Reasons to start up a company in Dubai – Its benefits for all new investors

start up a company in Dubai

Every day, there are more investors interested in cities like Dubai, where doing business is easy. The main reason for this is because this kind of location is perfect to build a business. Investors who start up a company in Dubai can have a bright future guaranteed, and here you’ll discover why.

In this article, you will find the information you need regarding Dubai. For instance, here you will discover some reasons why you should establish a company in this emirate of the UAE. Among these reasons, we’ll explain all the beneficial elements for new investors to start up their businesses successfully. Let’s observe:

  1. Why Dubai can be the ideal business location for new investors?
  2. How many company options are available in Dubai?
  3. What benefits can you obtain to start up your company in Dubai?
  4. How to start up your company in a location in Dubai?
  5. Available free zones to establish a thriving business in Dubai.
  6. How many types of licenses can you apply for?
  7. What do you need to consider before starting up a business in Dubai?
  8. How can Connectfz help you set up your company in Dubai?

1. Why Dubai can be the ideal business location for new investors?

The emirate of Dubai is among the most interesting cities in the world for several reasons. For instance, it is an ideal city for tourists from all around the globe. But also, it is the perfect location for investors to build their businesses. Here, success is guaranteed for all business people like you, especially because of the advantages it has.

In Dubai, investors have the opportunity of exploring new fields and expanding their businesses. Due to its strategic location and global reach, this emirate of the UAE is undoubtedly your best option. Let’s take a look at some of the reasons why you should start up a company in Dubai.

1.1. The economic growth in Dubai.

It is known that all of the emirates in the UAE have a thriving economy. However, the most outstanding one is the emirate of Dubai. In terms of economic growth, this emirate is the most successful one. Besides, it’s among the main trading hubs in the Middle Eastern region and also in the Gulf Cooperation Council.

1.2. The favorable environment for investment.

Since the DED is responsible for Dubai’s economic agenda, the economy improves more every day. A good example could be the support services that investors obtain from the DED when they startup in Dubai. As a result, it creates a favorable investment environment, allowing local and foreign investors to boost their businesses.

1.3. The number of free zones suitable for all kinds of businesses.

Most foreign investors look forward to establishing a free zone company in Dubai. And in this case, they have many options to choose from. In Dubai, you can select the free zone that suits your kind of business better. More than 20 free zones are available in Dubai and around 45 across the entire country.

1.4. The first-class infrastructure and facilities.

One of the main reasons why investors prefer Dubai is because of its infrastructural facilities. Some of them are known widely for being the best in the world. For instance, networks, ports, airports, and telecommunications are among the most advanced facilities globally. Investors can access these facilities and operate their companies efficiently with them.

1.5. The stable and secure social and political climate.

For several decades, Dubai and the other emirates have had a stable atmosphere. Therefore, the economy has grown exponentially and with ease. Dubai’s society has been recognized as one of the most prosperous and safest in the world. This has allowed many investors and entrepreneurs to build their companies successfully and reach their goals.

Here you can learn about the benefits of the multi-year business license option in the UAE.

2. How many company options are available in Dubai?

How many company options are available in Dubai?

Unlike some emirates, you have many options to choose from before you start up a company in Dubai. Here you will be able to choose between three main options, which are offshore, mainland, and free zone. However, it is essential to know the details of each one before selecting any of them.

2.1. Offshore company.

The offshore company registration facilitates international trade, which is the main activity of this type of company. Offshore companies are formed in a jurisdiction outside one’s own jurisdiction. In other words, an offshore company does not need to be located in a tax haven country. In countries like the UAE, this type of entity is popular because corporate regulations and taxes are very low.

Besides, offshore companies offer 4 main benefits for all investors. Firstly, there are low or zero taxes. Secondly, it makes international operations easier. Thirdly, there is freedom from state regulations for these companies. And lastly, multi-currency funding of accounts out of the country is allowed for this type of entity.

2.2. Mainland company.

As for this option, mainland companies in Dubai are licensed by the Department of Economic Development (DED). However, in other emirates, they could be licensed by other local authorities. All investors must know that this type of company operates in the local area. And, in other cases, it operates outside the country.

Since there are few restrictions for mainland companies, these companies can do business abroad if they desire. However, companies in Dubai mainland can only be LLC companies (Limited Liability Companies). In other words, these companies must have a UAE National owning a minimum of 51 percent of shares. As for the 49 percent remaining, it must be allotted to the other shareholder in the firm.

2.3. Free Zone company.

As the name indicates, these companies operate in free trade zones. In the UAE, you can find 45 available free zones, and more than 25 of them are in Dubai. This is probable the best option for most foreign investors since there are more benefits. In these locations, companies can trade different types of goods and services under free zone laws.

