How to Start a Business in Dubai – The Company Formation Process

1. Choose an Industry

There are many industries thriving in the UAE, making it a prime destination for innovation and entrepreneurship. Deciding on your business activity is crucial before proceeding with the setup process, as certain locations in Dubai and the UAE permit only specific activities.

For example:

• Dubai Media City: A free zone catering to media companies, home to global names like BBC, CNN, and Thomson Reuters.
• Dubai International Financial Centre (DIFC): A hub for international financial services, housing giants like Credit Suisse and Goldman Sachs.
• Dubai Multi Commodities Centre (DMCC): A versatile free zone that accommodates businesses across various sectors, from commodities trading to tech startups.

In recent years, many sector-specific free zones have expanded their scope to welcome general business activities. Consider transport links and proximity to industry peers—businesses relying on imports or exports should prioritise free zones near airports or ports.

Key growth sectors in the UAE include renewable energy, fintech, artificial intelligence (AI), logistics, and e-commerce, aligning with the nation’s commitment to economic diversification.

2. Choose a Location

Having settled on an industry, your next big decision is whether to launch on the mainland or in a free zone. If you opt to set up in a free zone, you’ll benefit from: 

• 0% corporate and personal tax.
• 100% company ownership.
• 100% repatriation of capital and profits.
• No currency restrictions.
• 100% import and export tax exemption.

Some free zones now also allow businesses to trade directly with the mainland under specific conditions.

Alternatively, if you choose to set up on the mainland, benefits include:

• Direct trade with local and international markets.
• 100% foreign ownership for most business activities, except for specific sectors deemed strategically important.

For most industries, recent reforms have made it possible for foreign entrepreneurs to own 100% of their businesses on the mainland. However, there are specific sectors—including security and defence, banking and insurance, and oil and gas—where a local partner must legally hold 51% ownership.

To meet this requirement while maintaining full control of your business, we offer a Local Corporate Nominee Shareholder service at  in VIP Innovation Business. This arrangement ensures compliance with UAE regulations while allowing foreign business owners to retain 100% operational and financial control of their mainland company. It’s a seamless way to meet legal obligations without compromising your authority over your business.

3. Choose Your Company Name

The UAE enforces strict naming conventions to ensure compliance with local regulations. Key guidelines include:

• Avoid offensive language or references to religious or political groups.
• If naming the company after a person, use their full name (no initials or abbreviations).

Consult the Department of Economic Development (DED) or an expert like Vipibs innovation business to confirm your name complies with regulations.

For a full rundown of how to choose a company name, visit this guide.

4. Register Your Business

With your business activity and location decided, it’s time to register your business. This typically includes:

• An application for your business name and activity
• Shareholders’ passport copies
• Additional documents for certain free zones, such as a business plan or a Non-Objection Certificate (NOC) from a current sponsor
• For mainland companies, a Memorandum of Association (MOA) detailing capital requirements

Mainland businesses must register their trade name and business activity with the Department of Economic Development (DED) in their chosen emirate. You can find links to the respective DED offices on the UAE government website under the Information and Services section.

Once your paperwork has been submitted and processed, you will receive your company licence, officially establishing your business in Dubai.

Navigating paperwork can be time-consuming and complex. Partnering with Vipibs innovation business ensures accuracy, efficiency, and peace of mind, saving time and avoiding costly delays.

5. Apply for a Licence

Once your application is processed, you’ll be issued a company licence. Standard documents include:

• A completed application form
• Shareholder passport copies
• A business plan, if required by your chosen free zone

Licensing timelines vary, but some free zones offer expedited services, allowing businesses to start operating within days.

6. Open a Bank Account

Once your paperwork has been returned, you will have all the documentation you need to open your corporate bank account. You will need a bank account before you can begin trading in the UAE. The UAE is home to many banks, both local and international, including;

• Emirates NBD, 
• Abu Dhabi Commercial Bank, 
• Commercial Bank of Dubai,
• Noor Bank,
• Emirates Islamic,
• Mashreq,
• RAKBANK,
• Ajman Bank, and 
• Wio Bank, which is a UAE-based digital banking platform designed for startups and small businesses.

There are also global names such as HSBC, Citibank and Barclays. Choosing the one that’s right for you will depend on your specific requirements. 

The process generally takes 2-4 weeks and requires details about:

• Business activities
• Expected cash flow
• Revenue levels
• Primary customers and suppliers

7. Apply for a Visa

The final step in starting your business in Dubai is applying for the necessary visas. Whether you’re applying for your own visa, visas for your employees, maid or driver, or for dependents like family members, the process is straightforward but requires attention to detail. You will need to follow the below steps:

1. Entry Permit:

Begin by applying for an entry permit, which is a temporary visa allowing you to enter the UAE to complete the visa process. This application typically requires your passport, a recent passport-sized photo, and your company’s trade licence.

2. Status Adjustment:

Once in the UAE, you’ll need to adjust your visa status. This can be done in-country without leaving the UAE or by completing an “out-of-country” process if required.

3. Medical Fitness Test:

All visa applicants must undergo a medical fitness test. This involves a blood test and chest X-ray to screen for communicable diseases like tuberculosis or HIV, as these are required for residency approval.

4. Emirates ID Registration:

Register for your Emirates ID, a mandatory identification card for all UAE residents. This process includes biometric data collection (fingerprints and a photo).

5. Visa Stamping:

The final step is to have your residency visa stamped into your passport, officially granting you UAE residency.

Sponsoring Dependents and Employees

If you plan to sponsor visas for family members, employees, or domestic staff, here’s what you need to know:

• The exact number of visas you can sponsor depends on the type of business you’ve set up and its location.
• Mainland companies have no restrictions on the number of visas, while free zones may impose limits depending on their policies.
• Ensure you meet all the income and accommodation criteria for dependent sponsorships.

Vipibs innovation business Makes It Simple

At Vipibs  innovation business, we handle the entire visa application process on your behalf, from submitting documents to tracking approvals. Whether you’re applying for your own visa, employee visas, or family sponsorships, our experts ensure the process is fast, efficient, and hassle-free.

With your visa successfully issued, you’re now ready to live and operate your business in the UAE.