📈 Advice for Business Setup in the UAE
Real-world examples, tips, cost insights, and what every entrepreneur must know before setting up in the UAE.
1. Understand the Right Type of License
Example: Tech startup in Dubai – If you are in a technology sector, choosing the right Free Zone is key. For instance, the Dubai Internet City Free Zone is a leading option for tech startups and IT companies.
Tip: The UAE offers different license types — Commercial, Industrial, Professional, and Tourism. Be sure to align your license type with your business activity to avoid penalties.
2. Know the Costs Involved
Example: When setting up a Mainland company, you’ll need to partner with a local sponsor. This sponsor could cost anywhere from AED 10,000 – 25,000/year.
Tip: Free Zone businesses avoid sponsor costs, but co-working or physical office costs can still add up.
3. Keep Track of Visa and Sponsorship Costs
Example: Employment visas in Dubai cost AED 3,000 – 5,000. Renewals are cheaper.
Tip: For businesses needing multiple visas, make sure you budget for each one. Sponsorship in Mainland setups can reach AED 50,000/year.
4. Avoid Expensive Mistakes – Use PRO Services
Example: Businesses often struggle with government paperwork. A PRO service simplifies this with expert handling of all procedures.
Tip: Expect AED 1,000 – 5,000 for full-service PRO support — well worth the investment.
5. Legal Documentation – Don’t Skip!
Example: You must notarize important documents like the MOA, tenancy contracts, etc.
Tip: Legal fees for document notarization range from AED 500 to AED 2,000+.
📊 Mainland vs Free Zone vs Offshore
| Aspect | Mainland | Free Zone | Offshore |
|---|---|---|---|
| Ownership | 51% local sponsor | 100% foreign ownership | 100% foreign ownership |
| Location Limitations | Anywhere in UAE | Restricted to Free Zone | No UAE operations |
| Office Requirements | Physical office mandatory | Virtual or physical allowed | None |
| Government Fees | Higher | Lower | Lowest |
| Visa Requirements | Based on office size | Limited quota | Minimal or none |
| Renewal Costs | Higher | Lower | Minimal |
💼 Most Asked Questions
- Q1: How long does it take to set up a business?
1-4 weeks depending on Free Zone or Mainland. Some Free Zones process in 7–10 days. - Q2: What’s the process for a business license?
Choose activity → Select location → Secure office → Submit docs → Get license. - Q3: Can I operate outside my Free Zone?
No. Free Zones limit operations to their jurisdiction and international trade. - Q4: How much does it cost to start?
Free Zone: AED 12k–50k | Mainland: AED 15k–80k based on services/space. - Q5: Do I need a local sponsor?
Mainland: Yes (51%) | Free Zone: No | Offshore: No - Q6: How do I get visas?
Office space determines visa quota. Apply after license is issued.
📑 Must-Know Facts
- ✔️ Mainland sponsors hold 51%, but are usually passive partners.
- ✔️ Free Zones like Dubai Internet City cater to specific industries.
- ✔️ UAE is tax-free but VAT (5%) applies to most services.
- ✔️ Proof of office is required for all company registrations.
- ✔️ Payment gateways like PayPal, Stripe help with international clients.