Setting Up a Company in Dubai: Opportunities, Requirements and Strategies for 2025

By Hannes Danho, Managing Director, Danho und Partner Wirtschaftskanzlei LLC-FZ, Dubai

In recent years, Dubai has established itself as a top destination for international founders. As Managing Director of Danho und Partner Wirtschaftskanzlei LLC-FZ, I support self-employed professionals, investors, digital entrepreneurs and expats every day as they plan their business fresh start in the United Arab Emirates. Why now in particular? Because, more than ever, 2025 stands for economic momentum, digitalization and tax optimization - and Dubai offers the ideal breeding ground for exactly that.

Why Dubai?

Dubai combines geopolitical stability, business-friendly regulation and tax advantages in a market that lies strategically between Europe, Asia and Africa. Add to this modern infrastructure, digital processes and an investor-friendly visa system. The state actively promotes entrepreneurship - whether through Freezones, simplified licensing or access to international banking solutions.

In this guide, you receive a practical yet in-depth analysis of every relevant aspect of setting up a company in Dubai. Starting with strategic considerations, moving through the legal differences from Germany, and on to dealings with the authorities, visa matters, bank accounts and tax perspectives.

1. Setting Up a Company in Dubai - Overview

Whether freelancer, e-commerce operator or holding structure: choosing the right company form in Dubai depends on the business model and the target region.

Why Dubai? The strategic relevance in 2025

Dubai offers more than tax advantages. The city is economically dynamic, geopolitically stable and technologically advanced. In 2025, entrepreneurs benefit from:

• 100 % foreign ownership (in almost all sectors)
• access to more than 30 specialised free trade zones
• a thriving startup and digital economy
• first-class infrastructure (transport, logistics, communications)
• digitalized administrative processes and short processing times

Choosing the location: Mainland, Freezone or Offshore?

As an advisor, I place particular importance on the choice of location. Many mistakes arise because entrepreneurs opt for a company form that does not match the intended activity.

• Mainland: ideal for companies that work directly with end customers or authorities within the UAE. It enables full market participation, including in government projects. Since 2021, 100 % foreign ownership has been permitted in most sectors.
• Freezone: optimal for service providers, digital business models, consultants, developers and agencies. Many zones offer all-inclusive packages (license, visa, office). Trading with the local market, however, requires a local distributor.
• Offshore: a pure holding structure for international investments, IP management and shareholdings. No active business operations in the UAE are possible. No residence visas. No access to local banks.

At Danho & Partner, we usually first examine which license types suit your business model - whether a commercial license, a service license or an industrial permit. We then advise on the choice of location, ownership structure and visa setup.

2. Requirements & Documents

To register, founders need:

• a colour copy of the passport
• a business plan or activity description
• a name reservation
• a tenancy agreement (for a physical or virtual office)
• where applicable, a police clearance certificate
• passport photos and a visa application

We provide all the forms, accompany you to the authorities and - if desired - handle the entire communication with the Freezone, DED and bank.

3. Duration and Costs

With our support, setting up a company takes between 5 and 15 working days. Typical start-up costs range, depending on the zone and license, between (in AED):

- License and registration 12,000 - 25,000

- Office (annual) 6,000 - 20,000

- Visa + Emirates ID 3,500 - 6,500

- Bank account opening 1,500 - 4,000

We work with more than 12 Freezones in Dubai and the other Emirates - including DMCC, IFZA, Meydan, DSO and RAKEZ.

4. Bank Account & Financial Structure

Opening a business account is one of the most important, but also most sensitive, steps. Today, many banks require:

• clear proof of ownership
• a coherent revenue plan
• a background check of the shareholders

We help you prepare for the bank interview, provide templates and establish contacts with banks such as Emirates NBD, Mashreq and RAK Bank, or international providers such as HSBC and Citibank.

5. Specific Tax Considerations

Dubai levies no income tax on private individuals. The corporate tax (Corporate Tax) of 9 % applies only from a net profit of 375,000 AED per year - and can often be avoided with the right structuring.

VAT (value-added tax) of 5 % is relevant only for local trading or service activities. In Freezones with purely international activity, one regularly remains tax-exempt.

We advise you on:

• optimizing your tax situation
• a legal tax relocation from Germany
• function relocation / exit taxation
• structuring with offshore or holding solutions

6. Visas and Residence Law

Anyone who sets up a company receives what is known as an investor or partner visa. We apply on your behalf for:

• a founder visa (2 years or Golden Visa)
• visas for spouses, children and employees
• Emirates ID, health insurance and driving licence

Where required, we offer an all-round service - from the visa application and tenancy agreement to transferring your driving licence in the UAE.

7. Avoiding Pitfalls - with Advice from Danho & Partner

The most common problems include:

• an unsuitable license (e.g. e-commerce instead of services)
• banks refusing to open an account due to a lack of substance
• tax repercussions from Germany
• breaches of visa rules or labour law

Our goal: avoid mistakes, save time and costs. With us, you do not merely set up a company - you build it sustainably and in compliance with the law.

Avoiding Common Mistakes

• Wrong license: if, for example, an online coach applies for a trading license, this can lead to the license being blocked
• No proof of substance: without a real office or website activity, banks refuse to open an account
• Inadequate tax check: relocating from Germany is subject to tax - keyword exit tax, § 6 AStG
• Unplanned visas: without a sufficient tenancy agreement or location, no family visas

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Why Danho & Partner?

Danho und Partner Wirtschaftskanzlei LLC-FZ, based in DIFC Dubai, has for years provided full-service advice to German and Austrian entrepreneurs. I, Hannes Danho, am your personal point of contact on the ground.

Our services:

• company formation (Mainland, Freezone, Offshore)
• obtaining visas and family reunification
• bank account opening with on-site support
• tax optimization and international structuring
• compliance, accounting and annual financial statements

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Your Start in Dubai Begins with Planning

In 2025, Dubai remains a location with the best conditions for international entrepreneurs, digital self-employed professionals and growth-oriented business models. Those who think long-term and are supported professionally can not only benefit for tax purposes but also build a stable business for the future.

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