Introduction – Why Dubai is Perfect for Residency
Dubai stands as one of the world’s most attractive business hubs. In 2025, entrepreneurs can easily secure residency by starting a business in Dubai. The city offers zero corporate tax for most firms, excellent infrastructure, and a simple residency visa process. Investors from Asia, Europe, and Africa choose Dubai because it connects East and West with strong trade links and a safe, transparent legal framework.
Benefits of Business Setup for Residency
Starting a business in Dubai doesn’t just help with growth, it opens the door to UAE residency. The city provides:
- Zero corporate tax for most businesses
- Full foreign ownership in many sectors
- Streamlined visa process for owners and employees
- Global market access via ports, airports, and trade routes
Dubai’s rules continue to evolve, giving investors more flexibility and control over their companies.
Step 1 – Choose the Right Business Category
The first step is to pick the right category for your business because it affects licenses, capital requirements, and compliance rules.
- Trading Activities: Free zones like JAFZA or DMCC give 100% foreign ownership and tax exemptions.
- Manufacturing Ventures: They need higher investment but provide access to regional supply chains and ports.
- Professional Services: Consultants, IT firms, and legal service providers enjoy low setup costs and virtual office options.
Selecting the right category helps you save money, stay compliant, and qualify for visas faster.
Step 2 – Pick the Jurisdiction
Business jurisdiction matters because it controls where you can trade and which authority licenses your firm.
- Mainland Companies: Licensed by the Department of Economic Development (DED). They can trade anywhere in the UAE.
- Free Zone Companies: Ideal for import/export and international operations. They offer tax-free benefits but need a local distributor to trade in mainland UAE.
- Offshore Companies: Used for holding assets and global trade. They don’t give office space or visas but offer strong privacy.
Choosing the right jurisdiction from the start ensures smooth operations and better residency options.
Step 3 – Decide the Legal Structure
Legal structure affects ownership, liability, and visa eligibility.
- Sole Proprietorship: Easy to form but owner has full personal liability.
- Partnership: Two or more partners share control and risk.
- Limited Liability Company (LLC): Most popular choice; allows 100% foreign ownership and protects owners’ personal assets.
- Free Zone Entity: Quick setup and full foreign control with industry-specific benefits.
- Branch of Foreign Company: Extends parent company presence into the UAE.
Correct legal structure helps protect your investment and ensures smooth compliance.
Step 4 – Remote Setup Options
Entrepreneurs can now register a business remotely. By giving a power of attorney to a local agent, you can complete incorporation, licensing, and even visa applications without visiting the UAE. A short visit is only needed for bank account opening, biometric scans, and visa stamping.
Step 5 – Apply for Business License & Residency
Once activity and structure are selected, apply for the license. The license types are:
- Commercial License: For trading and retail
- Professional License: For service providers and consultants
- Industrial License: For manufacturing and production
Key Steps:
- Reserve a trade name
- Draft MOA/AOA documents
- Get initial approval
- Pay fees and collect license
Once licensed, apply for a residency visa by submitting passport, medical fitness certificate, Emirates ID application, and health insurance proof.
Step 6 – Secure Office Space
Dubai offers flexible workspace solutions:
- Virtual Office: Low-cost and ideal for small firms
- Shared Office: Good for startups and SMEs needing moderate visa quotas
- Private Office: Best for larger firms needing more staff visas
Choosing the right space ensures you meet visa allocation requirements.
Step 7 – Open a Corporate Bank Account
Opening a bank account is mandatory. Leading banks like Emirates NBD, Mashreq Bank, and HSBC require:
- Valid business license
- MOA/AOA
- Passport copies of shareholders
- Proof of office address
A well-prepared business plan increases your chances of quick approval.
Costs and Investment Requirements
Typical costs include:
- Business License: AED 8,000 to AED 50,000+
- Office Rental: AED 8,000 for virtual office, up to AED 50,000 for private offices
- Visa Costs: AED 3,000–AED 7,000 per person
- Bank Deposits: AED 10,000–AED 100,000 depending on the bank
Free zones may require minimum share capital, especially for multiple visas.
What Can Help – Mubarak Al Ketbi (MAK) Auditing
When you need trusted advice, Mubarak Al Ketbi (MAK) Auditing can guide you through business setup and tax compliance. We make the process smooth and clear because we know “the proof is in the pudding” when it comes to results.
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- WhatsApp/Call: +971 50 276 2132
