Dubai has quickly become one of the most appealing business centers in the world, with a location that is strategically situated and easy to navigate, tax incentives, world-class infrastructure, and a regulatory environment that is highly favorable to businesses. Delivering opportunities for all types of businesses: Entrepreneurs, Investors, Multinationals, and all who wish to further develop or expand their business in Dubai.
In this guide, we are going to share the key steps to Setting Up A Company in Dubai focusing on the Dubai International Financial Centre (DIFC) – one of the most coveted business markets in the region.
Why Start a Company in Dubai?
Before we get into the setup process, it is important to understand why Dubai is now the ideal regulatory regime:
✅ Tax Relief – No corporate or personal income tax charge in most free zones.
✅ 100% Foreign Ownership – Many free zones allow for 100% foreign ownership of a business.
✅ Located in an ideal place – Dubai operates as a central hub to the Middle East, Africa, Europe and Asia.
✅ World-Class Infrastructure – Dubai is equipped with the latest facilities for business that’s connected to the rest of the world.
✅ Business-friendly laws – No complicated laws and fairly liberalized rules, plus protections against external investors.
Choosing the Right Business Jurisdiction
Dubai offers three main types of business jurisdictions:
-
Mainland (Onshore) Companies
- Can trade directly in the UAE market.
- Requires a local sponsor (51% UAE ownership, unless under new reforms).
- Ideal for businesses targeting the local economy.
-
Free Zone Companies
- 100% foreign ownership permitted.
- Tax exemptions and customs benefits.
- Restricted to operating within the free zone or internationally (unless using an agent).
- Examples: DIFC, DMCC, JAFZA, Dubai Silicon Oasis.
-
Offshore Companies
- For holding assets, international trading, and wealth management.
- Cannot conduct business within the UAE.
For financial services, fintech, and professional firms, DIFC (Dubai International Financial Centre) is a premier choice due to its independent legal system and global reputation.
Step-by-Step Process to Set Up a Company in Dubai (DIFC Example)
1. Determine Your Business Activity
- Choose an activity that aligns with DIFC’s permitted sectors (finance, consulting, tech, etc.).
- Check DIFC’s approved business activities list.
2. Select a Legal Structure
DIFC offers several structures, including:
- Limited Liability Company (LLC)
- Branch of a Foreign Company
- Representative Office
3. Reserve Your Company Name
- Ensure the name complies with DIFC naming conventions.
- Avoid prohibited terms (e.g., “bank” without approval).
4. Submit Application & Documents
Required documents typically include:
- Passport copies of shareholders/directors.
- Business plan.
- Proof of address.
- Bank reference letters.
5. Obtain Initial Approval & Lease Office Space
- DIFC requires a physical office (flexi-desks available for startups).
6. Finalize Licensing & Registration
- Pay registration fees.
- Obtain the DIFC business license.
7. Open a Corporate Bank Account
- Choose a local or international bank in Dubai.
8. Visa Processing (if needed)
- Apply for employee visas and work permits.
Why Choose DIFC?
✔ Independent common-law jurisdiction.
✔ No restrictions on profit repatriation.
✔ Access to global investors and financial institutions.
✔ Robust regulatory framework.
Final Thoughts
Setting up a company in Dubai, especially in a prestigious zone like DIFC, offers unparalleled advantages for global businesses. By following the right steps and choosing the best jurisdiction for your needs, you can establish a thriving business in one of the world’s most dynamic economies.
