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Starting a business in Dubai

Start your business in Dubai with the right legal route.

From incorporation to administration, visas, and tax considerations. We help you quickly determine the right Dubai route, without getting bogged down in generic promises or making the wrong choices.

Dubai guidance by our in-house counsel and attorneys — including Ilja van Driel & Jaime Boogaers, registered with the Dutch Bar Association.

Route clear in advance: Mainland, Free Zone, offshore, or not.
Dutch risks: Fiscal and legal considerations in advance
Practical implementation: Formation, visas, administration, and banking.
  • We worked for, among others:
  • MKBjuristen.nl partner
  • MKBjuristen.nl partner
  • MKBjuristen.nl partner
  • MKBjuristen.nl partner
Personal intake We discuss your plans, activities, and desired structure.
Route clear in advance: Mainland, Free Zone, or other appropriate arrangement.
Even after incorporation: Administration, accounting, visas, Emirates ID, and documents.
Dutch and English. Clear communication throughout the entire process.

For entrepreneurs who want to seriously start a business in Dubai

Starting a business in Dubai requires making the right choices at the outset. The chosen structure, business activities, licensing, location, administration, and residency documents determine how quickly and carefully you can get started.

Start Company in Dubai

We guide entrepreneurs who wish to start a business in Dubai or expand their international structure. We assist you with, among other things, the choice between the Mainland and the Free Zone, the right business activities, and the application process.

  • Guidance on opening a business in Dubai
  • Telephone intake regarding your wishes and plans
  • Explanation of legal, tax, and practical considerations
  • Help with documentation and application process
  • Available in Dutch and English

Financial and tax considerations

Dubai can be attractive to entrepreneurs, but the right setup depends heavily on your activities, place of residence, customers, tax position, and future plans.

We map out the legal and practical route and consult with tax specialists where necessary, so that you do not make decisions based on general information or overly simplistic promises.

  • Insight into advantages and disadvantages
  • Assessment of the desired business activity
  • Attention to documentation, licensing, and compliance
  • Coordination with tax expertise where necessary

Avoid choosing the wrong structure.

A quick incorporation is desirable, but the right setup is more important. We review your activity, objectives, risks, and practical next steps in advance.

Why entrepreneurs start a business in Dubai

The primary reason is fiscal, but Dubai offers more: a stable economy, a strong international location, and a business climate geared towards growth. The benefits at a glance:

Tax benefits

  • 0% income tax for private individuals
  • 9% corporate income tax only above AED 375,000 in profit (since 2023); below that 0%
  • 0% in free zones on qualifying income, provided the conditions are met
  • No dividend or capital gains tax for private individuals
  • VAT amounts to 5%

Practical benefits

  • 100% foreign ownership (since 2021 for most activities, without a local sponsor)
  • Strategic location between Europe, Asia and Africa
  • Stable currency (the dirham is pegged to the US dollar)
  • Strong infrastructure and international banking
  • Fast, digitized incorporation procedures

Please note: 0% sounds good, but only applies if your structure and living situation are correct. This is precisely where things often go wrong — see the Dutch tax section below.

Mainland, Free Zone, or Offshore: which suits you?

The choice of business structure determines what you are allowed to do, what it costs, and how you are taxed. The three main forms compared:

What counts Mainland Free Zone Offshore
Trade within the UAE market Yes, unlimited Limited (mainly exports/services) No
Visa (residence/Emirates ID) Yes Yes (depending on the package) No
Physical office required Usually yes Flexible (also flexi-desk) No
Tax 9% above AED 375,000 0% of qualifying income No local levy
Most suitable for Local trade & services in the UAE International services, IT, consultancy, holding Holding structures & asset management

The right choice depends on your activity, customers, and goal. We assess which form fits — before you commit.

Which free zone suits you? The most famous ones listed

The UAE has dozens of free zones, each with its own costs, permitted activities, and benefits. The most chosen by Dutch entrepreneurs:

Free zone Known for Especially suitable for
IFZA (Dubai)Cost-efficient, flexible, versatileConsultancy, services, holding
Meydan (Dubai)Prestigious Dubai address, quick to set upService providers, startups, e-commerce
DMCC (Dubai)Largest & most renowned free zoneTrade, import/export, raw materials
RAKEZ (Ras Al Khaimah)Affordable, industrialProduction, smaller companies, freelancers
SHAMS (Sharjah)Very affordable, creativeMedia, marketing, freelancers

In addition, DIFC and ADGM exist for financial institutions , and JAFZA and DAFZA for logistics/air freight . Which zone is optimal depends on your activity, budget, and visa requirements — we compare the options and handle the application with the appropriate authority.

