Starting a business in Dubai is exciting. The city has become one of the world’s leading hubs for entrepreneurs, investors, and global companies looking for growth. But before you dive into company formation, it’s important to understand the key factors that can make or break your setup journey.
At Strive, we’ve guided hundreds of founders (many of them moving from the UK, Canada, and beyond) through the Dubai company setup process.
Here are five things every business owner should know before making the leap.
1. Choosing the Right Business Structure Matters
Choosing the right business structure matters, Dubai offers three main options:
- Mainland companies: licensed by the Department of Economic Development (DED), giving you access to the entire UAE market.
- Free Zone companies: 100% foreign ownership with tax incentives, but limited to operating within your chosen free zone or abroad.
- Offshore entities: ideal for asset protection, holding companies, and international operations.
The structure you choose affects ownership rights, taxation, and market access. Many founders rush this decision, only to regret it later.
2. Licensing Depends on Your Business Activity
With over 2,000 business activities available, your license type will dictate what you can legally do in Dubai. For example:
- Commercial license: trading and retail
- Professional license: services and consulting
- Industrial license: manufacturing and production
This is where expert guidance matters. Choosing the wrong activity can mean delays, added costs, or even having to redo your setup.
💬 As one of our clients, Teeba Bosnic, Co-founder of Machined, put it:
“Strive handled the entire process of setting up our business in Dubai… I couldn’t fault them on one thing.”
3. Tax Benefits Are Real (But They Require Planning)
One of Dubai’s biggest draws is its tax-friendly environment:
- 0% personal income tax
- 9% corporate tax (on profits above AED 375,000)
- Small business relief options in many cases
But here’s the catch: poorly structured setups can cost you. For example, putting property or income streams under your personal name instead of a holding company could lead to unnecessary tax exposure back home.
At Strive, we help you align your business structure with your tax strategy so you keep more of what you earn.
4. Banking Can Be a Hurdle Without Help
Opening a UAE corporate bank account is one of the most common bottlenecks for new businesses. Each bank has its own requirements, and compliance reviews can take months without professional support.
Our clients often secure banking access in weeks rather than months because we handle:
- Preparing the right document packs
- Matching your business with the right banks
- Coordinating communication with compliance teams
💬 Priyesh Dusara, CEO of P8FX Trading, shared:
“The team at Strive made my experience transitioning abroad seamless. Finding people who are straight, informative, and speak from their own experiences is what I was after and with Strive, I got exactly that.”
5. Residency and Compliance Go Hand in Hand
Company formation in Dubai usually comes with the option to apply for a residency visa for you, your employees, and your dependents. Residency unlocks benefits like opening personal bank accounts, leasing property, and easier travel.
Compliance doesn’t stop there. You’ll need to keep up with:
- VAT registration (if required)
- Corporate tax filings
- Annual audits in certain free zones
Skipping these steps can lead to fines, delays, or even business suspension.
Final Word: Get It Right from Day One
Dubai offers incredible opportunities but only if you get your setup right from the start. From choosing the right business structure to navigating tax and banking, small mistakes can have big consequences.
That’s where Strive comes in. Our licensed advisors are entrepreneurs themselves, bringing both experience and empathy to your journey.
Ready to explore your options? Book a free consultation and take the first step toward building your future in Dubai.
