Setting Up a Company in Dubai: What You Need to Know Before You Start

Dubai has come a long way from being a regional trading post to one of the world’s most dynamic business hubs. Today, it’s not just a city of skyscrapers and luxury — it’s a place where global entrepreneurs, freelancers, small businesses, and corporates come to grow.

If you’re considering Setting up a company in dubai, you’re not alone. Every year, thousands of business owners make the move here — drawn by zero income tax, investor-friendly policies, a stable economy, and access to both local and international markets.

But let’s be honest: the process can be confusing, especially if you’re new to the region. That’s why it helps to have clear guidance — not just with paperwork, but with making the right decisions at every step. And that’s where firms like A&H Consultants step in to make things easier, clearer, and faster.

So, where do you begin?

Step 1: Understand Your Options – Mainland vs Free Zone vs Offshore

The first decision you’ll need to make is where you want to register your company. Dubai offers several structures, but the three most common are:

Mainland Company

This gives you access to the entire UAE market and allows you to do business anywhere in the country. If you want to work with government contracts or large private companies, this is often the best option. A mainland company requires a local service agent or sponsor for certain business activities.

Free Zone Company

Free zones are special economic areas with their own rules. They offer 100% foreign ownership, full repatriation of profits, and zero import/export duties. However, you’re generally limited to operating within the free zone or internationally — unless you work with a local distributor to enter the UAE market.

Offshore Company

These are typically set up for international business purposes — like holding assets, tax planning, or international trading. Offshore companies can’t trade within the UAE but can be useful for businesses that don’t require a physical office here.

If you’re unsure which setup works best for your goals, A&H Consultants offers one-on-one consultations to help you understand which structure fits your long-term vision.

Step 2: Choose Your Business Activity

You can’t just say “I want to start a company” — you’ll need to be specific. Every company in Dubai is licensed based on its activity. Whether it’s trading, consultancy, tech development, hospitality, or something else, your activity must be selected from a pre-approved list issued by the Department of Economic Development (DED) or your chosen free zone authority.

Some activities require special approvals from external authorities (for example, if you're starting a medical clinic, a logistics company, or a security service).

Tip: Don’t try to overcomplicate this step. If you’re not sure what fits your idea best, a consultant can help you break it down and pick the right categories.

Step 3: Decide on a Company Name

Sounds easy? Not always. Dubai has strict naming guidelines. Your company name must:

Reflect the nature of the business (unless it’s a personal name)

Avoid religious or political terms

Not duplicate existing company names

Be in line with moral values

You’ll also need to reserve the name in advance and pay a fee. Again, this is a simple step, but missing one small detail can lead to rejection or delays.

Step 4: Finalize the Legal Structure

Depending on your business model and ownership, you’ll choose a legal structure such as:

Sole proprietorship

Civil company

Limited Liability Company (LLC)

Private shareholding company

Branch of a foreign company

For example, an LLC is the most common structure for mainland companies and requires at least one UAE national or a corporate sponsor (depending on the activity).

Choosing the wrong structure now can limit your growth later, so this is where having the guidance of A&H Consultants can really pay off. They help you weigh the pros and cons of each option based on your specific needs.

Step 5: Get Your License

Once you’ve decided everything — the business activity, legal form, company name, and location — it’s time to apply for your license.

There are three main types of licenses:

Commercial – for trading businesses

Professional – for service providers, consultants, professionals

Industrial – for manufacturing or industrial operations

Documents you’ll need usually include:

Passport copies of shareholders

Visa copies (if available)

Proof of residence or address

Business plan (for certain activities)

No-objection certificate (if you’re already employed in the UAE)

Free zones usually process licenses faster — sometimes within a few days — while mainland registrations may take a bit longer depending on approvals required.

Final Thoughts

The paperwork alone can be overwhelming. But the real challenge lies in knowing what to do, when, and how. A&H Consultants brings clarity to the process. From choosing the right business setup to managing documents, government approvals, visas, and banking — they walk with you through the entire journey.

It’s not just about Setting up a company in dubai. It’s about setting up the right company, in the right way, to support your goals. Whether you're an entrepreneur with a new idea or a company expanding into the region, A&H Consultants provides the insight and execution you need to get started with confidence.