The world of business setup in Dubai is full of opportunities — but also full of details that rarely make it into flashy ads or quick offers. If you’re planning to launch your venture here, you need to understand what lies behind the headlines and be aware of the points that could mean the difference between a strong start and a stumbling one.
1. The “Cheap” License Isn’t Always the Smart Choice
You’ll find many ads promoting company formation in Dubai for less than AED 6,000, and while this may be true on paper, there are often limitations hidden in the fine print. Many such licenses are tied to very restricted activities, issued in small, lesser-known free zones, and do not allow you to operate in the mainland market — or even open a bank account easily.
Before being tempted by low prices, ask:
- Does this Dubai trade license allow me to issue visas for employees?
- Does it include a legal company address?
- Can I use it to obtain a UAE investor visa?
For official details, visit the Dubai Department of Economic Development:
https://ded.ae
2. Opening a Bank Account Is Not Guaranteed After Incorporation
One of the most common misconceptions is that obtaining your trade license automatically ensures a business bank account. In reality, opening a corporate bank account in the UAE is subject to strict compliance checks, especially for new companies without a clear business plan or active contracts.
Banks want to see a solid business profile, proof of operations, and realistic plans. Having a professionally prepared banking file can significantly increase your chances of approval.
3. Some Business Activities Require Special Approvals — and Can Delay You
Not all activities can be licensed directly in Dubai. Certain sectors such as media, education, healthcare, and food services require extra permissions from external authorities, including:
- Dubai Municipality
- Ministry of Health
- Media Regulatory Office
Failing to check this in advance can add weeks or even months to your setup process. It’s best to review the official list of activities requiring additional approvals before starting:
https://ded.ae/DED_ActivityList
4. Your Company’s Location Impacts Your Reputation
Your choice of location is not only a legal matter — it can affect how clients and partners perceive your business. Some lesser-known free zones have a reputation for low credibility, making banks and international clients cautious.
By contrast, well-known free zones such as:
- Dubai South
- DMCC (Dubai Multi Commodities Centre)
- IFZA
offer stronger legal standing and better recognition in global markets. For the official list of UAE free zones, visit:
https://u.ae/en/information-and-services/business/free-zones-in-the-uae
5. The Investor Visa Is Not Automatic
Many entrepreneurs assume that forming a company means they will automatically receive a Dubai investor visa. The truth is, there are specific conditions, such as:
- The license must be active
- You must hold actual shares in the company
- You must have a valid legal business address
Some authorities may also request supporting documents like an attested lease contract or proof of capital transfer. Learn more about UAE investor residency options here:
https://u.ae/en/information-and-services/visa-and-emirates-id/golden-residency
Bottom Line
Starting a company in Dubai is not just about filling out a form or paying a fee. It’s a comprehensive process — from choosing the right activity and license, to securing the right location, opening a bank account, and obtaining residency.
At MHO, we guide you step by step with:
- Activity analysis and license selection
- Trade name reservation
- License and visa issuance
- Corporate bank account opening
- Post-setup support
Book your consultation here: