Everything You Need to Know About Free Zones, Mainland, Legal Structures & Costs
Dubai’s Business Landscape
Why Dubai Remains a Global Business Magnet in 2025
Dubai remains one of the most attractive destinations for entrepreneurs, startups, and established companies seeking to expand into the Middle East, Africa, and South Asia. With its tax-friendly policies, world-class infrastructure, and global connectivity, setting up a business in Dubai is more appealing than ever in 2025.
However, the landscape has evolved — new compliance rules, more specialized Free Zones, and shifting visa pathways mean it’s crucial to begin your journey with the proper guidance.
This comprehensive guide will walk you through everything you need to know about setting up a business in Dubai, including legal structures, the distinction between free zones and mainland setups, costs, timelines, and common mistakes to avoid.
Step 1: Understand Your Setup Options
Mainland, Free Zone, or Offshore — What’s the Difference?
| TYPE | OWNERSHIP | WHERE YOU CAN TRADE | BEST FOR |
| MAINLAND | Up to 100% foreign | Within the UAE and internationally | Service providers, Retailers |
| FREEZONE | 100% foreign | Only outside the UAE (unless with a local agent) | Startups, Tech firms, Logistics |
| OFFSHORE | 100% foreign | International only | Asset holding, Global business |
Pro Tip: The proper jurisdiction depends on your business activity and growth goals. We help clients assess the best fit based on licensing, visa needs, and target market.
Step 2: Choose the Right Legal Structure
Your business structure will impact everything — from liability to taxation to how you bring on partners.
Common UAE business types include:
- LLC (Limited Liability Company) – Most popular for foreign founders
- Sole Establishment – Ideal for solo service providers
- Branch of a Foreign Company – Great for corporate expansion
- Free Zone Company (FZCO/FZE) – Fast setup, 100% ownership, limited external trade
Note: The UAE now permits 100% foreign ownership in various mainland activities, exceptionally professional services — a significant development for international entrepreneurs.
Step 3: Navigate the Business Setup Process
Here’s a simplified roadmap for starting a business in Dubai:
1. Define your business activity
- Each Free Zone or Mainland license is linked to an approved activity.
2.Choose your jurisdiction (Mainland or Free Zone)
- Based on location, activity, and visa requirements.
3. Reserve your trade name
- Must follow naming guidelines and reflect your activity.
4. Submit incorporation documents
- Passport copies, application forms, and business plan (if required).
5. Get your license issued
- Can take as little as 2–5 business days in some Free Zones.
6. Apply for visas
- For owners, employees, and dependents.
7. Open a corporate bank account
- Can be complex — many banks now require strong documentation.
📍Need help? We provide end-to-end handling — from name reservation to license issuance and post-incorporation banking.
Costs of Setting Up a Business in Dubai (2025)
Setup costs vary widely based on the zone, business type, and visa requirements.
| Type of Setup | Estimated Cost (USD) | Includes |
| Free Zone (basic) | $3,500 – $7,000 | License, company registration, flexi-desk |
| Mainland LLC | $7,000 – $15,000+ | License, MoA, local service agent fees |
| Offshore Company | $2,000 – $4,000 | Registration, compliance |
Note: Hidden costs often include medical tests, Emirates ID, and translation and legal attestation fees — our pricing is always transparent.
Common Mistakes to Avoid
1. Choosing the wrong Free Zone
- Not all Free Zones allow the same activities or offer visa eligibility.
2. Underestimating visa timelines
- Especially if you’re relocating, plan for a minimum of 4–6 weeks.
3. DIY setup without legal clarity
Minor errors (like the wrong trade name) can cost weeks.
4. Ignoring banking complexities
UAE banks now require Know Your Customer (KYC), substance proof, and precise documentation.
Why Work with a Business Setup Expert?
We’ve helped hundreds of entrepreneurs and companies from over 40 countries establish a presence in Dubai with confidence. Our legal-first, end-to-end process covers:
- Strategic zone selection
- Entity formation
- Residency & visa services
- Legal documentation & bank coordination
- Ongoing compliance support
💬 Want to explore your options? Book a Free Consultation →