How to Open a Company in Dubai, Step by Step

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The short answer

You open a company in Dubai with the Department of Economy and Tourism if you choose the mainland, or with a free zone authority if you choose one of Dubai's more than 20 free zones. The fixed fees Dubai publishes: AED 620 to book a trade name, and AED 1,070 for the home based eTrader licence plus AED 300 for Dubai Chamber membership, while a normal licence varies with the activity and licence type. In free zones each zone sets its own packages; a Meydan Free Zone licence, for example, starts from AED 12,500.1, 2, 5, 9

What you need before you open a company in Dubai

  • Your business activity: it decides the licence type and the approvals you need.
  • The legal form: a sole establishment, a limited liability company or another form, depending on the activity and the number of partners.
  • The trade name: written as it sounds, not translated, and with no family or personal names except the licence holder's.
  • Premises: every company needs a physical address, and in Dubai the lease is registered with Ejari.
  • Your ID: an ID number for the eTrader licence, a unified number or ID number for the instant licence.

Mainland or free zone in Dubai

Mainland and free zone in Dubai
PointMainlandFree zone
Who issues the licenceMainlandDubai's Department of Economy and TourismFree zoneThe zone's own authority; Dubai has more than 20 free zones4, 5
Where you can sellMainlandInside and outside the UAE, including the GCC and the free zonesFree zoneNot directly on the mainland without the relevant licence or a mainland branch4, 5
OwnershipMainlandFull foreign ownership in many sectors since 2020Free zoneFull foreign ownership4
PremisesMainlandA physical address and a lease registered with EjariFree zoneSpace inside the zone; some zones include a flexi desk in the package6, 9
Corporate taxMainland0% up to AED 375,000 of taxable income and 9% above itFree zone0% on qualifying income for a Qualifying Free Zone Person that meets the conditions, 9% on non qualifying income15, 16

If most of your customers are in Dubai and the other emirates, the mainland is usually easier; if you sell abroad, a free zone may fit. The details are in free zone vs mainland.

The steps to open a company in Dubai, in order

  1. Pick the activity and the legal form.
  2. Book the trade name: the fee is AED 620 and the service takes 10 minutes.
  3. Get initial approval. It means the government has no objection; it is not permission to trade.
  4. Prepare the Memorandum of Association, or the local service agent agreement if the business is fully owned by a resident from outside the GCC.
  5. Lease the premises and register the lease with Ejari, and get any other authority's approval your activity needs, such as Dubai Municipality's layout approval for a food business before construction.13
  6. Pay the fees within 30 days of the payment voucher and collect the licence.

A normal licence service takes 10 minutes once the requirements are ready. The instant licence is issued in 5 minutes for activities that need no external approvals, and it includes a virtual site for the first year, Dubai Chamber membership for commercial activities, a GDRFA establishment card and, for an LLC, a sole establishment or a civil company, a Ministry of Human Resources and Emiratisation establishment card with the option to employ three people.

In a free zone you apply online to the zone's authority, and the licence is issued within 14 working days of review and approval.7

Dubai trade license fees: what is published and what is not

Dubai company setup fees published on official pages
ItemFee
Booking a trade nameFeeAED 6201
eTrader licence for a home based businessFeeAED 1,070, plus AED 300 for Dubai Chamber membership2
A normal licenceFeeVaries with the licence type and activity; no single figure is published2
Licence fee exemption for UAE and GCC nationalsFeeAED 1,000 a year for the first 3 years, then AED 2,000 in years four and five3
Meydan Free Zone licenceFeeFrom AED 12,500 with a flexi desk and up to 3 activity groups9
Green residence permit for a partner investorFeeAED 200 permit fee, plus other fees listed on the authority's page11
Employment visa at Meydan Free ZoneFeeFrom AED 3,50010

Three things the Department of Economy and Tourism does not publish as one figure: the normal licence fee, the cost of extra approvals, and rent. So there is no single answer to how much it costs to open a company in Dubai; we work it out from your activity and premises in the UAE business setup cost calculator.

Example: a home business on the eTrader licence

If you want to start a small business in Dubai from home, the eTrader licence is a sole establishment licence for a home based business that has a trade name. Its fees, as published by the Department of Economy and Tourism:

  • Booking the trade name: AED 620.
  • The licence with the knowledge and innovation fees: AED 1,070.
  • Dubai Chamber membership: AED 300.

The three fees add up to AED 1,990, before any federal fees or visas. If your activity needs a shop, like a café, the team and approval lines are in the café business plan for Dubai.

Visas and the team

Visas are not part of the licence fee. GDRFA Dubai lists AED 200 as the permit fee of a green residence for a partner investor, with other fees on the same page. Meydan Free Zone lists an employment visa from AED 3,500.

