The Ultimate Guide to Incorporating a Business in Dubai: A 2025 Update

Marketing Mirr Asia
Mar 5
3 min read

Updated: Nov 7

Dubai continues to reinforce its reputation as a global center for innovation and business.

In 2025, the city offers entrepreneurs unmatched advantages — 100% foreign ownership, no corporate tax on most activities, and an efficient regulatory environment.

This guide provides an updated overview of how to incorporate a business in Dubai and how Free Zone options such as IFZA make the process simple and reliable.

1. Understanding Dubai’s Business Landscape

Dubai provides two main jurisdictions for business incorporation:

Mainland (DET-licensed):Allows full trading access across the UAE and abroad. As of current regulations, 100% foreign ownership is permitted for most business activities — UAE Ministry of Economy.

Free Zones (e.g., IFZA, DMCC, DIFC):Designated business areas offering full foreign ownership, simplified licensing, customs benefits, and competitive tax advantages. Free Zone companies enjoy no corporate tax on most business activities, streamlined procedures, and investor-friendly visa options. For entrepreneurs seeking a fast and compliant setup, IFZA company formation in Dubai is one of the most efficient solutions.

2. Steps to Incorporate a Business in Dubai

Step 1 — Select Your Business Activity: Choose from more than 2,000 approved activities under Dubai’s Department of Economy and Tourism (DET).

Step 2 — Decide on a Legal Structure

Limited Liability Company (LLC) – the most common form for commercial ventures.
Sole Establishment – for individual entrepreneurs.
Branch Office – for foreign companies expanding into Dubai.

Step 3 — Reserve a Trade Name and Obtain Initial Approval: You must reserve a unique trade name and receive initial approval confirming there is no objection to your business setup — Invest in Dubai (DET).

Step 4 — Prepare Required Documents: To register your Dubai Free Zone company, the following are generally required:

Passport copy and certified or verified copy
Two proofs of residential address (issued within the past three months)
Passport-size photo
Completed company application form

Step 5 — Secure a Business Address: All Dubai companies must have a registered office. Free Zones such as IFZA offer flexible workspace options, from virtual desks to physical offices.

Step 6 — License Issuance and Registration: Once documentation is complete and verified, your business license is issued by the relevant authority. Typical processing time is 5–7 business days, with expedited service (2–3 days) available.

3. Establishing a Dubai Branch Office

Foreign companies can open a branch office in Dubai without creating a separate legal entity.

Ownership: 100 % of the branch is owned by the parent company.
Scope: The branch may engage in activities identical to those of the parent company, subject to local approval.
Local Agent: As of current regulations, a UAE national service agent is no longer required for most branch setups.
Documentation: Certificate of incorporation, board resolution, and supporting corporate documents from the parent company.

4. Taxation and Compliance in 2025

Corporate Tax (CT):UAE Corporate Tax applies at 9 % on taxable profits. However, Free Zone companies such as those established under IFZA benefit from no corporate tax on most business activities, provided they meet applicable Free Zone requirements — UAE Ministry of Finance – Corporate Tax Overview.

VAT (Value Added Tax):Businesses exceeding an annual turnover of AED 375,000 must register for VAT; those above AED 187,500 may register voluntarily.

UBO & Economic Substance: All entities must maintain a Real Beneficiary (UBO) register and, if applicable, comply with Economic Substance Regulations (ESR) for specific “Relevant Activities.”

5. Benefits of Setting Up in Dubai

100 % foreign ownership in most sectors
No corporate tax on most activities within Free Zones
Fast 5–7 day incorporation process (2–3 days expedited)
Simple visa and banking procedures
Modern infrastructure and strong legal protection
Strategic hub connecting Asia, Africa, and Europe

6. Why Work with Mirr Asia

At Mirr Asia Business Advisory, we help you navigate Dubai’s incorporation process with efficiency and compliance. From trade name approval and licensing to post-setup support, our specialists ensure your company formation in Dubai is completed smoothly within 5–7 business days.

We provide: