Step-by-Step Guide to Setting Up a Business in Dubai in 2025

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Dubai continues to be a magnet for entrepreneurs and investors worldwide, thanks to its strategic location, world-class infrastructure, and business-friendly policies. If you’re considering launching a business here, understanding the setup process is crucial to ensure a smooth journey. At Jesser Al Najah LLC, we’ve helped countless clients navigate this journey, and here’s a detailed step-by-step guide to help you get started in 2025.

Step 1: Define Your Business Activity

Dubai offers over 2,000 business activities across sectors like trading, manufacturing, consultancy, and technology. Your choice of activity impacts the type of license you’ll need and the regulatory approvals required. It’s essential to be precise because some activities require special permits or additional approvals.

Step 2: Choose Your Business Structure

The UAE offers three main business structures:

Mainland: Allows you to operate anywhere in the UAE, including government contracts. Recent reforms have expanded 100% foreign ownership in many sectors, but some still require a local sponsor.

Free Zone: Offers 100% foreign ownership, tax exemptions, and simplified setup processes but restricts business operations within the free zone or internationally.

Offshore: Ideal for holding companies or international business but not for conducting business within the UAE. Your choice depends on your operational needs, ownership preferences, and target market.

Step 3: Register Your Trade Name

Your trade name is your brand identity. It must comply with UAE’s naming conventions—avoiding offensive language, religious references, or names of governing bodies. Once selected, register it with the Department of Economic Development (DED) or the relevant free zone authority.

Step 4: Obtain Initial Approvals

Depending on your business activity, you may need approvals from government departments such as the Dubai Municipality, Ministry of Economy, or specialized regulators. For example, health-related businesses require approval from Dubai Health Authority.

Step 5: Apply for Your Business License

Choose the license type that matches your activity:

  • Commercial License (trading)
  • Industrial License (manufacturing)
  • Professional License (services and consultancy)
  • Tourism License (travel and hospitality)
  • This license legally authorizes your business operations.

Step 6: Secure Your Business Location

Mainland companies must lease office space that meets DED requirements. Free zones offer flexible options, including physical offices, co-working spaces, and virtual offices tailored to startups and SMEs.

Step 7: Complete Registration and Visa Processing

Submit all documents, pay fees, and register with the Chamber of Commerce. Then, apply for visas for yourself, employees, and dependents. Dubai’s streamlined digital platforms, like the Basher portal, simplify many of these steps.

Why Choose Jesser Al Najah LLC?

Navigating Dubai’s regulatory landscape can be complex and time-consuming. Our experts provide personalized guidance, ensuring your business setup complies with the latest laws and is completed efficiently, so you can focus on growing your venture.