Setting Up a Company in Dubai: Complete Guide 2025

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Dubai has established itself as a premier destination for entrepreneurs worldwide looking to develop their business in a favorable environment. This cosmopolitan city in the United Arab Emirates offers modern infrastructure, advantageous taxation, and simplified procedures for establishing a company. Discover in this comprehensive guide everything you need to know to succeed in your Dubai business setup in 2025.

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Why Start a Business in Dubai in 2025?

Dubai represents much more than a simple tourist destination. This emirate has transformed into a genuine international economic hub, attracting French and foreign entrepreneurs thanks to its numerous competitive advantages. The city connects Europe, Asia, and Africa, offering privileged access to rapidly growing markets.

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Key Advantages for Entrepreneurs

The choice of Dubai for company formation is based on several key factors that make it a preferred destination for investors.

The advantageous taxation constitutes one of the major attractions, with a 0% corporate tax rate in free zones and the absence of personal income tax. This tax exemption allows entrepreneurs to maximize their profits and optimize their financial structure.

100% foreign ownership of companies represents another considerable advantage, particularly in free zones where no local sponsor is required. This ownership freedom offers entrepreneurs complete control over their company and its strategic decisions.

The Emirati banking system stands out for its robustness and modernity, facilitating international transactions and access to financial services.

Dubai's strategic geographical position, at the crossroads of three continents, makes it an ideal international economic hub for developing worldwide business.

The world-class infrastructure, including exceptional transport, telecommunications, and logistics networks, effectively supports business development.

Dubai's economy experiences sustained growth, supported by an ambitious economic diversification policy. French nationals benefit from particularly favorable reception, with numerous services available in French language.

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What Are the Types of Companies in Dubai?

The Emirati legal system offers different options for company formation, each adapted to specific needs.

Understanding these different types of businesses is essential to make the right choice according to your activity and objectives.

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Free Zone Company

Free zones constitute the most popular option among foreign entrepreneurs. These specialized economic zones offer exceptional tax advantages and simplified regulations.

More than 40 free zones exist in Dubai, each specialized in specific business sectors.

The advantages include corporate tax exemption, the ability to repatriate 100% of profits, and the absence of a local sponsor requirement.

However, free zone companies generally cannot operate directly in the local Emirati market without going through a distributor.

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Mainland Company (Onshore)

Mainland companies allow free operation throughout the United Arab Emirates territory.

This legal structure suits entrepreneurs wishing to develop their commercial activity locally or export from the Emirates.

For mainland companies, regulations generally require a local sponsor (Emirati partner holding at least 51% of shares), except for certain activities where 100% ownership has been authorized since recent reforms.

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Offshore Company (Non-operational Locally)

Dubai offshore companies are designed for asset holding, tax planning, and international investments.

They cannot conduct local commercial activity but benefit from very advantageous taxation and enhanced confidentiality.

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How to Choose the Right Legal Structure?

The choice between these different types of companies depends on several factors:

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Discover how our services can help you choose the optimal structure for your project.

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What Are the Steps to Set Up a Company in Dubai?

Creating a business in Dubai follows a structured process in several steps. Although procedures vary according to the chosen company type, the general procedure remains similar.

Careful planning of each step helps avoid common mistakes and accelerate the process.

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1. Define Your Activity and Choose a Jurisdiction

The first step involves precisely defining your activity and choosing the appropriate jurisdiction. Each free zone has its specialties: technology, media, finance, commerce, etc. This decision will determine regulatory requirements and associated costs.

Analyzing your business sector allows identifying the most suitable free zone or mainland status for your needs.

It's also important to verify the licenses required for your sector and evaluate the constraints and opportunities of each option. This initial planning conditions the success of the entire creation process.

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2. Choose a Legal Form (LLC, FZCO, Sole Proprietorship, etc.)

The choice of legal structure directly impacts governance, taxation, and accounting obligations of your business.

The FZCO (Free Zone Company) constitutes the most popular form for limited liability companies in free zones, offering flexibility and tax advantages. The LLC (Limited Liability Company) suits mainland businesses wishing to operate in the local market.

Sole Proprietorship addresses individual entrepreneurs with simple needs, while Branch Office allows foreign companies to extend their activities to the Emirates.

This structural decision influences all future aspects of the business and deserves thorough analysis.

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3. Reserve the Trade Name

Trade name reservation constitutes a crucial step that requires verifying availability and compliance with local rules. The name must reflect the company's activity and respect Emirati cultural and linguistic requirements.

Verification of the desired name's availability is conducted with competent authorities.

It's important to ensure compliance with local naming rules and prepare alternatives in case of refusal.

Official reservation secures the chosen name during the creation process duration.

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4. Obtain the Commercial License

The commercial license determines the authorized scope of activity for your company. Emirati authorities distinguish several types of licenses according to business sector.

