Dubai is one of the most in-demand destinations for entrepreneurs and investors seeking to set up a business in a thriving, dynamic economy. With its strategic location, tax incentives, and business-friendly policies, it is not surprising that setting up a business in Dubai is an attractive prospect. However, Dubai’s company setup process can be complex, as the city’s regulatory requirements are often details, and various business structures are offered. This step-by-step guide will help you quickly navigate the process, ensuring you are equipped with the necessary information to launch your business successfully.

Step 1: Choose the Right Business Activity

The first step in setting up a business in Dubai is selecting the business activity you wish to engage in. Business opportunities in Dubai range from retail and real estate to tech startups and consultancy services. This will determine the legal structure, licenses, and approvals necessary for your chosen business.

Step 2: Determine the Business Structure

The next step after choosing your business activity, is selecting the appropriate business structure. Dubai offers the following options, among others:

Limited Liability Company (LLC): This is the most common structure for foreign investor looking to establish a presence in Dubai. The LLC requires a local sponsor or partner who has 51% of the company’s shares.

Free Zone Company: For those entrepreneurs looking for 100% ownership of the business, a free zone is the best option. The zones have specified industries offering various benefits, such as tax exemptions and streamlined processes.

Branch Office: If you already have a company set up in Dubai elsewhere, you can also open a branch office in Dubai. In this way, however, your operations are strictly limited to the scope of your parent company’s activities.

Emirates Advocates and Legal Consultants can guide you in selecting the best business structure based on your objectives, ownership preference, and financial goals.

Step 3: Select Location for Business

The next stage in the Dubai company setup procedure is to select a location for your business. For a free zone company, it will be chosen for you in line with your free zone of choice. The free zones in Dubai offer extensive facilities, including office spaces, warehouses, and even industrial zones based on specific industries, such as technology, logistics, and media.

Step 4: Apply for the Relevant Licenses

All businesses in Dubai must be licensed for their operations. Depending on your business activity and structure, you will need to apply for a specific type of license. The types of business licenses include:

commercial License: For trading and retail business.

Professional License: For service-providing companies like consultancy, legal services, healthcare services, and more.

Industrial License: For businesses involved in manufacturing or producing products.

A law firm in Dubai, such as Emirates Advocates and Legal Consultants, will help you apply with necessary paperwork completed correctly and timely.

Step 5: Registration of Business Name

After obtaining the necessary licenses, you will need to choose and register your business name with the Department of economic Development (DeD).  The name selected must meet the guidelines issued by the DeD. Certain words or phrases, such as offensive language or religious references, are prohibited. 

Step 6: Open a Business Bank Account

Once your company is legally registered, you are required to open a business bank account in Dubai. This account will be used to manage funds, process transactions, and handle the company’s day-to-day operations. Numerous banks in Dubai offer exclusive services for business accounts; your legal advisor can guide you through this step.

Step 7: employment and Visas

If you intend to employ people, the last step in the Dubai company setup process is to apply for employment visas for yourself and your employees. You must follow all labour laws and regulations, including those related to health insurance, working conditions, and employee rights.

Conclusion

Setting up a business in Dubai in 2025 offers immense potential but requires careful planning and expert guidance. The process involves several steps, from selecting the right business activity to applying for necessary licenses, which can be overwhelming without the proper support. A trusted law firm in Dubai, such as Emirates Advocates and Legal Consultants, will ensure your business is set up correctly and complies with all local regulations. For a smooth and successful company establishment in Dubai, contact Emirates Advocates and Legal Consultants today and start your entrepreneurship journey with the confidence to move forward.