Step-by-step plan: how to set up a company in Dubai

From initial plan to a functioning business with a bank account — broadly speaking, it goes like this:

1. Activity & Structure

We determine your business activity and the most suitable form (mainland, free zone, or offshore).

2. Name & License

Reserve the company name and apply for the appropriate trade license from the competent authority.

3. Formation & documents

Incorporation documents, registration, and possible legalization of your papers.

4. Visa & Emirates ID

Apply for a residence permit and Emirates ID for yourself and any family or staff.

5. Bank account

Opening a business bank account — often the most difficult part in practice; we guide you through this.

6. Administration & compliance

Bookkeeping, VAT registration where necessary, and properly setting up annual obligations.

How much does a company in Dubai cost?

The costs vary widely and depend on your choices. The main items:

  • Commercial license (annual, varies by zone and activity)
  • Visa and Emirates ID (per person)
  • Office or flexi-desk (required in many zones)
  • Registration, incorporation, and legalization costs
  • Annual administration and compliance
Expense item Indication (AED) Indication (EUR)
Trade license free zone (per year)5.000–15.000± 1.250–3.750
Visa + Emirates ID (per person)3.000–5.000± 750–1.250
Business bank account (setup)4.000–10.000± 1.000–2.500
Office or flexi-desk (per year)5.000–50.000+± 1.250–12.500+
Tax & legal advice (NL + UAE)± 5.000–15.000

Indicative target amounts (2026), highly dependent on zone, activity and number of visas — no quote. UAE corporate income tax: 0% up to AED 375,000 (± EUR 95,000) profit, 9% above that.

We provide a clear cost estimate in advance based on your situation — no surprises afterwards.

Who is Dubai suitable for — and who is it not?

Suitable:

  • Location-independent entrepreneurs and international service providers
  • Entrepreneurs who actually want to move and relocate their lives to the UAE
  • Holding and asset structures with international activities

Less suitable:

  • Those who continue to live and work in the Netherlands
  • Anyone who wants to emigrate only 'on paper' without real substance

The Dutch tax side — do not underestimate this

This is where most 'Dubai advisors' go wrong. A company in Dubai is only advantageous if it is also correct with the Dutch Tax Authorities . As a law firm, we look specifically at this aspect:

Really emigrating, not on paper

The 0% benefit only applies if you actually move your residence to the UAE. If your center of life remains in the Netherlands (family, home, social ties), you remain subject to Dutch tax in principle — regardless of your Dubai company.

Substance & actual management

The enterprise must be effectively managed from the UAE. If management is still exercised in the Netherlands, the Tax and Customs Administration may classify the company as taxable in the Netherlands.

Exit tax & substantial interest

In the event of emigration with a substantial interest (Box 2), a preserving assessment (exit tax) may arise. This must be thoroughly assessed in advance.

Sham constructions = risk

A structure that exists solely to save tax without a genuine relocation is vulnerable to corrections, additional assessments, and penalties. We ensure that your setup is legally and fiscally defensible.

183 days is not the only test

Spending fewer than 183 days in the Netherlands does not automatically mean that you no longer pay tax here. If your center of life is still in the Netherlands, you remain liable for tax. The 183-day rule is one test, not the entire assessment.

Dividend tax & the NL-UAE treaty

In principle, the Netherlands levies dividend tax on a distribution from your Dutch BV, even to a resident of Dubai. The Netherlands–UAE tax treaty does not fully protect most non-Emirati Dutch nationals here. So do not count your chickens before they hatch with "0% in Dubai".

Worldwide income remains subject to declaration

If you live (or still live) in the Netherlands and work in the UAE, you declare your worldwide income in the Netherlands. The tax treaty then determines whether and how the deduction to prevent double taxation applies.

This is precisely why you arrange this with a legal expert and not with a setup agency. We align the Dubai route with the Dutch tax and legal reality, so that you benefit without unnecessary risk.

What is included in this Dubai mini-site?

Most visitors do not yet know exactly which service they need. Therefore, this page is set up as a starting point. From here, you can proceed directly to the section that suits your situation.

Starting a business in Dubai

For an explanation of the structure, license, Mainland, Free Zone, and the first legal choices.

View founding roadmap

Dubai Starter Package

For entrepreneurs who want guidance with incorporation, documents, applications, and the practical start.

View starter package

Administration and accounting

For the organization of administration, bookkeeping, accounting, and relevant obligations.

View administration

Visa and Emirates ID

For stay, visa applications, Emirates ID and practical steps after establishment.

View visa services

Request a quote

For a customized proposal when your situation is more specific or involves multiple components.

Request a quote

Free consultation

For an initial consultation if you do not yet know which route is sensible.

Schedule a consultation

How does it work?

We keep the process clear: first the plans are sharp, then the right structure and practical execution.