The commercial license applies to trading and distribution activities, while the professional license concerns specialized services and liberal professions.

The industrial license governs production and manufacturing activities, and the tourism license regulates activities related to tourism and hospitality sectors.

Choosing the appropriate license determines not only authorized activities but also regulatory obligations and associated costs.

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5. Register the Company with Authorities

Official company registration with the Department of Economic Development (DED) or the competent free zone authority finalizes the legal creation of the business.

This crucial step includes preparing the complete file of required documents, submitting the registration application, and paying corresponding administrative fees.

Obtaining the registration certificate marks the completion of this administrative phase and gives the company its legal existence.

The quality of file preparation directly influences processing times and the success of this fundamental step.

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6. Open a Professional Bank Account

Opening a professional bank account is essential to start operations. Emirati banks have strict requirements regarding documentation and compliance, necessitating careful preparation of required documents.

It's recommended to approach several banking institutions to compare offers and proposed conditions.

The bank choice should consider offered services, applied fees, and customer service quality.

Depositing the minimum capital, when required, finalizes account opening and allows beginning commercial operations.

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7. Apply for Residence Visa (for Yourself and Employees)

The residence visa allows the business owner and employees to legally reside in the United Arab Emirates. Different types of visas exist according to the status and specific needs of each applicant.

Identifying the appropriate visa type constitutes the first step, followed by gathering required documents according to specific requirements.

Submitting the visa application and completing medical formalities at an approved center complete the process. Planning this step must consider processing times to avoid any delay in installation.

For more information on visa procedures, consult our complete guide on Dubai visa.

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How Much Does Setting Up a Company in Dubai Cost?

The cost of setting up a company in Dubai varies considerably according to the chosen structure type, implantation zone, and required services.

An accurate estimate is essential for planning your installation budget.

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Administrative Fees, Licenses and Visas

Administrative fees include registration costs, commercial license, and residence visa. These fees vary according to competent authorities and chosen services.

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Costs According to Company Type: Free Zone vs Mainland

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Budget to Plan: Overall Estimate

Beyond initial setup costs, recurring annual costs must be planned including license renewal, visa fees, insurance, and accounting fees.

These costs generally represent 60 to 80% of initial setup fees.

French entrepreneurs must also consider legal advisory fees, assistance, and document translation costs, which can represent 20 to 30% of the total budget.

To understand the impact of VAT in Dubai on your activity, consult our specialized guide.

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What Are the Procedures for Obtaining a Residence Visa?

Obtaining a residence visa constitutes an essential step for entrepreneurs wishing to settle permanently in Dubai. The process varies according to visa type and applicant status.

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Investor Visa or Employee Visa: The Options

Several visa options are available to entrepreneurs:

Investor visa: intended for business owners having invested minimum capital. This visa allows sponsoring family and employees.

Employee visa: for managers employed by their own company. This option is often chosen by mainland company entrepreneurs.

Golden visa: long-term visa (5 or 10 years) for significant investors or exceptional talents.

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Steps to Follow for Visa Application

The visa application process follows a standardized procedure:

1. File preparation: gathering all required documents
2. Application submission: filing the dossier with competent authorities
3. Medical examination: mandatory medical visit at an approved center
4. Visa obtaining: collecting visa and identity documents

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Tax Residency: How to Obtain It in Dubai?

Tax residency in the United Arab Emirates is obtained by respecting certain conditions of physical presence and economic ties. It offers considerable tax advantages for entrepreneurs.

The documents necessary for visa application include a valid passport with at least 6 months validity, a rental contract or proof of address in Dubai, and company registration certificate.

The certificate of good conduct from the country of origin, work contract or proof of investment, as well as recent identity photos in required format complete the file.

Diplomas and certificates must be translated and attested if necessary according to authorities' requirements.

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What Mistakes to Avoid When Setting Up?

Setting up a company in Dubai can involve several pitfalls that inexperienced entrepreneurs must avoid.

Careful preparation and support from local experts help avoid costly mistakes.

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Choosing Wrong Jurisdiction

The choice of jurisdiction directly impacts business possibilities, taxation, and operating costs.

A thorough analysis of specific needs is essential before making this decision.

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Not Anticipating Recurring Costs

Entrepreneurs often focus on setup costs while neglecting annual recurring fees.

These costs can represent significant amounts that must be integrated into financial planning.

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Forgetting VAT Registration or Visa

VAT registration is mandatory for companies exceeding certain turnover thresholds. Similarly, visa renewal must be anticipated to avoid any legal problems.

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Poorly Choosing Local Partner (for Mainland Companies)

For mainland companies requiring a local sponsor, choosing the Emirati partner is crucial.

It's essential to clearly define collaboration terms and ensure partner reliability.

