Your Easy Guide to Company Set-up Dubai from Scratch

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In today’s global economy, Dubai stands out with low taxes, strategic location, and investor-friendly laws. It’s no surprise that Company Set-up Dubai is top-of-mind for entrepreneurs across the world.

2. What “Company Set-up Dubai” Really Means

It’s more than just filling forms—it involves legal structures, jurisdiction choices, approvals, and licensing. A smart start sets the foundation for business success.

3. Types of Business Jurisdictions in Dubai

You can set up in three main zones—each offering distinct benefits:

Mainland

Operate freely across the UAE and work with local clients without restrictions.

Free Zone

Perfect for international trade and 100% ownership. Each Free Zone has its own rules and fees.

Offshore

Ideal for holding assets, tax planning, or international operations. No physical presence needed in Dubai.

4. Picking the Right Business Structure

Choose between Sole Proprietorship, LLC, Branch Office, or Civil Company depending on your business model, liability preference, and future goals.

5. Selecting a Trade Name and Activity

Your business name should match your activity and meet DED (Department of Economic Development) guidelines. Approval is mandatory before registration.

6. Documents Required to Start a Company

Prepare:

  • Passport copies of all partners

  • Emirates ID (if available)

  • Trade name reservation

  • Initial approval

  • Tenancy contract (Ejari)

7. The Business Registration Process Explained

  • Step 1: Choose jurisdiction

  • Step 2: Reserve trade name

  • Step 3: Get initial approval

  • Step 4: Lease office space

  • Step 5: Submit documents

  • Step 6: Receive trade license

8. Business License Types in Dubai

  • Commercial License – for trading businesses

  • Professional License – for service providers

  • Industrial License – for manufacturing or production

9. Local Sponsor Requirement and How to Deal With It

Mainland companies need a UAE national as a sponsor. Opt for a corporate sponsorship agreement to ensure full control of your business legally.

10. How Much It Costs to Start a Company

Starting costs range from AED 12,000 to AED 30,000+ depending on location, office space, number of visas, and type of business.

11. Setting Up Your Corporate Bank Account

Banks require complete documentation and often an in-person interview. Choose banks with SME-friendly services and minimum balance requirements you can handle.

12. Employee Visa Sponsorships

Once your license is active, you can sponsor employee visas. Costs vary based on job role, nationality, and medical fitness clearance.

13. Hiring Office Space: Virtual or Physical?

Free zones often allow flexi-desks (virtual offices). Mainland setups usually require physical office space with Ejari certification.

14. Common Pitfalls to Avoid

  • Picking the wrong jurisdiction

  • Underestimating visa and rent costs

  • Ignoring renewal deadlines

  • Not checking trade activity compliance

15. Final Thoughts: Starting Right from Day One

Company Set-up Dubai becomes simple when you understand the process, choose the right partners, and prepare your documents smartly. Planning ahead is everything.

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