1

Free intake

We discuss your plans, activities, desired structure, and key questions.

2

Determine route

We indicate which route seems logical and what information or documents are required.

3

Application and guidance

We guide the process and maintain an overview of the legal and practical next steps.

4

Start and aftercare

After incorporation, we assist where necessary with administration, bookkeeping, visas, contracts, terms and conditions, and compliance.

Why guidance is wise

Starting a business in Dubai online often seems simple. In practice, however, entrepreneurs frequently make hasty decisions regarding licensing, activities, or structure. This can have consequences later on for banking, customers, tax compliance, contracts, administration, or further growth.

Without preparation
With legal assistance
Choice based on general information
Route tailored to your activities and goal
Uncertainty regarding documents and next steps
Clarity regarding application, documents, and schedule
Risk of incorrect license or structure
Prior assessment of practical and legal considerations
No legal basis after incorporation
Also assistance with administration, visas, contracts, terms and conditions, and compliance

Would you like to know if Dubai fits your plans?

Schedule a free consultation. We will discuss your situation, provide direction, and explain the logical next steps.

  • No-obligation, no-obligation initial consultation
  • Clarity regarding the route, approach, and points of attention
  • Guidance by legal specialists

Frequently Asked Questions

Can I start a business in Dubai immediately?

That depends on your activity, desired structure, documentation, and the chosen route. We first assess what is appropriate for your situation.

Can you help with the choice between the Mainland and the Free Zone?

Yes. We discuss the differences and help you determine which route better aligns with your business activities and goals.

Do you also help with administration and bookkeeping?

Yes. We can help with the administrative setup and refer you to the appropriate section within the Dubai mini-site.

Can I also get help with visas and Emirates ID?

Yes. For visas, Emirates ID, and practical next steps, please refer to the Visa and Emirates ID section.

Is the consultation without obligation?

Yes. The first consultation is intended to discuss your situation and determine the sensible course of action.

How much does it cost to set up a business in Dubai?

For a simple free zone setup, the first year often starts around AED 8,000–20,000 (approximately EUR 2,000–5,000), increasing with visas, Emirates ID, office or flexi-desk, and the bank account. We provide a customized cost estimate in advance; the mentioned amounts are indicative.

Which free zone suits my activity?

That depends on the activity, budget, and visa requirements. IFZA and SHAMS are cost-efficient and versatile, Meydan is popular with service providers, DMCC is strong for trade and raw materials, and RAKEZ is advantageous for manufacturing and smaller businesses. We advise on the zone that suits your plans.

How long does it take to set up a company in Dubai?

In practice, setting up a free zone often takes 5 to 10 working days, provided your documents are complete. Visa and the business bank account usually take extra time after that.

Can I set up my company remotely from the Netherlands?

In many free zones, incorporation can largely be done remotely. For the Emirates ID and usually the bank account as well, physical presence in the UAE is required.

Do I need to deregister from the Netherlands to receive a tax benefit?

The 0% benefit only applies once you are no longer a tax resident of the Netherlands. Deregistering from the BRP is not decisive; the Tax and Customs Administration looks at your true center of life: home, family, and social and economic ties.

What is the 183-day rule?

The 183-day rule is one of the tests for international taxation, but not the only one. Even with fewer than 183 days in the Netherlands, you can remain liable for tax here if your center of life is in the Netherlands. A proper emigration requires more than just counting days.

Will I receive a protective assessment (exit tax) upon emigration?

If you hold a substantial interest (5% or more in a BV, Box 2), the Tax and Customs Administration typically imposes a preserving assessment on the increase in value upon emigration. We map this out in advance so that you are not faced with any surprises.

How much substance do I need in Dubai?

Your business must be effectively managed from the UAE and have real activity there. A mailbox with a few invoices is not sufficient; without sufficient substance, the Tax Authorities may classify the company as taxable in the Netherlands.

Am I allowed to receive dividends from my Dutch BV tax-free in Dubai?

Usually not without further ado. In principle, the Netherlands levies dividend tax on distributions from a Dutch BV, even to a resident of Dubai. The Netherlands–UAE tax treaty does not offer most Dutch nationals full protection in this regard. Have this assessed in advance.

How does the 9%/0% corporate income tax work in the UAE?

Since financial years starting June 1, 2023, the UAE has a corporate income tax of 9%, with 0% on the first AED 375,000 (approximately EUR 95,000) of taxable profit. In free zones, a 0% rate may apply to qualifying income under certain conditions.

Which documents do I need to get started?

Typically, a valid passport, a passport photo, and depending on the zone, additional documents such as a CV, company description, or proof of address. We will provide you with a complete list of documents specific to your situation in advance.

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SME Lawyers at the Chamber of Commerce Source: Chamber of Commerce 2019
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