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How to start a business in Dubai and the UAE in 2025: forms, taxes, licenses
How to start a business in Dubai and the UAE in 2025: forms, taxes, licenses
Anton Moskalev
@Anton_Moskalev
Many entrepreneurs are considering starting a business in the UAE today. But for everything to go smoothly, you need to be well versed in local legislation, understand the administrative intricacies, know how the licensing system works, and what customers really need in this market. In practice, there are many nuances, especially those that are not obvious without experience.
Simply opening a company is not difficult, as the registration process is straightforward and quick. The real challenges begin when it comes to choosing the right type of activity, obtaining approvals from the relevant authorities (if you are in a specific field), and opening a corporate account. There is a huge risk of ending up with a registered company but without the ability to operate, make payments, or import goods. It is also important to understand that making changes, changing founders, renewing or expanding a license can cost several times more than opening a company, so it is better to do everything right from the start and work with trusted consultants.
I have opened several companies in the UAE myself and can confidently recommend the partners I have worked with. If you are currently planning to enter the UAE market and need help with business registration, obtaining licenses, setting up work with suppliers, or logistics, write to me on Telegram @Anton_Moskalev, and I will share the contacts of reliable people.
And if you are interested in moving, business, and investing in the UAE, subscribe to the Telegram channel Real Estate | Investments | Dubai. I regularly share important information there.
Below, I will discuss important details to consider if you are seriously thinking about starting a company in the Emirates.
Simply opening a company is not difficult, as the registration process is straightforward and quick. The real challenges begin when it comes to choosing the right type of activity, obtaining approvals from the relevant authorities (if you are in a specific field), and opening a corporate account. There is a huge risk of ending up with a registered company but without the ability to operate, make payments, or import goods. It is also important to understand that making changes, changing founders, renewing or expanding a license can cost several times more than opening a company, so it is better to do everything right from the start and work with trusted consultants.
I have opened several companies in the UAE myself and can confidently recommend the partners I have worked with. If you are currently planning to enter the UAE market and need help with business registration, obtaining licenses, setting up work with suppliers, or logistics, write to me on Telegram @Anton_Moskalev, and I will share the contacts of reliable people.
And if you are interested in moving, business, and investing in the UAE, subscribe to the Telegram channel Real Estate | Investments | Dubai. I regularly share important information there.
Below, I will discuss important details to consider if you are seriously thinking about starting a company in the Emirates.
The UAE is a progressive country that is interested in attracting capital and highly qualified personnel from abroad. Simple registration, low taxes, a stable economy, and the possibility of obtaining residency are the main reasons for opening a company in the UAE.
Advantages of opening a company in the UAE
Advantages of opening a company in the UAE
The UAE remains one of the most attractive jurisdictions for business and investment for a number of reasons:
- No income tax (except for VAT and certain categories of corporate tax);
- Possibility of 100% foreign ownership of a company;
- Right to obtain a residence visa for founders and employees;
- Guaranteed confidentiality of personal data and assets;
- Political and economic stability;
- Free transfer of capital outside the country;
- Modern business and transport infrastructure;
- Affordable rental terms in free economic zones and low administrative fees;
- The national currency (dirham) is pegged to the US dollar, ensuring a stable exchange rate.
Types of companies in the UAE
Types of companies in the UAE
Allows you to operate in the UAE market. There are two types:
Mainland is a company registered in the jurisdiction of one of the emirates and subject to the local department of economic development. This form allows you to operate in the UAE and cooperate with countries in the Persian Gulf, participate in government tenders, and rent an office in any area.
Free Zone — a company is registered in one of the more than 40 free economic zones in the UAE. The business conditions here are very favorable: 100% foreign ownership, simplified requirements for authorized capital, quick registration, and tax benefits. However, such companies can only operate within the boundaries of their zone and on the international arena.
Mainland is a company registered in the jurisdiction of one of the emirates and subject to the local department of economic development. This form allows you to operate in the UAE and cooperate with countries in the Persian Gulf, participate in government tenders, and rent an office in any area.
Free Zone — a company is registered in one of the more than 40 free economic zones in the UAE. The business conditions here are very favorable: 100% foreign ownership, simplified requirements for authorized capital, quick registration, and tax benefits. However, such companies can only operate within the boundaries of their zone and on the international arena.
