How to start a franchise business in Dubai?

Thinking to start a franchise business in Dubai? Great choice! Among the most business-friendly cities in the world, Dubai is the most perfect place to start a franchise business, with its tax-friendly policies. Here’s a simple guide on how to Business Setup Dubai

Step #1 – Choose your Franchise

The first step is to select a franchise that fits the Dubai market. Popular sectors include food and beverage, retail, education, and health and wellness. Make sure the brand has a strong reputation and provides support for franchisees.

Step #2: Decide Your Business Setup – Mainland or Free Zone

Dubai offers two main options for setting up a franchise:

Mainland: Mainland Company Setup allows you to operate anywhere in Dubai and trade directly with the local market. You need a local service agent or partner if you don’t have 100% ownership, but mainland businesses can access government contracts and wider market opportunities.

Free Zone: Free Zones allow 100% foreign ownership and often provide tax benefits. They are simpler to set up and are ideal if you plan to operate within the Free Zone or focus on exports. However, selling directly to the UAE local market may require additional approvals.

Step #3: Get the Trade License

A trade license is required to legally operate your franchise. For mainland businesses, this is issued by the Department of Economic Development (DED). Free Zone authorities handle licenses for businesses within their zones. Make sure your license matches your franchise activity.

Step #4: Complete Registration and Approvals

Register your franchise with the relevant authorities. This includes submitting documents, signing franchise agreements, and getting approvals from the DED or Free Zone authority.

Step #5: Set Up Your Business Operations

Once your license is ready, lease your location (if needed), hire staff, and set up your business according to the franchise guidelines.

Step #6: Launch and Promote

Market your franchise to attract customers. Social media, local advertising, and promotions can help create brand awareness quickly.

Get started today!

Business setup Dubai is straightforward when you follow the right steps. Choosing the right business setup - Mainland or Free Zone - obtaining a trade license and following the franchise’s guidelines can help you establish a successful business in Dubai’s growing market.

I am the marketing lead and project manager behind Dahhan Business Services, which was established in 2013. I have years of experience in Business Setup Dubai and consultancy services.