Dubai LLC Setup (Everything You Need to Know 2025)
A step-by-step guide to starting your Dubai LLC the right way.
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Introduction: Why Entrepreneurs Are Choosing Dubai in 2025
If you're serious about building a tax-efficient business in a global hub, Dubai should be on your list.
It’s strategically located between Europe, Asia, and Africa. There’s low corporate tax (or no corporate tax in some cases) and no personal income tax. The infrastructure is world-class. And with the right setup, you can enjoy full ownership, fast banking, and a premium international image, whether you're a solo founder, startup, or remote consultancy.
In this guide, I’ll walk you through exactly how to set up your Dubai LLC, step-by-step, and fully updated for 2025.
Agenda
Here’s what we’ll cover in this guide:
Why Choose Dubai for Your Business
A look at Dubai’s tax system, global positioning, lifestyle, and founder-friendly environment.Company Structure and Setup Process
Free Zone vs. Mainland, ownership rules, registration steps, required documents, timelines, and costs.Opening a Business Bank Account
How to navigate banking in the UAE and avoid common pitfalls.Taxes, Compliance, and Reporting
What you need to know about the new 9% corporate tax, VAT, and annual obligations.Residency and Visa Options
How to obtain residency through your company and what it gives you access to.Estimated Setup Costs (2025)
A breakdown of one-time and recurring costs to help you budget smart.Summary and Action Steps
A clear checklist to take your idea from concept to launch.
1. Why Choose Dubai for Your Business
Dubai has become one of the most attractive locations for business individuals who want to do business on an international scale without being hindered by too much bureaucracy or personal income tax. It offers a combination of ease, infrastructure, and access that is hard for most jurisdictions to match.
The city is an important gateway between Europe, Asia, and Africa and hence ideally located for founders who require access to multiple markets. Its airport, logistics, and digital infrastructure are planned to support global business from day one.
The tax system is simple and continues to be very competitive in 2025. There is no business profit tax on the first AED 375,000 and just 9 % on anything above that. Zero corporate tax on qualifying income is offered by some free zones, depending on your company type and structure.
You also won't find personal income tax, capital gains tax, or withholding tax here, making it especially appealing to solo founders and remote-first operators who want to retain more of what they earn.
Aside from numbers, Dubai is a vibrant, globally connected city. English is the lingua franca, services are sound, and the government has goneout of its way to court foreign business owners with ease of company formation, long-term residency, and digital nomad visas.
For remote business owners, service providers, and consultants, it offers a launchpad that is sound, strategic, and established to scale with you.
2. Legal Form and Ownership Options
It is easier to start a business in Dubai than most individuals think, if you have the correct setup from the very start. The most common form for international business individuals is the Limited Liability Company (LLC) via a Free Zone.
Important: Free Zone companies only allow you to do business outside of the UAE. If you are aiming to have clients within the UAE, you need a Mainland company.
Here the facts in a nutshell…
Legal Structure
You will be registering a Limited Liability Company (LLC). This will keep your personal and business assets distinct and provide you with a registered legal entity that can trade, invoice, and hire.
Free Zone vs Mainland
Free Zones are ideal for most remote businesses and solo founders. They provide 100 percent foreign ownership, simpler setup, and possible tax exemption on qualified income. Mainland LLCs provide greater flexibility to conduct business locally in the UAE but can entail additional steps and licensing.
Ownership
In most Free Zones, you can be the sole shareholder and director of your company. On the Mainland, 100% foreign ownership is also allowed in many sectors, but it’s important to check the specific rules that apply to your business activity. My recommendation: Stick to the Free Zone LLC.
Registered Office
You will require a registered business address in Dubai. If you are in a Free Zone, this is typically part of your package. It need not be a physical office: virtual desk space or flex space qualifies.
Documents Needed
Additionally, you will usually require:
A passport copy
Business name ideas
A passport photograph
A business activity description
Incorporation Timeline
The process can be completed in one to two weeks, especially if you engage an authorised setup agent. Some Free Zones even offer same-day registration for simple cases.
Cost
Total setup costs range from $3,500 to $8,000, depending on the Free Zone, the license category, and the visa package. Annual renewals are necessary but are generally fixed and transparent. Once your company is incorporated, you can immediately apply for a residence visa, open a business bank account, and begin operating immediately.
