United Arab Emirates, a business powerhouse overflowing with opportunities and remarkable facilities, has officially become the most favorable location to do business in the entire Middle East. With its strategic location, free trade zones, remarkable infrastructure, expat-friendly visa policies, and no income taxes, UAE is a hub for businesses of all types.

Recently, UAE has been making headlines for hitting the top rank as the most desirable location to live, invest and work. The country has been the talk of the town amongst foreign investors due to its increasing foreign direct investment laws, officially recognized internationally for its business-friendly company setup laws, high GDP, and timely strategized economic diversification projects.

As a global hub for businesses, UAE is a prime location for entrepreneurs and investors who wish to start their businesses, but to ensure a smooth and successful process, it’s essential to consult with a business consultancy. RIZ & MONA CONSULTANCY specializes in providing business setup services in UAE key cities, including:

Our experienced company formation experts will work with you to choose the lucrative business option in the UAE market to establish your business, tailored to your particular business needs and requirements.

Benefits of Business Setup in UAE

The UAE offers a range of benefits for foreign investors looking to set up a business, whether on the mainland or in one of the free zones. Some key advantages include:

UAE Mainland

  • Mainland businesses offer unrestricted trade opportunities throughout the UAE, making it easy to do business with neighboring countries and access a large consumer base within the Middle East region.
  • Global trading opportunities and the ability to expand your business to other parts of the UAE are also key advantages of the mainland business setup.
  • Mainland businesses benefit from a robust legal and regulatory framework, providing a secure and stable business environment.
  • Access to a wide range of skilled professionals and infrastructure support in mainland business areas can help you grow and succeed.
  • Mainland businesses enjoy a strategic location, which can be beneficial for transportation and logistics.
  • Lower startup costs compared to setting up a business in free zones make mainland business setup a cost-effective option for many entrepreneurs.

UAE Free Zones

  • Enjoy complete ownership of your business without the need for a local sponsor in UAE free zones.
  • Benefit from tax exemptions on corporate taxes, import/export duties, and VAT for up to 50 years.
  • Set up and license your company quickly with a streamlined regulatory framework in UAE free zones.
  • Access state-of-the-art infrastructure tailored to your industry, including office spaces, warehouses, and logistics facilities.
  • Connect with other businesses in your industry, creating valuable partnerships and collaborations.
  • Repatriate all profits without any restrictions in UAE free zones.
  • Employees are not subject to personal income taxes, making it an attractive location for foreign workers.
  • Benefit from flexible visa policies for your employees and bring in foreign talent easily.
  • Take advantage of UAE’s strategic location and well-connected transportation infrastructure to access global markets.
  • Benefit from UAE’s robust legal system and business-friendly environment that fosters growth and innovation.

Types of Company Setup in UAE

In the U.A.E, there are several business structures that investors can choose from when setting up a business. Each sort of business entity has its own unique advantages and disadvantages, and it’s essential to consider your specific business needs and requirements before choosing the best option. Some of the most common types include:

  • Free Zone Company

    This type of entity is set up in one of the UAE’s many free zones and allows 100% foreign ownership and tax exemptions.

  • Mainland Company

    Mainland company in Dubai or in any other emirate allows businesses to trade across the emirates with no restrictions and offers global trading opportunities.

  • Limited Liability Company (LLC)

    A popular type of entity, an LLC is a combination of individual ownership and shared responsibility.

  • Branch Office

    A branch office is an extension of an existing company, allowing the parent company to conduct business in the UAE while retaining its original corporate identity.

  • Sole Proprietorship

    This form of enterprise is owned and operated by a single individual and is suitable for small-scale operations.

