Business Setup

FAQs for Business Setup in UAE

Frequently Ask Questions: Business in UAE

Here is the list of frequently asked questions regarding setting up a business in Dubai, Freezone company formation, mainland business setup process, offshore business formation, and a lot more. Go through these Q & A to find out what you are looking for. If you can’t find the answer you want, just feel free to write to us at One of our business consultants will get back to you once receiving your email.

Business Setup FAQ          Business Setup FAQ


Business Setup FAQ           Business Setup FAQ

What is Dubai Mainland?

The mainland is a geographical area where all the private businesses permit commercial business activities by DED i.e. Dubai Economic Department. It is the prime location where various foreign companies such as international chains of food, car makers, etc start their business.

How can I start company in Dubai?

You can start 3 types of companies in Dubai i.e. mainland, free zone, and offshore company. For setting up any of these companies, you need to follow certain steps such as Business in UAE

  • Get in touch with our team of expert business consultants
  • Submit the essential documents
  • Determine the trade name
  • Local partnership
  • Business approval process
  • Preliminary approval
  • Acquiring business license
  • Immigration and visa process

Business Setup FAQ

How do I setup freezone business in Dubai?

To start a free zone company in Dubai is easier than a mainland business setup in Dubai. You just need to follow. The below things to get the ball rolling on your own free zone business in Dubai:

  • Identify the legal identity
  • Decide on a unique trade name
  • Application for the business license
  • Acquire a good office space

Business Setup FAQ

How can I get a business licence in Dubai?

Depending on the nature of the activities which business going to do. Either commercial, industrial, or professional license approved by the government. But before that, you need to pass through various processes such as document submission, UAE local partnership, local sponsor, business sponsor, the preliminary approval, etc.


Business Setup FAQ

How can a foreigner start a business in Dubai?

A foreigner can start his/her business in any of the three different ways i.e. Mainland business, Freezone business, or offshore business. There are certain rules and regulations in all these three types of businesses. Freezone business setup is very easy and quick compare to mainland business in Dubai.

Can a freezone company do business in Dubai?

As per the law, the free zone company completely restricts doing business with the Dubai mainland companies. If Freezone business wants to do business with mainland businesses, it has to pass through various licensing and documentation processes.

Is it easy to start a business in Dubai?

Yes, it is easy to start a business in Dubai as the Dubai government gives certain benefits to foreign investors. If someone wants to start a free zone or offshore company. It is very easy, quick, and cost-effective. While if he/she wants to start a mainland company, then it requires to have a partnership with UAE nationals. Additionally, the mainland business setup process is costlier than the free zone or offshore business setup process.

What is the difference between Dubai freezone and Dubai mainland?

The basic difference between Dubai free zone and the mainland is that FZ companies restrict to do business within the specific area only. While mainland companies can do business anywhere even outside UAE, too.

What is the legal structure of Mainland Company in Dubai – UAE?

There are many types of legal structures you need to know when you want to start your business

  • Sole Establishment
  • Civil company
  • Limited liability company

Do I need local sponsor at the time of starting my business?

You need to know first what is your company activity. If you will take your license in Free Zone or Mainland Company. If you start your business in a free zone you don’t need a local sponsor. But if you will start your business on the mainland yes you will need to have a local sponsor. The role of local sponsor will be depends on your company’s legal type and activity.

Why do I need local sponsor and how much I have to pay him?

You need UAE local sponsor if you will open your business on the mainland. This activity will be limited to sponsorship only and not get involved in the business. You have to pay him his yearly fee as agreed before starting the documentations. It has no maximum or minimum level and it’s negotiable between you and the business consultant or him directly.

What is the deference between individual local sponsor OR corporate sponsorship?

Actually, there is no much difference but it remains more protected. If you chose to have corporate sponsorship, sponsorship remains the same.

How to get a residence visa in Dubai?

You have to have sponsored such as a company to work with. Open your own company and have an investor visa or have your own freelance visa.

Can I sponsor my family with freelance visa option?

Yes, you can sponsor your family, immigration may ask you to keep some deposit refundable amount as security.

Can I open my company with 100% ownership?

Yes, you can if your business match one of the free zone arthritis activities. Even in Mainland Company, you can own the business 100% with a local service agent with 0%.  You get an investor visa valid for three years.

How can I sponsor my family and my parents?

Once you have your residence visa stamped on your passport. You can sponsor your family but to sponsor your family you need special approval from immigration. To sponsor and it will be renewable yearly.