Offshore companies are most often used for international transactions, asset storage, and tax optimization. Such companies are not allowed to conduct business within the country and cannot rent an office or hire employees in the UAE.
Comparison of company types in the UAE
Taxation in the UAE
Taxation in the UAE
The UAE has one of the most favorable tax systems in the world, but important changes will come into effect in 2023. Now, companies with a net profit exceeding AED 375,000 per year (approximately $102,000) are required to pay corporate tax at a rate of 9%. This applies to mainland companies and some companies in free zones if they conduct business on the mainland or outside it.
However, most companies registered in the Free Zone and operating strictly within their zone and abroad can still enjoy zero corporate tax if they meet certain requirements ("qualifying income").
Offshore companies are generally completely exempt from taxation, but they are not allowed to conduct business within the UAE.
The UAE also has VAT, which is 5% and mandatory for companies with an annual turnover of more than AED 375,000, regardless of the zone.
It is important to remember that the UAE tax system is actively developing, so when planning your business, it is essential to consult with specialists — this will help you understand whether your company is subject to taxation and how to optimize your tax burden in your particular case. I have trusted partners with whom I work for my own companies: they help with tax optimization, VAT refunds, and any other tax issues. If you need such assistance, please contact me on Telegram @Anton_Moskalev, and I will share their contact details.
However, most companies registered in the Free Zone and operating strictly within their zone and abroad can still enjoy zero corporate tax if they meet certain requirements ("qualifying income").
Offshore companies are generally completely exempt from taxation, but they are not allowed to conduct business within the UAE.
The UAE also has VAT, which is 5% and mandatory for companies with an annual turnover of more than AED 375,000, regardless of the zone.
It is important to remember that the UAE tax system is actively developing, so when planning your business, it is essential to consult with specialists — this will help you understand whether your company is subject to taxation and how to optimize your tax burden in your particular case. I have trusted partners with whom I work for my own companies: they help with tax optimization, VAT refunds, and any other tax issues. If you need such assistance, please contact me on Telegram @Anton_Moskalev, and I will share their contact details.
Company registration in the UAE Free Zone in 2025
Company registration in the UAE Free Zone in 2025
Free zones are the most popular choice for foreigners starting a business in the UAE due to their preferential conditions and the possibility of owning a company 100% without a local partner. Most free zones are located in Dubai, where there are more than 30, each with its own specialization. Some zones are universal and suitable for any type of activity, while others are narrowly focused. For example:
- IFZA (International Free Zone Authority) — one of the most accessible and flexible free zones in Dubai, suitable for IT, consulting, and online businesses.
- DMCC (Dubai Multi Commodities Centre) — the largest zone with high international status, suitable for trade, logistics, and investment.
- DIFC (Dubai International Financial Centre) — an elite zone for financial, legal, and investment companies, recognized worldwide.
Organizational and legal forms of companies in Free Zones
Organizational and legal forms of companies in Free Zones
- FZE (Free Zone Establishment) — a company with one founder, who can be a natural or legal person.
- FZCO or FZ-LLC (Free Zone Company / Free Zone Limited Liability Company) — a company with two or more founders, who may be individuals or legal entities.
- Branch — a representative office of a foreign or local company that does not have its own legal status and acts on behalf of the parent company.
- Special forms provided for in individual SEZs.
Licenses in the Free Zone
Licenses in the Free Zone
Every company that registers in a free zone must obtain a license to operate. The cost of the license depends on the zone and the type of activity chosen. The cheapest license will cost AED 12,000, and the most expensive will cost around AED 50,000.
There are several main types of licenses:
— Commercial (Trading) — for trade and distribution;
— Professional — for providing services and consulting (this type also includes licenses for freelancers*);
— Industrial — for manufacturing, packaging, and assembling goods.
— Specialized licenses: media, educational, e-commerce, warehousing, general trading, etc.
There are several main types of licenses:
— Commercial (Trading) — for trade and distribution;
— Professional — for providing services and consulting (this type also includes licenses for freelancers*);
— Industrial — for manufacturing, packaging, and assembling goods.
— Specialized licenses: media, educational, e-commerce, warehousing, general trading, etc.
How to obtain a license for freelancers in the UAE in 2025?
