Generally principle, there are a number of things you should be aware of before beginning the process of planning to set up a business here in Dubai. Let us just look at each one individually. 

Economic Zone: Differentiating Offshore vs. Free Zones 

You must choose whether you want to operate in an offshore location or perhaps a free zone even before to be able to set up shop. Both solutions have advantages and needs of their own, based on your particular specific requirements. 

Free Zone 

Try applying for something like a license as well as a location within one of Dubai’s named free zones if you want complete ownership of your business. The Dubai government created the idea of a free zone to attract foreign investors to open enterprises there. In essence, it is indeed a special economic zone where company owners can benefit from complete ownership, nine percent of corporate taxation (to somehow be imposed to UAE enterprises on profits exceeding AED 375,000), plus 0% individual income tax. 

Some of the main drawbacks of running a business in what seems like a free zone would be that direct commerce well with Marketplace is really not permitted. 

In Dubai now at moment, there are about 30 free zones within an operation. Every free zone is often built around a specific sector group and grants licenses to businesses that fall under those categories. 


Offshore businesses can establish in free zone as well and gain access to numerous of the same advantages. It’s not a replacement for quite a free zone business, though. The business’s operations are the primary distinction between being an offshore company as well as a free zone corporation. Other than the UAE, but not inside, offshore businesses are permitted to conduct business. Additionally, there are no prerequisites for minimum capital deposits prior to incorporation. 

A sponsor is necessary, preventing you from functioning as free zone company and limiting your foreign ownership once again to 49%. 

Different Licenses 

You’ll need to choose a zone as well as the sort of license that is necessary. There are 3 primary sorts of licenses individuals can apply for, plus the DED, Department of Economic Development seems to be in responsible of issuing them: 

  • Commercial permit: You have to get a commercial licence when you plan to engage in a business setup in uaethat engages in trading operations or the purchasing and selling of items. This license can apply to companies involved in sales, logistics, traveling and tourism, general retail, including real estate.
  • Industrial permit: Businesses that participate in manufacturing operations that convert raw materials plus resources from the natural world into finished goods, either manually or even mechanically, are granted this sort of license. Businesses like those who produce paper, metal, or textiles are covered by this license. 
  • Professional designation: Organizations that seem to be commercial entities, artisans, or artists are given the license to practice. Medical, cosmetic, plus repair services are a few examples of companies that qualify for this kind of license. 
  • Sponsorship: When establishing a business in free zone like the DMCC, no local sponsor seems to be necessary. The ability to establish an organization with 100percent foreign ownership even without the necessity for a Governmental body as a companion or sponsor represents one of the key advantages of establishing in the free zone. 
  • Establishing a corporation in the Dubai Free Zones: These Free zones are ever more popular with international entrepreneurs starting businesses, and then for good reason: typically provide zero personal tax, low corporation tax rates, 100 percent control of the organization, 100 percent repatriation of both capital and earnings, as well as no currency restrictions.  

    The following are the seven stages you must follow to establish your company throughout the free zone: 
  1. Determine your line of business: Determining the type of your endeavor is the preliminary step to launching your business and obtaining a license. There’s many over 2,100 business dealings available to pick from, many falling into various groups only within industrial, professional, commercial, and tourism space, whether you’re wanting to launch a little business here in Dubai or perhaps a crypto firm in the UAE. 
  • Select a free area: There are more than 30 free zones throughout Dubai, as was previously mentioned. Whichever free zone you decide to establish your firm in may rely on the type of particular industry. In general, it almost always makes sense to locate near other companies in the same industry. 
  • Pick a name for your business: It’s critical that your company name adheres to the stringent naming conventions throughout the UAE. Titles that contain foul language, might be seen as insulting to a religion, particularly make reference to political organizations or the mafia remain prohibited. You must provide evidence that the person that business is named after is indeed a partner or shareholder in the organization if you do so. Choosing a name for your company could be challenging. Consult a professional to assist you follow the rules and have your brand name approved to just save time as well as effort. 
  • Request initial authorization: To start the process of getting your license, you must first apply for initial clearance to make sure the Dubai DED seems to have no issues to you opening a business. This application is available online, in person, but also through a 3rd person. Depending on the nature of your firm, you’ll need to furnish the following paperwork, but generally speaking: 

    • business licensing as well as registration form 
    • a proof of one’s ID or passport 
    • a proof of your visa or residence permit 
    • The conditions of association for the business 
    • Analyses of the project’s viability 

      Please get in touch with one of our specialists if you need assistance with your application so they can walk you through the steps and make sure your paperwork is filed as well as prepared appropriately. 

  • Open a business checking account: You are now capable of opening a business bank account after being approved and receiving all the required paperwork back. There are numerous local and foreign banks in the United Arab Emirates.
  • Choose a place for your office: Every company in Dubai is required to maintain a physical address. Luckily, establishing together in free zone would make it simple for you to locate your new workspace. 
  • Request final authorization: To apply for final approval, one will need to compile all of your supporting documentation, location addresses, plus legal details. You may occasionally need to request licensing approval from different authorities.

These explain the stages of setting up a company.

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By Grace