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New Business Checklist for Entrepreneurs in Dubai

by | Oct 20, 2025 | Blogs

Are you dreaming of starting your own business in Dubai in 2026? Great decision! With the city’s booming economy, low tax rates, and world-class infrastructure, starting a business in Dubai in 2026 is a wiser decision ever. But before you dive in, it’s crucial to have a comprehensive plan, as missing even a single step could cost you time, and money. To guide you in the process of setting up a business in Dubai easier, we have come up with a new business checklist – from choosing between mainland or freezone company to understanding setup costs, required documents, and the workable business ideas for startups. By the end of reading this, you’ll have everything you need to establish your business in Dubai and avoid common pitfalls.

New Business Checklist for Entrepreneurs in Dubai

Highlights of New Business Checklist in Dubai

The new business checklist 2026 covers:

Choosing the right jurisdiction: mainland vs Freezone

Required documents & business licenses

Operational cost associated with each setup

Potential business ideas for startups

Guidance to get your business established in Dubai

Why Dubai Acts as a Hotspot for Entrepreneurs?

Dubai is the ideal destination for startups that wish to start their business. With 0% personal income tax, world-class infrastructure, and a strategic location, it’s no wonder that over 20,000 new companies registered here in 2025 alone.

Among all other countries, the UAE ranks highly globally for ease of doing business due to streamlined processes for setting up a company. With political instability across all the regions, the UAE has been politically and economically stable for a long time, and this is a positive sign that for sure you will get your returns doubled on your investment.

If you’re eyeing a business setup in Dubai, this is your moment. Working with professional business consultants can make your business dreams into a reality in a smoother transition.

Understanding Mainland Vs Freezone

Once you’ve decided to set up your business, the first thing you need to choose is where you want to set up your business – the Mainland or the Freezone.

What is Mainland Business Setup Dubai?

Mainland Business Setup in Dubai lets you operate anywhere in Dubai without any restrictions. Overseen by the Department of Economic Development (DED), a mainland business license allows unrestricted UAE trading and government contracts, and this license is ideal for retail or services targeting locals, with 100% foreign ownership in most sectors.

What is Freezone Company Formation UAE?

There are over 60+ free zones across the UAE, and each of the free zones offers 100% ownership, no corporate taxes (exemptions for certain sectors), and duty-free imports/exports. Freezone business license is great for tech, trading, and international trading, but for sales inside the mainland require distributors.

Your Step-by-Step New Business Checklist for 2026

This new business checklist is your A-Z guide that can take you on the right path of entrepreneurship.

Validate Your Idea: Brainstorm with market research and create the best workable business plan that meets the current market need.

Choose Structure & Location: Mainland or freezone? Sole trader, LLC, or Civil? Discuss with your business consultant in Dubai to find the right structure for your business.

Reserve Trade Name: Choose a trade name or business name and submit it for approval via DED or freezone authority. While choosing a business name, avoid religious/political terms. The business consultants in Dubai you work with will get your trade name approved in 1-2 days.

Legal Docs: Draft the MOA and business plan, and submit them to the DED for approval.

Approvals: One of the most important things to set up a business in Dubai is getting approvals from DED/DMCC, then sector-specific (e.g., health from DHA, restaurant from Food Safety).

Office Space: For a mainland license, the physical office location is a must, and for freezone business, you can opt for coworking spaces.

License Approved: After getting the approval, submit the documents, pay the licensing fee, and collect your license from the relevant authority.

Visa Processing: Based on the visa quota available, you can proceed with processing visas for your employees.

Open Business Bank Account: Submit all the required documents and open a corporate bank account with the leading UAE banks, such as Emirates NBD, & Mashreq.

VAT & Corporate Tax Registration: Register your business for VAT and corporate tax returns.

This is the checklist of the top 10 things you need to take care of to set up your business in Dubai. Working with a business consultant in Dubai and outsourcing administrative tasks to PRO specialists in Dubai can save 80% of your headaches and 70% of your operational costs.

Documents Required to Start a Business in Dubai

Here’s your proven proof list for 2026 setups.

For Mainland Company Formation

Passport copies (all shareholders, 6-month validity) + visa/entry stamp.

Emirates ID (if resident).

Proof of address (utility bill or tenancy contract).

Memorandum of Association (MOA) + Articles.

NOC from current sponsor (if employed in the UAE)

Business plan + lease agreement (Ejari-registered).

Trade name reservation certificate.

Documents for Freezone Company Formation

Passport copies + photos (shareholders/directors).

CV and bank reference letter (for freelancers).

Application form + business plan.

Source of Income (bank statement).

Letter of intent + existing company docs (if applicable).

If you’re working with a professional business consultancy in Dubai, there is nothing to worry, as they will take care of the required paperwork and make you feel less stress.

Breaking Down Business Setup Costs in Dubai 2026

The business setup costs fluctuate depending on your activity and jurisdiction, but here’s a snapshot of business setup costs you can expect in Dubai.

Mainland Business Setup Costs

Item Estimated Cost (AED)
License Fee 15,000 – 25,000
Office Lease Depending on the location
Visa (1 person) Starts from AED 5000 and varies depending on the quota available
Registration/Approvals Depending on the jurisdiction you choose
Total Initial AED 25,000 – 35,000+

Freezone Business Setup Costs

Item Estimated Cost (AED)
License Fee 5,500 – 15,000
Flexi/Coworking Space 5,000 – 20,000
Visa (1 person) Starts from AED 5000 and varies depending on the quota available
Registration Depending on the jurisdiction you choose
Total Initial AED 6,000 – 25,000

 

Meydan or IFZA? Doesn’t matter; you can set up your company for just AED 5,500, and the business setup packages can be customized as per your needs. Discuss with your business consultant in Dubai to get a FREE Quote for business setup Mainland and Freezone.

Why Partner with Business Consultants in Dubai?

Business consultants Dubai, like Dahhan Business Services, handle 80% of your work and make your business setup process smoother and hassle-free.

There you have it – your all-in-one new business checklist for conquering Dubai in 2026. From that nagging “where to start” to signing your first client, you’ve got covered. Need a support hand to guide you in this business setup process? Contact Dahhan Business Services to schedule a free consultation with our business consultants in Dubai team.

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