How to obtain a license for freelancers in the UAE in 2025?
Freelance permits are issued in each emirate, often in free economic zones. This is an ideal option for those who work independently and want to operate legally without registering a full-fledged company. A freelance permit is also considered grounds for obtaining a resident visa. Licenses are usually issued for a period of 1–2 years (in some cases up to 3 years), and the cost and list of eligible professions depend on the specific zone. The cheapest license for freelancers is offered by the emirate of Ajman – only AED 6,000, with more than 40 categories available.
Approximate set of documents for obtaining a license for freelancers (varies in different emirates):
Approximate set of documents for obtaining a license for freelancers (varies in different emirates):
- copy of your passport,
- photo
- current resume or portfolio,
- proposal or description of the services you plan to provide,
- valid visa and Emirates ID (if available),
- letters of recommendation or contracts,
- diploma or proof of qualifications.
- Research and select the SEZ and the desired emirate;
- Contact a consultant for more detailed information;
- Prepare the necessary documents and submit an application for a license;
- Pay the fee;
- Obtain the license;
- Undergo a medical examination and biometric registration, obtain an Emirates ID and a residence visa;
- Open a bank account.
Documents required to open a company in a free economic zone in 2025
Documents required to open a company in a free economic zone in 2025
- Copy of the foreign passport of all founders and directors
- Photo
- Founder's resume (sometimes requested)
- Business plan (for certain types of activities)
- Proof of residence (e.g., utility bill)
- Company name and intended activities
- Application for company registration and license
- Proof of payment of registration fee
Useful links:
Ministry of Foreign Affairs of the UAE
AMADLAW
Stages of company registration in the UAE
Stages of company registration in the UAE
The process of registering a company in the UAE is not very complicated. It is important to assess everything in advance, choose a field of activity, and calculate where exactly to open a company. Since there are many zones in the UAE and each has its own conditions for setting up a business, many people seek help from specialized organizations.
Below is a brief overview of the stages of company registration in the UAE that are important to consider before submitting an application.
Below is a brief overview of the stages of company registration in the UAE that are important to consider before submitting an application.
It can be a free zone, local, or offshore company. You need to obtain a license for the selected type of activity. The cost and available types of activities vary in each emirate.
Each zone has its own types of licenses, document requirements, and minimum authorized capital. The cost also varies.
You need to check in advance whether the zone has the office, warehouse, or production premises you need, and, if necessary, take into account the proximity to the port or airport.
You need to check in advance whether the zone has the office, warehouse, or production premises you need, and, if necessary, take into account the proximity to the port or airport.
Submit your application online or in person at a representative office — you will then receive an NOC, a one-time code, or confirmation that you can proceed.
With initial approval, you can already start looking for an office, warehouse, or flexi-desk. You cannot obtain a license or open a bank account without a lease agreement.
The UAE is not a party to the 1961 Hague Convention, so a number of documents require consular legalization.
The legalization process often looks like this:
The total legalization period is usually 2–3 weeks, with an expedited procedure taking about a week, but at a higher cost.
The legalization process often looks like this:
- Translation of the document into Arabic and English and its notarization.
- The Ministry of Justice of the Russian Federation confirms the authenticity of the notary's seal.
- The Consular Department of the Russian Ministry of Foreign Affairs certifies the seal and signature of the Ministry of Justice.
- Legalization at the UAE Embassy in Russia.
- The UAE Ministry of Foreign Affairs certifies the seal of the Embassy in Russia.
The total legalization period is usually 2–3 weeks, with an expedited procedure taking about a week, but at a higher cost.
Once the documents have been submitted and an office has been rented, the final stage is carried out: the company is registered and a license is issued.
The license serves as the basis for the founders to obtain a residence visa and Emirates ID.
After completing all the previous steps, you can open an account at the bank of your choice.
