Dubai Company Setup Biggest Myths!
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Setting up a company in Dubai has become one of the most popular moves for entrepreneurs, consultants, and business owners from across the world. The city has positioned itself as a global hub for trade, technology, finance, and digital businesses. Yet despite its growing reputation, there are still countless myths and misconceptions surrounding the process of starting a business in Dubai.
At GenZone, we have helped more than 800 companies establish themselves in the UAE. We speak to founders every day who have heard stories that simply do not reflect reality. These myths are often based on outdated laws, misinterpretations, or even misinformation spread by agencies that do not understand how the system works today.
In this article, we will break down the most common myths about setting up a company in Dubai, explain why they are wrong, and show you the real scenario. By the end, you will have a clear picture of what it actually takes to start and run your business here.
Myth 1: You Must Have a Local Sponsor Who Owns 51% of Your Business
One of the most common misconceptions about business setup in Dubai is the idea that a local Emirati sponsor must own 51 percent of your company. This used to be true many years ago for certain types of mainland businesses. Entrepreneurs were required to hand over majority ownership to a UAE national, often as a silent partner.
The good news is that this rule no longer applies. Today, almost all company structures allow 100 percent foreign ownership. This is particularly true for free zone companies, where full ownership is guaranteed. Even for most mainland companies, the regulations have changed and foreign investors can retain complete control.
To be clear, if you set up a company in Dubai in 2025, you will own 100 percent of your business unless you decide to bring in a partner or investor. Nobody will be forced into your structure.
This change has been one of the biggest game-changers in attracting global entrepreneurs to Dubai. It provides the freedom and control that founders need while still giving them access to the local and international markets that Dubai connects to.
Myth 2: Setting Up a Company in Dubai is Complicated and Takes Months
Another myth we hear often is that setting up a company in Dubai is a slow and complicated process. Some people believe it can take several months to receive a trade license, a residency visa, and a business bank account.
In reality, the process is very efficient if you know what you are doing. With the right guidance and a streamlined approach, a company can be fully operational within 30 days or less. This includes license issuance, visa processing, and opening bank accounts.
The reason some people face long delays is that they choose the wrong free zone, the wrong activity, or the wrong setup structure. Every zone has its own timeline and requirements. If you do not know which one matches your business model, you may end up waiting months unnecessarily.
At GenZone, our team has refined the process after working with hundreds of businesses. We know which zones provide faster approvals, which activities face stricter reviews, and which documents must be prepared in advance. This knowledge saves founders months of wasted time.
For most entrepreneurs in sectors such as e-commerce, consultancy, and digital services, the entire setup can be completed smoothly in a matter of weeks.
Myth 3: Dubai is Only for the Ultra-Rich
Many people assume that Dubai is a playground only for the wealthy. The image of supercars, luxury towers, and extravagant lifestyles can give the impression that only millionaires can afford to live and do business here.
The truth is that Dubai is accessible to a much wider range of entrepreneurs and professionals. You do not need to be ultra-rich to establish a company here. In fact, business setup packages with GenZone start at around $9,000 all inclusive. This covers your business license, residency visa, bank account assistance, and our full service fee.
For entrepreneurs earning $7,000 or more per month, Dubai already makes strong financial sense due to the tax advantages. The higher your income, the more compelling the case becomes. For example, if you are earning $200,000 in a high-tax country, you may lose nearly half of it to taxes. In Dubai, you keep nearly everything you earn, which allows you to reinvest in your business, save, or enjoy a higher quality of life.
Dubai does have luxury options, but it also has affordable living choices that cater to middle-class entrepreneurs and families. From housing to schooling to healthcare, the cost of living is more flexible than many people imagine, especially once tax savings are factored in.
Myth 4: You Cannot Open a Bank Account with a Free Zone Company
Another myth is that opening a corporate bank account for a free zone company is nearly impossible. While it is true that banking compliance in the UAE has become stricter in recent years, this does not mean free zone companies are excluded.
In fact, we guarantee that every one of our clients will be able to open both personal and business bank accounts. The key is knowing which banks are best suited for different types of businesses and how to prepare the correct documents for compliance.
GenZone is the number one partner with Wio Bank, which makes us the top service provider for account openings with them. This does not mean that compliance checks are bypassed, but it does mean that our applications are prioritized and carefully reviewed because the bank knows we prepare them correctly.
We also work with other leading banks in the UAE. Our approach ensures that every client gets their account opened and can start operating smoothly. For most entrepreneurs, starting with Wio and then expanding to other banks once statements are available is the most efficient path.
Myth 5: Everyone Moves to Dubai Only for Tax Reasons
Taxes are one of the biggest attractions for entrepreneurs relocating to Dubai, but they are far from the only reason people move here.
Dubai offers a unique combination of benefits that go beyond taxation:
Safety: Dubai is one of the safest cities in the world. Families can let their children play outside without fear, something that is rare in many other countries.
Quality of life: With modern infrastructure, healthcare, and international schools, Dubai provides an exceptional standard of living.
Weather: Apart from the hot summer months, Dubai enjoys warm and sunny weather throughout the year.
Networking: The city attracts ambitious professionals, entrepreneurs, and investors from across the globe, creating unmatched opportunities for business growth.
Convenience: From world-class airports to global events, Dubai is one of the most connected and accessible hubs in the world.
When you combine all of these advantages with low taxation, Dubai becomes an obvious choice not just for financial reasons but for lifestyle and growth as well.
Why These Myths Exist
It is important to understand why so many myths continue to circulate about setting up a business in Dubai.
Outdated information: Laws and regulations have changed significantly in recent years. People still repeat rules that no longer apply.
Complicated landscape: With dozens of free zones and different structures available, the details can be confusing for someone new to the system.
Misinformation from competitors: Unfortunately, some agencies spread false or misleading information to make their services seem more attractive.
Individual bad experiences: Entrepreneurs who went through delays or rejections in the past sometimes assume this will happen to everyone.
The reality is that if you work with the right partner, business setup in Dubai is straightforward, affordable, and effective.
Final Thoughts: The Real Picture of Business Setup in Dubai
Dubai is no longer the mysterious, difficult, or inaccessible market that many people think it is. The rules are clear, the process is efficient, and the opportunities are enormous.
The biggest takeaway is this: you can own 100 percent of your business, set everything up in under 30 days, and operate freely with access to global markets. You do not need to be rich, you will get a bank account, and you will enjoy far more than just tax savings.
At GenZone, we have built our reputation on helping entrepreneurs avoid mistakes, skip delays, and get their business running the right way from day one. With over 800 successful company setups, we know exactly what works.
If you are ready to explore setting up your company in Dubai, book a call with our expert team today. We will walk you through the process, answer your questions, and design the most efficient setup plan for your specific business needs.
A real estate, company formation, and taxation expert who has secured multiple properties, residencies, and passports across borders. After relocating from Canada to Dubai, Kevin McKenzie co-founded GenZone with Shayan Nasiri to help entrepreneurs and professionals navigate residency, banking, taxation, and global mobility.