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DUBAI: Best Place to Start Your Business


For businessmen all around the world, Dubai is a recognized trading hub and the ultimate option to set up their companies there. Liberalized economy, solid infrastructures, and access to a wide global market besides the tax-free policies are some of the reasons why Dubai could be the best place for you to start your business. Dubai itself, as one of the Emirates of the UAE, contains several free zones, all following similar structures for company registration with slight differences in details. The variety of these free zones allows you to choose the one that is more suitable for your business which depends on the type of your business, capital share, the need for a physical or virtual office, etc. By company formation in Dubai, obtain residency for yourself and your family and enjoy the opportunity of living and operating your business in one of the safest and most modern places in the world.

Advantages of Launching a Small Business in Dubai

Starting a small business in Dubai has various advantages that make it an ideal destination for entrepreneurs seeking profitable opportunities. Here are the key benefits:

  • Quick and Easy Setup Dubai offers a streamlined process for setting up your business. The city prides itself on entrepreneur-friendly facilities, allowing you to swiftly acquire a business license and commence business operations with minimal hassle.
  • Diverse Business Activities Dubai provides a broad spectrum of business activities, encompassing professional services, service-based ventures, and product sales. You can choose an activity that aligns with your skills and interests.
  • Full Ownership In Dubai’s free zones, entrepreneurs can enjoy 100% ownership of their businesses. However, you’ll require a local sponsor if you opt for mainland registration.
  • Low Initial Investment Launching a small-scale business in Dubai demands a modest upfront investment, facilitating a swift start-up process for your company.
  • Tax Benefits Dubai offers the advantage of zero personal taxes, ensuring that you and your employees can retain 100% of your company’s income. Additionally, your business won’t be subject to corporate tax if its annual income remains below AED 375,000

Reasons to Start a Business in Dubai

Dubai and the UAE offer an incredibly welcoming and supportive environment for businesses, as evidenced by the launch of over 20,000 new businesses in Dubai last year, with a significant number registered by international entrepreneurs. A key factor driving entrepreneurs to the UAE is the favourable tax regime, with zero per cent personal and corporate income taxes, with the only notable tax being a flat 5% VAT introduced in January 2018.

The Emirates houses the second-largest economy in the Arab world, with a diverse GDP of around AED 692 billion. This economic diversity means you can establish a business across various industries, from healthcare and hospitality to technology and trade.

Quality of life is another draw, as the UAE ranks 23rd in the Best Countries Index, positioning it favourably among European countries like Spain and Ireland. The UAE is also home to numerous start-up incubators and funding initiatives to accelerate business growth.

Furthermore, the future of business in Dubai looks promising, with the International Monetary Fund (IMF) predicting that the UAE will lead economic growth in the Arabian Gulf, expected to increase by 2.5% this year, significantly surpassing the growth forecast for the region’s largest economy, Saudi Arabia, which is expected to grow by 0.4%. Starting a business in Dubai can be straightforward if you follow the steps outlined in this guide.

Some of the other reasons that makes Dubai a great choice for business are: 

Tax? Don’t Worry about It!

In Dubai, as in all the other emirates, all companies registered in the mainland or companies formed in the FTZs all of them enjoy a tax-free haven. This is a great impetus for people looking to invest in Dubai. One of the prominent benefits of opening your business in Dubai is that you do not have to pay any taxes! and they offer total exemption from any kind of taxes, be it income, corporate or personal tax. Though, a few companies might have to pay a 5% VAT applicable on certain business activities.

You Will Not Miss Your Family!

If you are starting a business in Dubai, you can easily get employment and a residential visa. Once you have your visa, you can rent or lease a property, travel from one country to the other, or buy vehicles, plus you can take your family members with you too!

Exceptional Government Support

The Dubai government never fails to provide top-notch facilities, incentives, and safety to foreign investors. It keeps on amending the rules and regulations to conduct business in the city to ensure the quality, advancements, and increasing the business opportunities. Moreover, the government keeps organizing various international events and comes up with many initiatives for business expansions. The government offers an easy-to-follow, fixed set of rules and regulations in order to conduct business. All the entrepreneurs must adhere to these for smooth business setup and functioning further.

Technological Advancements

Dubai is one of the Emirates with the most advanced digital facilities. It is on the way to a technologically powered future and to become the world’s digital hub. The city has taken so many tech initiatives when it comes to reducing traffic, providing world-class internet services, transforming healthcare services, eCommerce, etc. This promotes and increases opportunities to conduct business online in the country.