3. Opening a Business Bank Account
This is the step where the majority of founders lag behind. The UAE banking process requires preparation, patience, and properpresentation of your company.
Compliance obligations have increased in recent years. Banks require a guarantee that your company is authentic and well-run. If you have the required documents, it is simpler and quicker.
What Banks Typically Ask For
Company documents
Trade license, Articles of Association, share certificate, ideally all three combined in a single PDF.
Passport copy
Colour scanned, high-resolution, matching official records by signature.Emirates ID and Visa
If you are applying for residency via your company (which you usually do), most banks will ask for this.Business activity explanation
A summary of your services, target market, and revenue stream.Virtual proof of presence
Company website, LinkedIn, Instagram, or any other digital assets that allow legitimacy (sometimes, not always)Bills or estimated revenues
A basic projection or sample invoice with anticipated revenue and activity.UAE phone number
Employed for identification or further contact.
What alternatives are available when it comes to banks?
Here we have to distinguish between traditional banks and digital alternatives. Local bank and fintech platforms are both possibilities, although each one has different requirements.
Let’s have a look at traditional bank, and also digital alternatives …
Traditional Banks and Digital Alternatives
Local Banks
Traditional banks are fully licensed with extensive services. Opening an account will be slower and will involve thorough screening. Minimum deposits are generally AED 10,000 to AED 50,000
Examples:
Emirates NBD
Mashreq
RAKBANK
Digital Alternatives
Faster application process, built for solo consultants and small businesses, may have transaction limits or absence of international banking facilities.
Examples:
Wio
Zand
HubPay
Recommendation
Send everything in a single, readable email with numbered attachments and a summary. This makes review easy and minimises back-and-forth communication.
Note: Not every bank serves every industry. If you are turned down, attempt to apply elsewhere or use the services of a licensed consultant who will facilitate introductions. Apply for several banks / alternatives and see what comes back.
4. Taxes, Compliance, and Reporting
Starting 2025, the UAE is imposing a federal corporate tax of 9 percent on taxable income earned above AED 375,000.
Corporate Tax
The 9 percent rate is only applicable on net profits that exceed AED 375,000 (around 100k USD). Free Zone companies can still be eligible for 0 percent tax on eligible income in certain situations (see sidebar below). Some industries, for example, natural resources, might receive preferential tax treatment.
Sidebar: Qualifying for the 0% Corporate Tax Rate
Some Free Zone companies in the UAE can still pay 0% corporate tax, but only if they meet certain rules.
These businesses are called Qualifying Free Zone Persons (QFZPs).
To qualify, your company must:
Have real business activity based in the UAE
Earn income that falls under the “qualifying” category (as defined by the government)
Choose to stay under the Free Zone tax rules and not apply for the standard 9% rate
Follow the rules for transfer pricing and proper reporting
Value-Added Tax (VAT)
The UAE has a single standard rate of VAT at 5 percent. VAT registration is mandatory if your taxable turnover exceeds AED 375,000 in a 12-month period. Voluntary registration is optional from AED 187,500. VAT returns are usually submitted quarterly and necessitate precise bookkeeping.
Annual Commitments
Most mainland and Free Zone firms have to submit audited annual financial statements. Company tax returns are payable nine months after the end of the financial year. Ultimate Beneficial Owner (UBO) disclosures are required at establishment and must be kept up to date.
Recommendation
Maintain neat, electronic files of all bills, invoices, and contracts
Consult with a local tax advisor or accountant to help you comply
Mark your tax and reporting deadlines boldly on your calendar (!)
If you are eligible for Free Zone exemptions, maintain your income well categorised and documented
5. Residency and Visa Options
After you've established your business and initiated the process of opening a bank account, the second vital step is obtaining your UAE residency.
This is not a mere formality, since banks need both a residency visa and Emirates ID (your UAE ID card) before they'll accept a business account. Though some fintech alternatives will allow you to get started sooner, traditional banks will wait for your residency to be finalised.
Btw, this is what your Emirates ID (short “EID”) will look like:
Getting your visa through your company enables you to reside and work in the UAE, make use of local facilities, and gain long-term stability in the area. The majority of Free Zones provide visa packages along with your business license, typically for two years and renewable.
