How to Setup a Business in Dubai

aafra9
Jul 16
5 min read

Are you ready to start your business in Dubai?

Let our experts guide you through the entire setup process—from paperwork to licensing.

Dubai has quickly emerged as one of the most business-friendly cities in the world. With its strategic location, tax benefits, state-of-the-art infrastructure, and easy setup procedures, it’s no surprise entrepreneurs across the globe are looking to launch their ventures here.

In this article, we explore the key benefits of setting up a company in Dubai, along with a clear, step-by-step guide on how to establish your business remotely from the UK. Whether you’re a first-time founder or a seasoned business owner, this guide will help you understand why Dubai is the go-to destination for global entrepreneurs.

One of the most compelling reasons behind this surge is interest?

Dubai’s highly attractive tax environment — including 0% Personal Income Tax.

Here’s a breakdown of its benefits:

1. No Personal Income Tax

Individuals do not pay income tax on salaries or wages. That’s right 0% personal income tax!

2. Corporate Tax (As of 2025)

A 9% corporate tax applies only to profits exceeding AED 375,000 (£85,000 ). The profits below this are tax-free, encouraging small businesses and startups.

3. Free Zones Perks

Businesses in Free Zones may still enjoy 0% corporate tax for a set number of years (often 15-50), depending on the zone. Many zones also allow 100% foreign ownership and repatriation of profits.

4. VAT (Value Added Tax)

5% VAT applies to most goods and services. It’s low compared to global standards and doesn’t impact business profits directly.

5. No Capital Gains or Withholding Taxes

No tax on dividends, capital gains, or withholding Taxes is a huge plus for investors and holding companies

This step-by-step guide will take you through everything you need to know about How to Setup a Business in Dubai.

1. Choose Your Business Activity

Before you start anything, define your business activity. Dubai offers more than 2,000 licensed activities across various sectors, including:

Trading
Technology
Consulting
Real Estate
Tourism

Your selected activity will determine the type of license you need and the jurisdiction you should operate in.

2. Select a Jurisdiction

Dubai offers three main jurisdictions for business setup:

Mainland – Ideal for businesses planning to operate within the UAE market. (for full details click here)
Free Zone – Offers full foreign ownership, tax exemptions, and simplified setup. (for full details click here)
Offshore – Suitable for businesses operating internationally without dealing locally. (for full details click here)

3. Register a Company Name

Make sure your business name:

Is unique and not already in use
Doesn’t violate UAE naming rules
Reflects your business activity
Doesn’t contain offensive or religious language

Check availability through the Department of Economic Development (DED).

4. Apply for a Trade License

Your license type depends on your business activity:

Commercial License – For trading businesses
Industrial License – For manufacturing or production
Professional License – For consultancy, services, or other skilled work

(For full details click here)

5. Secure Office Space

Free zones offer flexible options like co-working desks and virtual offices.
Mainland companies are required to lease physical office space.

Some free zones also include office space in their setup packages.

6. Submit Your Documents

You’ll typically need:

Application form
Passport copies of owners/shareholders
Memorandum of Association (MOA)
Business plan (for certain activities)
Approvals from regulatory bodies, if required

PKPI Chartered Accountant will take care of it all. Talk to Our Business Setup Advisors Now

We’ll handle the legalities so you can focus on growing your business.

7. Open a Corporate Bank Account

Once your trade license is issued, you can open a business bank account in the UAE. Choose from a wide range of local and international banks. Processing time ranges from a few days to a few weeks.

PKPI Chartered Accountants will guide you every step of the way and handle the entire process for you.

8. Apply for Visas

As the owner, you’re eligible for a residency visa. You can also sponsor:

Employees
Family members
Domestic workers (under certain conditions)

The number of visas depends on your office space and business type.

9. Stay Compliant

Once your company is active, ensure compliance with:

License renewals (annually)
UAE VAT registration (if applicable)
Monthly/quarterly accounting
Audit reports (depending on jurisdiction)

How to Setup a Business in Dubai is easier than ever, especially when you have expert help like PKPI Chartered Accountants, with the right guidance, you can launch your business in just a few days, whether you’re a solo entrepreneur, a startup, or a global brand.

FAQs

1. Can a UK citizen open a company in Dubai?

Yes, UK citizens can open a company in Dubai. You don’t need UAE citizenship or residency to start and in many free zones, you can own 100% of your business. Depending on the type of company and business activity, you can set up as a sole owner, partner, or corporate entity. The process is open to foreigners and is streamlined for ease.

2. What is the easiest way to set up a company in Dubai from the UK?

The easiest way is through the Dubai free zone. These zones offer:

Fast registration (sometimes within 1 week)
No need for a local sponsor
100% foreign ownership
Zero personal income tax

You can often complete the setup remotely, using a licensed business setup consultant to handle the paperwork and licensing.

3. How much does it cost to start a company in Dubai from the UK?

Startup costs vary depending on the company type, size, and free zone. On average:

Small service-based free zone companies: from £1500–£5,000
Mainland businesses or larger setups: £8,000–£15,000+

Additional costs can include visas, office space, and bank setup fees. Some free zones offer affordable packages for UK entrepreneurs starting solo or online. PKPI Chartered Accountants offers complete Free Zone company setup for just £1,500. The lowest price in the world.

4. Do I need a UAE partner or sponsor to open a company in Dubai?

Not always. If you open your company in a Free zone, you do not need a local partner, you’ll own 100% of your business.

In the mainland, recent changes to UAE law allow 100% foreign ownership in many sectors, but some activities may still require a UAE national agent or sponsor. For more details contact PKPI Chartered Accountants

5. Can I run my Dubai-based company from the UK?

Yes, many British entrepreneurs manage their Dubai-based companies remotely. This is common in Free zones that support:

Online businesses
Consultancy services
E-commerce and digital services

However, for certain business activities (especially mainland), you may need a physical office and a residency visa, which might require occasional travel to Dubai. Opening a business bank account may also require a short visit.

Ready to launch your Dubai business? Schedule Your Free Call Here

We’ll take care of the details while you focus on your vision.