Setting Up a BuSetting Up a Business in Dubai in 2022: A Step-by-Step Guidesiness in Dubai in 2022_ A Step-by-Step Guide
                     Setting Up a Business in Dubai 
in 2022: A Step-by-Step Guide
If you want to start a business in another country, look no further 
than Dubai. Dubai, as a well-known trading hub of the Middle East 
and North Africa (MENA) region, offers a plethora of advantages for 
businesses and corporations seeking to succeed, thrive, and connect 
with the rest of the world.
Dubai’s economy has grown by 2.1 percent since the beginning of 
2019, with total GDP reaching USD 56.7 billion in the first six months 
of the year. Furthermore, GDP is expected to rise to 3.8 percent in 
2020. The city’s growth prospects have attracted an increasing 
number of entrepreneurs. Fortunately, if you want to start a business 
in Dubai, the process is relatively simple, thanks to the UAE’s free 
zones.
What you should know before getting started
In general, there are a few things 
you should be aware of before 
beginning the process of 
establishing your business in Dubai. 
Let’s take a look at them one by one.
Economic Zone: Offshore vs. Free Zones
Before you begin, you must decide whether you want to operate in a 
Free Zone or Offshore. Both options have advantages and 
disadvantages depending on your needs.
Free Zone If you want complete control over your company, consider 
applying for a licence and locating it in one of Dubai’s free 
zones. The Dubai government introduced the free zone concept 
to entice foreign investors to set up shop in the city. 
In Dubai, there are currently over 30 free zones in operation. In 
general, each free zone is built around an industry category and 
offers licences to businesses in that category. Following are 
some examples:
● Dubai South 
● Dubai Multi Commodity Centre (DMCC)
● International Financial Centre of Dubai (DIFC)
● Dubai Internet City (DIC)
Offshore
Offshore companies can also be registered in a free zone and benefit 
from many of the same advantages. However, it is not a replacement 
for a free zone company. The main distinction between a free zone 
company and an offshore company is how the business is run. 
Offshore companies are permitted to conduct business only outside 
of the UAE. They also have no requirements for a minimum amount 
of capital to be deposited prior to incorporation.
However, unlike operating in a free zone, a sponsor is required, 
limiting your foreign ownership to 49 percent.
Licence Types
Aside from deciding on a zone, you’ll also need to determine the type 
of licence required. The Department of Economic Development (DED) 
is in charge of issuing licences, and you can apply for three different 
types:
License for commercial use
A commercial licence is required to start a business in Dubai that 
involves trading or the buying and selling of goods. This licence is 
applicable to businesses involved in import and export, sales, 
logistics, travel and tourism, general stores, and real estate.
Industrial permit
This type of licence is issued to businesses that engage in manufacturing activities 
that manually or mechanically transform natural materials and resources into 
finished products. This licence applies to textile manufacturing, metal 
manufacturing, and paper manufacturing.
Professional certification
Businesses that provide services, artisans, or craftsmen are granted a professional 
licence. Medical services, beauty salons, and repair services are examples of 
businesses that apply for this type of licence.
Sponsorship
When establishing a setup new business in free zone such as Dubai South, no local 
sponsor is required. One of the primary advantages of incorporating in a free zone 
is the ability to establish an entity with 100% foreign ownership without the need 
for a UAE national as a partner or sponsor.
Source: 
https://dubaisouthuae.wordpress.com/2022/04/08/setting-up-a-business-in-dubai-
in-2022-a-step-by-step-guide/
 
Contact Us
Dubai South
Address: Dubai South Headquarters:
P.O. Box 282228,
Dubai South, UAE
https://www.dubaisouth.ae/ 
Contacts:
Within UAE (toll free): 800-SOUTH / 800-
76884
International: +971-800-76884
Email: [email protected]