Business setup in Dubai: the complete 2026 guide

When opening a business in Dubai, what you really need to know first is the potential bottlenecks and how to deal with them. What hidden costs are there to consider? What is the right license for your business type? How to choose between a mainland and a free zone setup? What are the timeframes and requirements of opening a corporate bank account? What is the current tax climate?

This guide shows you the end-to-end path: from picking a legal form to banking, visas, and compliance, so that you can start your operations with fewer surprises. You’ll see what mainland and free zone setups are best for, what documents to prepare, what the typical costs are, and common pitfalls to avoid. In addition, you’ll learn what has changed in this field in 2026.

Cost of business setup in Dubai (2026)

Costs vary by activity, facility, and authority. Treat the figures below as working ranges (excluding VAT) to plan deposits and first-year earnings. The rule of thumb is to plan ahead and have a buffer for compliance and other expenses.

For a more nuanced breakdown of setup costs, see our guide.

Average mainland cost breakdown

Average free zone cost breakdown

Hidden costs to expect

• Medical insurance is mandatory for owners/staff
• Foreign papers require attestation and legalized translations
• Bank fees
• Bank compliance assistance

Cost optimization tips

• Start with a flexi-desk and upgrade the space if needed
• Group the related activities under one license where allowed
• Prepare attestations in advance to avoid repeat filings
• Align the visa count with real hiring

Step-by-step process: how to set up your business

Most companies are set up within 4–10 days if the documents are ready and signers are available. Below are the practical steps for business setup in Dubai and across the UAE, so that you can move from name check to banking and visas without friction. For more details, check out our company registration guide.

Step 1. Choose your business activity

Your activity decides what you can legally sell, which authority reviews you, and how banks see your file. For the Dubai mainland, you pick the corresponding activity code from DET’s (the Department of Economy and Tourism) list.

If you choose free zone setup, pick among the activities available in the chosen free zone. Certain activities (health, media, education, food) may require external approvals.

External approvals (examples)

Step 2. Select the jurisdiction

Choose between onshore reach (mainland) and bundled free zone services (flexi-desk, warehouses, packages). Consider your customer base, invoicing, storage, and banking. If you need citywide retail today, go with mainland; if you prefer re-export and testing the demand first, a free zone can lower your costs while you scale across the UAE.

Step 3. Register your company’s name

• Clear names pass faster. Keep three options ready and mirror the spelling everywhere (passport, license, bank). Follow these simple rules:
• No religious, political, or offensive words.
• Don’t use famous brands or close look-alikes.
• Prefer full words over abbreviations.
• Add activity hints only when required.
• If using a personal name, follow authority rules.

Step 4. Choose the legal structure

Pick a form that fits your preferred liability, partners, and bank expectations.

Step 5. Prepare the documents

Gather passports, photos, proof of address, and draft MOA/AOA. Align every field with your IDs. Foreign papers may need notarization, legalization, and MOFA attestation; certified Arabic/English translations are standard. Use clear filenames and 300-dpi scans – it helps speed up the review.

Key documents (typical)

• Passport + photo; visa/eEntry if resident
• Lease or flexi-desk letter (Ejari/free zone)
• MOA/AOA, manager appointment, UBO chart
• Parent-company papers (if any): Certificate of Incorporation, board resolution

Step 6. Submit the application and get the license

File the application via DET (mainland) or the free zone portal. With a complete pack, approvals and printing are often complete in 4–6 days. The license is valid for one year and renews with your facility. After the issuance, you can invoice, sign contracts, and register with customs in Dubai.

Step 7. Post-licensing requirements

Open a corporate bank account with an appropriate KYC set (listed activities, first contracts, supplier/buyer list, simple cash-flow). Start visa processing based on your facility quota (for mainland) and take care of compliance: corporate tax registration, bookkeeping, and basic policies where your industry sector requires them. This will keep your business setup steady as you hire and scale across the UAE.

Bank account opening in Dubai

Open a corporate account early — it is essential for your operations and compliance.

Top banks (typical timelines)

Key required documents

• Trade license and Establishment Card
• MOA/AOA + shareholder/UBO documents
• Simple business plan + first contracts/invoices
• Proof of address (Ejari/lease or utility), manager’s Emirates ID/visa

2025 tip

Expect a stricter screening process from banks when opening a corporate account, even in the case of a free zone setup. Book an initial call with the bank beforehand and prepare to demonstrate your company’s substance for a better KYC. This will increase your chances of success and speed up the screening process.

