UAE Residency Through Business in Dubai: 2025 Guide

Dubai in 2025 offers attractive business residency opportunities, allowing entrepreneurs to obtain residency through streamlined business setup processes.

By Giulia Interesse

Dubai continues to solidify its position as a global business hub in 2025, offering a stable regulatory environment, zero corporate tax for most businesses, and one of the most efficient residency visa systems in the Middle East. These advantages, combined with the UAE’s strategic geographic location and strong infrastructure, make the emirate an increasingly attractive destination for foreign investors, entrepreneurs, and professionals looking to establish a regional presence.

Recent regulatory updates have further simplified the process of setting up a business in Dubai, whether through mainland entities, free zones, or offshore structures. In parallel, residency pathways linked to business ownership have become more accessible, including provisions for remote setup and full foreign ownership in key sectors.

This article outlines the key steps to establishing a business in Dubai in 2025 and explains how the process can serve as a gateway to securing UAE residency. It also highlights recent changes in licensing, ownership rules, and investment requirements, offering practical insights for navigating the evolving business landscape in the UAE.

Why choose Dubai in 2025?

Dubai remains a leading destination for foreign investment and business incorporation, underpinned by its investor-friendly policies and a steadily evolving legal framework. In 2025, the UAE continues to uphold its zero corporate tax policy for most domestic businesses, with limited exceptions now applied under the OECD’s global minimum tax rules for large multinational groups.

Key regulatory enhancements this year include broader access to 100 percent foreign ownership across several mainland sectors, and more streamlined residency pathways linked to business activity. Free zones have also expanded their offerings, with sector-specific packages designed to accommodate a wide range of business models—from early-stage startups to large-scale manufacturing.

Moreover, Dubai’s central location between East and West continues to serve as a strategic gateway for international trade, logistics, and regional expansion into the Middle East, Africa, and South Asia. The city’s advanced infrastructure, legal transparency, and investor protections further reinforce its appeal as a base for long-term operations.

How to set up a business in Dubai

Step 1: Choose the right business category

Selecting the appropriate business category is a critical first step, as it determines licensing requirements, capital obligations, and regulatory compliance.

• Trading Activities: Businesses engaged in the import and export of goods often benefit most from operating within free zones, such as Jebel Ali Free Zone (JAFZA) or Dubai Multi Commodities Centre (DMCC). These zones offer 100 percent foreign ownership, exemption from import and export duties, and access to state-of-the-art logistics infrastructure.
• Manufacturing Ventures: Establishing a manufacturing business in Dubai requires adherence to industrial regulations, including environmental and safety standards. This category typically involves higher capital investment, covering equipment, operational facilities, and compliance costs. However, the long-term advantages include access to regional and international markets via integrated supply chains and port connectivity.
• Professional Services
  Suitable for individuals and firms offering consultancy, IT, legal, or other knowledge-based services. These businesses usually face lower entry barriers and can operate from virtual offices or shared spaces. Licensing costs are generally modest, making this a preferred category for entrepreneurs and service-based startups.

Choosing the right category early on ensures alignment with the UAE’s legal requirements and can significantly impact both operational efficiency and eligibility for residency.

Step 2: Decide on business activity and jurisdiction

Choosing the right jurisdiction is just as important as identifying the type of business activity, as it will dictate the licensing authority, ownership rights, and operational scope within the UAE.

• Mainland companies: Mainland businesses are licensed by the Department of Economic Development (DED) and can operate across the entire UAE. They provide access to a wider domestic market and allow participation in government contracts. However, certain regulated activities may still require the appointment of a local service agent or adherence to sector-specific licensing rules.
• Free Zone companies: Businesses established in UAE free zones benefit from full foreign ownership, exemption from most taxes, and simplified customs procedures. Each free zone focuses on particular industries, offering packages and facilities tailored to those sectors. While free zone companies cannot trade directly within the UAE mainland without a local distributor, they are ideal for companies focused on international trade, services, or digital operations.
• Offshore companies: Designed for businesses that operate entirely outside the UAE market, offshore companies are often used for asset protection, international trade, and holding structures. While they cannot rent physical office space or apply for local visas, they still benefit from Dubai’s favorable regulatory and tax environment for global business.

Step 3: Define the business structure

Understanding the appropriate legal structure for the company is essential, as it affects ownership rights, financial liability, and eligibility for UAE residency:

• Sole Proprietorship: A single individual owns and controls the business. While easy to set up, the owner assumes full personal liability for the company’s obligations.
• Partnership: Involves two or more individuals sharing management duties and liability. Partnerships are often used in professional practices, such as law or accounting firms.
• Limited Liability Company (LLC): The most commonly used structure for both mainland and free zone operations. In 2025, LLCs in many sectors allow 100% foreign ownership, offering liability protection up to the amount of capital invested.
• Free Zone Entity: Specific to free zones, this structure allows full foreign ownership, streamlined licensing, and often a faster setup process. Companies can range from single-owner setups to multi-shareholder entities.
• Branch of a Foreign Company: This structure allows an international business to extend its operations into the UAE. The branch operates under the name and legal identity of the parent company and is subject to its same obligations and liabilities.