Authorized capital in Free Zones:
Authorized capital in Free Zones:
The minimum authorized capital depends on the zone: in some free zones (Jebel Ali, RAK FTZ, TwoFour54, and others), there are no requirements for authorized capital. In other zones, it ranges from AED 1,000 to AED 300,000:
- For example, DAFZA — AED 1,000,
- DMCC, Dubai Internet City — approximately AED 50,000,
- Dubai Silicon Oasis, RAKEZ — AED 10,000–100,000,
- Dubai South — up to AED 300,000
Cost and time required to open a company in the UAE:
Cost and time required to open a company in the UAE:
- Registration fee: From AED 8,000 to AED 15,000
- Operating license (depending on the zone and type of business): From AED 7,500 to AED 20,000
- Office rent: From AED 5,000 to AED 15,000, Flexi-desk (partially used space) is cheaper
- Founder's residence visa (includes medical examination, Emirates ID, visa): From AED 3,500 to AED 6,000
- PRO services / support: From AED 3,000 to AED 7,000, depending on the consultant
Total: The minimum cost of a company formation package in 2025 is from AED 25,000 (~$6,800)
Standard operating budget: AED 30,000–40,000 (~$8,000–$11,000)
The total time required to open a turnkey company is 10 to 20 business days. It all depends on the specific zone and the number of registration requests at the moment, as well as the accuracy and completeness of the documents you provide.
It should also be noted that after registering a company in the UAE, you will need to pay for license renewal, office rent (even if it is a flexi-desk), and other mandatory fees on an annual basis. In some areas, the renewal fee may be almost the same as the initial fee, especially if you have chosen the minimum package. These payments are mandatory; without them, the company is considered inactive, which may result in fines or automatic revocation of the license.
Company registration in an offshore zone in 2025
Company registration in an offshore zone in 2025
Offshore company registration in the UAE is a format in which a business cannot operate within the Emirates but is legally registered there. Such companies are most often used for international operations, tax optimization, asset ownership (e.g., real estate), and capital protection. Offshore companies do not require office space or a resident visa, and reporting and auditing requirements are minimal.
There are three offshore zones in the United Arab Emirates:
JAFZA Offshore (Dubai – Jebel Ali)
This is the most expensive offshore jurisdiction in the UAE, but one of its key features is the right to own real estate in Dubai. Registration usually takes 10–15 business days and may require the presence of the founders or their proxies.
RAK ICC (Ras Al Khaimah)
Allows you to register an offshore company in 1–2 days without the founder having to be present, and the registration cost is significantly lower than in JAFZA.
Ajman Offshore (Ajman)
Registered within one day, without a visit from the founders, also more affordable than JAFZA, the preferred option for small and medium-sized businesses.
There are three offshore zones in the United Arab Emirates:
JAFZA Offshore (Dubai – Jebel Ali)
This is the most expensive offshore jurisdiction in the UAE, but one of its key features is the right to own real estate in Dubai. Registration usually takes 10–15 business days and may require the presence of the founders or their proxies.
RAK ICC (Ras Al Khaimah)
Allows you to register an offshore company in 1–2 days without the founder having to be present, and the registration cost is significantly lower than in JAFZA.
Ajman Offshore (Ajman)
Registered within one day, without a visit from the founders, also more affordable than JAFZA, the preferred option for small and medium-sized businesses.
Company registration in the Mainland zone in UAE in 2025
Company registration in the Mainland zone in UAE in 2025
Registering a company in Mainland (onshore jurisdiction) gives businesses the right to operate throughout the UAE and beyond, not just within a single free zone. This is a suitable option for those who plan to serve local customers, enter into government contracts, rent an office in any area of the city, or open a retail outlet. Previously, a local partner-sponsor was required to open a business in Mainland, but today, 100% foreign ownership is permitted in most sectors. Companies in Mainland are licensed by the Department of Economic Development (DED) of the specific emirate — most often Dubai or Abu Dhabi. This format is more flexible but involves stricter requirements for the office and accounting, as well as higher costs than simple registration in a Free Zone.
Organizational and legal forms of companies in Mainland:
Organizational and legal forms of companies in Mainland:
Limited Liability Company (LLC) - the most popular form.
A foreigner can own up to 100% of the company, but some strategic industries require a local partner. Requires 2 to 50 founders.
Civil Company (Professional Activity) - suitable for freelancers, consultants, lawyers, doctors, etc. A foreigner can own 100%, but a local service agent is required (who does not have a share in the company, but only assists with administrative matters).
Branch of a Foreign Company - a branch of a foreign company.
May conduct commercial activities in the UAE on behalf of the parent company. Tax liability and obligations are borne by the head office. A local agent is required.
Representative Office - Representative office of a foreign company.
