Are you thinking about launching a business in the UAE? You are not alone. For a long time, Dubai has been a highly appealing destination for entrepreneurs from around the world. It is modern, well-connected, and packed with opportunities. In 2025, company formation in Dubai is still one of the smartest moves for new businesses.
But here is something more people are noticing: Sharjah is quickly catching up. A recent report indicates over 65,000 foreign companies are already operating in the Emirate, in trade, real estate, tourism, and manufacturing. It is becoming a real alternative to Dubai, especially with lower costs and quick access to the UAE market.
This guide walks you through how to start a company in Dubai, what it will cost, and what you will need to get started. You will also see why SPC Free Zone in Sharjah is worth a look if you want fast setup and more flexibility.
Business Setup in Dubai Begins with Choosing the Right Structure
One of the first things you will need to decide is what kind of company you want to set up. It is essential to understand the complete picture when it comes to Dubai mainland vs free zone company setup. This affects where you can run your business, whether you need a local partner, and how many visas you acquire.
There are three main types to choose from:
- Free Zone Company Setup
Free zone companies are perfect if you want complete control over your business with 100% foreign ownership, fewer restrictions, and flexible visa options. SPC Free Zone takes it a step further by providing business support and visa services on site. You can even get a dual license that enables you to do business in both the free zone and the mainland.
- Mainland Company Setup
You can do business all around the UAE if you set up a company on the mainland. But it comes with more steps, such as finding a local agency or sponsor. You will need to comply with additional rules, and the prices are usually priced higher than in a free zone. This is the best setup for you if most of your customers are in the local market.
- Offshore Company Setup
Offshore can be the best option for you if your firm is based outside of the UAE and you do not require a physical presence here. People often set up offshore companies in Dubai to trade internationally, keep assets, or offer services abroad. You get privacy and tax benefits, but you cannot operate inside the UAE.
Understanding the Step-by-Step Company Formation Process in Dubai
Starting a company sounds challenging, but it is a very doable process if you know the steps.
Let us break down the Dubai business setup steps 2025 into clear stages. Here is what the general process looks like:
- Choose the type of business you want to start
- Decide on the activities for your business
- Reserve the company name
- Collate and submit the required documents
- Apply for your business license
- Sort out the number of visas you need
That is all it takes to set up, and SPC Free Zone makes this even easier. The setup process is instant and takes one day, but the timeline can extend based on the activities you choose and the business structure. If you are looking for a quick and smooth start, SPC Free Zone is an excellent choice to consider.
Business Activity and Trade License Forms the Foundation
When you get a Dubai trade license, you must choose what your business can legally do. That is why it is essential to pick the correct license.
The Dubai trade license process starts with this choice. After that, you can send the documents, wait for them to be approved, and then pay the fees.
SPC Free Zone makes it easy to get started with a wide range of business activities, from trading and tech to services and media. Their dual license option is beneficial if you want the freedom to sell both inside and outside the free zone.
Know the Costs of Company Formation in Dubai for 2025
The cost of company formation Dubai can vary quite a bit depending on your setup.
In general, Dubai company licenses can cost anywhere from AED 10,000 to AED 50,000 or more, depending on your visa needs, office space, and activity type.
SPC Free Zone offers a more budget-friendly option, with packages starting from just AED 6,875 for a zero-visa license. If you want to keep your startup costs low, it is one of the best-value setups in the UAE.
Meeting All Registration and Legal Requirements
You will need to meet the Dubai company registration requirements. The exact documents can vary slightly, but here is a typical Dubai company formation documents checklist:
- Passport copies of shareholders and managers
- Emirates ID (if available)
- Proof of your address (like a utility bill)
- Passport size photos
- Memorandum and Articles of Association
- Signature samples for the authorised person
SPC Free Zone team of professionals provides an uncomplicated process and guides to help you get everything right the first time.
Set Up Your Business from Anywhere in the World
Not in the UAE right now? No problem. Dubai virtual company setup online is entirely possible thanks to digital platforms like SPC Free Zone.
You can handle everything remotely – a company name reservation, document processing, approvals, and even visa applications. You will just need a notarised Power of Attorney to let someone manage things locally. Everything else, including signing and submission, can be done online.
LLCs Are a Popular Option for New Company Formation
A Limited Liability Company (LLC) is an excellent choice for many businesses. It offers flexible ownership, protects your personal assets, and is widely accepted for both small and mid-sized companies. The Dubai LLC formation guide explains how it limits your personal liability.
In Dubai, LLCs can be formed in both mainland and free zones. They are ideal if you want shared ownership or plan to grow over time. You can read more about LLCs here to get a full breakdown.
Conclusion
Setting up a company in Dubai is not as complicated as it might seem. You are already halfway there once you have chosen your structure, filled out the paperwork, and selected your license.
And if you are willing to explore outside Dubai, Sharjah, specifically SPC Free Zone, is worth a look. It is a good alternative for today’s business owners because of its low cost and efficient processes.
Ready to form your company in the UAE? Start with SPC Free Zone for flexible packages, dual licensing, and complete visa support—all under one roof.
Frequently Asked Questions
Choose your structure, pick a business activity, submit documents, and apply for your license.
Choose your structure, pick a business activity, submit documents, and apply for your license. It usually starts around AED 10,000. With SPC Free Zone, company registration starts from AED 5,875.
Mainland lets you trade across the UAE. A free zone gives you full ownership.
Yes, most of the process can be done remotely.
Passport, proof of address, ID (if any), business agreement, passport size photos, and signature samples.
Yes, it is flexible and offers personal asset protection.
Pick your activity, submit your documents, and apply through the licensing authority.
A passport copy, ID, utility bill, passport size photos, MOA, and signatures.
Yes, you can set it up online using digital tools and Power of Attorney.
Yes, you can operate in both the free zone and Sharjah mainland with one setup.
