Planning to kick-start your dream business in Dubai or across UAE in 2025? Here’s a clear roadmap to get started with your company formation process in Dubai or across the UAE and get down to business.
The business setup procedure in UAE involves identifying the right business activity, determining the business structure and jurisdiction, choosing the company/trade name, apply for a business license and opening a bank account.
With the right business setup partner by your side, you can successfully setup your company in Dubai and achieve your business goals in the world’s most dynamic market.
Key Takeaways:
- Benefits of Starting a Business in UAE
- Types of Business Licenses in UAE
- Procedure for Company Formation in UAE
- Documents Needed for Company Registration in UAE
- Company Registration Cost in UAE
Why is 2025 the best year to start your business in the UAE?
According to the World Bank’s “Ease of Doing Business Report”, UAE is one of the top-ranked economies for the ease of starting a business and enforcing contracts, partly due to reforms like 100% foreign ownership and flexible visa schemes such as the Golden Visa.
According to the Dubai Chamber of Commerce, the UAE saw a 25% increase in company registrations in 2024 compared to the previous year.
Reference: https://ecagincorp.com/blogs/uae-company-formation-2024-latest-trends-and-statistics/
According to HSBC’s Global Entrepreneurial Wealth Report 2024, 98% of entrepreneurs in the UAE, are confident that their businesses are set to flourish and 95% also expect personal wealth to increase in the next few years.
Benefits of starting a business in the UAE:
Tax Benefits:
The UAE is known for its tax-friendly environment, and it is one of the significant factors that attract business owners and investors. The UAE does not impose personal income tax. In freezone, there are no import/export taxes and corporate tax rate is 0%. In mainland, the corporate tax is 9% for businesses exceeding AED 375,000.
Moreover, the UAE has close contract with various countries such as Double Taxation Avoidance Agreements (DTAA), making it easier for businesses to avoid double taxation operating under two jurisdictions. Streamlined tax affairs UAE with different countries is a key factor to perform international business activities without any disruption.
Key Geographic Location:
UAE is strategically located in such a way it effectively connects leading countries across the globe for trade and investment. With its world-class infrastructure, cutting-edge facilities and smart connectivity, the country attracts investors and business owners. Setting up a business in the UAE provides you access to wider global markets and a gateway to work with emerging markets.
Dubai boasts one of the world’s largest Seaport, Jebel Ali Port enables efficient maritime trade to countries worldwide and award-winning world-class airport, Dubai International Airport, which is crucial hub for air cargo for swift transportation of commodities.
Business-Friendly Regulations
The UAE’s legal framework devised in such a way to facilitate business owners and investors. Company formation in UAE is uncomplicated due to its streamlined processes backed by various government agencies.
The Dubai Department of Economic Development (DED) offers extensive services for the benefit of business owners to setup a company in Dubai without any hassle. The UAE government has designed robust intellectual property regulations in order to safeguard innovation, patents and trademarks promoting a protected environment for technology and research organisations.
Freezone Benefits:
The UAE offers 45+ free zone for business setup and each has numerous benefits making it an attractive choice for company formation. The free zone offers 100% ownership with the rate of 0% corporate tax. Company formation in free zone provides the business owners with the advantage of full repatriation of capital and profits, and exemptions in import/export duties.
Diverse Economy:
The UAE’s economy is significantly diverse, creating a balanced environment for multiple sectors. With firm foundation in oil-based economy, the UAE has diversified its economy across various industries such as tourism, finance, logistics, technology and real estate etc. Businesses in UAE can tap into this dynamic market, to expand its services in the emerging markets.
Types Of Business Licenses for Company Formation In UAE
1. Commercial Licenses
For businesses, that are involved in any sort of trade activities, related to goods, commodities and services, it is crucial to obtain a commercial license. Before applying for a license, businesses must decide the activities they conduct and choose appropriate license that suits their business nature.
2. Industrial License
Business that conducts activities like production and manufacturing of goods or any other industrial activities in the UAE must obtain the industrial license.
The manufacturing of following products needs to be conducted under Industrial License
- Food
- Equipment and engines
- Petroleum products
- Textile
- Metals
- Paper
3. Professional License
For professionals who wants to engage in an activity based on their talent and educational qualification, must perform under a professional license. Investors can obtain 100% ownership of their business with a professional license. The following activities can be conducted under a professional license:
- Printing And Publishing
- Medical Services
- Consultancy Services
- Beauty Salons
- Computer Graphic Design Service
- Artisan Ship
- Carpentry
- Repair Services
- Security Services
- Document Clearing
4. Tourism License
Businesses that conduct activities such as renting of hotels, boat rental, tourist camps, restaurant services, guest accommodation, and travel agencies etc should operate under a trade license.
5. Agriculture License
The people who are involved in the following activities should apply for an agricultural license:
- Cultivation And Harvesting of Crops
- Trading Of Pesticides, Crops Etc
- Installation Of Greenhouses
- Agricultural Consultancy Services
6. Craftsmanship license
Individuals should get a craftmanship license to provide following services
- Plumbing
- Carpentry
- Electrical Work etc.
It is mandatory to obtain a trade license for setting up a business in Dubai or Across UAE, otherwise you may face a hefty penalty or even a ban from conducting the activity. Moreover, the license is valid for one year and need to be renewed to avoid penalties.
Documents Required for Company Formation in UAE
The following documents are needed to register a company in UAE:
- Passport and Visa Copies of all the Shareholders, including Directors
- A Detailed Business plan
- License Application Form
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Trade Name Reservation Certificate
- Office Lease Agreement
- Bank Statements
- Registry Identification Code Form (RIC) for the Appointed Manager and
- Other Financial Documents (if required)
Steps To Register a Company in the UAE
Select the Business Activity
Choose the business activity for your company as it determines the regulations and requirements for company formation process in the UAE. It is crucial to decide on the main services/operations of your business to choose an activity.
Choose the Legal Structure
The UAE offers various business structures to choose based on your operational needs, the business setup zone and company requirements. Select the right type of legal structure for your business from these options: Limited Liability Company (LLC), Civil Company, Sole Proprietorship, Private Joint Stock Company, and Branch Company.
Pick the Trade Name of Your Company
Select a unique and relevant trade name for your business that not only reflects your brand identity but also comply with the naming conventions based on the UAE regulations. The name shouldn’t be registered before and needs to be approved by the licensing authorities.
Apply for a Business License
Once you’ve selected the suitable name for your business, you need to apply for a business license to operate in the UAE. Choose the right type of business license that suits your business activity. The Department of Economic Development (DED) is responsible for issuance of business licenses for businesses in the UAE.
Gather The Documents & Get Initial Approval
The next step is to obtain approval from the licensing authorities, which denotes no objection to your business by the UAE government. You should gather all the required information and documents and submit to the relevant authorities and departments for initial approvals.
Open A Bank Account
In order to perform all your business-related transactions and handle your business finances, you need a corporate bank account. Open a bank account for your business in any of the UAE-based banks.
How much does it cost for company formation in UAE in 2025?
The cost of setting up a company in Dubai or Across the UAE depends on the type of license you choose. The typical cost of company formation process in the UAE starts from AED 5,999.
Hassle-free Business Setup with KGRN Chartered Accountants
KGRN offers professional guidance to streamline the UAE company formation process and help you setup your company in UAE promptly. Our seasoned professionals accompany you in document preparation, licensing, visa processing, and throughout the business setup journey, ensuring accuracy, compliance and integrity. We work closely associated with the legal authorities and top banks of the UAE for swiftly launch your business in the UAE