Why Start a Company in Dubai?
Dubai has become one of the most attractive destinations for international companies. With its tax benefits, strategic location, and global hub status, more businesses are choosing to set up operations here in 2025.
Free Zone vs Mainland Company Formation
The first decision when starting a business in Dubai is whether to establish in a Free Zone or on the Mainland. Each option has different rules, advantages and costs.
Free Zone Company
- 100% foreign ownership.
- Fast setup with simplified licensing.
- Ideal for companies trading outside the UAE or in specific industries (tech, media, logistics).
- Limited ability to trade directly within the Dubai local market without a distributor.
Mainland Company
- Ability to operate across Dubai and the entire UAE market.
- Possibility to work with government contracts.
- Licensing under the Department of Economic Development (DED).
- Foreign ownership rules have been relaxed in many sectors, making it easier for international investors.
Step-by-Step Company Formation Process
- Define business activity and choose Mainland or Free Zone.
- Reserve trade name and apply for initial approval.
- Submit documents: passport copies, application forms, shareholder details.
- Obtain business license (trade license).
- Set up office space or coworking facility.
- Apply for visas for employees or shareholders if required.
Key Documents Required
- Passport copies of shareholders and directors.
- Business plan (for some Free Zones).
- No Objection Certificate (NOC) if applicable.
- Application forms and initial approvals from authorities.
Costs and Timeline
Company formation costs in Dubai vary between USD 3,000 and USD 10,000 depending on the Free Zone or Mainland structure. The process usually takes 2–4 weeks.
FAQ: Company Formation in Dubai
Can I own 100% of a Mainland company?
Yes, in many sectors 100% foreign ownership is now allowed, though some regulated industries may require a local partner.
How long does it take to open a company?
On average 2–4 weeks if documentation is complete.
What is the main difference between Free Zone and Mainland?
Free Zone allows full ownership but limited local trade. Mainland allows access to the UAE market but may involve more compliance steps.
