The United Arab Emirates, or the UAE, is generally considered a country that is favorable to business due to its stable economy, political stability, business-friendly policies, and strategic location. It is an attractive destination for both new and established companies. Excellent infrastructural facilities, professional experience, and personalized services give the UAE an edge over other countries. If you’re going through a question like “How to start a company in the UAE” then you are at the right place.
How to Start a Company in the UAE
With regard to UAE Company formation in 2025, follow the steps indicated below.
- Choose a Business Structure
You can set up a company in the UAE mainland or free zones, each with advantages. Mainland companies allow you to trade within the UAE and internationally, while free zones offer full foreign ownership, tax exemptions, and simplified procedures.
- Select a Business Activity
You should identify your business activity and choose a UAE business license type accordingly. The UAE offers various commercial, professional, industrial, and tourism licenses.
- Reservation of Company Name
When selecting a company name, applicants must adhere to the applicable laws and regulations of the jurisdiction. The chosen name must not resemble or imitate an existing company’s name. Prior to finalization, the applicant must verify the name’s availability with the Dubai Economic Department (DED) or the relevant Free Zone Authority. The company is required to operate solely under its registered and approved name.
Key considerations when choosing a company name:
- The name must respect public order and moral standards.
- It should correspond with the company’s legal structure.
- The name must not already be registered.
- It should align with the company’s intended business activities.
- Names of government entities, religious bodies, or external organizations (including logos) must not be used.
- The name must not be offensive, controversial, or derogatory.
- If using a person’s name, the full legal name must be reflected; nicknames are not permitted.
- Obtain Necessary Licenses and Permits
Submit the required documents and obtain a business license from the relevant authorities. The license fees vary depending on the type of license and jurisdiction.
- Open a Corporate Bank Account
Once you have your business license, you can open a corporate bank account with a local or international bank.
- Apply for Visas
As a business owner, you can apply for your residence visa and visas for your employees, dependents, and partners.
- Costs and Requirements
The cost of starting a business in the UAE varies depending on factors like business type, location, and number of visas. You’ll also need to provide documents such as passport copies, proof of address, and a business plan.
- Additional Tips
Consider consulting with business setup agencies like Helpline Group to guide you through the process. You may use the UAE’s business-friendly environment, strategic location, and modern infrastructure. You may also consider a free zone company setup, UAE, which allows tax exemptions and 100% foreign ownership.
Advantages of business setup in the UAE
The following are the main advantages of doing business in the UAE:
- Tax Incentives: UAE has a favorable tax policy. The standard Value Added Tax (VAT) rate is 5 %, which applies to most goods and services. However, in some instances, a 0% rate is applicable. From 2023, a Federal Corporate Income tax is charged for companies at 9%. As stated in their financial statements, the corporate tax will be levied on companies’ profits.
The corporate tax does not apply to income derived from employment, real estate, or non-commercial activities. Companies and individuals can obtain a tax residency certificate from the Federal Tax Authority in the UAE. These certificates help in avoiding double taxation on income earned in the Emirates.
- 100% ownership rights: Since June 2021, foreign business individuals have been allowed 100% ownership rights in local companies, applying to over 1000 types of activities. A 100% ownership right in a business is also allowed while registering a company in one of the Free Zones requiring no local partner.
- Full Profit Repatriation: A foreign entrepreneur can repatriate 100% of their foreign investments to their country.
- Developed Banking system: UAE enjoys a well-developed banking system with a stable exchange rate with the US dollar and advanced internet banking services, apart from a high level of security.
- Support for Start-ups and Businesses: The Khalifa Fund for Enterprise Development creates opportunities for the development of the entrepreneurial system in the UAE and implements various programs.
- Assistance to Start-ups: The Ministry of Economy for the UAE has launched Entrepreneurial Nation to support start-up developments by assisting companies in gaining access to new markets, investors, and capital.
How can the Helpline Group help?
Helpline Group, backed by a strong and experienced team, brings over 25 years of expertise in company formation, offering a seamless, hassle-free experience for clients, including foreigners.
Our seasoned professionals possessing in-depth knowledge of the latest rules and regulations will help you in Dubai business setup, ensuring compliance and efficiency.
With a global presence and a tailored approach, we ensure that your business setup in UAE is handled with precision and professionalism, making us your reliable ally in achieving success.
