Dubai continues to attract entrepreneurs and global businesses with its business-friendly policies, tax incentives, and world-class infrastructure. In 2025, the UAE remains one of the most favorable destinations for foreign investors looking to establish a company in the Middle East.

Whether you’re a startup founder, solo consultant, or an established company looking to expand, understanding the company formation process in Dubai is crucial for a smooth setup.

Here’s a step-by-step guide to starting a company in Dubai in 2025—tailored specifically for foreign investors.

Step 1: Choose the Right Jurisdiction

Dubai offers three main types of business jurisdictions:

• Mainland (Onshore)
• Free Zone
• Offshore

Mainland companies allow you to operate anywhere in the UAE and take on government contracts. Free zones offer 100% foreign ownership and industry-specific ecosystems but limit trade within the UAE. Offshore structures are ideal for international trade and asset protection but don’t allow for physical operations within the UAE.

Tip: If you want access to the local UAE market and government clients, a Mainland license is recommended.

Step 2: Define Your Business Activity

The Department of Economic Development (DED) and respective Free Zone Authorities maintain a list of approved business activities. Choosing the right activity is essential for licensing, visa allocation, and office requirements.

Whether it’s e-commerce, consultancy, trading, logistics, or manufacturing, your license must reflect the nature of your operations.

Step 3: Select a Legal Structure

Dubai offers several legal structures for foreign investors, including:

• Sole Establishment
• Limited Liability Company (LLC)
• Civil Company
• Free Zone Establishment (FZE)
• Branch of a Foreign Company

For most foreign investors, an LLC or Free Zone Company is the most suitable structure.

Step 4: Reserve a Trade Name

You’ll need to submit at least three name options to the relevant authority. The trade name must follow UAE naming conventions:

• No religious or political references
• No offensive or controversial language
• Avoid using names of international organizations

The name must also reflect your business activity or brand identity.

Step 5: Obtain Initial Approvals

Mainland and Free Zone authorities require initial approvals from regulatory bodies before you can proceed with licensing. This may include:

• UAE Ministry of Economy
• Dubai Municipality
• Telecommunications and Digital Government Regulatory Authority (TDRA)
• Other sector-specific bodies

Some high-risk activities may also require security clearance or additional permits.

Step 6: Lease a Business Premises

You are required to have a physical office address in most cases. For Free Zone companies, authorities often provide flexi-desk and co-working spaces. Mainland companies must secure a tenancy contract (Ejari) to finalize licensing.

Tip: If you want to reduce costs in the initial phase, consider starting with a virtual office in a free zone.

Step 7: Finalize Your License & Register the Company

Once all documents, approvals, and tenancy agreements are submitted, your business license is issued. Mainland company registrations are processed through the DED, while free zone licenses are issued by the relevant authority.

At this stage, you will also receive:

• Company incorporation certificate
• Trade license
• Memorandum of Association (MOA)

Step 8: Apply for Investor Visa & Emirates ID

After company formation, you can apply for a UAE investor visa, allowing you to legally reside in the UAE. The process includes:

• Medical fitness test
• Emirates ID biometric scan
• Visa stamping in your passport

You can also sponsor visas for family members and employees depending on your license type.

Step 9: Open a Corporate Bank Account

With your trade license and Emirates ID, you can apply for a corporate bank account in Dubai. Most banks will require:

• Company trade license
• Shareholder documents
• Business plan or transaction forecast
• Proof of address

Bank compliance checks can take 1–3 weeks, depending on the nature of your business.

Why Work with GCCG.ae for Company Formation?

Setting up a business in Dubai as a foreign investor involves navigating government approvals, paperwork, and regulatory compliance. At GCCG.ae, we make this process simple and stress-free.

Expert advice on mainland, free zone, and offshore setups
Fast-tracked licensing and visa processing
Transparent pricing with no hidden costs
Ongoing support for bank account opening, VAT registration, and renewals

Get Started Today

Dubai offers unmatched advantages for foreign investors—but success begins with the right setup.

Book a free consultation with our experts at GCCG.ae and take the first step toward launching your business in Dubai.