How to Start a Business in Dubai in 2025

If you have ever Googled “how to start a business in Dubai”, you already know the problem: too many articles, too much jargon, no clear roadmap.

This guide is different. We explain every step, we keep all the legal and tax facts 100 % accurate. By the end you will understand:

• Why Dubai is still the easiest gateway to the Middle East in 2025.

• Which type of company (free zone, mainland) really fits your plan.

• Exactly what happens inside Invy’s app from choosing your business activity to receiving your trade licence and residence visa.

Invy handles only free-zone formations, because that is the fastest, cheapest and most foreign-friendly route today. Mainland option os described for context, but every “how-to” example below follows the free-zone path Invy automates for you.

Why pick Dubai in 2025?

• 100 % foreign ownership : Since mid-2021 almost every activity can belong entirely to you. You only need an Emirati partner for a short list of strategic industries such as banking, telecom or defence. That means you control all the shares and all the profits.
  
  

• Ultra-simple new tax rules

  • Profit up to AED 375 000 (≈ US $102 k) is taxed at 0 %.

  • Profit above that is taxed at 9 %, still far below the global average.

  • Free-zone companies that meet the "qualifying income" test can stay at 0 % even beyond AED 375 000.
    
    

• D33 Growth Plan
  Dubai’s government has a 10-year programme, “D33”, aimed at doubling the city’s economy and creating 30 new unicorns (companies valued at US $1 billion) before 2033. More growth means more customers, investors and talent for you.
  
  

• Fast, fully digital set-up
  Leading free zones issue a trade licence in three to five working days once they receive the forms and payment. No need to fly in, no paperwork marathons.

Mainland vs Free Zone, which one, and why?

Free Zone (Invy’s specialty)

• 100 % foreign owned by default.

• Residence visas for shareholders and staff.

• 0–9 % corporate tax, often 0 % on “qualifying income”.

• Must use a local distributor or clear customs to sell B2C inside the wider UAE, but perfect for online services, international trading and holding intellectual property.

Mainland

• Also allows 100 % foreign ownership for most activities.

• Full, direct access to the entire UAE market, ideal for shops, cafés, logistics hubs.

• Slightly more paperwork and higher local-office requirements than a free zone.

If you want speed, low cost, visas and 0 % tax on qualifying income, a free-zone company is the clear winner, and that is exactly what Invy automates.

The Invy 8 Step Free-Zone Journey

1. Create your Invy account
   Open the app, enter your email and a password. Two minutes, done.

2. Choose up to three business activities
   Drop-down list, click the ones that fit your idea (consulting, e-commerce, software…).

3. Submit three company-name ideas
   Type three names you like; the system checks availability instantly.

4. Add the shareholders
   For each owner you fill in name, email, nationality, passport number and the share percentage you want to give them.

5. Pick your package
   Licence only if you already have bookkeeping covered, or Licence + Accounting if you want our all-in-one plan (most founders choose this).

6. Tell us how many visas you need
   Zero, one, two… enter the number and the app recalculates the government fees automatically.

7. Review and pay
   One screen shows every cost in advance (licence fee, visa fee, Invy service fee). Pay by card, no surprise typing charges later.

8. Upload your documents

   • Passport photo page (every shareholder)

   • Emirates ID + current UAE visa if you already live here

   • Face photo (only if you asked for a new visa)
     
     

What happens after you click “Submit”?

• Day 3-4 : Your trade licence arrives: your company legally exists.

• Day 5-8 : If you ordered visas, your entry permit hits your inbox.

• Day 8-10 : Quick medical test + fingerprints at a Smart Salem clinic.

• Day 15-18 : Your shiny new Emirates ID is issued.

• Banking time : Invy’s concierge introduces you to partner banks, you choose the one you like and complete KYC.

Throughout the process you see a progress bar moving from “Pending” to “Done” in real time. No mystery emails, no chasing papers.

How much does it really cost in 2025 ?

When you open a company through Invy, you pay two buckets of money:

Government fees broken down

• Trade Licence (0-visa package) : 12 900 AED per year

• Visa quota in the licence : 2 000 AED each (adds capacity for one visa)

• Establishment (Immigration) Card : 2 000 AED (needed once you sponsor a visa)

• Residence Visa issue fee (2 yrs) : 3 750 AED per person

• VIP Medical + Emirates ID package : 1 200 AED (10-min Smart Salem test + biometrics fast-track)

What does that look like in real life?

After the licence: the rules every new owner must follow

Think of these as the homework that keeps your company legal. Invy reminds you of each one on your dashboard calendar.

1. Corporate Tax (CT) registration
   Even if your profit is zero.

   • Register within 3 months of the licence date

   • Pay 0 % on the first AED 375 000, then 9 % on anything above, unless you meet the “qualifying free-zone income” test (still 0 %).

2. Economic Substance Report (ESR)
   Needed only if you do a Relevant Activity : consulting, distribution, HQ, holding, etc.