Each structure offers varying levels of regulatory compliance, operational flexibility, and access to residency visas for business owners and staff. 

Step 4: Set up remotely (if abroad)

One of the key regulatory updates in recent years is the facilitation of remote business registration. As of 2025, foreign entrepreneurs can initiate the incorporation process without being physically present in the UAE by issuing a Power of Attorney to a local agent or service provider.

This remote setup allows for company registration, licensing, and even visa applications to be initiated from abroad. However, certain steps—such as opening a corporate bank account, completing biometric registration, or visa stamping—require the applicant to be physically present in the UAE. Entrepreneurs should plan a short visit to finalize these processes once the company is established.

 Step 5: Business license and residency registration

Once the jurisdiction, activity, and structure are defined, the next step is formal registration and licensing. The type of license apply will depend on the nature of business:

• Commercial license: For trading and general commerce activities;
• Professional license: For service-based businesses, including consultancy and education; and
• Industrial license: For manufacturing, production, and industrial operations.

Step 6: Secure office space

The UAE’s flexible approach to office space requirements allows businesses of all sizes to find a model that fits their operational and visa needs. The type of physical or virtual space a business secures can also influence its eligibility for residence visas.

Types of offices include:

• Virtual offices suit service-based businesses with minimal physical presence, offering address registration and limited visa eligibility.
• Shared or flexible offices provide ready-to-use spaces with moderate visa quotas, ideal for startups and SMEs.
• Private offices are required for mainland setups and offer higher scalability and visa allocations for expanding operations.

Step 7: Open a corporate bank account

Opening a corporate bank account in Dubai is a crucial step in operationalizing the business and ensuring regulatory compliance.

Major banking options include Emirates NBD, Mashreq Bank, Dubai Islamic Bank, and international institutions like HSBC and Standard Chartered. Each bank has its own due diligence process, often requiring a physical meeting, especially for non-resident shareholders.

Required documentation typically includes:

• Valid business license;
• Shareholder and director passports;
• MOA/AOA and board resolution;
• Proof of office address; and
• Business plan and projected revenues.

Common challenges include heightened scrutiny for newly formed companies, especially those with no prior UAE footprint. To increase approval chances, businesses should maintain transparency, provide complete documentation, and, where possible, demonstrate existing or potential commercial activity in the region.

Step 8: Apply for a residency visa

Once the business is operational, the next step is to secure a UAE residency visa, which also enables to sponsor employees and family members.

Entrepreneurs can apply for their own residence visa through the business they’ve established. This includes submitting biometric data, undergoing a medical test, and securing health insurance.

Key documents include:

• Passport copy;
• Business license;
• Entry permit (if applying from abroad);
• Emirates ID application;
• Medical fitness certificate;
• Lease agreement or address proof; and
• Health insurance coverage.

Visas are generally valid for up to five years and may be renewable depending on the license and visa type. Business owners may also sponsor dependents, provided minimum salary thresholds are met and adequate accommodation is documented.

The Federal Authority for Identity, Citizenship, Customs & Ports Security (ICP) oversees the residency process. Approval times vary but are generally efficient when documentation is in order.

Costs and investment requirements

Setting up a company in Dubai involves a range of upfront and recurring expenses, which can vary significantly depending on jurisdiction, business activity, and visa needs.

Typical cost breakdown includes:

• Business license: Ranges from AED 8,000 (US$2.178,06) to AED 50,000+ (US$13,612.85), depending on the activity and jurisdiction.
• Office rental: Virtual offices start around AED 8,000 (US$2,178.06); shared or private offices can go up to AED 50,000+ annually.
• Residency visa fees: Including medical tests, Emirates ID, and visa stamping—costs range from AED 3,000 to AED 7,000 per applicant.
• Corporate bank account: Setup fees may apply, though banks typically require a minimum deposit, usually AED 10,000 (US$2,722.57) up to AED 100,000 (US$27,225.70) depending on the institution.

Many free zones have set minimum investment thresholds for visa eligibility—these may range from AED 50,000 (US$13,612.85) to AED 100,000 (US$27,225.70), especially for packages that include multiple visas or large office allocations.

Conclusion

Dubai in 2025 continues to offer a compelling proposition for global entrepreneurs seeking strategic access to regional and international markets. Its business-friendly environment, paired with enhanced residency pathways and full foreign ownership in key sectors, makes it one of the most competitive jurisdictions for business setup in the Middle East.

However, the success of the setup hinges on critical decisions: choosing the right jurisdiction, structuring the business correctly, and ensuring regulatory compliance from the outset. Each of these steps has direct implications on the operational flexibility, tax position, and visa entitlements.

Engaging with an experienced corporate services provider or legal advisor can significantly streamline the process—helping navigate evolving regulations, avoid delays, and secure long-term residency with confidence.

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