Quick Summary: 2026 Process at a Glance

If you are in a rush, here is the short version of how to start a business in Dubai in 2026:

• Time to Launch: 3 to 5 Days for Free Zone | 2 Weeks for Mainland.
• New for 2026: The Dubai Unified License (DUL) now simplifies bank account opening.
• Ownership: You now get 100% Foreign Ownership on both Mainland and Free Zone (No local sponsor needed for most activities).
• The 6 Steps: ① Choose Activity ② Pick Jurisdiction ③ Reserve Name ④ Initial Approval ⑤ Office/Ejari ⑥ Final License & Visa.

Introduction

So, you have a business idea. Maybe you want to sell products on Amazon, open a marketing agency, or start a consultancy. But when you search online, you get confused by words like “Sponsor,” “DED,” and “Ejari.”

Don’t worry. In 2026, the government has made the process faster and easier than ever.

This guide is your roadmap. We will walk you through the 6 exact steps to launch your company legally, without wasting money on the wrong license.

Step 1: Choose Your Activity (What will you do?)

Everything depends on this. In Dubai, you cannot just say “I do business.” You must pick a specific activity from a list of 2,000+ options.

• Commercial: Buying and selling goods (E-commerce, Trading).
• Professional: Selling your skills (Consultancy, Design, Coding).
• Industrial: Manufacturing and packaging.

Warning: If you pick the wrong activity, you might be blocked from opening a bank account later. For example, “Crypto Trading” is much harder to bank than “IT Consultancy.”

Step 2: Mainland vs. Free Zone (Where will you be?)

This is the biggest decision you will make.

• Free Zone: Best for Online Businesses and Freelancers.
  • Pros: Cheaper, 100% tax exemption, no physical office needed.
  • Cons: You cannot do physical work inside Dubai city (only international or within the zone).
  • Cost: Check our Cheapest Free Zone Guide here.
• Mainland: Best for Shops, Restaurants, and Real Estate.
  • Pros: You can trade anywhere in the UAE and internationally.
  • Cons: Slightly more expensive and usually requires an annual audit.

Step 3: Reserve Your Trade Name

What will you call your company? You need to submit 3 options to the Department of Economy & Tourism (DET).

• Rule 1: No offensive words or religious names.
• Rule 2: If you use your own name (e.g., John Smith Trading), you must use your full name, not just “Smith Trading.”

Step 4: Get Initial Approval & MOA

Once your name is approved, you get an “Initial Approval” certificate. This means the government says, “Yes, you are allowed to start this business.”

At this stage, you will sign the MOA (Memorandum of Association).

• In the past, you needed to go to a court notary.
• In 2026: You can sign this digitally via an OTP on your phone.

Step 5: Rent an Office (Or a Virtual One)

• For Mainland: You usually need a physical office contract called Ejari.
• For Free Zone: You don’t need a real office. You can use a “Virtual Office” or “Flexi-Desk.” This saves you AED 30,000+ per year in rent.

Step 6: Final License & Visa Processing

You pay the final fees, and congratulations! You get your Trade License. But you aren’t done yet.

Now you need your Residency Visa:

1. Immigration Card: This registers your company with immigration.
2. Medical Test: A simple blood test and chest X-ray.
3. Emirates ID: Your official identity card for banking and contracts.

Pro Tip: The “Hidden” Step 7 (Corporate Tax)

Since 2025, every business (even small ones) must register for Corporate Tax.

• The Good News: If your profit is below AED 375,000, you pay 0% tax.
• The Rule: You still must register to get a Tax Registration Number (TRN), or you will face a fine.

Conclusion

Starting a business in Dubai is no longer complicated, but it is strict. One small mistake in your activity selection can cost you thousands in amendments.

At Biz Launch, we handle the paperwork so you can focus on making money. Whether you need a simple Free Zone license or a full Mainland setup, we get it done in record time.

FAQs

Can a foreigner own 100% of a business in Dubai? Yes. As of 2026, foreign investors can own 100% of their company in both Free Zones and Dubai Mainland for more than 1,000 commercial and industrial activities.

How much money is needed to start a business in Dubai? For a basic service license in a Free Zone, costs start around AED 5,750. However, for a fully operational setup with a visa and medical insurance, you should budget between AED 15,000 to AED 20,000.

What is the Dubai Unified License (DUL)? The Dubai Unified License (DUL) is a new digital identity for businesses. It links your trade license directly to government data, making it much faster to open corporate bank accounts and pass compliance checks.

Do I need a physical office to get a trade license? No. Most Free Zones offer “Flexi-Desk” packages where you get a license with a virtual address. However, Mainland General Trading licenses typically require a physical office with an Ejari contract.