Starting a Business in Dubai as a Foreigner: A Step-By-Step Guide

Welcome to Dubai, one of the world’s friendliest business destinations for overseas investors and entrepreneurs. Starting a business in Dubai as a foreigner is straightforward, and with the help of expert advice and support, you can get up and running fast.

Dubai offers a rewarding business environment for those that follow the path to foreign ownership of a Dubai company. With incentives like zero or low tax on corporate income, long-term visas, and 100% ownership rights, plus access to a world-class infrastructure, international talent, and a buoyant economy, Dubai stands out as an attractive location for overseas investors. 

Wondering how to start a business in Dubai as a foreigner? Here is a step-by-step guide for potential investors looking to make the most of the golden business opportunities here, as well as the answers to several FAQs. 

How to Open a Business in Dubai as a Foreigner

There are five simple steps to follow that will ensure that starting a business in Dubai as a foreigner is quick and easy. 

1. Seek Out a Company Formation Service Provider

A company formation service can smooth the way to operating here in Dubai from the get-go.. 

Because they offer you independent advice based on current, local and expert knowledge of the business landscape, requirements and fees, engaging in their services will have you up and running as fast as possible. Simplify your company formation process in Dubai with experts like Bizvisor. 

2. Choose Between Mainland and Free Zone Setup

Your business setup advisor can talk through the benefits of both mainland or free zone setups or whether an LLC (Limited Liability Company) formation in Dubai is advisable. 

Many foreign investors opt to set up business in a Dubai free zone as these offer 100% foreign ownership, 0% income tax, and zero customs duties on imports and exports. If you decide a free zone is the right choice for your business, then you will need help choosing which of Dubai’s 26 free zones is best suited to your needs. Each is a unique special economic zone run by separate authorities applying varying regulations. 

Dubai mainland company formation also has distinct advantages for some foreign investors as it offers excellent access to international and domestic UAE markets. Unlike free zones, mainland company formations are governed by the DED, a government department. 

If you are extending an existing business into the UAE, you may also be eligible for a branch office set up in Dubai, 

3. Explore Licensing Options

With the help of professional business setup advisors, you can explore the licenses you will need to operate your business in Dubai. By sharing your business plan, they can help you determine whether you need a professional, commercial or industrial license.

You will need to apply for a license either through the DED for mainland business set up or to the relevant free zone authority. 

4. Gather Documentation

To make an application for a business license in Dubai, you may need to provide the following with your license application:

• Passports for all your business’s shareholders and appointed managers
• Your business plan
• Financial statements and/or bank reference letter
• Your intended trading name, which must meet Dubai’s strict requirements
• A Memorandum of Association (MOA), outlining your company’s objectives and associations with shareholders 
• An Articles of Association (AOA), outlining the rules and regulations that govern your business operations 
• Your Local Service Agent (LSA) agreement (for mainland and branch office applications)

Your company formation advisor can provide a complete list of requirements as relevant to your business activity and type of application. 

5. Make Practical Arrangements

Once you have approvals in place, you can begin to make the practical arrangements that will get your Dubai business off the ground. This includes finding a suitable office or coworking space. 

In Dubai, it is possible to receive a business license within a day of submitting the application, although processes for mainland business setup can take 2-4 weeks. 

Business in Dubai for Foreigners: FAQs

Can a Non-Citizen Start a Business in Dubai?

80% of Dubai’s population are expatriates and the Dubai government encourages investors and entrepreneurs from all over the world to join them. However, your application to start a business here will be welcome, wherever you live, as long as you intend to carry out a permitted business activity. There is no need to be a Dubai resident to establish a company here; it is possible to run your Dubai business from elsewhere in the world.  

How Much Money Do You Require (Minimum) to Start a Business in Dubai?

Various factors influence the cost of company formation in Dubai. These include:

• The type of business you are looking to set up
• Whether you will open a physical or virtual office
• The location of your business in a free zone or on the mainland 
• The licenses you will need.

An experienced business setup company can help you understand the precise costs. As an approximate guide, formation costs in a Dubai free zone currently start at around AED 11,900 with Bizvisor.  

What Are the Benefits of Starting a Business in Dubai as a Foreigner?

There are numerous benefits of starting a business in Dubai as a foreigner. They include:

• Access to a global trade hub that is perfectly situated for taking advantage of Middle Eastern, European, Asian and African markets
• Low or zero tax incentives
• Cutting-edge tech and infrastructure
• Diverse, multinational talent
• Government policies that are supportive of international investment
• Friction-free setup procedures
• Access to attractive visas and a luxury lifestyle

Can I Start a Business in Dubai Without a Sponsor?

As a foreign investor, you do not need a local sponsor to set up a business in a Dubai free zone. Outside of a free zone, you may need an Emirati sponsor, although recent policy changes have allowed 100% foreign ownership of mainland businesses operating in certain activities.

Starting a Business in Dubai as a Foreigner Made Easy

A business setup consultant can help you unlock your company’s full potential for success in the thriving and welcoming business environment of Dubai. With our bespoke advice, you can be certain that your business will receive its approvals and be up and running as quickly as possible in the best-suited free zone or on the mainland. 

Why not get in touch today to schedule a free consultation?