How a Non-UAE Resident/Foreigner can Start a Business in Dubai? (2022 Update)
The United Arab Emirates as a country is, without doubt, a center of attraction on the lips of every entrepreneur around the globe in an opinion to start a business in Dubai, UAE.
The Socio-political and economic stability of Dubai and the UAE and being the home of world-class infrastructures such as the tallest building in the World (The Burj-Khalifa), and the World’s only 7 Star Hotel (Burj Al Arab Hotel), to name a few, not only make it the number 1 attraction for tourists, but also, to entrepreneurs from every corner of the world.
Dubai has attracted many foreign investors to set up their businesses here. Indeed, the tax policy of 0% on corporate and personal income taxes makes it, a golden opportunity for every entrepreneur to own a business in the Emirates.
In this article, we will give you an updated insight on how a non-resident or foreigner can start a business in Dubai and the UAE.
Without wasting much of your valuable time, let’s dive in to look at the steps on how a non-resident can start a business in Dubai.
Is it Possible for a Non-Resident/Foreigner to Start a Business in Dubai?
Before we address the main steps, let’s look at the possibility for a foreigner or someone residing out of Dubai and the UAE to start a business here.
Now the good news is, YES, it’s practically possible for a non-resident or foreigner to start and own a business in Dubai. Meaning you can register a company in Dubai while resident in another country.
There is an endless list of benefits when considering starting a business in Dubai and the UAE. One of these benefits is the ability of a non-resident or foreigner to own a 100% foreign owned business in Dubai.
For example, someone who has never visited Dubai or residing out of the UAE can set up a business in Dubai.
Types of Business Setup in Dubai for Non-Residents and Foreigners?
Before we look at the types of business setups in Dubai and the UAE, let’s make a brief stop to look at the corporate structure in Dubai.
As a foreigner, one of the initial decisions to make before starting a company in Dubai is the type of business you want, as these can determine other factors such as your nature of business, your business activities, and at times the location of your business in the emirate.
The two main types of business structures that you can choose from when incorporating your business in Dubai are, Sole Proprietorships and Limited Liability Companies (LLCs), companies.
Sole Proprietorships: These are the simplest and most common type of business in Dubai. They usually are owned and operated by one person. This type of company structure covers companies offering professional services, e.g., Consultancies, Salons, IT Services, Medical Representatives, etc.
Limited Liability Companies (LLCs): This corporate structure allows businesses to have multiple (Min: 2 and Max 50) shareholders. One of the advantages of this type of business structure over the others is the ability for hassle-free local and international import/export trading activities.
Where Can a Foreigner Setup a Business in Dubai?
In starting a business in Dubai, there is no restriction on location for a foreigner or non-resident, provided the type of business is authorized in the UAE. But as explained earlier, your business type can influence the location of your business formation in Dubai.
Now, let’s look at the jurisdictions for business setup in Dubai a foreigner or non-resident can establish a business. These are Mainland and Freezones companies. Wondering what makes the difference between them? Let’s take a look.
Business Setup in Dubai Mainland:
Setting up a mainland company in Dubai gives you the accessibility of having a larger customer base as there is no restriction for mainland businesses in Dubai.
Other advantages of a Dubai mainland company include:
- A 100% Foreign Ownership of your business
- The opportunity to win government contracts.
- Access to the Dubai Chamber of Commerce.
- Ability to trade and have offices across the UAE.
Business Setup in Dubai Freezones:
Created in 1987, Dubai freezones are special economic zones offering a 0% rate on all corporate and income taxes. Today, there are over 20+ freezones across Dubai. For a new business, a business setup in Dubai freezone is quite a reasonable option.
One of the setbacks for company formation in Dubai freezone is that the rules and regulations may vary for different freezones as most freezones are allowed to operate a specific type of business.
Other advantages of a Dubai freezone company include:
- A 100% Foreign Ownership of your business
- No import/export duty
- No limit on funds transfer and no controls on foreign currency exchanges.
- Ability to trade and have offices across the UAE.
- No corporate and income taxes
- Ability to operate your business on remote desks without having a physical office
What is the Process of Starting a Business in Dubai and the UAE?
The process of starting a business in Dubai is no way far from the process of business setup anywhere in the world.
To set up a company in Dubai, you must register your business with the Department of Economic Development (DED) in Dubai. The DED is responsible for issuing all types of business licenses in the emirate. That is Commercial, Industrial, Professional, and Tourism Business Licenses.
For a foreigner to setup a company in Dubai, the following processes must be completed.
- Choose the type of business they want to open.
- Choose a business activity.
- Provide a suitable name for the business (At least three options)
- Apply for a relevant trade license base on your business type
- Get an Office space (If required)
- Get a tenancy contract (EJARI)
- Get initial approval for your trade license
- Apply for Employees Visas
- Open a bank account for your business
What are the Required Documents for Starting a Business in Dubai and the UAE?
For foreigners or non-residents, you do not need to be physically present to start a company in Dubai. “Yes,” you read that right. With the help of a professional business setup consultant, you can have your business setup in Dubai remotely in no time.
Below are the most relevant documents needed to process your business formation in Dubai.
- An application form
- Memorandum and Articles of Association (MOA)
- Declaration of compliance
- Share certificate
- Certificate of Good Conducts (Not more than six Months)
- Original Incorporation certificate
- Power of Attorney
- Passport copies of shareholders (If more than one)
Cost for Starting a Business in Dubai and the UAE?
The cost of setting up a business in Dubai is base on the requirements of the business. Initially, it can cost about AED 5,600 (1524.62USD) for a freezone business setup to about AED17, 000 (4628.32USD) for a mainland business setup as per the current exchange rate.
Click here to use our business setup cost calculator to get an instant setup cost for your business.
Are you looking to Setup your company in Dubai UAE?
If you are looking for a company setup in Dubai UAE, we can help you with the best services at the most competitive prices.
Our team is highly qualified and experienced to handle all your requirements and make sure your company is setup correctly and according to the law.
We understand that starting a new business is not easy but with our help, it will be much easier. You can trust us with your project as we have been doing this for a long time now and know what it takes to make everything run smoothly.
Book your Free Consultation by Filling and Submitting the Form Below
