Do you plan to start a business as a Canadian citizen in Dubai? With the UAE economy projected to grow by 5.1% in 2025 and Dubai’s free zones contributing 24% of the emirate’s foreign direct investment (FDI), now is the ideal moment to establish your presence in one of the world’s fastest-growing business hubs.

The Dubai Integrated Economic Zones Authority (DIEZ) reported a 35.5% surge in net profit and 18.4% revenue growth in 2024, underscoring the resilience of Dubai’s free zones even amid global economic uncertainties.

Canadian entrepreneurs can leverage 100% foreign ownership, tax exemptions on the first AED 1 million in profits, and streamlined processes like the AI-powered Smart Assistant for business licensing, which reduced setup times by 40% in 2024.

Dubai’s 40+ free zones, including JAFZA and DMCC, now host over 25,000 companies and are driving innovation in sectors like renewable energy, where the UAE plans to invest AED 150–200 billion by 2030 under the Net Zero 2050 Strategy. 

Recent reforms, such as Executive Council Resolution No. 11 of 2025, further simplify mainland expansion for free zone businesses, enabling access to Dubai’s AED 3.5 trillion consumer market.

Continue reading more to start setting up your business. 

Why Canadian Entrepreneurs Should Choose Dubai

Dubai offers numerous attractions for foreign investors and serves as a hub for international trade. Business setup in the UAE provides several benefits for Canadian entrepreneurs, including: 

• Future100 Accelerator for Canadians
• AED 500,000 seed funding for AI/HealthTech startups
• Free office space in DIFC Innovation Hub
• Mentorship from entities like Hub71 and Dubai Future Labs
• Corporate Tax Exemption

The UAE has introduced a 9% corporate tax effective June 1, 2023, applicable only to taxable profits exceeding AED 375,000. 

Qualifying Free Zone Persons may remain exempt under Cabinet Decision No. 142 of 2024 unless they fall under the scope of the Domestic Minimum Top-up Tax (DMTT) starting January 1, 2025. 

• Easy Business Setup

The streamlined business setup process offers various options, including mainland, free zones, and offshore setups.

• Expat-Friendly Environment

Dubai is renowned for its welcoming atmosphere for foreigners, making it easy to attract and retain top global talent.

• 100% Foreign Ownership

Recent regulatory changes allow Canadians to own 100% of their businesses in many sectors, particularly in free zones and certain mainland operations.

• Diverse Opportunities

Dubai’s economy spans industries such as technology, real estate, tourism, e-commerce, healthcare, and logistics—offering Canadian entrepreneurs a wide range of business opportunities.

• AI-Driven Business Setup Tools

The Dubai Department of Economic Development (DED) now offers AI-powered licensing via its Smart Assistant, which analyzes business activities, recommends free zones, and auto-fills application forms in under 15 minutes. Over 78% of startups used this tool in 2024 to expedite setup.

UAE’s Net Zero 2050 Strategy: Key Priorities

Dubai’s free zones now require businesses to adopt sustainability practices under the UAE Net Zero 2050 Strategy. For example, DMCC’s Sustainability Passport program helps companies reduce carbon footprints through energy audits and green certifications. Non-compliance may affect license renewals by 2026.

The UAE’s Net Zero 2050 Strategy, led by the Ministry of Climate Change and Environment (MOCCAE), aims to reduce national emissions by 40% compared to business-as-usual levels and achieve climate neutrality by mid-century. 

Central to this strategy is the Energy Strategy 2050, which targets tripling renewable energy contributions to 30% of the total energy mix by 2030 and investing AED 150–200 billion in clean infrastructure by the same year. 

This includes expanding solar, nuclear, and hydrogen projects, with the National Hydrogen Strategy positioning the UAE as a top low-carbon hydrogen producer by 2031. 

The plan aligns with sector-specific mandates, such as the building sector’s 79% emissions reduction target by 2035, which alone accounts for 60% of national emission cuts.

Process of Free Zone Company Setup for Canadian Citizens

Setting up a business in Dubai involves several key steps and requirements. This straightforward guide helps Canadians establish a free zone company in the UAE:

• Choose the Right Free Zone

With over 40 free zones in the UAE catering to specific industries like media, logistics, or e-commerce, Canadians should carefully research their target market and business needs. 

Prominent free zones include DMCC for commodities trading and JAFZA for logistics and manufacturing. After all, ensure the selected free zone aligns with your company’s goals.

• Define Your Business Activity

Free zones permit various activities such as manufacturing, consulting, and trading. Clearly outline your goods or services to ensure compliance with free zone regulations. If your company offers multiple services, verify whether combining operations is allowed.

• Select the Legal Structure

The legal structure depends on the number of owners and options available within the chosen free zone. Canadians can opt for sole proprietorship or Free Zone Establishment (FZE) for single ownership. For multiple shareholders, structures like Free Zone Company (FZC) may be suitable.

• Register for a Business Name

Choose a name that reflects your enterprise while adhering to UAE naming guidelines—avoiding offensive language, religious references, or acronyms. Submit the proposed name to the free zone authority for approval.

• Prepare and Submit Documents

Gather required documents like passport copies, photographs, and proof of address. Canadians should ensure proper certification or attestation of documents if necessary. Some free zones may request a brief business plan for better understanding of your objectives.

• Secure Initial Approvals

After submitting documents, free zone authorities will review your application. This may include verifying foreign credentials or references. As long as all paperwork is accurate and complete, initial approvals are typically straightforward.

• Lease Office Space

Leasing office space is optional for businesses with free zone licenses; Canadians can work from home or rent office space if needed. Options include shared workspaces or larger facilities depending on your requirements. Ensure compliance with license specifications.

• Pay the Fees

Registration and licensing fees vary based on your business type and chosen free zone setup.

• Receive Your Business License

Upon completing all procedures, you’ll receive your business license—granting legal permission to operate within the free zone.

• Apply for UAE Visas

Free zone licenses allow applications for UAE residence visas for yourself, dependents, and employees. The free zone authority assists with Emirates ID applications, medical exams, and visa stamps.

Further, the Golden Visa for Entrepreneurs now prioritizes AI, blockchain, and green tech startups. Qualifying businesses receive 10-year residency, waived license fees for 2 years, and fast-tracked approvals through the Mohammed Bin Rashid Innovation Fund portal.

• Open a Corporate Bank Account

A corporate bank account is essential for conducting transactions with Canadian and international clients. Choose a UAE bank that supports international transactions; banks may require your business license and shareholder details during account setup.

Cost of Setting up a Business in Dubai for Canadian Citizens

According to DMCC, business setup costs vary depending on the package selected. For example, a basic license starts at AED 35,484 annually, while other packages may cost up to AED 120,000 for three years. For tailored estimates based on individual needs, consult JSB Incorporation.

Conclusion

For tailored estimates and official guidance, visit the ‘Invest in Dubai’ platform, which provides comprehensive resources for business setup in Dubai free zones

Setting up a company in Dubai’s free zones may seem complex at first glance; however, JSB Incorporation simplifies the process significantly. From opening bank accounts to obtaining licenses and selecting suitable free zones—we assist Canadian entrepreneurs at every step.

Our experts ensure all documentation is accurate while helping you avoid common pitfalls—saving time and effort as you embark on your entrepreneurial journey in Dubai.

Book your free consultation call today with the experts of JSB Incorporation to start setting up your business.