You can also check out our guide on opening a corporate bank account in the UAE.

Understanding business jurisdictions in Dubai

Picking the right jurisdiction is the backbone of your business setup in Dubai. In simple terms: sell across the country (mainland), work inside a free zone with bundled services, or hold assets offshore. Your choice affects market access, banking, visas, costs, and day-to-day setup.

Mainland company setup

Mainland lets you sell anywhere in the UAE without a local agent, invoice directly, and bid for bigger contracts. It fits companies opening shops or showrooms, service firms with citywide clients, and teams that need on-ground staff. Just pick a legal form (the most common is an LLC), secure a trade name, select activities, sign the MOA/AOA, and lease a small office (Ejari).

Historically, mainland-based businesses required a local sponsor as opposed to free zones, which enabled 100% foreign ownership. However, this restriction has been eliminated in recent years for most industries, so full ownership is allowed for mainland companies as well.

Free zone company setup

A free zone firm is registered inside a specialized area with bundled license offers, quick setup, and ready facilities (from flexi-desks to warehouses). Benefits include fast digital onboarding, package-based visa quotas, and proximity to industry clusters (e-commerce, media, tech, logistics, etc.).

Each free zone has its own rules, activities, pricing, and reputation. With 21+ free zones in Dubai, you can choose the one that matches your industry sector, storage needs, and banking profile. Also, in 2026, it is now easier to reach mainland clients via compliant structures and logistics partners.

Offshore company

An offshore company is used to hold shares, IPs, or property SPVs. It does not trade onshore or sponsor visas - it’s mainly for asset protection and clean ownership over your operating entities. For more information, you can check out our offshore company setup guide.

Mainland vs free zone comparison

Business licenses & activity types

A Dubai trade license is an official permit that allows companies and freelancers to legally operate a business in Dubai and defines a company’s business activity, legal structure, and registered trade name.

You can combine related activities under one license when the rules allow for it. Otherwise, you’ll need an extra license, which raises fees and renewal costs.

Your choice affects banking expectations, office options, and the jurisdiction you can use in Dubai (mainland or free zone). If you want to learn how to choose the right business license, check out our guide.

Visa & residency requirements

Here are the main types of residence visas related to business in Dubai and across the UAE:

• Investor/Partner visa: for shareholders/co-owners of a local mainland or free zone company with a valid commercial license.
• Employment visa: for foreign professionals employed in UAE-based companies.

Investor and Partner residency visas are typically self-sponsored, while the Employee visa is usually linked to a sponsored status (provided by a company/employer).

Documents required for an Employee visa:

• Passport (valid for no less than 6 months)
• Photo
• Job offer letter
• Educational documents (attested in the UAE, depending on profession)
• Valid trade license with visa allocations (from the employer’s side)
• Establishment Card (from the employer’s side)
• Rented office space, including flexi-desk (from the employer’s side)

Documents required for an Investor/Partner visa:

• Passport (valid for no less than 6 months)
• Photo
• Valid trade license or company registration documents
• Establishment Card

All applicants must undergo medical testing, biometric registration, and the visa stamping process as part of the visa application.

There are other business-related residence visa options, such as the Golden Visa, Green Visa, or Digital Nomad Visa, but they come with a set of special requirements and are not that common.

VAT and corporate tax in Dubai in 2026

Two business taxes matter most in Dubai: value-added tax (VAT) and corporate (profit) tax. VAT is a 5% tax added to most sales. Corporate tax is 9% on annual profit above AED 375,000.

VAT basics

A quick example

If you sell AED 840,000 in a quarter, you collect AED 40,000 VAT from customers (5%). If your purchases include AED 30,000 VAT that you can claim, you pay the difference: AED 10,000.

Corporate tax basics

Tips

• Register for VAT on time and put your tax number on every invoice.
• Mark each sale as 5%, 0%, or out of scope before you send the invoice.
• Keep supplier invoices so you can claim their VAT correctly.
• For profit tax, track expenses and adjustments during the year, not at the last minute.
• If you rely on free-zone benefits, keep a real presence in the zone and check every year that you still meet the rules.

