Dubai is an attraction among entrepreneurs all over the world. Business owners from different countries choose Dubai as a destination to establish their companies. The operating conditions of businesses in Dubai are liberal. Dubai is the hub of economic activity. Many Multinational Companies establish their businesses in Dubai. Setting up of a company in Dubai can be a rewarding business avenue. Foreign Companies have a number of options and choices. However the markets of Dubai are unpredictable. Market research and ample market intelligence are required. Understanding the initial costs is the first step to create a business plan. The tax free policies of Dubai attract many startups and expanding businesses. However, the considerable amount that goes into the issuance of new trade license should be kept in mind. The three kinds of license required in the UAE include: commercial license for all commercial activities, professional license for services and the industrial license for manufacturing and industrial activities. When planning the setting up of a company in Dubai the option of establishing it at one of Dubai’s many “Free zones” (Dubai has facilities for issuing a particular kind of license for Foreign Owned companies) can also be considered. Some of the Free zones are: Dubai Airport free zone, Dubai Auto free zone and Dubai International media production zone. The different Free zones have different norms of setup and codes for commercial activity. Another factor that needs to be considered in the visas and paperwork related to expenditures and maintenance of Human Resources (employees) of the company. Companies involved in trading activities should invest time on considerable research on the expenses involved with importing goods. Custom fees may vary in accordance with the type and means of trading activity. UAE’s laws and business norms should be thoroughly studied.