Dubai has transformed into a major business destination, housing a low-tax, entrepreneur-friendly environment. For anyone looking to set up a company in the city, working with a business setup consultant in Dubai is the simplest way to guarantee a hassle-free process.
In this blog, we’ll explain the benefits of starting a business in Dubai and how to start a business in the city as a foreigner.
Why Start a Business in Dubai?
The UAE has officially been declared the best place to start a business in 2025. It has also been named as a good place for SMEs and entrepreneurship. This is why you should consider Dubai for your next business:
- 100% foreign ownership: Entrepreneurs can completely own their business for most activities.
- Government support: There are many local incentives and startup funds for entrepreneurs and SMEs.
- Economic and political stability: Starting a business in Dubai allows foreigners to set up in a stable, secure business environment.
- Low tax obligations: Corporate tax is 9% and is only levied on annual turnover above AED 375,000. There is also no income tax in the country.
- Globally connected: The UAE is located close to major trade hubs in Europe, Asia, and Africa. This makes it a strong business destination.
What is the Best Location for Starting a Business in Dubai?
Foreigners have three options for business setup in Dubai: free zones, mainland, or offshore. All these business jurisdictions offer their own advantages, the choice depends on your goals and budget.
Popular free zones in Dubai include:
- International Free Zone Authority (IFZA)
- Meydan Free Zone
- Dubai South
- Dubai International Financial Center (DIFC)
- Dubai Multi Commodities Center (DMCC)
- Jebel Ali Free Zone Authority (JAFZA)
| Feature | Free zones | Mainland | Offshore |
| Ownership | 100% foreign ownership | 100% foreign ownership (for most activities) | 100% foreign ownership |
| Operations | Can operate within free zone, internationally, need local partner for mainland trading | Can operate within and outside UAE | Can operate outside UAE |
| Regulatory body | Regulated by respective free zone authority | Regulated by Department of Economic Development | Regulated by respective offshore authority |
| Physical space | Flexi-desk or office allowed | Physical office required | No physical office required, only business address |
| Tax obligations | 0% tax for qualifying businesses, 9% tax for the rest | 9% corporate tax | No corporate tax |
| Price | Depends on the free zone | Can be expensive | Cheapest option |
How to Start a Business in Dubai as a Foreigner
The process of starting a business is much simpler if you work with a consultant. Their knowledge of local regulations and government processes can help you get your business off the ground faster.
1. Choose Your Business Activity
There are over 2,500 business activities permitted in the UAE. If you’re looking for business ideas in Dubai, you can talk to local business owners and do some market research on what works in the city.
2. Pick Your Location
The decision between free zone, mainland, and offshore depends on your business activity and budget. Free zones offer an easier setup process, the mainland has more freedom, and offshore is mainly for holding assets, not necessarily for running a business.
3. Choose a Legal Structure
When you’re starting a business in Dubai as a foreigner or UK entrepreneur, the legal structure you decide on should take into account the number of partners you’re going into business with and your budget.
Free zone legal structures
- Free Zone Establishment (FZE)
- Free Zone Company (FZCO)
- Free Zone LLC (FZ LLC)
- Branch company
Mainland legal structures
- Sole establishment
- LLC
- Partnership
- Civil company
- Branch company
- PJSC (Private Joint Stock Company)
Offshore legal structures
- Corporate shareholding
- Single shareholder entity
- Multi-shareholder entity
4. Register a Trade Name
Your business name has to be approved by the Department of Economy and Tourism or the relevant free zone authority. You will have to present three name options in both Arabic and English.
5. Get Initial Approval
Foreign entrepreneurs have to get government approvals for their business ideas before they can launch them. The process involves submitting a business plan and some personal identification documents to the relevant regulatory body and paying the fees. Once you get the initial approval, you can apply for a trade license.
6. Draft a Memorandum of Association
If you’re going into business with a partner or multiple partners, you will need to create, notarize and attest a Memorandum of Association (MoA) for your business. The MoA is a mandatory document that is necessary for the trade license application. It outlines the purpose and structure of your proposed business.
You can hire our PRO services in Dubai to help get your MoA attested. We can also help renew your trade license, manage your government liaisons, and apply for residence visas.
7. Find a Workspace
Not every business jurisdiction requires a physical office space. Offshore companies only need a registered address while most free zones allow flexi-desks. Mainland companies need a proper, physical office address. If you work with a business setup consultant like Helen & Sons, we can help you find the best place to set up your office.
8. Apply for a Trade License
You can apply for a commercial, industrial, professional, or tourist license based on your business activity. You will need to submit passport copies, tenancy contract or office address, bank statements, business plan, incorporation documents, and pay the fees.
The trade license can take anywhere between 1-8 weeks to be processed, depending on where you set up your business.
9. Get Your Establishment Card
You need to apply for an establishment card after receiving your trade license. This card is used to legally identify businesses and is a mandatory requirement for every business in Dubai and the UAE.
10. Apply for Visas
If you’re moving to Dubai to run your business, you need a visa. You can sponsor yourself and your dependents, along with any employees you intend to hire. Free zones generally have a limit on the number of visas you can sponsor, while the mainland offers unlimited visa quotas.
11. Open a Bank Account
When you’re starting a business in Dubai, you need to open a local bank account. Our expert consultants can recommend a bank that suits your needs and handle the entire application process.
What is the Cost of Starting a Business in Dubai as a Foreigner?
Generally, it is cheaper to start a free zone business in Dubai than on the mainland. Speak to one of our experts to understand what your minimum investment to start a business in Dubai will be. Some factors that feature in the cost are:
- Trade license fees
- Office fees
- Initial approval fees
- Visa fees
- Notarization and attestation fees
Start a Business in Dubai With Helen and Sons
Helen & Sons is a business setup consultancy in Dubai offering simple, stress-free company formation support. Dubai is a lucrative hub for business setup, offering multiple advantages to entrepreneurs and investors. If you’re starting a business in Dubai as a foreigner, we can handle the whole process. Contact us to get started!
FAQs
1. What is the minimum investment to start a business in Dubai?
The business jurisdiction (free zone, mainland, offshore) and your business activity generally determines your minimum investment. You can expect to spend at least AED 10,000 to start a free zone business and AED 60,000 to start a business on the mainland.
2. Can I open a business in Dubai if I don’t live there?
You can open a business in Dubai even if you don’t reside in the country by setting up a free zone business. However, you will need to visit the UAE to open a bank account and obtain some government approvals.
3. Can a foreigner open an LLC in Dubai?
A foreigner can start an LLC in Dubai and get complete ownership of the business. The process involves getting initial approval, drafting a Memorandum of Association, applying for a trade license, and opening a bank account.
4. What is the easiest business to start in Dubai?
You can start a business in a Dubai free zone as it has a simpler setup process and faster license approval times. Some easy business ideas include freelancing, dropshipping, online translation, or e-commerce.
