How to Start a Business in Dubai Welcome to
How to Start a Business in Dubai How to Start a Business in Dubai
Start Your Business in Dubai the Right Way
Dubai rewards ambition. With no income tax, a strategic global location, and strong government support, it’s one of the best places to build and scale. We’ll help you move from idea to launch, fast, compliant, and stress-free, so you can focus on what matters: growing your business.
How to Start a Business in Dubai: A Step-By-Step Guide
Starting a business in Dubai opens the door to one of the world’s most energetic and rewarding markets. But opportunity comes with structure, you’ll need to follow a series of steps, make the right decisions early, and stay legal at every stage. With the right guidance, you can avoid costly detours and move from idea to launch smoothly.
We’ve worked with entrepreneurs across every sector, helping them build strong foundations for their ventures in Dubai. Over the years, we’ve seen what works—and what doesn’t—when it comes to company formation here. That experience is what shapes this guide.
Inside, you’ll find a clear, step-by-step breakdown of how to start a business in Dubai, along with practical tips on navigating cultural expectations and local business etiquette. Our aim is simple: to make the process transparent, fast, and stress-free.
And when you’re ready, our team is here to handle everything, from structuring your business to securing your trade licence and residence visas.
Why Start a Business in Dubai?
Starting a business in Dubai isn’t just about expanding into a new market — it’s about positioning yourself at the centre of global opportunity. The city blends world-class infrastructure with a tax-friendly framework and an international workforce that drives innovation daily.
In 2024 alone, more than 70,500 new businesses were launched in Dubai — a 3% rise from the previous year. Most of these were started by foreign entrepreneurs, a number that makes sense when you consider that nearly 90% of the UAE’s workforce are expatriates.
100% Foreign Ownership
One of the most significant reforms to business laws came in 2021, when the UAE removed the 49% foreign ownership limit for most sectors. Today, foreign investors can own their companies outright on the mainland — no local sponsor required.
This means you have full control over your business decisions, profits, and growth strategy while still benefiting from Dubai’s transparent regulations and supportive government initiatives.
Favourable Tax Environment
Dubai continues to stand out as one of the most tax-efficient jurisdictions in the world. Even with the introduction of a 9% corporate tax in 2023, startups and small businesses with annual profits below AED 375,000 pay 0% corporate tax.
You’ll also find:
- No personal income tax
- No capital gains or withholding taxes
- Full repatriation of profits and capital
Free-zone companies often retain 0% corporate tax on qualifying income, enjoy customs duty exemptions, and benefit from simplified trade procedures.
The UAE’s 5% VAT has been in effect since 2018, but many exports and international transactions remain zero-rated. Registration becomes mandatory once your annual taxable turnover exceeds AED 375,000, while voluntary registration is possible above AED 187,500.
As of January 2025, a 15% corporate tax applies only to large multinational groups with global revenues above USD 793.5 million, meaning most local and regional businesses will continue to enjoy Dubai’s low-tax advantages.
Diversified Economy
The UAE’s economy continues to grow at an impressive pace. The country’s real GDP expanded by 3.9% in 2024, and projections suggest 6.2% growth in 2025 — driven largely by non-oil sectors like trade, technology, tourism, and finance.
This steady expansion shows that the UAE’s diversification strategy is working. Businesses here benefit from a strong financial system, steady consumer demand, and government policies that encourage innovation and cross-border investment.
Exceptional Quality of Life and Talent Attraction
Beyond its business advantages, Dubai offers something equally important — a lifestyle that attracts global talent. It’s safe, clean, and modern, with top-tier healthcare, education, and entertainment.
Entrepreneurs and professionals alike are drawn by the Golden Visa and other long-term residency options, which make it easier to settle, plan, and grow. Dubai’s workforce includes more than 200 nationalities, creating a multicultural environment that fuels creativity and collaboration.
In the 2024 U.S. News Best Countries rankings, the UAE was ranked 17th globally, underscoring its reputation as a stable, high-quality destination to live and work.
World-Class Infrastructure and Connectivity
Few cities in the world offer the level of infrastructure that Dubai does. From cutting-edge office parks and co-working spaces to advanced logistics and digital networks, everything is designed for growth.
The city is home to one of the world’s busiest airports and seaports, making international trade seamless. Whether you need modern warehouses, fintech sandboxes, or creative production hubs, you’ll find a free zone that caters precisely to your sector.
Its geographic position also gives Dubai an unbeatable advantage — it sits conveniently between Europe, Asia, and Africa, aligning business hours and logistics with three continents.
Startup Support and Innovation Ecosystem
Dubai isn’t just a place to register your company — it’s a place to scale it. Across the UAE, you’ll find startup accelerators, incubators, and government-backed funds that help new ventures thrive.
Initiatives like Hub71 in Abu Dhabi and Dubai Future Accelerators connect founders with mentors, investors, and technology partners. These programs, alongside the country’s digital-first policies, have turned the UAE into a regional startup powerhouse.