Requirements for Company Formation in UAE

The requirements for company formation in the UAE can be broken down into the following categories:


  • Copy of passport and visa for all partners
  • No Objection Certificate (NOC) from current sponsor (if applicable)
  • Memorandum of Association (MOA)
  • Trade Name Reservation
  • Tenancy Contract

Legal Formalities

  • Notarization of MOA
  • Authentication by the Chamber of Commerce

Business Licenses

  • Obtaining a relevant business license
  • Obtaining relevant permits and visas for employees

Approvals and Permissions

  • Approval from relevant departments (e.g. Department of Economic Development, Dubai Municipality)
  • Environmental approvals for certain kinds of businesses

It’s important to note that the requirements for company formation in the UAE can vary depending on the type of business entity, the industry, and the location.

Steps to Start a Business in UAE:

The process of business setup in the UAE involves the following steps:

  • Choosing a Business Activity

    The first step is to decide on the type of business activity you wish to engage in. This will determine the type of license required, the regulatory requirements, and other important factors.

  • Selecting a Business Name

    Once you have chosen a commercial activity, the next step is to select a business name that is available and meets the requirements set by the relevant authorities.

  • Incorporating the Business

    This involves preparing and submitting the required documentation and completing the legal formalities, such as registering the company with the Department of Economic Development and obtaining a commercial license.

  • Registering with Relevant Authorities

    The final step is to register with the relevant authorities, such as the Chamber of Commerce and the Dubai Municipality, and obtain the necessary approvals and permissions to start operating your business in the UAE.

Challenges in UAE Business Setup Process:

Starting a business in the UAE can present several challenges, including:

  • Understanding Regulations

    The UAE has a complex regulatory environment, and it can be difficult to understand the requirements and procedures to set up a new business. This can lead to mistakes and delays in the process.

  • Finding the Right Local Partner

    In certain cases, it may be required to have a local partner (UAE National) for business setup in the UAE. Finding the right partner who is trustworthy and has the necessary experience and connections can be a challenge.

  • Dealing with a Complex Bureaucracy

    The process of company registration can be lengthy and involve dealing with various UAE government departments and agencies. This can lead to complex bureaucracy and lengthy wait times.

  • Managing Costs

    Setting up a company in the UAE can be expensive, and it’s important to have a clear understanding of the costs involved, such as legal fees, licensing fees, and office rental costs. Effective budgeting and cost management is essential to ensure the success of your business in the UAE.

    These challenges can be overcome with proper planning and preparation, as well as seeking the assistance of experienced business consultants who can help navigate complex regulations and procedures.

Start a Business in Dubai and UAE

Dubai’s success in transforming itself into a business hub for trade and commerce is a prime example of the opportunities that the UAE offers for businesses.

The establishment of several free zones, such as the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), has made the emirates an attractive destination for financial and professional services companies.

However, the business setup process can be complicated and navigating regulations can be a challenge. That’s where RIZ & MONA CONSULTANCY comes in to help. Our team of business setup consultants in Dubai has extensive experience in business setup and provides comprehensive company setup services in Dubai and the UAE. Take the first step today to smoothly set up your business – Let us handle the complex process while you focus on your vision. Contact us now to start your business.


What are the key benefits of setting up a business in UAE?

Strategic location, ease of doing business, free zones, favorable infrastructure, expat-friendly visa policies, no income taxes, increasing foreign direct investment laws, high GDP, and economic diversification projects.

What are the types of company formation in Dubai and the UAE?

Free Zone Company, Mainland Company, Limited Liability Company (LLC), Branch Office, Sole Proprietorship.

What are the requirements for business establishment in UAE?

Documentation (passport, visa, NOC, MOA, tenancy contract), legal formalities (MOA authentication), licensing (commercial license, permits, visas), and approvals (from relevant departments).

What is the process of setting up a business in UAE?

Choosing a commercial activity, selecting a business name, incorporating the business, and registering with relevant authorities.

How do business consultants help you with company formation in Dubai and UAE?

Business setup consultants specialize in providing business setup services in UAE and have skilled company formation experts who work with clients to choose the best option for setting up a new company tailored to their specific business requirements.