Accounting and bookkeeping

Good books show where your money comes from and where it goes. Banks, landlords, and government offices expect clear records. Closing the books every month is easier than fixing a year’s worth of gaps later.

What to keep and why

Monthly routine that works

• Number and send all sales invoices; follow up on late payments.
• Match purchase orders, delivery notes, and supplier bills; plan payment dates.
• Reconcile every bank account so balances match the statements.
• Post payroll, monthly accruals (like rent), and equipment depreciation.
• Produce four reports: profit and loss, balance sheet, cash flow, and aged lists of who owes you and whom you owe.

Tools and roles

Use a cloud accounting system (for example, Xero, QuickBooks, or Zoho) with bank feeds to reduce manual work. Store files in simple folders (Sales, Purchases, Bank, Payroll, VAT, Profit Tax). Split the duties: a bookkeeper posts daily items, an accountant reviews the month-end, and a manager signs off quarterly.

Audits and yearly reports

Many free-zone authorities and some banks ask for yearly financial statements, and often an audit after the first year. Be ready with a neat year-end pack that includes a trial balance, schedules for key accounts, bank confirmations, lease copies, stock counts, and the fixed-asset list.

Tip for preventing problems

• One person prepares payments, another one approves them.
• Get two price quotes before large purchases and use a simple purchase order.
• Keep a rolling 13-week cash plan for salaries, rent, and tax dates.
• Name files clearly and scan at good quality - your auditors and banks will thank you.

Compliance calendar

Create a calendar that includes:

• VAT return deadlines
• Corporate tax filing
• License renewal
• Ejari renewal
• UBO updates
• ESR notifications/returns

Review the calendar each quarter and update it for new entities or changes in activity.

New 2026 regulations and opportunities

One Freezone Passport: key information and practical use cases

Think of this as a “multi-zone pass.” If your company is licensed in one of the free zones participating in the program, you can use facilities in certain other zones without opening a brand-new company each time. It means less repetitive paperwork and faster moves between warehouses, offices, or studios in Dubai.

Example use cases:

• E-commerce scale-up: DMCC entity adds a JAFZA warehouse for faster import/re-export without setting up a second full company.
• Tech teams on demand: developers of a Silicon Oasis firm use desks in a partner zone for a few months while staying on the same visas and payroll.
• Media production: A media company books studio space in another zone for a shoot while keeping contracts and invoicing under the original license.

Resolution № 11/2025: impact on ownership and control

This rule explains how a free-zone company can sell to customers on the mainland (outside the zone) the right way. You may sell through a distributor, open a branch, or use other approved routes. You keep 100% foreign ownership of your free-zone company - you just choose the correct path for mainland sales and invoicing.

What it changes for you:

• Clearer sales routes: when you can invoice directly vs when a mainland partner is needed.
• Tidy paperwork: fewer surprises about extra approvals or registrations.
• Simple control: pricing and contracts can stay centralized if the chosen route allows.

Employees can own businesses: scenarios and limitations

Employees in the UAE can now hold shares in a company and, in many cases, help run it. Often, an NOC (letter of consent) from the employer is required. This makes it easier to start a side venture or join a startup as a co-founder without quitting your job on day one.

Typical situations:

• Side consultancy: you keep your job and open a small professional firm with an employer NOC.
• Joining as co-founder: you take a minority stake and light management duties before moving full-time.
• Staff incentives: startups grant small share options to retain key people.

Limits to keep in mind:

• Some industries need extra permits; conflict-of-interest rules still apply.
• You can’t use your employer’s resources for a competing activity without formal approval.

Common mistakes to avoid

Avoid these business setup pitfalls — simple checks save weeks and money.

Wrong free zone selection

Choosing a free zone on price alone can backfire in Dubai.

• Banking difficulties: some banks are cautious with certain zones; KYC can drag on, and accounts may stall.
• Activity restrictions: free zone’s activity list may not cover your real services or mainland sales may be limited.

Incorrect activity selection

Your licensed activity defines what you can legally do and sell.

• Business limitations: wrong activity codes block tenders, importer codes, and insurance.
• License issues: missing external approvals (MOHAP, KHDA, NMC, TDRA, Dubai Municipality) trigger rework.