Cannot conduct commercial activities, only marketing and market research. A local service agent is also required.
Sole Establishment and Sole Proprietorship (Sole Trader) - available only to UAE and GCC citizens and not suitable for foreigners.
A foreigner can own up to 100% of the company, but some strategic industries require a local partner. Requires 2 to 50 founders.
Civil Company (Professional Activity) - suitable for freelancers, consultants, lawyers, doctors, etc. A foreigner can own 100%, but a local service agent is required (who does not have a share in the company, but only assists with administrative matters).
Branch of a Foreign Company - a branch of a foreign company.
May conduct commercial activities in the UAE on behalf of the parent company. Tax liability and obligations are borne by the head office. A local agent is required.
Representative Office - Representative office of a foreign company.
Cannot conduct commercial activities, only marketing and market research. A local service agent is also required.
Sole Establishment and Sole Proprietorship (Sole Trader) - available only to UAE and GCC citizens and not suitable for foreigners.
FAQ — Frequently asked questions about opening a company in the UAE:
FAQ — Frequently asked questions about opening a company in the UAE:
Yes, non-residents can register a company in the UAE remotely, especially if it is a Free Zone or offshore company. Many free zones allow you to complete everything online, including signing documents and making payments. However, in order to obtain a residence visa, open a bank account, and conduct full-fledged operations, you will still need to visit the country at least at the final submission and biometrics stage.
In 2025, a local partner will no longer be required for most types of activities. You can own 100% of a company as a foreigner, especially in the Free Zone and in most categories of Mainland companies. However, for strategic sectors (media, defense, finance, energy, etc.), it may be mandatory to have a UAE citizen as a partner or service agent. This should be clarified in advance, before submitting documents.
By opening a business in the UAE, you can obtain a residence visa for a period of 1 to 3 years. It is issued to founders, as well as to company employees and their family members. You will need an active license, a lease agreement (for an office or flexi-desk), a medical examination, and biometric data. In some areas, the visa is included in the starter package, while in others it is issued separately.
Renewing a company registration in the UAE usually costs the same as opening one, especially if you have chosen the minimum package. This includes:
- license renewal (from AED 7,500 to AED 20,000),
- office or flexi-desk rental,
- renewal of resident visas (if necessary),
- accounting and administrative fees.
Here are some common mistakes:
- choosing the wrong zone (e.g., registering in a Free Zone when planning to operate throughout the UAE);
- choosing the wrong type of license;
- not understanding the tax implications (e.g., switching to corporate tax);
- lack of preparation for opening a bank account (compliance has become stricter);
- setting up a turnkey business with untested consultants without understanding the details.
Yes, in the UAE, you can register a company with one founder, without having to hire employees. This format is suitable for freelancers, online entrepreneurs, and consulting projects. However, if you want to open a restaurant, shop, clinic, or service company, you will need at least 1–2 employees with work visas, as well as a lease agreement for a full-fledged premises.
Yes, in 2025, all companies registered in the UAE are required to keep accounting records, especially if they are subject to corporate taxation (with income of AED 375,000 per year or more).
You are required to:
- keep all documents related to transactions,
- prepare a profit and loss statement,
- submit reports in the event of an audit or upon request.
The most affordable way is to register a freelance license in the emirate of Ajman, which costs from AED 6,000 per year. It allows you to work officially, open a bank account, obtain a visa, and conduct activities within your niche (marketing, IT, design, consulting, etc.). This format is suitable for individual specialists and start-ups.
As you can see, there are many nuances to registering a business in the UAE, from choosing a company form and license to understanding the tax system and opening a bank account. Without experience, it is easy to miss something important or simply waste time and money.
If you are in the decision-making stage or are already ready to open a company, write to me on Telegram @Anton_Moskalev, and I will recommend reliable partners with whom I work personally and whom I trust.
And if you are interested in moving, business, and investing in the UAE, subscribe to the Telegram channel Real Estate | Investments | Dubai. I regularly share important information there.
If you are in the decision-making stage or are already ready to open a company, write to me on Telegram @Anton_Moskalev, and I will recommend reliable partners with whom I work personally and whom I trust.
And if you are interested in moving, business, and investing in the UAE, subscribe to the Telegram channel Real Estate | Investments | Dubai. I regularly share important information there.
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