Brief summary of the process (Checklist)
Application for Entry Permit
If you are outside of the UAE, your Free Zone will submit this application so that you can enter on a business visa.Complete Medical Check-up (super quick, takes 10 min)
A blood test and chest X-ray need to be completed at a certified clinic.Emirates ID Biometrics
Proceed to a registration center to have your fingerprinting and photograph taken.Visa Stamping
Once approved, your visa is stamped on your passport.
Collect Emirates ID
Your Emirates ID card will be provided soon after your visa is processed. You will need the card for banking, telecoms, rentals, and all other services.
6. Estimated Setup Costs (2025)
Before launching in Dubai, it’s important to understand the real costs involved. While the setup is straightforward, pricing can vary depending on the Free Zone, license type, visa needs, and whether you use a consultant.
Below is a practical overview of one-time and ongoing costs so you can budget with clarity.
One-Time Setup Costs
These are the initial costs you'll pay when registering your business. The biggest variables are which Free Zone you choose, whether your package includes a visa, and if you’re using a third-party service to handle the paperwork.
Most founders can expect to spend between $5,600 and $11,600 upfront (personally, I would not pay more than 6.000 USD for any incorporation, unless so have some specific business activity, that justifies a higher price).
Annual Recurring Costs
Once your business is running, you’ll have ongoing fees each year, including license renewals, visa upkeep, and any services you use for accounting or compliance. If you choose a virtual office, that becomes part of your yearly cost as well. Expect to budget between $3,800 and $7,000 per year to keep your business active and compliant.
In total, launching a lean, Free Zone–based company in Dubai with one visa will typically cost $5,600 to $11,600 upfront, followed by $3,800 to $7,000 annually.
While the initial investment is significant, the benefits, including 0% tax on qualifying income, full ownership, and residency access, often outweigh the costs for serious founders.
7. Summary and Action Steps
Why Dubai
Dubai boasts a pro-business tax regime, global location, and access to residency, making it an ideal location for founders, consultants, and e-commerce sellers. With no personal income tax and a straightforward corporate tax regime, it remains one of the most strategic locations to build in 2025.
→ Action: Verify Dubai aligns with your business objectives, market access requirements, and lifestyle expectations.
Company Setup and Structure Process
You will decide between establishing in a Free Zone or in the Mainland. Free Zones are utilized primarily by digital-first companies for 100% foreign ownership and simplified establishment. Registration would be 1–2 weeks and involves submitting documents, choosing business activity, and applying for a trade license.
→ Action: Select your Free Zone or Mainland company and start incorporating.
Business Bank Account
It can take time to set up a UAE business bank account (!). Banks need residency, a defined business model, and support documentation. Fintechs can be quicker, but traditional banks typically need completecompliance and an Emirates ID.
→ Action: Have a full bank onboarding package prepared while your residency is being processed. Send it out to many to have several options.
Taxes, Compliance, and Reporting
Corporate tax is still 9% for profit over AED 375,000. Even Free Zone companies can still enjoy 0% tax on eligible income. You will also pay VAT at 5% of taxable turnover over AED 375,000. You'll also have to fulfill UBO, ESR, and accounting requirements.
→ Action: Keep an eye on your tax status, and investigate hiring a local accountant to guarantee compliance.
Visa and Residency Opportunities
After you've set up your company, you can get UAE residency via your company. This provides access to banking, local services, and travel convenience. It involves medical testing, biometrics, visa stamping, and Emirates ID.
→ Action: Initiate your visa application after the registration of your company. Plan to be in Dubai for at least a week for this process.
Estimated Setup Costs
The startup cost ranges from $5,600 to $11,600, and ongoing annual costs range from $3,800 to $7,000 (don’t nail me down if you find it 100 USD cheaper somewhere). These include license fees, visas, office rentals, and compliance.
→ Action: Establish a setup and operational budget prior to committing.
Final Thoughts
Creating a Dubai LLC is not only about opening up a company.
Don’t get fooled by people advertising 48h company opening promises, because they don’t care if you get a bank account approved afterwards (they just care about their fee).
Make sure your business aligns with the right Free Zone.
Make sure you get a usable setup, and don’t just focus on the tax benefits.
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