Poor timeline planning

An overly tight setup plan can lead to broken deadlines and further delays.

• Bank delays: KYC can take 2–4 weeks, so plan around it.
• Document attestation: legalizations/translations add time, so queue them early.

Industry-specific quick guide

Here are some quick tips for launching certain business types in Dubai:

• E-commerce: start in a free zone (DMCC/IFZA), set up business banking for payouts, and connect a local payment gateway early.
• Consulting: choose mainland under a Professional license, arrange the LSA, and use a simple service agreement.
• Trading: pick JAFZA for warehouse access, confirm HS codes and importer registration, and plan basic customs handling.
• Tech/Software: base in Silicon Oasis, protect your IP, and define clear SaaS/licensing and data terms.
• F&B: choose mainland, secure Dubai Municipality’s food-safety and fit-out approvals, and make sure your site meets tenancy rules.

Timeline: how long does the setup take?

While actual duration varies by business model and several other factors, the typical timelines are shown below.

Factors affecting the timeline

• Document readiness: clean scans and consistent data shorten the review time.
• External approvals: sector sign-offs (e.g., health, education, media) add days.
• Bank requirements: KYC interviews, proof of funds, and first contracts.
• Complexity of structure: multiple owners, cross-border ties, or added activities require extra checks.

Why choose Dubai for business setup in 2026

100% foreign ownership

Dubai allows for full company ownership in most sectors, so you can keep control of profits and decisions. That makes it easier to register, sign contracts, and grow the business without a nominee structure.

Strategic location & market access

Sitting between Asia, Africa, and Europe, Dubai connects you to customers across the UAE and beyond. With top airports, seaports, and logistics hubs, a business can ship fast, re-export easily, and manage regional sales from one base.

Tax advantages & Golden Visa reforms

A clear 9% corporate tax above the distinct AED 375K threshold, a digital filing system, and long-term residency options help you plan costs and gain stability. These changes make it easier for a business to hire staff, manage finances, and scale in Dubai with fewer surprises.

Quality of life & talent pool

Safe neighborhoods, strong healthcare, and international schools attract skilled people. English-focused service and transparent rules help your business onboard employees and start operating quickly.

Dubai vs other business hubs (at a glance)

DIY vs using a business setup consultant

If you’re new to Dubai or short on time, compare your options in the table below. DIY keeps control and saves money, while a consultant reduces friction, speeds up the process, and lowers error risk across your business setup.

When to use a consultant

• First time in the UAE: need clear steps and fewer back-and-forths with authorities.
• Complex structure: multiple owners, cross-border links, or regulated activities.
• Banking challenges: require a strong KYC pack and introductions to specific banks.
• Time-sensitive launch: a fixed launch date, vendor contracts, or urgent hiring.

Expert tips for successful setup

Before you start

• Thorough market research: check the demand, pricing, and competitors; talk to your potential customers.
• Budget planning (+30% buffer): include licensing, visas, rent, banking, and hidden fees to cover potential ramp-ups.
• Activity selection strategy: pick the codes that match what you will actually sell and add near-term options.

During setup

• Document preparation: clean scans, consistent spellings, and notarized/attested papers save weeks.
• Professional photos for visa: correct size/background prevents ID rejections and repeat visits.
• Build bank relationships early: shortlist banks, prepare a simple cash-flow, and gather first contracts.

After setup

• Accounting system: turn on invoicing, cost tracking, and monthly closes from day one.
• Compliance calendar: log renewals, tax filings, ESR/UBO, and reminders.
• Insurance coverage: protect your employees, premises, and liability.

Conclusions

In 2026, Dubai offers fast licensing, 100% foreign ownership, simplified taxation, and long-term residency options, making business setup in Dubai both accessible and scalable across the UAE. With smarter rules and better banking paths, your business can launch, hire, and sell faster.

Key takeaways

• Pick the right jurisdiction: mainland for a wider reach, free zone for lean starts.
• Plan your expenses ahead, keep a financial buffer, and don’t underestimate hidden costs.
• Prepare clean documents and a clear bank profile early for smooth processing and account opening.
• Use the 2025 reforms (One Freezone Passport, mainland access) to expand in Dubai.

New opportunities in logistics, tech, and services mean you can launch and run your business with confidence.