I Tried Setting Up 3 Businesses in Dubai – Here’s What Actually Happened
Why I Eventually Gave Up on DIY (Spoiler: It Was Painful)
My first attempt was a disaster. I thought, “How hard can it be?”
Turns out, very hard.
I spent two months running between government offices, getting different answers from different people. One officer told me I needed Document A, another said Document B was more important. Meanwhile, my savings were burning through Dubai’s expensive cost of living.
The breaking point came when I submitted my application for the third time and got rejected because I’d filled out the wrong version of a form. That’s when I swallowed my pride and called a consultant.
Best decision I ever made.
The Three Types of Business Setup (And Why Your Choice Really Matters)
Here’s the thing nobody explains properly:
Mainland Companies
This means you can sell anywhere in the UAE. Sounds great, right? It is, but there’s a catch – you need a real office, not just a P.O. Box. And the paperwork? It’s like doing your taxes, but in Arabic.
I went this route for my marketing agency because I needed local clients. Worth it, but definitely not the easy path.
Free Zones
Most expats choose this because it’s simpler. You get tax benefits, faster setup, and can own 100% of your company.
But here’s what caught me off guard – you can’t just sell to UAE customers directly. You need local distributors or agents. This killed my first business idea completely.
Offshore Setup
Perfect if you’re doing international business but don’t want to operate locally. I used this for my consulting work with European clients. Clean and simple.
Finding a Good Consultant (After Using Some Really Bad Ones)
My first consultant was cheap. Really cheap. Now I know why.
He disappeared for weeks, didn’t return calls, and somehow managed to spell my name wrong on official documents. The whole process took six months when it should’ve taken six weeks.
Consultant number two was the opposite. Expensive but thorough. He asked me tons of questions about my business model, explained every step, and actually answered his phone. Setup took three weeks.
Here’s what I learned about spotting good consultants:
They ask about your actual business plans – not just which package you want to buy.
They explain why certain structures work better for your specific situation.
They give you realistic timelines – anyone promising 5-day setup is probably lying.
They stick around after setup because they know you’ll need help with banking, visas, and renewals.
The Real Timeline (Not the Marketing Version)
Every consultant promises super fast setup. Here’s what actually happens:
Week 1: Lots of meetings and document preparation. If you don’t have all your paperwork ready, add another week.
Week 2-3: Applications get submitted. Then you wait. And wait some more. Sometimes authorities ask for additional documents nobody mentioned before.
Week 4-5: Approvals come through (hopefully), but you’re not done yet. Still need to sort out office space, bank accounts, and visas.
My fastest setup took 4 weeks. My slowest took 4 months (thanks, first consultant).
What It Actually Costs (Beyond the Advertised Price)
Those “starting from AED 4,999” ads? Complete nonsense.
Here’s real numbers from my three setups:
Free Zone Company (2019): AED 18,500 total
- License and setup: AED 8,500
- Office space (flexi desk): AED 6,000
- Visa processing: AED 4,000
Mainland Company (2021): AED 32,000 total
- Setup fees: AED 12,000
- Office rent and deposit: AED 15,000
- Various government fees: AED 5,000
Offshore Company (2023): AED 15,000 total
- Much simpler, fewer hidden costs
Pro tip: Always ask for a complete breakdown. The “additional fees” can double your costs.
Mainland vs Free Zone: How I Actually Decided
For my first business, I picked Free Zone because everyone said it was easier. Big mistake – I couldn’t reach my target customers properly.
For my second business, I needed UAE clients, so Mainland was the only option. More complicated but necessary.
For my third, international consulting work meant Offshore was perfect.
The lesson? Think about where your money will come from before choosing a structure.
My Biggest Mistakes (So You Don’t Repeat Them)
Mistake #1: Choosing business activities based on what sounded cool, not what I actually planned to do. Later found out I couldn’t offer half the services I wanted.
Mistake #2: Going with the cheapest consultant. Saved AED 3,000 upfront, cost me AED 10,000 in delays and fixes.
Mistake #3: Not researching banking requirements. Some UAE banks are really picky about new businesses. Took me three attempts to open my first business account.
Mistake #4: Forgetting about annual renewals. Every year, there are fees and paperwork. Budget for this from day one.
The Banking Nightmare Nobody Warns You About
Getting a business license is one thing. Opening a bank account? That’s a whole different battle.
UAE banks want to see business plans, salary certificates, rental contracts, and sometimes your horoscope (kidding about that last one, but barely).
My first account application got rejected because I couldn’t prove “business activity” – but how can you show business activity without a bank account?
The solution? Work with consultants who have banking relationships. They can introduce you to the right people and help prepare your application properly.
Life After Setup (The Part Nobody Talks About)
Getting your license feels amazing, but it’s just the beginning.
Year 1: Learning compliance requirements, figuring out accounting, dealing with visa renewals.
Year 2: Understanding local business customs, building supplier relationships, navigating employment law.
Year 3: Expansion decisions, partnership opportunities, tax planning.
Each year brings new challenges. Having a good consultant for ongoing support makes a huge difference.
What I’d Do Differently
If I could start over:
- Research the market first – understand your customers before choosing business structure
- Budget properly – assume everything will cost 50% more than quoted
- Find consultants through referrals – ask other business owners, not Google
- Plan for the first year – setup is just the beginning, not the end goal
- Build banking relationships early – start this process before you need it
The Honest Truth About Dubai Business
Dubai really is a great place for business. Low taxes, great location, modern infrastructure. But the setup process can be overwhelming if you don’t know what you’re doing.
Good consultants are worth every dirham. They save time, prevent mistakes, and help you start properly. But choosing wrong is worse than going alone.
Take your time finding the right help. Ask lots of questions. Check references. And remember – the goal isn’t just to get set up, it’s to build something successful.
Three businesses later, I’m still here and still learning. Dubai’s business environment rewards people who do their homework and work with the right partners.
Don’t let the bureaucracy scare you off. Just don’t underestimate it either.
