How to Set Up a Business in the UAE: A Step-by-Step Guide for 2025

The United Arab Emirates (UAE) has become one of the most attractive destinations for entrepreneurs, startups, and international companies looking to expand their footprint in the Middle East. With its business-friendly environment, zero income tax in many sectors, world-class infrastructure, and strategic location, the UAE offers unmatched opportunities for business success.

If you're looking to set up a business in the UAE, this guide will walk you through the process, benefits, and key considerations.

Why Set Up a Business in the UAE?

Here are some compelling reasons why investors are choosing the UAE:

• 100% foreign ownership in most business sectors

• Tax advantages: 0% personal income tax and favorable corporate tax conditions

• Strategic location connecting Europe, Asia, and Africa

• Strong banking and financial infrastructure

• Stable political and economic environment

• Modern lifestyle and global talent pool

Whether you're an entrepreneur, freelancer, or multinational company, the UAE provides multiple business structures to suit your needs.

Types of Business Jurisdictions in the UAE

Before starting, you need to choose the right jurisdiction. The UAE offers three main options:

1. Mainland

• Allows you to operate anywhere in the UAE

• Can take on government contracts

• Requires approval from the Department of Economic Development (DED)

2. Free Zone

• 100% foreign ownership

• Full repatriation of profits

• Ideal for startups and SMEs

• Cannot trade directly in the UAE market without a local distributor

3. Offshore

• Used mainly for international business

• No physical office or local operations required

• Offers confidentiality and asset protection

Steps to Set Up a Business in the UAE

Here’s a simplified step-by-step breakdown:

Step 1: Choose Your Business Activity

Determine what type of business you want to run (e.g., trading, services, consultancy, tech, etc.). This will determine licensing requirements and jurisdiction.

Step 2: Select a Jurisdiction and Legal Structure

Decide between Mainland, Free Zone, or Offshore, and choose the legal structure (LLC, sole proprietorship, branch office, etc.).

Step 3: Register the Trade Name

Your business name must be unique and approved by the relevant authority (e.g., DED or Free Zone Authority).

Step 4: Apply for Initial Approval

This is a no-objection certificate from the government to start the company registration process.

Step 5: Draft the MOA/LSA

The Memorandum of Association (MOA) or Local Service Agent (LSA) agreement outlines ownership and operational structure.

Step 6: Secure Office Space

You need a physical address for your business. Many Free Zones offer flexi-desk options to reduce overheads.

Step 7: Submit Documents & Pay Fees

Once you submit all required documents and pay the fees, your business license will be issued.

Step 8: Open a Corporate Bank Account

After registration, you’ll need to open a UAE corporate bank account for transactions.

Step 9: Apply for Visas

Apply for your investor/partner visa, and any employee visas you need.

Documents Required

Here’s a general list of documents you'll need (may vary depending on business type and jurisdiction):

• Passport copies of shareholders

• Visa and Emirates ID (if applicable)

• Business plan (in some Free Zones)

• Passport-sized photos

• Trade name reservation certificate

• NOC from current sponsor (if applicable)

How Long Does It Take?

Business setup in the UAE can take anywhere from 3 to 10 working days, depending on the jurisdiction and type of license.

How Much Does It Cost?

The cost of setting up a business in the UAE varies widely, depending on:

• Jurisdiction (Mainland, Free Zone, or Offshore)

• Type of license (commercial, industrial, professional)

• Number of visas required

• Office requirements

Free zone setups start from as low as AED 6,000 – AED 15,000 annually for simple packages. Mainland businesses may cost more but offer wider trading flexibility.

Need Help Setting Up Your UAE Business?

Setting up a business in the UAE is a rewarding process, but it can be complex without the right guidance. At Fairway Biz, we specialize in helping individuals and companies launch their business smoothly and quickly.

Our Services Include:

• Business setup consultation

• Company registration (Mainland, Free Zone, Offshore)

• PRO and government services

• Visa and immigration processing

• Corporate bank account assistance

• Legal document preparation

Start Your Business in the UAE Today

Ready to turn your idea into a successful business setup in the Dubai Our expert team at Fairway Biz is here to support you every step of the way — from initial consultation to license issuance and beyond.

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