Dubai’s status as a global hub for entrepreneurship continues to grow in 2025. With full foreign ownership in many sectors, zero corporate tax for most domestic businesses, and streamlined regulatory processes, Dubai offers a budding environment for international business expansion.
Beyond commercial opportunities, Dubai also provides a clear path to obtaining the residence visa of the UAE through business ownership.
This post will walk you through how a business setup in Dubai can serve as your gateway to long-term UAE residency, while covering essential updates and procedures you need to know for 2025.
– Why Choose Dubai in 2025?
There are several reasons why investors and entrepreneurs continue to choose business setup in the UAE, especially in Dubai:
- Zero corporate tax for most companies, with limited exceptions for large multinational groups under global tax rules.
- Streamlined residency visa processes connected to business ownership.
- A growing network of specialized free zones tailored to various industries.
- Remote company registration options that allow you to start from abroad.
- A strong legal infrastructure and international banking system.
– How to Set Up a Business in Dubai in 2025?
Here is a step-by-step guide to launching your business in Dubai and securing your residence visa of the UAE.
1. Choose the Right Business Category
Start by determining what type of business you want to run. This decision will affect your licensing requirements, capital needs, and visa eligibility.
- Trading Activities: Best set up in free zones like DMCC or JAFZA. Benefits include 100% foreign ownership and customs duty exemptions.
- Manufacturing Ventures: Require more investment and regulatory compliance but offer access to regional and international supply chains.
- Professional Services: Suitable for consultants, IT specialists, and creatives. Setup is quick, with lower upfront costs and minimal office requirements.
2. Select Your Jurisdiction .
The jurisdiction you choose determines your business rights and operational flexibility. Each jurisdiction offers unique advantages based on your operational goals and customer base.
- Mainland: Licensed by the Department of Economic Development (DED). Allows full access to the UAE market and eligibility to bid for government contracts.
- Free Zones: Offer tax incentives, full ownership, and industry-specific support. Ideal for international trade or digital service businesses.
3. Define the Legal Structure
Your business structure determines liability, ownership rights, and eligibility for a residence visa of the UAE. Each structure carries specific compliance and documentation requirements. Choose based on your expansion plans and desired level of control.
- Sole Proprietorship: Simple to set up, but you assume full financial liability.
- Partnership: Suitable for service firms with shared responsibilities and liabilities.
- Limited Liability Company (LLC): The most popular choice. Offers liability protection and now allows 100% foreign ownership in many mainland sectors.
- Free Zone Entity: Offers flexibility, full ownership, and fast-track setup within free zones.
- Branch Office: Allows foreign companies to operate under their existing structure in the UAE.
4. Set Up Remotely (If You’re Abroad)
You can start your Dubai business setup without traveling to the UAE. Thanks to new regulations, you can issue Power of Attorney to a local agent to handle incorporation, licensing, and visa processing.
However, certain steps, like opening a bank account, undergoing biometric verification, or visa stamping, must be completed in person during a short visit.
5. Secure Business License and Register the Company
This includes choosing a trade name, drafting the company’s Memorandum of Association, and obtaining initial approvals.
- Commercial License: For trading or import-export businesses.
- Professional License: For consultancies and service-based businesses.
- Industrial License: For manufacturing and production.
After submitting all required documents and paying the applicable fees, you will receive your official license. You may also need sector-specific permits depending on your activity (e.g., health, media, education).
6. Choose an Office Space
UAE regulations require businesses to register a local address. You can choose from several office types. Free zones typically include flexible space options bundled with license packages.
- Virtual Office: Ideal for consultants or digital service providers. Comes with limited visa quotas.
- Shared Office Space: Offers flexibility and mid-level visa allocations. Great for small teams and startups.
- Private Office: Required for most mainland companies. Offers higher visa quotas and full operational autonomy.
7. Open a Corporate Bank Account
To operate legally, you’ll need a UAE corporate bank account. Most banks require:
- Business license and MOA
- Shareholder and manager passport copies
- Lease agreement for your office
- Business plan and initial revenue projections
Leading local and international banks like Emirates NBD and HSBC operate in the UAE. Keep in mind that banks may request a face-to-face meeting and have minimum deposit requirements ranging from AED 10,000 to AED 100,000.
8. Apply for the Residence Visa of the UAE
Once your business is licensed, you can apply for your residence visa. The visa allows you to live in the UAE and sponsor dependents or employees.
The application includes:
- Biometric scan
- Medical test
- Health insurance registration
- Emirates ID application
The list of required documents include:
- Passport
- Business license
- Entry permit (if outside UAE)
- Office lease agreement
Visa durations range from 2 to 5 years and are renewable. Processing is generally fast, with the Federal Authority for Identity and Citizenship overseeing approvals.
Ready to Get your Residence Visa in the UAE?
The business setup in the UAE has become more accessible and streamlined than ever in 2025. Entrepreneurs can now leverage flexible jurisdiction options, remote registration, and full ownership rights to start and grow their ventures with ease.
Whether you are a digital entrepreneur, or a trading company seeking to expand, Dubai business setup offers the infrastructure, legal framework, and incentives to support your journey.
Most importantly, this setup opens the door to a long-term residence visa of the UAE, allowing you to build both a business and a life in one of the world’s most dynamic economies.
Engaging a professional setup consultant or legal advisor can help you navigate the process confidently and avoid costly missteps.