How To Set Up Business in Dubai from Europe

The procedure for establishing a business in Dubai is actually fairly simple. However, there are a few things you should be aware of. With several steps and crucial issues to be aware of along the road, it can be laborious and time-consuming. 

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Whether you decide to do it yourself or engage business setup professionals to expedite the process, make sure you get appropriate guidance on the consequences of your decisions.

Why Should One Start A Business in Dubai

The business climate in Dubai and the UAE is quite inviting and encouraging. In fact, nearly 20,000 new firms were established in Dubai alone last year. Many of these were, predictably, registered by foreign entrepreneurs. Foreign nationals account for 80 percent to 90 percent of the UAE workforce. 

Thousands of entrepreneurs from around the world migrate to the UAE and Dubai to start a business for a variety of reasons. They are as following:

Less Tax

The UAE proudly boasts a 0% personal and corporate income tax rate. The only significant tax to be aware of in the UAE is VAT, which was implemented in January 2018 and is set at a flat rate of 5%. 

Great Economy

The United Arab Emirates has the second largest economy in the Arab world. It is second only to Saudi Arabia in terms of GDP, at around AED 692 billion. It is as huge as it is diverse. You can start a business in a variety of fields, including healthcare, hospitality, technology, and trade.

Good Life Quality

The United Arab Emirates ranked 23rd in the Best Countries Index, just behind Spain and Ireland but ahead of Portugal and Greece.

Supportive Environment

Many startup incubators and funding initiatives aimed at accelerating business growth can be found in the UAE.

How to Set Up Business in Dubai from Europe

Starting a business in the UAE can take many different shapes, depending on the emirate you choose to base your operations in. If you want to know more, you can visit AirZone

Why is it a good idea to start a business in the UAE? While the UAE federal government oversees business formation across the board, each of the seven emirates has its own set of laws and regulations governing company formation and financial oversight. Here are some tips to help you set up business in Dubai from Europe?

Pick an Industry

The UAE has a diverse range of industries and plenty of room for innovation. You may be tempted to skip straight to the actual setup process, but we recommend that you first decide on the kind of your firm.

Many areas in Dubai and the UAE only allow specific commercial activity. Make sure you don’t create a business in Dubai only to find out that you can’t operate there!

Over time, a number of sector-specific free zones have begun to accept general economic activities in addition to the ones for which they were created. 

Aside from restrictions, there are additional reasons why you would want to set up shop near other firms in your industry. Also consider transportation options. If your company relies substantially on import and export, one of the free zones near an airport or port might be a good fit.

Decide on a Location

After you’ve decided on a sector, the next significant decision is whether to start on the mainland or in a free zone. If you choose to establish up shop in a free zone, you’ll get the following benefits: 

  • 0% corporate and household income tax 
  • 100% ownership of the business 
  • 100 percent capital and profit repatriation 
  • There are no currency limitations, and 
  • Import and export taxes are completely excluded. 

If you want to deal directly with the UAE market, you’ll have to work with a mainland firm that will charge you a fee.

If you want to establish up shop on the mainland, on the other hand, you can trade directly with both local and worldwide markets. Unless your organisation is in the professional services sector, you will need to collaborate with a local partner who will own 51 percent of your company.

Choose a Unique Business Name

The UAE has some strict naming conventions, so make sure your company name is legal before you commit.

Get a Proper License

The government will issue you a business licence once your application has been processed. You’ll normally simply need a few common documents, regardless of setup location: a completed application form, shareholder passport copies, and so forth. It might be possible that you would need to submit a business plan in some free zones.


If you want to start a business in Dubai from Europe, you will only have to follow a few steps and make your business name in the market. It will be extremely helpful for you if you read this guide properly. All the best! 

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