How to Start a Business in Dubai: Complete Guide
Setting Up a Business in Dubai
Dubai is one of the world’s fastest-growing business hubs, and for good reason. Entrepreneurs from around the world choose the UAE because of its 0% personal income tax, strategic location, strong infrastructure, and ease of doing business.
Yet, starting a company here can seem complicated if you don’t understand the rules around licenses, jurisdictions, and sponsorships.
At Roddick, we’ve simplified it. This guide explains everything you need to know before you start, so you can launch your UAE company with confidence.
Things to Know Before Setting Up Your Business
Before registering your company, you need to decide three key things:
- Where you want to set up - Mainland, Free Zone, or Offshore.
- What license type you need - Commercial, Professional, Industrial, or E-Trader.
- Who will sponsor your business - or if you can operate independently.
Let’s break each one down.
Mainland vs. Free Zones vs. Offshore
Free Zone
Free zones are the most popular option for entrepreneurs who want 100% foreign ownership, simplified setup, and tax benefits.
Each free zone operates under its own authority and offers a specific focus , such as tech, media, logistics, or finance.
Advantages include:
- 100% foreign ownership (no local partner required)
- 0% corporate and personal income tax
- Full repatriation of profits
- Simplified import/export process
However, free zone companies can only operate within the free zone or internationally, not directly in the UAE mainland unless you work with a local distributor or open a branch.
Mainland
Mainland companies are licensed by the Dubai Department of Economy and Tourism (DET). They allow you to trade anywhere in the UAE, take on government contracts, and expand freely.
Recent reforms now allow 100% foreign ownership in many business activities, removing the need for a local Emirati sponsor in most cases.
A mainland setup is ideal for those who:
- Want to open offices or retail stores in Dubai
- Plan to serve clients inside the UAE
- Need flexibility in hiring staff and bidding for government work
Types of Licences
Every business in Dubai must have a valid license - your license defines your business activity and the authority that regulates it.
Professional License
This license is for individuals or firms providing professional or consultancy services, such as marketing, design, accounting, or legal advisory.
You can own 100% of your company and work with a local service agent instead of a partner.
Commercial License
Used for trading, e-commerce, and retail activities. It allows businesses to buy, sell, and distribute goods within and outside the UAE.
Ideal for import/export, online stores, or physical retail operations.
Industrial License
This license covers manufacturing, production, and industrial activities, from packaging and assembling to food and textile production.
Requires physical space, approval from specific authorities, and compliance with safety regulations.
E-Trader License
Introduced for freelancers and small entrepreneurs, the E-Trader License allows UAE and GCC nationals to sell products and services via social media or online platforms without a physical office.
Foreign nationals can get similar permissions under specific Free Zone e-commerce setups.
Sponsorship
If you choose a mainland setup, some business types still require a local Emirati sponsor who holds 51% of the company shares.
However, this doesn’t mean you lose control. The partnership is legally structured, and profits are distributed based on your agreement.
Alternatively, free zone companies don’t need a sponsor, which makes them ideal for solo entrepreneurs and international founders.
At Roddick, we evaluate your business goals and recommend the model that minimizes cost while giving you full control and compliance.
Effortless Business Setup
We built Roddick to make UAE business setup simple, transparent, and fast.
Unlike traditional firms that hide pricing and force you to share personal details before showing options, we believe in clarity first.
You can explore costs, requirements, and free zone comparisons without giving your email or phone number.
When you’re ready, our team helps you:
- Choose the right structure and license
- Reserve your company name
- Prepare and submit your documentation
- Receive your trade license
How Much Does Business Setup in Dubai & The UAE Cost?
The cost depends on several factors:
- Business activity type
- Chosen jurisdiction (Free Zone or Mainland)
- Number of visas required
- Office space and bank account setup
A basic free zone company setup can start from AED 6,000–8,000, while more complex setups (mainland or multi-visa) can go higher.
Looking for Advice to Setup Your Business in Dubai or UAE?
Our experts specialize in helping entrepreneurs, freelancers, and agencies relocate or expand to the UAE with minimal hassle.
Whether you’re a British agency owner tired of high taxes, or a European consultant exploring a new market, we help you launch remotely, legally, and affordably.
FAQ’s Related to Business Setup in Dubai and the UAE
Do I need to visit Dubai to open a company?
No. You can register remotely through Roddick, and we handle all documentation and e-signatures. In order to open a bank account, you'd need to come to UAE and get your visa, or employ a manager to run the company for you and open up a bank account.
Do I need a visa to own a company?
Not necessarily. You can own a company without a residency visa, although having one allows for easier banking and operations.
Can I open a bank account for my UAE company?
Yes. Once your company is registered, we assist with opening your corporate bank account with trusted local and international banks.
Is accounting mandatory?
Yes, all UAE companies must maintain accounting records and, if required, register for corporate tax. We can connect you with accountants who specialize in UAE compliance.
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