Setting Up a Business in the UAE in 2025: A New Era of Opportunities and Rules

The UAE has long been recognized as a global hub for entrepreneurship, innovation, and investment. With its business-friendly environment, cutting-edge infrastructure, and strategic location, the country continues to draw the world’s attention. But as we step into 2025, setting up a business in the UAE has been made even more efficient and rewarding, thanks to several new reforms, rules, and opportunities designed to drive economic growth and global competitiveness.

Let’s dive into the latest updates and what they mean for entrepreneurs and investors planning to join this vibrant market.

dubai 2

Why Set Up in the UAE?

Before we explore the new rules, it’s worth recalling why the UAE is such a magnet for businesses. Here’s why it remains a top choice:

  • Strategic Location: Serving as a bridge between Europe, Asia, and Africa.
  • Tax Advantages: Low or zero taxes in many sectors and free zones.
  • Ease of Doing Business: Advanced infrastructure and streamlined processes.
  • Global Connectivity: International airports, seaports, and robust logistics networks.

What’s New in 2025?

The UAE government has introduced a series of reforms to simplify and enhance the process of starting and running a business. Here’s an overview:

1. Centralized Business Setup

The UAE is making it easier than ever to register a business, especially in key hubs like Abu Dhabi and Dubai.

  • Abu Dhabi Registration Authority (ADRA): Abu Dhabi launched ADRA to centralize all business registration processes, including free zones and mainland companies. This means fewer delays, simplified paperwork, and faster approvals.
  • Dubai’s Unified Digital Platform: In Dubai, a single online platform now handles licensing for all types of businesses. Whether you’re setting up in free zones or special development areas, you can navigate everything from licensing to fee payments in one place.

2. Introduction of New Corporate Tax Rules

The corporate tax regime in the UAE is evolving. Here’s what’s new:

  • 15% Corporate Tax: Multinational companies with revenues exceeding €750 million must adhere to a minimum corporate tax rate of 15%.
  • R&D Tax Benefits: Businesses engaged in innovation and technology receive tax credits of up to 50%, encouraging investment in future-focused sectors.

These measures align the UAE with global tax standards and ensure a competitive edge for companies operating within its borders.

image 2

3. Boosted Emiratisation Policies

Creating opportunities for Emirati talent remains a government priority.

  • Companies with 50 or more employees must increase their Emirati workforce by 2% each year.
  • Smaller companies (20–49 employees) must employ at least two Emiratis.

This ensures that the UAE’s growth directly benefits its citizens while fostering inclusivity.

4. Faster Licensing and Operational Setup

Entrepreneurs in 2025 will enjoy streamlined procedures to hit the ground running:

  • Licenses Issued Faster: Through unified digital systems, licenses can now be issued within days.
  • Banking Support: Collaborations with financial institutions ensure SMEs can open bank accounts within 72 hours.
  • Utility Services Setup: Telecom and electricity services are expedited to avoid delays in launching operations.

5. Emerging Opportunities in Key Sectors

The UAE is doubling down on its efforts in strategic industries:

  • Technology: With billions of dollars invested in AI and tech startups, the UAE is positioning itself as a global leader in artificial intelligence and innovation. For example, companies like G42 and partnerships with Microsoft are driving major advancements.
  • Clean Energy: New trade agreements, such as the UAE-Australia CEPA, encourage collaborations in renewable energy and sustainable practices.
  • Advanced Manufacturing: Abu Dhabi is establishing new industrial zones with incentives to attract high-tech and localized production.
image 5

Staying Compliant: Rules to Note

1. Anti-Money Laundering (AML) and Cybersecurity

Businesses are required to strictly comply with the UAE’s anti-money laundering and cybersecurity laws. This means implementing transparent financial practices and robust systems to protect sensitive data. Non-compliance can result in heavy fines.

2. Mandatory Health Insurance

By January 2025, all private sector workers must have health insurance. Employers are responsible for ensuring coverage, emphasizing the government’s focus on employee welfare.

Sector-Specific Perks

Some industries have seen especially encouraging reforms:

  • E-Commerce: Entrepreneurs in e-commerce will find advanced logistics and regulatory support to cater to growing demand.
  • Virtual Offices: New options in free zones allow businesses to maintain a presence in the UAE without the overhead of physical office space.

Milestones for 2025

Here’s what’s rolling out this year:

  • January 2025: Introduction of the Domestic Minimum Top-up Tax and mandatory worker health insurance.
  • June 2025: Implementation of the Nutri-Mark labeling for food businesses, signaling progress in public health and food transparency.
  • End of 2025: Dubai will launch its air taxi operations—reinventing urban transportation and giving the private sector a chance to capitalize on this futuristic venture.

Why Act Now?

Whether you’re an established multinational or a first-time entrepreneur, 2025 is a golden year to tap into the UAE market. The regulatory changes offer greater clarity, streamlined procedures, and untapped opportunities. Partnering with trusted consultants can make the process even more seamless.

BizDaddy: Your Partner in Business Setup
Navigating the new rules can be challenging, but with BizDaddy, the journey becomes straightforward and hassle-free. From documentation to license approvals, BizDaddy ensures you can focus on your business vision while they handle the rest.

Get in touch with BizDaddy today to start your business journey in the UAE—the land of endless opportunities.

FAQ

What are the major changes to business setup in the UAE in 2025?

The key updates include:
Faster licensing processes with unified digital platforms in Abu Dhabi and Dubai.

Introduction of a 15% corporate tax for multinational companies with revenues above €750 million.

Mandatory health insurance for all employees in the private sector.
Increased Emiratisation requirements for companies employing more than 20 workers.

Expansion of tax benefits for research and development in technology and innovation sectors.

How has the corporate tax affected business setup in the UAE?

While the UAE introduced a 9% corporate tax in 2023, companies meeting global revenue thresholds of €750 million must adhere to a minimum tax rate of 15% from 2025. SMEs and startups below these thresholds remain exempt, making the UAE an attractive destination for smaller businesses.

What are the costs involved in setting up a business in the UAE?

Costs vary depending on factors like:
Type of license (e.g., commercial, industrial, or professional).
Location (mainland or free zone).
Number of visas required.
On average, licenses in free zones start around AED 10,000–AED 25,000, while mainland setups may range higher due to additional fees like office space requirements.

How long does it take to get a trade license in 2025?

With the implementation of unified digital platforms, trade licenses can be issued in as little as 2–5 working days, depending on the type of business and approvals required.

What are the Emiratisation requirements for companies in the UAE?

Companies with 50 or more employees must increase their Emirati workforce by 2% each year. Smaller companies with 20–49 employees are required to hire at least two Emiratis. Non-compliance may result in penalties.

Can I set up a business in the UAE as a freelancer?

Yes, several free zones, such as Dubai Media City and Sharjah Media City (Shams), offer freelancer permits. This option is ideal for individuals working independently in fields like media, design, writing, or technology.