An Informational Guide on How to Setup a Business in Dubai

Setting up any business in any part of the world is never easy. You have to be innovative and intelligent to compete in the world today. But, a Business Setup in Dubai is the most challenging task of the time.

Today, Dubai has become the central hub of travel and tourism, entertainment, education, job opportunities, and business worldwide. The booming economy is another factor attracting more and more people to start their businesses here and expand their investment as much as possible.

But the main reason for the attraction of people towards a Business Setup in Dubai is the lowest business tax rate offered there.

Hard work is vital, but today, innovative work is the key to success. Hard work can be ruined if not done smartly. Here is an informational guide for a Business Setup in Dubai:

Do Extensive Research

Before starting any business, you must have complete knowledge of your firm. You should know about all pros and cons of your ideology. Similarly, when you are going to have a company formation in Dubai, you should do extensive detailed research and have guidance on every aspect of your business.

Dubai offers various business models for investors but has a strict framework of rules and regulations. So before starting a Business Setup in Dubai, you should have complete research on the tax and legal guide of UAE.  

Many businessmen who worked on Company Formation in Dubai faced a massive loss due to the lack of research. They invest their money naively following the trends and neglect the deep analysis of their work. Hence, you must possess complete knowledge about the market, your competitors, the strengths and weaknesses of your competitors, product selection, and a whole lot of knowledge about your targeted audience.

Select A Business Activity Wisely

There are more than 2000 choices one can make to have a Company Formation in Dubai. You should think smartly and choose the most comfortable one for you. Choose the one about which you have complete knowledge and are aware of all the facts and figures related.

After choosing a business that suits you the most, you must get it approved by the DED (Department of Economic Development).

Choose the Jurisdiction

The most important part of starting a Business Setup in Dubai is selecting your business’s area wisely. There are three jurisdictions available for your Company Formation in Dubai:

  1. Free Zones
  2. Mainland
  3. Offshore

All these three jurisdictions have different features; you may select the one most accommodating and suitable for you.


Freezones in Dubai are the most attractive areas for investors because the investor can own the business 100% and do tax-free trading. The Dubai government created the idea of a free zone to attract international investors to open enterprises there. It’s a unique economic region where business owners may profit from several ownership advantages and tax rates of 0%.

There are about 30 free zones in Dubai currently in operation. Typically, each free zone is built around a specific industry category and grants licenses to businesses within those categories.

But a major drawback of starting a Business Setup in Dubai in Freezone is that you are not allowed to make direct trade with the UAE local market.


Mainland jurisdiction, unlike Freezones, requires local stockholders to own 51% of the shares. This jurisdiction demands a local person to sponsor your Company Formation in Dubai.


An offshore company may carry out its operations remotely without needing a physical presence in Dubai. These companies might be extensions of ones already operating in another nation or region.

Moreover, unlike a firm in Freezone, an offshore company requires a sponsor, holding 49% of the shares of your business.

Open a Corporate Bank Account

After deciding the location and knowing your company’s activities, it’s time to discuss money and the details of transactions. After all, every investor or businessman wants to make money and expand their company.

For this purpose, every businessman needs a bank account to manage and monitor money flow. To find a complete solution to all the problems of managing the amount, you have to open a Corporate Bank Account in Dubai.

Your tax obligations, payment transparency, and simple currency conversion are all at your fingertips once you have opened a corporate bank account in Dubai.


Starting a business anywhere, even in your own country, is never easy. Hundreds and thousands of complications tangle the investor if he is not working hard and smartly. And when it comes to having a Business Setup in Dubai, these complications and difficulties arise to the maximum.  

This is due to the importance of this city as a hub of international trade. However, if you successfully establish your company in this unstable area, there is no chance of regretting it. It will turn out to be the most admired decision you made. In other words, having a Business Setup in Dubai will lead you to the heights of success.

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