Frequently asked questions

Yes, recent regulations allow foreign investors to have full ownership of their businesses in many sectors, especially in free zones and certain mainland activities. However, some activities may still require a local sponsor or service agent.

The cost varies based on factors like business activity, location, and license type. Generally, fees range from AED 5,750 to AED 50,000. Additional costs may include office rent, visa fees, and other administrative expenses.

The exact process may vary depending on the business activity and jurisdiction. The general steps include:

• Determine business activity: Identify the nature of your business.
• Choose legal structure: Decide on the company’s legal form (e.g., LLC, sole proprietorship).
• Reserve trade name: Select and register a unique business name.
• Apply for initial approval: Obtain preliminary consent from relevant authorities.
• Lease business premises: Secure a physical address for your business.
• Prepare legal documents: Draft and notarize necessary documents like the Memorandum of Association.
• Submit final application: Provide all documents and pay fees to receive the license.​

The UAE offers several types of business licenses, including:​

• Commercial license: For trading activities.
• Professional license: For service-oriented businesses.
• Industrial license: For manufacturing and industrial activities.
• E-commerce license: For online business activities

Each license type caters to specific business activities and may have distinct requirements.

Dubai offers a wide range of business licenses — from freelance permits to full industrial licenses. You can start a company either in one of Dubai’s many specialized free zones or on the mainland.

• Commerciallicense — for trading activities
• Professional license — for service providers, freelancers, and consultants
• Industrial license — for manufacturing or light production

Setting up a business in Dubai is not only prestigious but also logistically convenient, thanks to excellent infrastructure and proximity to major business and tourist hubs. In some cases — like IFZA or DMCC — Dubai can also be one of the most cost-effective options.

To legally register a company in Dubai, you need to follow these basic steps:

• Choose the right jurisdiction (mainland or a specific free zone)
• Select the appropriate business activity and structure
• Reserve your trade name
• Submit required documents and get initial approval
• Sign incorporation documents and rent a workspace (e.g., flexi desk or office)
• Obtain Dubai trade license
• Apply for visas and open a corporate bank account
• Comply with any additional requirements (e.g., UBO declaration, Economic Substance filing, bookkeeping)

Business setup consultants can help you stay compliant and avoid costly delays.

A local sponsor is a UAE national who holds 51% of shares in a mainland LLC company. This arrangement is required for certain business activities but does not usually affect operational control or profits.

A local service agent (LSA), on the other hand, is appointed for professional licenses owned 100% by expats. They don’t hold any shares or decision-making power but are required for government liaison and documentation.

The most common legal structures are:

• Free Zones:
  • FZE (Free Zone Establishment — single shareholder)
  • FZCO (Free Zone Company — multiple shareholders)
  • FZ-LLC (Free Zone Limited Liability Company). It has its own legal identity and can be owned by individuals or corporate entities. Similar to a Mainland LLC, it offers liability protection but operates under the rules of its specific free zone and is generally allowed to do business within the free zone or internationally, but not directly in the UAE mainland.
• Mainland:
  • LLC (Limited Liability Company)
  • Sole proprietorship (for certain professional activities)
• Others:
  • Local or foreign branch office
  • Offshore company
  • Foundation (in offshore or ADGM/DIFC jurisdictions)

Not always. Some jurisdictions allow virtual office packages. However, most free zones require at least a flexi desk to issue the license. For mainland companies, having a physical office is mandatory.

To open a corporate bank account, you first need to register your company and obtain your UAE residency visa. Then, submit all required documents confirming your business activity and financial operations. Proper preparation of your file is key — working with experienced consultants in Dubai can significantly improve your chances of approval.