8 Steps to Starting a Business in Dubai
Starting a business in Dubai isn’t as complicated as it may seem. Once you understand the structure, it’s a process you can navigate smoothly–with the right guidance. Here’s how you can move from idea to operation, step by step
8 Steps to Starting a Business in Dubai
Starting a business in Dubai isn’t as complicated as it may seem. Once you understand the structure, it’s a process you can navigate smoothly–with the right guidance. Here’s how you can move from idea to operation, step by step
8 Steps to Starting a Business in Dubai
Starting a business in Dubai isn’t as complicated as it may seem. Once you understand the structure, it’s a process you can navigate smoothly–with the right guidance. Here’s how you can move from idea to operation, step by step
8 Steps to Starting a Business in Dubai
Starting a business in Dubai isn’t as complicated as it may seem. Once you understand the structure, it’s a process you can navigate smoothly–with the right guidance. Here’s how you can move from idea to operation, step by step
What Are the Different Types of E-commerce Licences in the Mainland?
Yes, you can get an e-commerce licence directly from the mainland — and it’s an excellent choice if you’re looking to sell online while targeting customers within the UAE. Each emirate has its own version of the licence, designed to support local entrepreneurs and residents who want to take their business online.
Dubai
In Dubai, the Department of Economic Development (DED) issues the eTrader licence, allowing individuals to sell through social media platforms. It’s available only to UAE and GCC nationals residing in Dubai. This licence is limited to single owners and doesn’t allow for a physical store or visa sponsorship. If you’re looking for something broader, you can also apply for a general trading licence, which allows commercial activities online. This premium licence starts from around AED 30,000.
Abu Dhabi
The Tajer Abu Dhabi licence, issued by the Abu Dhabi Department of Economic Development (ADDED), enables UAE and GCC nationals, as well as residents, to add online activities to their trade licences. It supports three legal structures — Establishment, Single Shareholder Company, and LLC (with an Emirati partner).
Sharjah
In Sharjah, the Eitimad licence allows UAE nationals aged 18 and above to manage home-based or online businesses via social media. It’s a practical option for small-scale entrepreneurs starting out.
Tourism Licence
For travel, hospitality, or event management ventures, the Tourism Licence opens multiple pathways. You can operate city tours, international travel packages, or organize conferences and exhibitions. With Dubai’s tourism sector reaching new heights, this licence positions your business to capture opportunity while staying fully secure and compliant.
The Virtual Merchant Licence by RAK covers online retail, IT, consultancy, and professional services delivered through digital platforms. Available to UAE nationals in Ras Al Khaimah, it’s a flexible way to run online operations without needing a physical office.
FAQ About Question e-commerce Business Setup in the UAE
How Much Does It Cost To Start An E-Commerce Company?
You can get started with a basic e-commerce setup package for around AED 5,750. The price can go up depending on what you need–for example, office space, additional visas, or specific business activities.
Do You Need To Rent An Office Space?
That depends on the free zone where you’re setting up. Most free zones don’t require a physical office, which helps keep your startup costs low.
How Long Does It Take To Start An E-Commerce Business In The UAE?
If your documents are ready, your trade licence can be issued in as little as 24 hours.
What’s The Best Free Zone For E-Commerce?
The best one is the one that fits your business goals. Think about your product type, target market, and audience. Some free zones are industry-specific – like media or education–while others are open to all sectors. With over 50 free zones in the UAE, choosing carefully matters. The wrong one can lead to delays and unnecessary costs.
What Happens If I Sell Online Without A Licence?
Trading without a valid e-commerce licence is a serious offence. Fines can reach up to AED 50,000 per transaction.
Do E-Commerce Businesses Need To Register For Vat?
Yes, if your taxable sales and imports exceed AED 375,000 per year. If they’re above AED 187,500 but below that threshold, registration is optional.
What’s The Difference Between An Etrader Licence And An E-Commerce Licence?
An eTrader licence is only for UAE and GCC nationals living in Dubai who sell through social media. It’s for single owners and doesn’t cover full e-commerce websites. If you’re a non-GCC national or plan to sell via a website, you’ll need an e-commerce licence.
When Do I Need A Licence For My Online Store?
Right away. You need a valid trade licence before carrying out any commercial activity in the UAE.
Is There A Difference Between An E-Commerce Licence And A General Trade Licence?
Yes. An e-commerce licence specifically allows you to sell products online. A trade licence is a broader category that covers commercial, industrial, and professional activities.
Can I Sell Across The Uae With My E-Commerce Licence?
Yes, but if your business is registered in a free zone, you’ll need a mainland distributor to handle deliveries within the UAE.
Can I Run Two Businesses Under One Licence?
You can, as long as they fall under e-commerce activities. Mixing unrelated activities– like trading and consultancy–isn’t allowed.
Can I Sell Online Without A Licence?
No. Every business selling goods online in the UAE must have a valid e-commerce licence. It’s how the government ensures fair, transparent, and secure trade for both businesses and consumers.
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