How to start a business in Dubai

The UAE has more than 40 jurisdictions, but why do businesses choose Dubai so often? There are a few reasons.

While the rules seem pretty simple, following them can sometimes be a bit of a challenge. Choosing the right license, knowing when to file reports and how to fill them out, and figuring out what permits are required can be a headache for many business owners.

1. Commercial license: For trading and general business.
2. Professional license: For service-oriented businesses such as design, law, development, etc.
3. Industrial license: For manufacturing and industry.
4. Tourism license: For travel agents, tour operators, and the hospitality industry.

The average business license cost is AED 5,000 for a small business to AED 100,000 for a corporation. It depends on the team size, business activity, and jurisdiction.

Mandatory
✅ Business license;
✅ Memorandum of Association (MoA);
✅ Office lease agreement (yes, every entity registered in the UAE must have a valid business address in the UAE);
✅ Company stamp, not a document but you need it to issue official corporate documents

Optional/nice to have
✅ Establishment card (company registration at GDRDA (General Directorate of Residency and Foreigners Affairs) needed for the entity to have permission to issue residency visas);
✅ Owners’ residency visas (electronic since 2023) and Emirates IDs (not mandatory in Free Zones but requested by the banks later);
✅ E-signature card of the company’s official signatory

Mainland

• Trade License: Approx. AED 15,000 — AED 25,000.
• Office: from AED 10,000.

Free Zone

• Trade License: Approx. AED 10,000 — AED 12,500.
• Office/coworking: from AED 2,000.

Offshore

• Trade License: Approx. AED 12,500 — AED 15,500.
• Office: from AED 20,000

Additional expenses

• Visas & employees hiring expenses: AED 4,000 — AED 6,000 per person.
• Accounting: from AED 400/month

All your future expenses are covered in this article, so be prepared for it.

Create 3 company name options
When you apply to get registered, your company name has to follow the rules of the place you're registering it in. For example, if you have a mainland company, you can't use names that start with "universal", "middle east", "global", or "international".

Do some research on the countries' culture before you move
Before moving to the UAE, it's important to do some research on the local culture and customs, especially if you have any religious beliefs. Knowing these things will help you adapt more easily and avoid any cultural misunderstandings that might arise.

There are over 200 different nationalities here, so communication styles can be flexible. Take the time to learn about your partner's background and values to make interactions smoother and relationships stronger.

Corporate communication rules are fine, but you need to do more chat
When you move to the UAE, you'll want to get involved in some casual conversations. You don't always need to talk about business. In fact, it's important to just chat about life and get to know people. That's part of the culture here. So, don't expect all your communication to be formal emails. It's better to meet people in person and have a casual chat before getting down to business.

There are a lot of social events in the UAE. You can go to informal get-togethers and make friends or discuss work.

Keep a balance
Not all negotiations go as planned. Sometimes people get sidetracked during a conversation or suddenly change the subject to talk to someone else. Just be patient and your goal will eventually be achieved.