Dubai has established itself as a global hub for entrepreneurship, attracting thousands of investors every year. With its strategic location, tax benefits, and ease of doing business, it’s no surprise that more entrepreneurs are exploring company setup in Dubai. However, with the rise in demand, there’s also been a noticeable increase in fraudulent firms claiming to assist with Dubai business registration.
Many entrepreneurs, especially international ones, fall victim to scams or unlicensed consultants. These fake companies may promise quick company registration in Dubai, guaranteed visas, or secret shortcuts—only to disappear with your money or leave you entangled in legal complications.
This blog will guide you through how to verify legit business setup firms in Dubai and protect yourself from fraud while securing your company formation.
Why Scams Are Common in the Dubai Business Setup Market
The business setup process in Dubai involves multiple steps, including government approvals, legal documentation, and often language barriers. Scammers exploit this complexity by targeting individuals unfamiliar with local laws or processes. They often:
- Pose as licensed agents without proper registration
- Overpromise with “guaranteed” approvals
- Charge inflated or hidden fees
- Disappear after receiving an upfront payment
- Mislead clients about what’s legally permissible
To avoid becoming a victim, it’s crucial to do your due diligence before partnering with any firm for company registration in Dubai.
1. Check for DED or Free Zone Authorization
In Dubai, legitimate business setup firms must be licensed by either:
- The Department of Economic Development (DED) for mainland business setup
- A recognized Free Zone authority for free zone setups
Ask the firm for their license number and verify it directly with the relevant authority. This is often possible through online portals or by calling the authority directly.
For example, if a company claims to specialize in Dubai South Free Zone or DMCC business setup, they should be listed as an approved partner on the official website.
2. Ask for a Written Contract and Breakdown of Services
Reputable companies provide a clear, written agreement outlining:
- Scope of services
- Timeline of each step
- Government and service fees
- Payment terms and refund policy
Scam firms often operate with vague terms or avoid giving official paperwork. If you’re not getting transparency upfront, that’s a red flag.
Also, ensure that the contract includes the company’s license number and legal name. If they’re hesitant to offer that, you should look elsewhere.
3. Research the Company’s Online Reputation
Before you register a company in Dubai through any third-party firm, take time to research their background. Look for:
- Verified Google Reviews and Trustpilot ratings
- Testimonials from real clients
- Case studies or documented client success stories
- An official website with clear contact information
Check their physical office location as well. Many scammers operate from co-working spaces or virtual addresses while pretending to have a physical office.
Also be wary of firms that have overly generic websites, use stock photos, or have inconsistent contact details across platforms.
4. Avoid “Too Good to Be True” Offers
If a company is promising a full business license, residency visa, office space, and bank account in just a few days at a suspiciously low price—it’s likely a scam.
Dubai business registration has costs tied to government processes. Legitimate company setup in Dubai usually includes:
- Trade name reservation
- Initial approval
- License issuance
- Office lease or Flexi-desk
- Visa application (if applicable)
- Local sponsorship (for mainland setup)
If any of these are skipped or extremely discounted without explanation, question the legitimacy.
Also Read: Eligibility Criteria to Register a Company in Canada
5. Verify the Consultants’ Credentials
Ask who will be handling your setup process. A genuine firm will have trained consultants or legal experts. Look them up on LinkedIn or ask for their business card and license to operate.
Some companies outsource to third parties without your knowledge. This increases the risk of miscommunication or unauthorized handling of sensitive documents.
6. Be Cautious With Advance Payments
It’s common for business setup firms in Dubai to require a deposit before starting the process, but you should never pay the full amount upfront without any progress or paperwork.
Always ask for official receipts and confirm that government-related fees are paid directly to the relevant authorities or through authorized channels.
Also, use secure payment methods like credit cards or bank transfers. Avoid cash payments or sending funds to personal accounts.
7. Check for Physical Office and Staff
If you’re already in Dubai or plan to visit, request a meeting at their office. A legitimate firm will welcome you to a registered office with permanent staff.
Seeing the working environment, meeting the consultants, and reviewing printed documentation gives you extra assurance that you’re dealing with a real company.
8. Get a Second Opinion
If you’re unsure about a firm or the proposal they offer, don’t hesitate to get a second opinion. Many legitimate business setup firms offer free consultations. Use this opportunity to compare prices, processes, and transparency.
If the first firm discourages you from speaking with others or pressures you to make an immediate payment, that’s another red flag.
Also Read: Documents Required for Company Registration in Germany
9. Ask for Proof of Government Interaction
Once your process starts, a real company will be able to show you government receipts, license drafts, or approvals at different stages. Ask for:
- Trade name reservation receipt
- Initial approval certificate
- Copy of the license once ready
- Visa application details (if applicable)
Any hesitation or delay in providing these documents could indicate something is off.
10. Use Government or Approved Platforms
Dubai’s government provides several official channels for company registration. If you want to ensure complete legitimacy, you can go directly through:
- Dubai Department of Economic Development (DED)
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- Dubai South
- RAKEZ, SHAMS, and other Free Zones
Alternatively, work with business setup consultants listed on their official websites.
Final Thoughts
Company registration in Dubai is a fantastic opportunity for entrepreneurs and investors, but it comes with risks if you’re not cautious. Fraudulent consultants can take advantage of newcomers who are unfamiliar with the local setup process.
Always do your research, ask the right questions, and verify licenses and credentials before proceeding with any firm. Legitimate consultants will always be transparent and professional. When in doubt, contact the appropriate Free Zone or DED office directly for confirmation.
Avoiding scams isn’t just about protecting your money—it’s also about ensuring your business is set up legally and sustainably from day one.
Also Read: How to Apply for Online Company Registration in France?
Frequently Asked Questions
1. Can I register a company in Dubai without using a business setup firm?
Yes, you can register your company directly with the Department of Economic Development or relevant Free Zone authority. However, many entrepreneurs use consultants to save time and avoid errors.
2. How do I know if a business setup firm is licensed in Dubai?
Ask for their DED or Free Zone license number and verify it through official government portals or by calling the respective authority.
3. What’s the average cost of legitimate company setup in Dubai?
Costs vary based on the type of business and location. Free zone companies may start around AED 5,500, while mainland setups typically start from AED 15,000. If a price seems too low, proceed with caution.
4. Can I report a scam business setup company in Dubai?
Yes, you can file a complaint with Dubai Consumer Protection or directly with the DED or Free Zone authority. Keep all documentation and payment receipts as evidence.