The employer also buys health insurance before an employee's residence is issued or renewed, so ask an insurer for the price. The Ministry of Human Resources and Emiratisation's basic package at AED 320 a year is aimed at Sharjah, Ajman, Fujairah, Ras Al Khaimah and Umm Al Quwain, not Dubai.12

Common mistakes when opening a company in Dubai

  • Paying rent before checking that the activity is allowed at that location and in that legal form.
  • Choosing a free zone and then selling directly to mainland customers, which needs the relevant licence or a mainland branch.
  • Forgetting to register the lease with Ejari.
  • Registering late for corporate tax; the penalty is AED 10,000.14
  • Comparing Dubai with other emirates on the licence fee alone, when rent and visas are part of the cost. Compare with opening a company in Sharjah and opening a company in Abu Dhabi.

Your company cost in 3 steps

  1. 1Pick Dubai
  2. 2Work out your cost
  3. 3Start your plan

Numbers to know before you start

eTrader licence from home, first yearAED 1,3702
Licensing authorityDubai Department of Economic Development and Tourism17

Common questions about opening a company in Dubai

How much does it cost to start a company in Dubai?

There is no single figure. Published: AED 620 to book a trade name, and AED 1,070 for the home based eTrader licence plus AED 300 for Dubai Chamber membership; a normal licence varies with the activity and licence type. Work out your Dubai setup cost in the free calculator.

What do foreigners need to open a company in Dubai?

A permitted activity, a legal form, a trade name, initial approval and premises with a lease registered with Ejari. The UAE Government portal says a business fully owned by a resident from outside the GCC needs a local service agent; this can differ by legal form, so confirm it with the Department of Economy and Tourism.

Can I get a Dubai trade licence without a local sponsor?

For most activities, yes. The UAE Government portal says Federal Decree Law No. 26 of 2020 removed the requirement for a majority Emirati shareholder or local partner; some activities stay restricted. Full foreign ownership is available in free zones.

How much is a home eTrader licence in Dubai?

AED 1,070 for the licence, knowledge and innovation fees, plus AED 300 for Dubai Chamber membership, and before it a trade name that costs AED 620 to book. That is AED 1,990 before any federal fees; check that you are eligible for this licence before you apply.

How much does a Dubai free zone company setup cost?

Each free zone sets its own packages. A Meydan Free Zone licence, for example, starts from AED 12,500 with a flexi desk and up to 3 activity groups, with visas added when needed. Confirm the price with the zone before you pay.

Mainland or free zone in Dubai?

If most of your customers are inside the UAE, the mainland is usually easier, because a free zone company cannot sell directly on the mainland without the relevant licence or a branch. If you sell abroad, a free zone may fit.

How long does it take to open a company in Dubai?

A normal licence service takes 10 minutes and an instant licence 5 minutes once the requirements are ready, and a free zone licence is issued within 14 working days of approval. The contract, premises and approvals come before that.

Should I write a business plan before opening a company in Dubai?

Yes. The plan shows the cost, team and income before you commit to a lease, and its core sections are always free.

Sources and the date we checked them

  1. Invest in Dubai (DET): Request to book a trade nameChecked on
  2. Invest in Dubai (DET): Request to issue a trade licenceChecked on
  3. Invest in Dubai (DET): Request for licence exemptionChecked on
  4. Invest in Dubai (DET): Company set up options in DubaiChecked on
  5. Invest in Dubai (DET): Free zone companiesChecked on
  6. UAE Government portal: Steps to start a business on the mainlandChecked on
  7. UAE Government portal: Starting a business in a free zoneChecked on
  8. UAE Government portal: Full foreign ownership of commercial companiesChecked on
  9. Meydan Free Zone: home pageChecked on
  10. Meydan Free Zone: company setup cost breakdownChecked on
  11. GDRFA Dubai: Green residence permit for a partner investorChecked on
  12. Ministry of Human Resources and Emiratisation: The basic health insurance schemeChecked on
  13. Dubai Municipality: Design layout approval for food establishmentsChecked on
  14. Federal Tax Authority: Corporate tax registrationChecked on
  15. UAE Government portal: Corporate taxChecked on
  16. Federal Tax Authority: Free Zone Persons bulletinChecked on
  17. Invest in Dubai (DET): Business setup guideChecked on

Your next step

A ready small business planFree zone vs mainlandWhat an employee costs the companyRun your company on Founder OS

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Sharjah Trade License Cost and Company SetupBusiness Setup Cost in Abu Dhabi: StepsAjman Trade License Cost and Company Setup

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