Step-by-Step Guide to Business Setup in Dubai for 2025

Dubai continues to be one of the most attractive destinations for entrepreneurs and investors looking to start or expand their businesses. With a booming economy, strategic location, investor-friendly policies, and cutting-edge infrastructure, the city offers endless opportunities across industries.

If you’re planning to set up a company in Dubai in 2025, you need to follow a clear process to stay compliant with updated regulations and maximize your success. Here’s your step-by-step guide to business setup in Dubai for 2025.

Step 1: Define Your Business Activity

The first step is to determine the type of business activity you want to engage in. This could be:

• Trading (import/export, retail, wholesale)

• Professional services (consultancy, marketing, IT)

• Industrial or manufacturing activities

• E-commerce and online businesses

Step 2: Choose the Right Jurisdiction

Dubai offers three main jurisdictions for business setup:

• Mainland – Ideal for businesses targeting the UAE market, with full operational freedom.

• Free Zone – Offers 100% foreign ownership, tax benefits, and easy setup for international trade.

• Offshore – Best for businesses focused on global operations without a physical UAE presence.

Selecting the right jurisdiction will impact your ownership rights, taxation, and business scope.

Step 3: Select a Legal Structure

Your legal structure determines how your business operates and is taxed. Popular options include:

• Limited Liability Company (LLC)

• Sole Establishment

• Civil Company

• Free Zone Establishment (FZE) or Free Zone Company (FZC)

• Branch or Representative Office

Step 4: Reserve Your Trade Name

Pick a unique and compliant trade name for your company. The name must not violate UAE naming conventions (no offensive words, no references to religion, etc.). This step is done through the DET or your chosen free zone authority.

Step 5: Apply for Initial Approval

Initial approval is a no-objection certificate from the authorities allowing you to proceed with the business setup process. This ensures your activity and trade name are approved.

Step 6: Draft Your Memorandum of Association (MOA)

If you’re setting up an LLC or partnership, you’ll need to draft and notarize an MOA outlining shareholder details, profit-sharing arrangements, and company activities.

Step 7: Secure a Business Location

Every company needs a physical address. You can either:

• Lease an office space

• For a flexi-desk or virtual office (ideal for start-ups or free zone setups)

Step 8: Get Approvals from Relevant Authorities

Some business activities require additional approvals from specific departments (e.g., health, education, or legal authorities).

Step 9: Obtain Your Business License

Once all documents and approvals are in place, you’ll receive your business license – the official document allowing you to operate legally in Dubai.

Step 10: Register for Visas and Bank Account

Finally, you can apply for residence visas for yourself, partners, and employees. Open a corporate bank account to start transactions and run your operations smoothly.

Why 2025 is the Best Time to Start Your Business in Dubai

Dubai is continuously improving its business environment with reduced setup costs, digital licensing processes, and tax incentives. The upcoming years will see greater integration of AI, blockchain, and smart government services, making business setup faster and more efficient than ever before.

Partner with Bigbiz for a Hassle-Free Setup

Setting up a business in Dubai can be complex if you’re not familiar with the process. At Bigbiz, we simplify the journey by handling everything from trade name reservation to licensing and visa processing so you can focus on growing your business.