Q-1. How long does it take to set up a business in Dubai?

On average, it takes nearly 1-4 weeks to set up a business in Dubai. Free zone companies are usually faster to register than mainland businesses.

Q-2. Do I need a local sponsor to start a company in Dubai?

Certain business activities require a local sponsor holding 51% ownership for mainland companies. However, many activities now allow 100% foreign ownership under new rules. Free zones also offer complete ownership to foreign investors.

Q-3. Do I have to pay taxes in Dubai?

Dubai is renowned for its tax-friendly environment, with no personal income tax. However, companies may need to register for VAT if their annual turnover exceeds AED 375,000.

Q-4. Which business activities are most popular in Dubai?

Some of the most popular businesses in Dubai are tourism, technology, trading, e-commerce, financial services, and real estate. This wide range of opportunities allows entrepreneurs to explore businesses that fit their expertise and market demand.

Q-5. Is it necessary to live in Dubai to run a business there?

No, it is not necessary to live in Dubai to own a business. In fact, many entrepreneurs manage their companies remotely, especially those in free zones.

Q-6. How do I choose between a free zone, mainland, and offshore company?

The choice usually depends on your business goals. Free zones are ideal for full foreign ownership and easy setup. Mainland companies allow direct trading within the UAE market Offshore entities are mostly for international operations.

Q-7. Do I need a physical office to start a business in Dubai?

Yes, a physical office or at a flexi-desk (in a free zone) is usually required to register your company in Dubai. This is part of the legal compliance for most licenses.

Q-8. What documents are needed for company registration in Dubai?

You need the following documents for company registration in Dubai: Passport copies of shareholders Visa and entry stamp Business plan (for certain activities)

Q-9. Do I need a local bank account for my business?

Yes, you need to open a corporate bank account in Dubai to ensure smooth business operations. A local account also helps in building trust with customers and partners.

Q-10. Can I run an online business in Dubai?

Yes, you can absolutely run an online business in Dubai. In fact, the emirate is known for its thriving e-commerce sector and high internet and smartphone penetration.

How to Start a Business in Dubai: A Complete Guide for Entrepreneurs

8 min read

August 28, 2025

How to Start a Business in Dubai: A Complete Guide for Entrepreneurs

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Joel Dsouza

Joel Dsouza is a Chartered Accountant and compliance specialist with extensive experience advising over 1,000 startups and SMEs on company registration, tax structuring, and regulatory compliance. As a member of ICAI and Co-Founder of Safe Ledger, Joel combines his deep financial expertise with a global perspective to help entrepreneurs navigate complex business environments. Focused on the UAE market, he is dedicated to empowering international and local business owners with clear, practical guidance on company setup, tax optimization, and ongoing compliance making him a trusted advisor for businesses aiming to succeed in the dynamic UAE economy.

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How to Start a Business in Dubai: A Complete Guide for Entrepreneurs

Table of Content

Frequently Asked Questions

Q-1. How long does it take to set up a business in Dubai?

Q-2. Do I need a local sponsor to start a company in Dubai?

Q-3. Do I have to pay taxes in Dubai?

Q-4. Which business activities are most popular in Dubai?

Q-5. Is it necessary to live in Dubai to run a business there?

Q-6. How do I choose between a free zone, mainland, and offshore company?

Q-7. Do I need a physical office to start a business in Dubai?

Q-8. What documents are needed for company registration in Dubai?

Q-9. Do I need a local bank account for my business?

Q-10. Can I run an online business in Dubai?

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About the Author

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