   • Notification due 6 months after your financial year end; full report due at 12 months

3. Ultimate Beneficial Owner (UBO) register
   Names of the humans who really own the shares.

   • File within 60 days; update changes inside 15 days or risk fines up to AED 100 000

4. Value-Added Tax (VAT)

   • Register when your taxable turnover hits AED 375 000 in a rolling 12 month window; optional (but smart) from AED 187 500
     
     

Seven rookie mistakes and how Invy blocks them for you

1. Forgetting CT registration : our dashboard flashes red until you e-sign the form.

2. Using the wrong visa quota : the app forces you to buy one quota per future visa, so the authority never rejects your file.

3. Leaving the Establishment Card for “later”, the system won’t let you order a visa until the card is paid.

4. Missing ESR / UBO deadlines : automated email + SMS reminders 30, 15 and 3 days before due dates.

5. Uploading fuzzy passport scans : live checker tells you if a file is too dark or cropped.

6. Opening a bank account with no Emirates ID yet : our concierge books the bank call after your ID is issued, saving you a wasted trip.

7. Letting the licence expire : renewal button appears 60 days before the anniversary; one click extends both licence and Establishment Card.

With those built-in guardrails, you can focus on finding clients while Invy keeps the compliance clock ticking in the background.

Frequently Asked Questions – the 10 things people ask us every single day

1. Can I really own 100 % of my Dubai company as a foreigner?
Yes. Federal Decree-Law 26 of 2020 removed the old 51 % Emirati-partner rule for almost every activity. Only a short “strategic list” (banking, defence, telecoms, etc.) still requires local participation.

2. How much does it cost in total if I need one visa?
- Government fees: licence 12 900 AED + visa quota 2 000 AED + Establishment Card 2 000 AED + visa issue 3 750 AED + VIP medical / Emirates ID package ≈ 1 200 AED (regular fast-track centres quote 700–750 AED, VIP lanes add courier & biometrics).
- Invy fee: 730 AED (US $199).
Grand total ≈ 22 580 AED all-in, first year.

3. How long until I get my trade licence?
Once your documents and payment land in the portal, most IFZA files are approved in 3–5 working days.

4. Do I need to fly to Dubai to incorporate?
No. Everything up to the trade licence is 100 % remote. You only need to be in Dubai for the visa medical & biometrics—ten minutes in a Smart Salem clinic, if you applied for a residence visa.

5. What taxes will my free-zone company pay in 2025?
Corporate Tax is 0 % on the first AED 375 000 of profit and 9 % on anything above. If you keep to “qualifying free-zone income” (e.g. trading outside the UAE) you stay at 0 % even after that threshold. There is also a 5 % VAT once your UAE turnover passes AED 375 000.

6. When must I register for Corporate Tax?
Entities incorporated after 1 March 2024 have three months from the licence date to register with the Federal Tax Authority. Late filings trigger automatic monetary penalties.

7. What documents do I upload in the Invy dashboard?
• Colour scan of each shareholder’s passport photo page (valid > 6 months)
• Emirates ID + current UAE visa (if you already live here)
• Passport-style photo (.jpg, white background) for every new visa applicant
• Business plan or CV only for “regulated” activities (financial services, media, health).

8. How many visas can I get on a starter licence?
A zero-visa licence costs 12 900 AED. You can add visa “quota slots” at 2 000 AED each when you apply, or later, up to the limit the free-zone allocates to your activity and office size.

9. Can my new company open a UAE bank account?
Yes. Most local banks require the trade licence, Establishment Card and at least one shareholder holding an Emirates ID. With Invy’s bank-concierge intros, standard KYC takes 1-2 weeks for clean profiles (no large cash businesses or sanctioned jurisdictions).

10. What do I need to renew each year?
• Trade licence fee (same 12 900 AED)
• Establishment Card renewal (2 000 AED) if you have visas
• ESR notification (if relevant)
• Corporate-Tax return and audited accounts (Invy’s bookkeeping plan handles both)
• Visa renewals every two years (3 750 AED each).

Invy’s dashboard pings you 60, 30 and 7 days before every deadline, so nothing slips through the cracks.

Dubai’s 2025 business-setup landscape is simpler than ever: 100 % foreign ownership, transparent 0 – 9 % tax bands, and free-zone licences issued in a matter of days. Yet “simple” can still feel overwhelming when you’re juggling activity lists, visa quotas, Establishment Cards, Corporate-Tax registration, ESR, UBO, VAT and bank KYC plus running your actual business idea.

That’s exactly why Invy exists. We’ve squeezed the whole journey into one guided dashboard:

• Three clicks to pick activities, reserve a name and invite shareholders.

• Live government pricing so you see the true cost before you pay a dirham.

• Automatic compliance reminders that keep late-fee headaches at zero.

• Human experts on tap when you need a nuanced answer, not a chatbot loop.

In short, you stay focused on winning clients while Invy keeps the legal engine humming quietly in the background.

Invy isn’t just a licence broker, it’s the cockpit that keeps your UAE business compliant, banked and growing without spreadsheets and sticky notes.