Dubai has emerged as a global business hub, attracting entrepreneurs and multinational companies alike. With its strategic location, tax benefits, and business-friendly regulations, setting up a business in Dubai offers numerous advantages. However, navigating the legal and financial requirements can be complex. This guide outlines the key steps for establishing a company in Dubai, with insights on how Affinitas DMCC can assist every step of the way.

1. Choose Your Business Activity

The first step in setting up a business in Dubai is deciding what type of business activity you will undertake. The UAE has regulations for various industries, and certain activities may require specific approvals or licenses from the relevant authorities.

Tip: It's crucial to conduct market research to understand which industries are booming in Dubai. Popular sectors include technology, real estate, healthcare, and e-commerce. According to a report by Dubai Economy, e-commerce is expected to grow by 60% by 2026, making it a promising area for new ventures.

2. Select the Right Business Structure

Dubai offers multiple types of business structures, including:

  • Free Zone Company: Ideal for 100% foreign ownership
  • Mainland Company: Allows you to trade directly in the UAE market.
  • Offshore Company: Typically used for international trading without physical presence in the UAE.

Choosing the right structure depends on your long-term goals. Affinitas DMCC specializes in guiding clients through the best business structure based on their needs, estate and succession planning considerations, ensuring you maximise benefits while complying with local regulations.

3. Register Your Business Name

Your business name must align with Dubai’s naming guidelines. It should not violate any religious or cultural sensitivities and must clearly represent the nature of your business.

Tip: The Department of Economic Development (DED) provides a platform to check business name availability and ensure that it complies with local regulations. Affinitas DMCC offers services to expedite this process by handling all the necessary paperwork and approvals.

4. Apply for Licences

To legally operate in Dubai, you must obtain the appropriate licence for your business activity. Common licences include:

  • Commercial License: For trading activities.
  • Professional License: For service-oriented businesses.
  • Industrial License: For manufacturing and industrial operations.

The type of license will also determine where you can operate—either in a Free Zone or Mainland. Affinitas DMCC works closely with various authorities to ensure your license is approved swiftly and without hassle.

5. Secure Office Space

Physical office space is mandatory for most business setups in Dubai, particularly for Mainland companies. Free Zones often offer flexible office solutions, including virtual offices and co-working spaces. Choosing the right space not only affects your budget but also impacts your business operations.

Tip:Bayut highlights that areas such as Business Bay and Jumeirah Lake Towers (JLT) are popular among new businesses for their accessibility and modern facilities.

6. Open a Corporate Bank Account

To conduct business transactions in Dubai, you will need a corporate bank account. This step can be challenging for foreign entrepreneurs due to stringent compliance checks. However, Affinitas DMCC has established relationships with leading banks in the UAE, ensuring a seamless account setup process for its clients.

7. Register for Corporate Tax 

The introduction of corporate tax for certain entities means businesses must now register and comply with these regulations. The UAE introduced corporate tax at the federal level on January 31, 2022. The corporate tax will apply to financial years starting on or after June 1, 2023. The UAE corporate tax system has been designed with several exemptions and special treatments for qualifying activities and entities to foster business growth and maintain competitiveness. 

Affinitas DMCC’s tax accounting services help businesses navigate these new rules, ensuring compliance while optimizing tax efficiency.

Tip: According to the UAE’s Ministry of Finance, the corporate tax rate is set at 9% for profits exceeding AED 375,000, with exemptions for Free Zone businesses under specific conditions.

setting up a business in dubai

8. Hire Employees and Visa Processing

Once your business is registered, you can begin hiring staff. Each employee will require a work visa, which involves several processes, including health checks and residence visa approvals.

Affinitas DMCC not only assists with business setup but also provides visa processing services, ensuring you can focus on growing your business while they handle the administrative tasks.

9. Bookkeeping and Tax Advisory

Once the business is ready to start operating our in-house accounting team is able to assist to set up the accounting ledger in line with the relevant business activities and take on the burden of maintaining the books up to date and compliant with local regulations. Bookkeeping, monthly reconciliations, VAT submissions and generation of quarterly financial statements are services included in the Affinitas monthly packages. The packages are priced depending on the number of monthly transactions and specific client needs; the services are designed to give you peace of mind, lighten up the administrative burden and let you concentrate on what matters most: operate your business.

Why Choose Affinitas DMCC for Your Business Setup?

Setting up a business in Dubai can be a rewarding venture, but it requires expert guidance to ensure compliance and avoid costly mistakes. Affinitas DMCC offers a comprehensive range of services, from business setup and corporate tax registration to accounting and bookkeeping. 

Affinitas DMCC: Your Trusted Partner

Affinitas DMCC offers comprehensive solutions to help businesses achieve their goals:

Private Equity Advisory Service​: Mergers, Acquisitions, and Investments in International and Emerging Markets are Cornerstones of Affinitas’ Expertise

Compliance Support: Safeguard your business with Affinitas DMCC’s AML compliance solutions and outsourced MLRO services, including risk management, tailored policies, and expert guidance for secure, compliant operations.

Accounting Services​ Tax consultancy and accounting services are what we do best. We provide tax consultancy and accounting services throughout the UAE to individuals, small & medium sized businesses and corporate entities.

Tax Advisory: Optimize tax strategies across jurisdictions to maximize financial efficiency.

Take the Next Step – Contact Affinitas DMCC Today to Empower Your Business!

Contact Affinitas DMCC today to get started on your journey toward successful business ownership in Dubai.