How to get golden visa in Dubai?

There are two types of visas if you are an investor. Your company/ business asides value more than 10 million AED. You have an audit report showing this value you will be eligible to get it. You should win a property with a value of one to five million UAE dirham you get three to five years residence visa.

Do I need to come to Dubai to establish my business?

Yes, you can do that remotely if it’s a free zone company. But if its a mainland company you have to give power of attorney to one of the professional business consultants. To do the formalities on your behalf without coming to Dubai.

How can I have bank account in Dubai – UAE?

You should have an employment Or investor visa in order to open your personal bank account. If have the company you also can open a bank account in your company name.

What are the documents required to start my business?

Not all the business and companies’ type need same documents but for sure your clear color passport copy and entry visit or residence visa copy required.

Do I need to show any capital to start my business in Dubai – UAE?

No you don’t need to frees or deposit any capital to start your business in Dubai – UAE.

How many days needed to start my business in Dubai – UAE?

It take Three to Five working days once you initiate the process with one of the professional services provider.

What are the activities which need special approval?

If your business activity related to Education you will need approval from ministry of education KHDA or if it’s related to engineering or construction you will need approval from municipality and if related to communication you will need approval from Etisalat.

How can I get engineering local sponsor certified?

It’s not easy to find since government allow each local to have only one company to sponsor plus should not have any bother related other company activity such as general trading.

What is the best company activity to start business in UAE?

There are few of star businesses in Dubai – UAE which highly recommended such as:


  • IT related businesses
  • Health care businesses
  • Delivery services
  • Limousine services
  • Travel and tourism
  • Hospitality and F&B  services
  • Cleaning services
  • Baby care services
  • Maintenance services
  • General trading

How to secure or protect my business with local partner?

There is an investment agreement which can protect your investment if you ask your business consultant to create it and let local to sign stating that he is a sleeping partner and he doesn’t own any shares in your company.

What is the advantage and disadvantage of having free zone license?

The advantage that you will own the company 100 % without local sponsor. the disadvantage will be if you have to hire many employees in free zone you will have to rent big office space depends on how many employee you want to hire since its counted for each 90 sq/ft one employee when this requirements not in mainland company.

What is the advantage and disadvantage of having mainland license?

Some investors feel un-secured by having local sponsor with 51% share capital involvement especially if they heard from other investors whom they had bad experience about it, but the big advantage that you can have any number of visas or sign services contracts with government authority if you have LLC Company easily. There is many activities local sponsor doesn’t have to have 51% shares especially if it’s related to services provider activity.

How to choose business consultant professional company to work with?

The first thing you need to do is to read there review on google, read about their services in there website also if you are in UAE I suggest you to visit there offices and meet face to face.

What is PRO services?

PRO services is one of the most important services you will need to reduce your hassle by visiting government offices to apply for your visa or your dependent visas, there are few of professional companies in Dubai providing this services by in-house professional team.

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How to get nanny Or Driver visa?

By consulting one of the professional PRO services provider they can advise you with requirements and get the job done for you.

How to get property investor visa?

If you own a property with more than one million dirham value you can apply for the visa and also if it’s still in mortgage below 50% of its value

How to get my documents attested by MOFA?

There are many business consultants who provide this services when you don’t have to move from home or work, they will get it done and deliver it back to you in short time

How to liquidate my company if its free zone or mainland?

Usually the company liquidation take around 45 days to be completed , each company structure has different requirements.  You need to contact one of the professional services provider to guide you accordingly.

How to start a subsidiary company ?

By providing company attested documents and board of resolution you can start subsidiary company in dubai

How to start branch of foreign company in Dubai ?

You can start branch of foreign company with 100 % ownership no local required , parent company documents attested will be needed to start the formality

Can I start my business remotely ?

Yes you can start your business remotely by sending your passport copy and information needed. One of our business consultant team and they will do the needful

What can I trade under general trading activity ?

You can trade in any type of products except gold and oil need special approval to add it on your license activity

How can I start restaurant or coffeeshop business in dubai ?

You first need to find the suitable location of your F&B activity in one of premium locations in dubai such as Dubai Marina, JLT Or business bay

Where is the best location in Dubai to start coffeeshop or restaurant in Dubai ?

We suggest you to visit Dubai Marina, The Point , Palm Jumeirah , JLT , business bay Or down town

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