Besides, when your company startup Dubai process starts, you obtain many advantages, especially in Dubai free zones. The main ones are usually 100 percent of ownership and full exemption from taxes. Other ones are full repatriation of profits and capital, and also, full exemption from import and export duties.

Here you can learn about the advantages you can have with the Double Taxation Avoidance Agreement in the UAE.

3. What benefits can you obtain to start up your company in Dubai?

Besides the previously mentioned advantages, you will also receive other benefits if you start up your company in Dubai. In any Dubai free zone, you can obtain these benefits:

  • 100% ownership and repatriation of profits and capital.
  • Full exemption on personal and corporate income tax.
  • Flexibility to engage in international business.
  • Investors can participate in multiple activities, like startup events in Dubai and more.
  • Easy access to warehouse and office facilities.

4. How to start up your company in a location in Dubai?

How to start up your company in a location in Dubai?

Firstly, you must determine your business activities; it will allow you to select a suitable free zone and license. Secondly, your company will require a proper name. However, you must follow certain rules when selecting your company’s name. After this, the required documentation and paperwork must be prepared and submitted.

After submitting your documents, you will receive your business license issued by the authorities. Remember that you will also need to open a corporate bank account. Once these steps are done, you can start operating your business in Dubai.

Here you can learn about the cost of setting up a free zone company in a Dubai free zone.

5. Available free zones to establish a thriving business in Dubai.

If you have decided to start up a company in Dubai free zones, you must choose one of them. However, it is important to remember that some of them dedicate their resources to specific industries. In other words, they only benefit certain business sectors. For instance, Dubai International Financial Centre Free Zone (DIFC) is home to finance-related companies only. Let’s take a look at some other free zones:

  • Dubai Multi Commodities Centre (DMCC).
  • Jebel Ali Free Zone Authority (JAFZA).
  • Dubai Silicon Oasis Authority (DSOA).
  • DAFZA (Dubai Airport Free Zone Authority).
  • Dubai South Free Zone (DWC).
  • International Free Zone Authority (IFZA).

Here you can learn more about free zones in Dubai and how to start your company in them.

6. How many types of licenses can you apply for?

Before you start up a company in Dubai, you must be aware of the available types of business licenses. First, you must define your business activities to be able to apply for your license. This is because each license covers different activities. Let’s take a look at some brief descriptions of each available business license in Dubai:

  • Industrial license: all investors who desire to establish factories or similar businesses must obtain this license. Once they obtain this document, they’ll be able to import raw materials to manufacture, among other activities. Other related activities, such as exporting finished products, are also allowed with this license.
  • Service license: on the other hand, investors can obtain this license to perform other business activities. Operating certain companies (for instance, business consultancy, accounting, or law firms) is possible with this document.
  • Trading or commercial license: in this case, investors can carry out industrial, commercial, or consulting activities. Besides, other activities can be done too. For example, with this license, you can export, import, and sell goods.
  • General trading license: you can trade any kind of goods with this license. Besides, they do not have to be related to each other. However, you can only obtain this license under a trading license.

Here you can learn more information about the trade license in Dubai and how to obtain it.

7. What do you need to consider before starting up a business in Dubai?

When you start up a company in Dubai, you have to be aware of certain details. Besides knowing the difference between the types of companies, other elements must be taken care of. For example, you need to take into consideration the requirements for setting up a business (documentation).

Among other elements, all investors must consider the costs that this process demands. These costs include license, visas, location, business nature, and more details. Each free zone is different; therefore, prices are different too. It would be also necessary to request help from a business partner, but remember to choose a reliable partner.

Here you can learn more about the registration process for new companies in Dubai and how to complete it.

8. How can Connectfz help you set up your company in Dubai?

How can Connectfz help you set up your company in UAQ Free Trade Zone

It is recommendable for new investors to start up a company in Dubai with a business setup partner. Therefore, if you have decided to build your business in this location, you can count on Connectfz. Our team will help you go through the entire setup process and give you the best tips.

Besides, we also offer different packages at affordable prices to obtain licenses and visas. All you have to do is selecting your free zone and your package. We will take care of the rest while you focus on planning your company’s future. Also, you can receive other services if you need them to improve your company.

For instance, if you need to find more and better employees, you can request our staff outsourcing or recruitment services. Or in case you need to enter the local market quickly, feel free to request our UAE market entry services. Many other useful services are available for you to make improvements.

Would you like to contact Connectfz to know more about the process to start up a company in the emirate of Dubai? If you have any questions, call us on +97143316688. You can email us at, and you will talk to one of our representatives who will answer your questions.

Kane Bernard

Avatar photoKane BernardHe is a dynamic Enterprise Development Manager with a proven track record in driving business growth and innovation. With a strategic mindset and a passion for fostering enterprise success, he excels in identifying new market opportunities, developing strategic partnerships, and enhancing operational efficiencies. His expertise includes market analysis, business planning, and project management, enabling her to guide enterprises through complex development stages.

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