There are continuous and ongoing revisions of existing investment rules, regulations, and incentive packages to promote foreign investment. Dubai was the first among the emirates to permit foreign ownership of property and stocks. UAE is also a member of international bodies, treaties, and conventions that safeguard intellectual property, including the World Intellectual Property Organization (WIPO), World Trade Organization (WTO), Paris Convention, Patent Cooperation Treaty (PCT), WIPO Copyright Treaty, WIPO Performances, and Phonograms Treaty (WPPT) and the Rome Convention.

Although the ease and advantages above, there is no harm to consulting with our lawyers in Dubai.
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How to Start a Small Business in Dubai? 


Starting a small business in Dubai can be accomplished in six straightforward steps; – 

Step One: Define Your Business Activities. Begin by identifying the specific activities your business will engage in. It’s crucial to list all intended activities on your license application to avoid issues in the future. Working with a company formation expert can be beneficial for guidance on permitted activities.

Step Two:

  1. Select a company name with adherence to naming conventions.
  2. Avoid offensive or blasphemous language, well-known organization names, and unnecessary abbreviations if using your name.
  3. Verify the availability of your chosen name for registration.

Step Three: Decide Between Free Zone or Mainland Setup Choose between setting up your business in a free zone or on the mainland based on your business nature. Free zones offer advantages like a quick incorporation process, business support, and financial incentives. Mainland business allows you to trade directly with the UAE market and access government contracts.

Step Four: Apply for a business license, a vital requirement for launching a small business. The application process for mainland licenses takes around three weeks. Depending on your business type, free zone licenses can often be obtained in a few days. Consider the services of a company formation specialist for a smooth application process.

During the application, you’ll need to provide basic documentation, including a completed application form, passport copies of the proposed owner or owners, and passport-size photos. Free zones offer affordable license packages with no share capital requirement, no annual audit, and easy incorporation.

Step Five: Visa Application Another essential step is applying for UAE visas for yourself and your employees. The process is particular but straightforward. Company formation experts can assist in this procedure. As a UAE business license holder, you can sponsor visas for family members or domestic workers. The number of visas you can apply for depends on your company size, chosen setup, and personal earnings.

Step Six: Open a Corporate Bank Account. The UAE’s stringent money laundering regulations can make corporate banking facilities challenging for overseas entrepreneurs. Company formation experts have strong connections with local and international banks and can guide you to the most suitable option, even arranging in-person meetings if necessary.


Dubai is the premier destination for aspiring entrepreneurs seeking business ventures. With its quick and hassle-free setup process, diverse business opportunities, potential for full ownership, modest initial investment requirements, and enticing tax benefits, Dubai offers an unrivalled environment for small-scale businesses to thrive. The city’s forward-thinking approach to business and robust economy promises a bright future for those who start their entrepreneurial journey in this dynamic and thriving metropolis. Whether you’re a local or an international business enthusiast, Dubai’s open arms welcome all to join its vibrant and ever-expanding business landscape.

Frequently Asked Questions

Are There Incentives for Startups and Small Businesses in Dubai?

Yes, Dubai offers a range of incentives and support programs designed to boost startups and small businesses. These incentives can significantly benefit entrepreneurs as they embark on their business journeys.

Some incentives include financial grants designed to provide initial capital to startups. These grants can help cover early expenses, such as business registration, office space, and equipment.

Incubator and accelerator programs are also available in Dubai. These programs offer mentorship, workspace, and resources to help startups rapidly develop their ideas and businesses. They provide a supportive learning, growth, and networking environment, allowing entrepreneurs to gain valuable insights and connections.

What are Free Zones, and What Advantages Do They Offer?

Free zones in Dubai are designated areas that offer numerous benefits to businesses, making them attractive for entrepreneurs. These zones provide 100% foreign ownership, meaning non-UAE nationals can fully own their businesses. Additionally, free zones offer tax exemptions so that businesses can enjoy a tax-free environment, including no personal income tax.

One of the most significant advantages of free zones is the simplified business setup process. Entrepreneurs can establish their businesses quickly with minimal bureaucratic hurdles, making it an efficient choice. Various free zones cater to different industries, from technology and media to logistics and manufacturing, allowing businesses to select a zone tailored to their needs.

Are There Government Support and Resources for Entrepreneurs in Dubai?

Indeed, the Dubai government actively supports entrepreneurs and offers a range of resources and initiatives to facilitate business growth and success. Dubai’s authorities have established entrepreneurial ecosystems to encourage innovation and development, making it a supportive environment for startups.

The government provides guidance and information on business setup procedures, market research, and mentorship opportunities. Dubai also hosts various entrepreneurship events, workshops, and networking platforms to help business owners connect, learn, and grow.

Furthermore, government-backed initiatives and funding opportunities exist to assist startups and entrepreneurs in accessing the capital they need to kick-start their businesses. This support reflects Dubai’s commitment to nurturing a thriving entrepreneurial community.

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