How to start a business in Dubai: 7 steps, costs and timelines

Opening a company in Dubai takes seven steps: choose the jurisdiction, choose the free zone, fix your activities and name, get the licence and establishment card, apply for visas, open the bank account, and start the books. A free zone licence is typically issued in 3–10 working days, depending on the zone. A founder with one visa should budget about AED 13,000–15,000 for the first year in a budget zone and AED 20,000–24,000 in a Dubai zone. The order matters: the first two decisions shape everything after them.

The seven steps at a glance

Starting a company in Dubai is seven decisions in sequence. Each one narrows the next, and the first two (where you register and which free zone you choose) affect the cost of everything after. Taken in order, the process is predictable.

End to end, a straightforward free zone company is usually operating (licence, founder visa, bank account and books) within four to eight weeks, and most of that time is spent on the bank account.

Step 1: choose the jurisdiction

The question that decides the structure is who pays your invoices. Selling to customers inside the UAE (a shop, clinic, restaurant or contractor) points to the mainland, licensed by the emirate’s economic department, which can trade onshore without a local distributor. Selling to clients abroad (software, consulting, trading, holding) points to a free zone, with 100% foreign ownership and a fast licence. Holding assets and nothing else points to an offshore company, which cannot trade in the UAE or sponsor visas.

For most founders reading this, a free zone fits; the mainland vs free zone comparison helps you decide. Since 2021 mainland companies can also be fully foreign-owned in most activities, so ownership rarely decides the question. Market access does.

Step 2: choose the free zone

The Free Zone Index covers 45 zones, and their entry prices vary widely. They fall roughly into three groups: budget zones, Dubai mid-range zones and premium zones.

The licence price is only one factor. Zones differ on visa allocation, whether a physical office is required and how readily banks accept their companies. Compare them by activity and budget in the Free Zone Index and model the total in the setup-cost calculator.

Steps 3 and 4: activities, trade name and licence

Activities are what your licence permits, and they must match the invoices you will issue; banks and the tax authority read them literally. Choose activities that describe your real business. A very broad list can slow bank onboarding. The trade name is usually reserved the same day under UAE naming rules: no religious or governmental terms, nothing offensive, and words such as “bank”, “insurance” or “university” need sector approval.

The licence follows KYC checks and payment. In a free zone it is typically issued in 3–10 working days, depending on the zone; on the mainland, with external approvals and an Ejari tenancy, allow 2–3 weeks. With the licence you receive the establishment card, the company’s immigration file, which is needed for every visa. The full cost is broken down on our company formation cost page.

Step 5: visas and the establishment card

Once the establishment card is issued, visas can start. The founder’s residence visa comes first: entry permit, status change, medical test, Emirates ID biometrics and residence visa issuance, at around AED 5,500 all-in (market estimate) over 2–3 weeks. Team and family visas follow, within the visa allocation of the package chosen in step 2.

A company residence visa is usually valid for two years and renewable. It lets you rent, open personal accounts and sponsor family if you meet the income conditions. Investors with, for example, AED 2 million in property may qualify for a golden visa instead. The visas page covers each type.

Step 6: the business bank account

The corporate bank account usually takes longest. Start the application the day the licence is issued and allow 1–6 weeks, depending on activity, ownership and how complete the documents are. UAE banks want a clear account of what the company does, who its customers are and how money moves.

What a complete application looks like is covered in our guide to bank account rejections, and our business bank account service can prepare it.

Step 7: bookkeeping, corporate tax and VAT

Three obligations start once the company exists. Corporate tax registration on EmaraTax is mandatory for every company, including free zone companies at 0% and companies with no profit. Late registration costs AED 10,000, waived automatically if the first return is filed within seven months of the end of the first tax period. VAT registration is compulsory once taxable supplies and imports exceed AED 375,000 over 12 months (voluntary from AED 187,500). Bookkeeping should start with the first transaction, because every tax position is supported by the accounts.

Under the standard rules corporate tax is 0% on taxable income up to AED 375,000 and 9% above it. Small Business Relief (revenue up to AED 3 million, for tax periods ending on or before 31 December 2029) and the free zone QFZP regime can keep more at 0%; see who pays 0% corporate tax. E‑invoicing becomes mandatory for B2B invoices in 2027, so clean invoice data now saves work later. For a Dubai set-up handled end to end, see company formation in Dubai; for the tax calendar, our corporate tax service.

This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.