How to Start a Business in Dubai as a Foreigner in 2025
Dubai is one of the most attractive cities in the world for entrepreneurs, thanks to its strategic location, tax free environment, business friendly policies, and global connectivity. Whether you’re a solo entrepreneur, a startup founder, or looking to expand your international business, setting up a company in Dubai is easier than ever in 2025 even as a foreigner.
In this guide, you’ll learn:
- The types of business setups available
- Step by step process
- Legal requirements
- Costs involved
- Licensing options
- Free Zone vs Mainland differences
- Best free zones for expats
📍 Can Foreigners Start a Business in Dubai?
Yes – Foreigners can own 100% of their business in most cases. Dubai allows:
- 100% foreign ownership in Free Zones
- 100% foreign ownership in many Mainland activities (as per updated commercial laws)
- Freelancers and solo entrepreneurs can also apply for freelance or professional licenses
🏢 Business Setup Options in Dubai (2025)
|
Type of Setup |
Ownership |
Key Feature |
|
Mainland Company |
Up to 100% foreign (depending on activity) |
Can operate anywhere in UAE |
|
Free Zone Company |
100% Foreign owned |
Ideal for online businesses and startups |
|
Offshore Company |
100% Foreign owned |
Used for international trade or asset holding |
|
Freelance License |
100% Foreign owned |
Ideal for solo entrepreneurs, remote workers |
📝 Step by Step: How to Start a Business in Dubai as a Foreigner
1️⃣ Choose Your Business Activity
Dubai has over 2,000+ licensed business activities. Examples:
- Tech (software, web development)
- E-commerce
- Marketing or consulting
- Real estate
- Food & beverage
- Import / export
Use the DED (Department of Economy & Tourism) activity list or Free Zone activity list to choose the right one.
2️⃣ Select Your Business Jurisdiction
- Mainland: For operating anywhere in UAE (online / offline)
- Free Zone: Ideal for international or online trade, easier setup
- Offshore: For asset protection, holding companies, no UAE office required
💡 Free zones like IFZA, DMCC, Meydan, Shams, and Dubai South are popular among expats.
3️⃣ Choose a Legal Structure
Popular legal structures include:
- Sole Proprietorship
- LLC (Limited Liability Company)
- Free Zone Company (FZC or FZE)
- Branch Office
The structure depends on the number of shareholders and type of business.
4️⃣ Reserve Your Company Name
- Choose a unique trade name (must follow UAE naming rules)
- Avoid religious or political references
- Can be reserved via DED or relevant Free Zone authority
5️⃣ Apply for a Business License
The type of license depends on your business activity:
|
License Type |
Purpose |
|
Commercial License |
Trading, retail, import/export |
|
Professional License |
Consultancy, marketing, tech, services |
|
Industrial License |
Manufacturing or industrial activities |
|
Freelance Permit |
Solo professionals like designers, writers |
Apply through:
- DED (for Mainland businesses)
- Free Zone Authority (for Free Zone businesses)
6️⃣ Get Office Space or Co working Facility
Options:
- Virtual offices (for Free Zone)
- Dedicated desk or co working
- Physical office (required for Mainland licenses)
7️⃣ Apply for Visa & Establishment Card
After license approval:
- Apply for Establishment Card (for business visa processing)
- Apply for owner / investor visa
- You can sponsor dependents and employees after this
8️⃣ Open a Business Bank Account
Required documents:
- Trade license
- Passport and visa copy
- Company documents (MOA, share certificate, etc.)
- Emirates ID (or application receipt)
Popular business friendly banks:
- Emirates NBD
- RAKBANK
- Mashreq
- ADCB
- HSBC
💰 Cost to Start a Business in Dubai (2025 Estimate)
|
Item |
Mainland (AED) |
Free Zone (AED) |
|
Trade License |
10,000 – 18,000 |
12,000 – 22,000 |
|
Visa (Investor + Establishment) |
4,000 – 7,500 |
3,500 – 6,000 |
|
Office Space |
5,000 – 25,000 |
4,000 – 15,000 |
|
Name & Registration Fees |
1,000 – 3,000 |
Included in packages |
|
Total Setup Cost (Est.) |
20,000 – 40,000 |
15,000 – 30,000 |
⚠️ Note: Costs vary by Free Zone, business type, and visa requirements. Always check with the Free Zone or DED before applying.
✅ Pros & Cons: Mainland vs Free Zone
|
Feature |
Mainland |
Free Zone |
|
Ownership |
100% in many sectors |
100% foreign ownership |
|
Office Required |
Yes |
Optional or virtual available |
|
Scope of Business |
Anywhere in UAE |
Limited to Free Zone or international |
|
Government Contracts |
Yes |
No |
|
Cost |
Moderate to High |
Generally lower |
📍 Best Free Zones in Dubai for Expats (2025)
- IFZA (International Free Zone Authority) – Affordable & fast setup
- DMCC – Best for trading, gold, crypto businesses
- Dubai Silicon Oasis (DSO) – Ideal for tech startups
- Dubai South – Near Expo site and Al Maktoum Airport
- Shams Free Zone – Creative industries and freelancers
🌐 Can You Start a Business in Dubai Remotely?
Yes – Many Free Zones offer remote business setup:
- Submit documents online
- No physical presence required for initial approval
- Visa processing after license
Perfect for digital nomads and freelancers looking to operate from abroad.
👨💼 Can a Foreigner Be a Sole Owner?
Yes – As of 2021 legal reforms, foreigners can fully own Mainland companies in most business sectors. No local sponsor or partner needed (unless in restricted industries like oil & gas or national security).
📞 Useful Government Links & Contacts
|
Department |
Website |
|
Dubai DED (Mainland) |
|
|
IFZA |
|
|
DMCC |
|
|
Meydan Free Zone |
|
|
Shams Free Zone |
|
|
Dubai Chamber of Commerce |