind using our transparent models.
Corporate Bank Accounts
Top UAE banks for startups and SMEs:
- Emirates NBD – Wide branch access
- WIO – Digital-first, fast KYC
- Mashreq – Strong SME trade finance
Documents required:
- Trade license, MoA, passport/visa, address proof
- Business plan or contracts
UAE banks have strict AML/KYC processes. Delays are common without proper preparation.
Prolink Tip: We fast-track banking approvals by working with your relationship manager and prepping your documents ahead of submission. We ensure a smooth bank account in the UAE opening experience.
Tax, VAT & Compliance in 2025
- Corporate Tax: 0% on profits up to AED 375,000; 9% thereafter. Applies to mainland companies and free zones with non-qualifying income.
- DMTT (Domestic Minimum Top-Up Tax): From Jan 2025, MNEs (global revenues > EUR 750M) subject to 15% under OECD Pillar 2.
- Freelancer/Sole Proprietor CT Rule: Natural persons earning >AED 1M/year from business must register for CT by March 31, 2025.
- VAT: 5% standard rate for all UAE-based taxable supplies.
- Qualifying Free Zone Person(QFZP) Requirements: To maintain 0% CT, free zone entities must:
- Perform qualifying activities
- Meet economic substance tests
- Stay within “de minimis” limits for non-qualifying income
- UBO & ESR Compliance: Mandatory; penalties apply for non-filing or late submission.
Prolink Tip: We handle CT registration an UBO.
Setup Timeline
| Company Type | Prolink Setup Time | DIY Time Estimate |
| Free Zone | 2–5 days | 1–2 weeks |
| Mainland | 5–10 days | 2–3 weeks; requires navigating governmental portals |
| Offshore | 1–3 days | 1 week |
Top Business Opportunities in 2025
- FinTech & Digital Payments – Supported by DIFC FinTech Hive
- AI & Tech Services – Aligned with UAE’s AI Strategy 2031
- Healthtech & Telemedicine – Demand accelerated post-COVID
- E-commerce & Logistics – Thriving via, Meydan Free Zone
- Sustainability & EV – Driven by Green Mobility Strategy
- Educational Platforms – Aligned with KHDA digital reform
Prolink Tip: Our company formation consultants will guide you on selecting the best jurisdiction and structure based on your business goals, type of business activity, and sector outlook.
Common Company Setup Challenges
| Challenge | Solution |
| Choosing the right jurisdiction | We assess your market entry goals and suggest best fit |
| Trade name rejection | Pre-validate names to comply with authority rules |
| Delayed license approval | Navigate approvals (e.g., DHA, KHDA) with our specialist team |
| Bank account rejection | Submit pre-screened KYC and business case |
| Unclear cost breakdowns | Transparent package pricing with no hidden fees |
Why Partner with a Business Setup Consultant?
Company Formation in Dubai is rewarding but navigating business structure choices, company registration, setup process, and approvals can be time-consuming. Here’s how Prolink TFS supports you:
- ✅ Expert guidance from experienced business consultants in Dubai or the UAE
- ✅ License processing across Dubai and Abu Dhabi mainland, and free zone business setup.
- ✅ Corporate tax registration and VAT setup
- ✅ Office leasing (Ejari, flexi-desk) and visa services
- ✅ End-to-end Corporate bank account support with local banks
- ✅ No hidden fees, no guesswork full transparency
- ✅ Free consultation and business structure guidance
Ready to start your company formation in Dubai?
Let Prolink TFS simplify the process with expert-led solutions that meet your business goals.
👉 Book your free consultation now and take the first step toward launching your business in the UAE.
Prolink Tip: We help you start your company right by selecting the right type of license for your business setup in Dubai, whether it’s for trade, consulting, or a certain business.
FAQs: Business Setup in Dubai & the UAE
Q1: Can foreigners own 100% of a company in Dubai?
Yes. As of recent reforms, most business activities across mainland and free zones allow 100% foreign ownership without the need for a local sponsor.
Q2: How do I choose the right free zone?
Consider your business activity, office needs, visa quota, and whether international trade is required.
Q3: How long does it take to set up a company in Dubai?
Setup can take as little as 2–5 days for free zones, and 5–10 days for mainland.
Q4: Is VAT registration mandatory?
Only if your turnover exceeds AED 375,000 annually. Voluntary registration starts at AED 187,500.
Q5: What is the best license for an online store?
A Professional or Commercial license with an e-commerce activity in a free zone.
Q6: Is a physical office required?
Yes for mainland. Many free zones accept flexi-desks or shared spaces.
Q7: What is a Limited Liability Company?
An LLC is a business structure with liability protection and broad activity access. It is the most common setup on the Dubai mainland.
Q8: What’s the minimum capital requirement to start a business in the UAE?
Most free zones and mainland setups no longer require a minimum paid-up capital, though this can vary depending on the activity and zone.
Q9: What’s the corporate tax for startups in UAE in 2025?
Startups pay 0% on profits up to AED 375,000 and 9% thereafter. Qualifying free zone income may be exempt.