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

If you've been thinking about starting a business in Dubai, you're not alone. Over the past decade, Dubai has transformed itself into a magnet for entrepreneurs, small business owners, and global companies alike. It’s not just the sleek skyscrapers or the tax-friendly environment that make it attractive. It’s the mindset—forward-looking, opportunity-driven, and surprisingly open to newcomers.

But while Setting up a company in dubai can be incredibly rewarding, it’s not as simple as filing a few documents and calling it a day. There’s a process. There are choices to make. And the more prepared you are, the smoother your journey will be.

At A&H Consultants, we’ve helped hundreds of entrepreneurs turn their ideas into fully registered businesses in the UAE. So in this article, we’ll break things down as clearly and realistically as possible—no sugarcoating, no complicated terms. Just the essentials you need to know.

1. Know Your Business Activity First

Before you do anything else, you need to get clear on what kind of business you're starting. Not just “a marketing company” or “a food business,” but the specific activities your business will engage in.

Why? Because in Dubai, your business license will depend on your activity. There are thousands of activity codes listed by the Department of Economic Development (DED), and you’ll need to choose the one—or several—that match your business. You can't operate legally outside of those approved activities.

This step matters. Getting it wrong can delay the whole process or limit what you’re allowed to do down the line.

2. Free Zone or Mainland? Make the Right Choice

One of the biggest decisions you’ll make early on is whether to set up in a Free Zone or on the Mainland.

Free Zones are designated areas where you can enjoy benefits like 100% ownership, simplified processes, and tax advantages. They’re often ideal for service-based businesses, consultants, e-commerce companies, and startups.

Mainland companies, on the other hand, allow you to trade directly within the UAE market and take on government contracts. This is crucial if your business depends on local clients or in-person operations.

There’s no one-size-fits-all here. It depends on your goals. That’s something we always tell our clients at A&H Consultants—don’t get swayed by marketing buzzwords. Look at your business model, your target customers, and then choose the jurisdiction that gives you room to grow.

3. Legal Structure Isn’t Just Paperwork—It’s Your Foundation

Another key step is deciding your legal structure. Are you a solo entrepreneur? Starting with a partner? Planning to bring in investors?

Dubai offers several options:

Sole Proprietorship

Civil Company

Limited Liability Company (LLC)

Branch of a Foreign Company

Free Zone Establishment (FZE) or Free Zone Company (FZCO)

Each structure has different rules around ownership, liabilities, and costs. LLCs are the most common for Mainland setups, especially if you're looking at local operations. Free Zone setups tend to go with FZE or FZCO.

We’ve seen too many cases where people rush through this step, only to regret it later when they try to bring in partners or raise capital. Take the time to get this right.

4. You’ll Need a Local Address—Here’s What That Means

In Dubai, every business needs a physical office address. Yes, even if you work remotely. This is more than a formality—it’s a legal requirement.

If you’re in a Free Zone, they’ll often provide flexible office solutions like co-working spaces or virtual desks. If you’re setting up on the Mainland, you’ll need to lease an office and register the tenancy contract with Ejari (Dubai’s rental registration system).

It’s not just about space—it’s about legitimacy. Having the right kind of address is part of your licensing and renewal process.

5. The Paperwork Is Manageable—If You Know What to Expect

Here’s a quick breakdown of the documents most people need:

Passport copies of shareholders

Visa or Emirates ID (if applicable)

Business name approval

Initial approval from authorities

Office lease agreement

Memorandum of Association (MOA)

Trade license application

Depending on your business type, you might also need extra approvals from specific departments (like food safety, education, or health).

It sounds like a lot, and it can be. But with the right support—and a bit of patience—it’s all very doable. At A&H Consultants, we take care of this step-by-step for our clients so they can focus on their idea, not the red tape.

Final Thoughts

Setting up a company in Dubai is a smart move—but only if you go in with your eyes open. From choosing the right setup to getting your paperwork in order, each step matters. And while the process may feel overwhelming at times, it’s completely achievable with the right guidance.

That’s what we’re here for at A&H Consultants. We don’t just fill out forms—we help entrepreneurs build solid foundations that last. Whether you’re just starting to explore the idea or already have your business plan ready, we’ll walk with you, every step of the way.

Because at the end of the day, Dubai rewards those who plan smart, move fast, and stay focused.