🛑 Pitfalls to Avoid Checklist:

• Underestimating setup timelines
• Neglecting regulatory compliance
• Choosing an office unsuitable for needs
• Ignoring local accounting requirements
• Neglecting liability insurance
• Poorly evaluating human resource needs
• Underestimating the importance of Arabic language for certain procedures

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Getting Support for Your Company Setup

The complexity of administrative procedures and specificity of the Emirati legal system make support by local experts particularly valuable.

Professional assistance helps avoid costly mistakes and optimize creation timelines.

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Why Get Support from Local Expert?

Local experts master regulatory subtleties and maintain established relationships with administrations. Their knowledge of the local market and business practices represents a considerable asset for foreign entrepreneurs.

Professional support allows to:

• Navigate efficiently through local bureaucracy
• Optimize legal and tax structure
• Accelerate administrative procedures
• Avoid regulatory pitfalls
• Benefit from an established business network

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Amary.ai Advantages for Your Dubai Project

Amary.ai accompanies French entrepreneurs in their Dubai implantation project with a tailored approach and recognized expertise.

Our legal and administrative support offers personalized advice and complete procedure follow-up, from project conception to operational implementation.

Our expertise in Free Zone or Mainland company creation allows assisting our clients in choosing and implementing the optimal structure according to their specific objectives.

We also manage all visa and banking procedures, facilitating visa obtaining procedures and professional bank account opening.

The personalized tax advice we propose aims to optimize tax structure according to each entrepreneur's objectives.

Finally, our post-creation follow-up ensures continuous assistance for your activity development once the company is created.

Discover how Amary.ai can support you in realizing your entrepreneurial project in Dubai.

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Frequently Asked Questions (FAQ)

How long does it take to set up a company in Dubai?

The timeline for setting up a company in Dubai varies according to the chosen structure type.

For a free zone company, generally count between 5 to 10 working days once all documents are gathered.

Mainland companies require a longer process, between 15 to 30 days, notably due to additional requirements related to local sponsorship.

These timelines can be reduced with professional support that masters procedures and maintains good relationships with authorities.

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What is the minimum capital required to start a business in Dubai?

The minimum capital depends on company type and implantation zone. For free zones, some require no minimum capital while others may ask between 50,000 and 300,000 AED according to activity.

Mainland companies generally have a minimum capital of 300,000 AED, although this amount may vary according to business sector and chosen legal form.

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Can you set up a company in Dubai without traveling?

It's technically possible to delegate a large part of procedures to a local agent, but physical presence generally remains necessary for certain key steps. Bank account opening, official document signing, and residence visa obtaining usually require the manager's presence.

However, some free zones propose digital solutions that minimize necessary travel.

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Are Dubai companies subject to VAT?

Since 2018, the United Arab Emirates applies 5% VAT on most goods and services. Companies with turnover exceeding 375,000 AED per year must mandatorily register for VAT.

Voluntary registration is possible for companies with turnover below this threshold.

Certain activities and products benefit from exemptions or reduced rates, notably in health and education sectors.

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What is the difference between Free Zone and Mainland?

The main difference lies in authorized activity zone and shareholding requirements. Free zone companies allow 100% foreign ownership but generally limit activities to export market.

Mainland companies authorize activities throughout Emirati territory but may require a local sponsor holding 51% of shares, except for certain recently liberalized activities.

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Can a French person obtain tax residency in Dubai?

Yes, a French national can obtain tax residency in the United Arab Emirates by respecting certain conditions.

Generally, one must physically reside at least 90 days per year in the country and have substantial economic ties, such as business ownership or local employment.

Emirati tax residency can offer significant advantages, notably exemption from personal income tax.

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What are the most promising business sectors in Dubai?

Dubai particularly encourages development in technology, financial services, international trade, tourism, and logistics sectors.

Activities related to artificial intelligence, cryptocurrencies, renewable energy, and e-commerce benefit from a favorable regulatory environment.

The Emirati government also focuses on knowledge economy, creative industries, and business services to diversify its economy.

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Is it mandatory to have a physical office in Dubai?

Requirements vary according to company type and implantation zone. Free zone companies can often opt for a virtual or shared office, which significantly reduces costs.

Mainland companies generally require a physical office space, although some zones propose flexible solutions.

Offshore companies generally have no office space requirement, reflecting their non-operational nature on Emirati territory.

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In summary, setting up a company in Dubai offers exceptional opportunities for French entrepreneurs wishing to develop internationally. The advantageous taxation, strategic geographical position, and modern infrastructure make this emirate a destination of choice. However, your project's success requires careful preparation, good understanding of local regulations, and ideally support from local experts. With the right decisions and proper support, Dubai can become the ideal springboard to develop your business on a regional and international scale.

For more information about our services and personalized support, contact our expert team.

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