Common Misconceptions

Things People Get Wrong About Starting a Business in Dubai, UAE

Many entrepreneurs assume starting a business in Dubai is either extremely expensive, overly complicated, or instantly profitable. The reality is different. From misunderstanding free zone versus mainland structures to underestimating banking requirements, visa rules, tax compliance, and renewal obligations, small misconceptions can lead to costly mistakes. In this guide, we break down the most common myths and explain what actually matters when setting up a business in Dubai, UAE, so you can make informed decisions from day one.

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Myth & Reality

Myth: You need a local Emirati partner to own a business.

Reality: Free Zones allow 100% foreign ownership. Mainland also permits full ownership for most activities since the June 2021 law change. Only a few regulated sectors still require a local partner.

Myth: Setup takes months and costs a fortune.

Reality: Free Zone licenses start at AED 5,100 and take 3–7 days. The perception of high costs comes from hidden fees that some consultancies add later — not from actual government charges.

Myth: You must be physically in Dubai for the entire process.

Reality: Registration is 100% remote. Physical presence is only needed for visa biometrics. 30% of our clients register remotely and visit later.

Myth: All setup companies charge the same.

Reality: Government fees are standardized, but service fees and hidden charges vary enormously. We’ve seen competitors quote AED 12,000 initially then add AED 5,000–7,000 in undisclosed charges.

Myth: Free Zone means you can’t do business in Dubai.

Reality: Free Zone companies can serve international clients, other Free Zone entities, and provide B2B services to Mainland businesses. The restriction is only on direct B2C retail to UAE consumers.

Myth: You need AED 100,000+ capital to start.

Reality: Most Free Zones have no minimum capital requirement. Your only upfront cost is the setup package (AED 5,100–22,500) plus operating expenses.

You’ll find clear answers on our dedicated information page, or you can connect directly with our team by clicking the button below. All guidance on this website is based on hands-on experience from 600+ UAE company registrations and verified against official UAE government sources. We focus on sharing accurate, real-world insights backed by actual case studies.

Frequently Asked Questions