Can I Start a Business in Dubai as a Foreigner?

✔️ 1. Legal Ownership: You’re Welcome Here

Previously, foreign ownership in Dubai's mainland required a local partner to hold 51% of shares. That landscape has drastically changed:

• Mainland LLCs now allow 100% foreign ownership for most commercial and professional activities under Federal Law No. 2 of 2015 

• Free Zones have long offered full foreign ownership, corporate tax exemptions, and full capital repatriation Offshore entities allow foreigners to own companies for international operations with no office requirement and high confidentiality .

🛣️ 2. Choose the Right Jurisdiction

Dubai offers three main business zones:

1. Mainland

   • Regulated by the Department of Economic Development (DED)

   • Operate anywhere in the UAE—ideal for local trade, retail, hospitality, and government contracts

   • Requires a physical office and offers flexibility in target markets 

2. Free Zone

   • 100% foreign ownership, zero customs duties, and tax-free for 15–50 years

   • Perfect for export, e-commerce, tech, media, logistics, and finance via zones like DMCC, DIFC, JAFZA, Dubai Internet City 

3. Offshore

   • Suited for holding companies, assets, and cross-border business

   • No physical operations in Dubai, fully confidential

🏛️ 3. Select a Business Structure

Dubai supports several company formats, including:

• Limited Liability Company (LLC): Ideal for mainland, liability limited to investment, now fully foreign-owned 

• Free Zone Company (FZCO/FZE): Flexible and fully owned by foreigners, chosen per free zone regulations 

• Sole Proprietorship: For individual professionals, though often requires a UAE service agent

• Branch Office: Represents an international parent company

• Offshore Company: For asset protection, international trade, or holding structures 

📝 4. Name & Activity – Define Your Business

Every company must choose:

• A trade name that’s unique, non-offensive, and compliant with DED rules

• A defined list of activities from a predetermined list of over 2,000, which dictates your license type 

🛠️ 5. Apply for License & Initial Approval

• Submit an application with name reservation, business activity details, and shareholder info

• Obtain initial approvals from the DED (mainland) or relevant Free Zone authority

• Provide additional approvals if your activity relates to healthcare, food, real estate, etc. 

🏢 6. Office Requirement

• Mainland: Requires a physical registered office — Ejari lease contract mandatory 

• Free Zones: Options range from flexi-desks to full offices; most zones enforce a minimum space requirement 

💼 7. Corporate Bank Account

Once licensed, you can open a corporate account. Required docs include:

• Trade license

• Memorandum of Association (MOA)

• Shareholder passports

• Office lease contract 

🛂 8. Investors & Employee Visas

Your business setup lets you sponsor visas:

• Investor/residence visa: Typically valid for 2–3 years; enhanced Golden Visa options available for significant investment 

• Employee visas: Additional quotas depending on license type

💰 9. Costs to Launch

Startup costs vary:

Free Zone

• License package: AED 6,000–19,000

• Flexi-desk to office space: included or AED 2,500+

• Investor visa: AED 2,500–6,000 

Mainland

• License fee: ~AED 17,000–25,000

• Office rental: AED 15,000+ annually

• Visas and permits: AED 3,000–6,000 each 

Corporate tax: 0% on profits up to AED 375,000, rising to 9% beyond
VAT: Standard 5% on taxable turnover exceeding AED 375,000

💡 10. Why Dubai?

1. Strategic gateway: Access Asia, Africa, Europe, and the Gulf from one hub

2. Tax incentives: No personal income tax, low corporate tax, and no customs duties

3. 100% repatriation: Freedom to move profits abroad

4. Modern infrastructure: World-class transport, digital services, and logistics

5. Diverse talent pool: International workforce, multilingual professionals, and easy hiring

6. Stable, secure, investor-friendly environment 

✅ How SetupMate Helps You

With SetupMate, the process becomes streamlined and stress-free:

• We identify the best jurisdiction and company type based on your strategy

• Handle document prep, approvals, and licensing

• Find the right office in Dubai

• Assist with bank account opening and visa applications

• Advise on tax, compliance, and sector-specific regulations

💬 Final Thoughts

Starting a business in Dubai as a foreigner isn't just possible—it’s wise. With recent legal reforms enabling 100% ownership, the robust free zone system, and strong fiscal incentives, Dubai offers a compelling environment for your next venture. From a fully-owned mainland LLC to a tax-efficient free zone entity or offshore holding, SetupMate ensures you build with confidence—from business concept to operational reality.

Ready to make your mark in Dubai? SetupMate is here to guide you every step of the way.