A founder lands in Dubai with a notebook full of product sketches and a single question: where to begin—free zone or mainland. The answer unlocks timelines, costs, visas, tax, and the difference between momentum and months of back-and-forth. This guide distills the real path from idea to trade license in 2025, written the way founders explain it to one another over coffee in DIFC.
Why Dubai in 2025
- Zero personal income tax, a strategic time zone, and a cosmopolitan talent pool make Dubai a natural base for regional and global expansion.
- Infrastructure is founder-friendly: fast company setup pathways, reliable banking, stable regulation, and visa options that scale with headcount and investment.
- A pro-innovation stance in fintech, logistics, e-commerce, AI, and sustainability keeps opportunity surfaces fresh for early movers.
Mainland vs free zone: what actually matters
Choosing the right jurisdiction determines where business can sell, how visas scale, and bank onboarding comfort.
License typess
- Commercial license: trading, retail, e-commerce, general trading variants.
- Professional license: consulting, tech services, marketing, design, healthcare services.
- Industrial license: light manufacturing, packaging, food processing.
- Holding company: asset and IP holding, investment, SPV structures.
- E-commerce add-on: online sales channel permissions and platform alignment.
The 8-step setup timeline (practical and predictable)
- Name & activity mapping
Pick a compliant name and map activities to the right authority (DED for mainland; specific zone for free zones). A clear activity scope saves revisions later. - Initial approval
Submit sharable IDs, business plan (for select activities), and proposed structure. Fast approvals are common with clean documentation. - Documents & MOA
Prepare MoA/LLC Agreement, UBO declarations, and attested documents if shareholders are foreign entities. A PRO partner shortens this step. - Office solution
Choose flexi desk, co-working, or leased office with Ejari. Match space to visa and banking needs rather than chasing the cheapest option. - License issuance
Once documents and office are cleared, the trade license is issued. This is the moment real operations can begin. - Establishment card & immigration file
Open immigration and labor files to sponsor employee and dependent visas. Keep digital copies ready for renewals. - Bank account onboarding
Shortlist banks aligned to the business model. Expect relationship-manager calls, site checks (sometimes virtual), and a focus on real customer acquisition plans. - Visas & Emirates ID
Complete medicals, biometrics, and Emirates ID issuance. Extend to dependents and domestic staff if relevant to the plan.
Indicative cost ranges founders actually use
Note: numbers vary by authority, activity, and office choices; these are directional ranges for planning.
- Free zone company setup: AED 12,000–25,000 for basic packages; higher for general trading, multi-year, or larger visa quotas.
- Mainland setup: AED 15,000–30,000 excluding office lease; premium activities and larger spaces increase totals.
- Visas (per person): AED 3,000–7,000 depending on zone, insurance, and fast-track options.
- Office: Flexi desk from a few thousand AED; dedicated offices vary widely by location and size.
- Bank minimum balance: Commonly AED 25,000–100,000; premium accounts and international banks may require more.
UAE corporate tax, simplified
- Standard corporate tax is 9% on taxable profits above the statutory threshold, with typical exemptions below it; compliance and accounting quality matter more than clever structuring.
- Some free zone entities may qualify for preferential treatment when meeting substance and qualifying income tests; this is not automatic and depends on activity and conditions.
- Practical tip: keep clean books from day one, align the activity list to revenue lines, and confirm tax positions in writing before scaling.
Visas that match business needs
- Investor/partner visa: aligns with ownership and signals bankability; often the first visa after license issuance.
- Employment visas: scale with office allocation and activity; plan headcount to match visa quotas and office capacity.
- Golden Visa (10-year): available under defined criteria (investment, specialized talent, high-earning professionals, select business categories) and offers stability for founders and families.
Bank account onboarding: what helps
- A clear, credible business model with invoices, a simple pricing page, or sample contracts helps relationship managers validate real activity.
- Proof of address, UBO transparency, and any overseas bank statements reduce perceived risk.
- Expect questions about customers, geographies, cash vs card flows, and source of funds. Responsiveness shortens timelines.
Compliance and renewals: the quiet edge
- Renew the trade license, establishment card, and visas on schedule to maintain banking continuity.
- Keep corporate records organized: MoA, board resolutions, lease, insurance, and payroll files.
- When adding activities or changing shareholders, update the license to match; mismatches trigger banking reviews.
Common pitfalls (and better choices)
- Choosing the cheapest package without considering banking needs leads to delays later; pick the jurisdiction that matches the channel strategy.
- Overstuffing activities “just in case” complicates approvals and tax positions; keep it crisp and expand deliberately.
- Underestimating content and compliance: a simple website, clear service descriptions, and a basic AML policy elevate credibility.
