How to Start a Business in Dubai as a Foreigner?

How to Start a Business in Dubai as a Foreigner?

Foreigners can start a business in Dubai by choosing a jurisdiction (Mainland or Free Zone), selecting a business activity, and acquiring the required licenses. Since 2021, 100% foreign ownership is allowed for many mainland activities.

Can Foreigners Own 100% of a Business in Dubai?

Yes, foreigners can fully own businesses in Dubai Mainland and Free Zones. The UAE removed the local sponsor requirement for over 1,000 business activities in 2021. The Infinite Service is providing company formation in Dubai.

JurisdictionForeign OwnershipLocal Partner Required?
Mainland100% (for many sectors)No (except strategic sectors)
Free Zone100%No
Offshore100%No

Sectors like banking, insurance, and oil may still require local involvement.

What Are the Steps to Start a Business in Dubai as a Foreigner?

Foreigners must follow a regulated process involving government approvals, document submissions, and visa formalities.

Step-by-step process:

  1. ✅ Define business activity
  2. ✅ Choose jurisdiction (Mainland, Free Zone, Offshore)
  3. ✅ Reserve trade name
  4. ✅ Apply for initial approval from authorities
  5. ✅ Prepare and notarize MOA (Memorandum of Association)
  6. ✅ Lease physical or virtual office space
  7. ✅ Obtain business license
  8. ✅ Apply for investor/partner visa
  9. ✅ Open corporate bank account

Hiring a licensed business setup consultant ensures accurate compliance.

Which Licenses Are Available for Foreign Entrepreneurs?

Foreigners can apply for commercial, professional, industrial, or freelance licenses depending on their activity.

License TypeSuitable ForJurisdictions Available
CommercialTrading, e-commerceMainland, Free Zone
ProfessionalServices (consulting, design)Mainland, Free Zone
IndustrialManufacturing, import-exportMainland, Free Zone
FreelanceIndividuals, creatives, techFree Zone only

Free zones like DMCC, IFZA, and Dubai Media City offer niche-specific licenses.

What Are the Costs Involved in Starting a Business?

Costs vary by jurisdiction, license type, and visa requirements. Free zone setups start at AED 12,500, while mainland setups can exceed AED 25,000.

Expense TypeEstimated Cost (AED)
Trade license10,000 – 15,000
Office lease or Flexi desk5,000 – 25,000
Visa processing3,000 – 6,000
Consultancy fees5,000 – 20,000
Bank account setup0 – 3,000 (varies by bank)

Some zones offer zero visa packages or discounted bundles for startups.

Do You Need a Visa to Start a Business in Dubai?

Yes. Foreigners need a UAE residency visa linked to their business license to operate legally and open a bank account.

Visa types:

  • Investor Visa (valid 2–10 years)
  • Partner Visa
  • Employment Visa (for staff)

Documents needed:

  • Passport copy
  • License copy
  • Entry stamp or previous visa (if applicable)
  • Medical test and Emirates ID registration

Consultants handle end-to-end visa processing under investor packages.

Which Are the Best Free Zones for Foreigners?

Top free zones offer flexible licensing, tax benefits, and 100% repatriation of profits. Foreigners benefit from English-speaking support and fast registration.

Free ZoneBest ForKey Benefits
IFZAGeneral trading, startupsLow-cost setup, Flexi desk
DMCCCommodities, fintech, cryptoWorld-class reputation
Dubai SouthLogistics, e-commerceNear Al Maktoum Airport
DSO (Silicon Oasis)Tech startupsStartup ecosystem & funding support
DMC (Media City)Media, marketing, freelancersFreelance licenses & creative hubs

Each zone has unique rules and pricing—consulting helps you match needs.

Can a Foreigner Open a Company Without Visiting Dubai?

Yes. Foreigners can start companies remotely using Power of Attorney and notarized documents.

Remote setup includes:

  • Document signing via e-signature or POA
  • Virtual office address registration
  • Online submission of licensing applications
  • Courier-based bank account documentation
  • Video verification for some banks

The Infinite Service offers remote setup packages for non-resident founders.

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

Dubai offers tax-free income, strong infrastructure, fast company formation, and global trade access.

Major advantages:

  • ✅ 0% personal income tax
  • ✅ 100% profit repatriation
  • ✅ No currency restrictions
  • ✅ World-class digital infrastructure
  • ✅ Strategic location between Asia, Europe, Africa
  • ✅ Access to global banking and logistics

Free trade zones like JAFZA and DAFZA allow direct export-import operations.

What Are the Legal Requirements for Foreign Business Owners?

Foreigners must comply with UAE Commercial Companies Law, anti-money laundering policies, and immigration rules.

Legal obligations:

  • Maintain valid trade license
  • Renew visa and license annually
  • Keep business address active and verifiable
  • Maintain accounting records (especially under VAT)
  • File for UBO (Ultimate Beneficial Ownership) compliance

Mainland businesses may need additional municipality or economic approvals.

How Can Infinite Help Foreigners Start a Business in Dubai?

The Infinite Service specializes in helping foreign entrepreneurs launch businesses in Dubai with ease.

Services offered:

  • Mainland and Free Zone license acquisition
  • 100% remote company formation
  • Investor visa and partner visa applications
  • Corporate bank account setup
  • Business activity advisory and compliance support

 Contact The Infinite Service to receive a tailored company formation plan that matches your business goals, whether you’re a solo entrepreneur or multinational investor.

Read More: What are the Main Legal Powers of HOAs?

Leave a Reply

Your email address will not be published. Required fields are marked *