What Are the Steps to Open a Company in Dubai as a Foreigner?

Dubai has become one of the most attractive destinations for entrepreneurs and investors from around the world. With its tax-friendly policies, modern infrastructure, and strategic global location, many foreigners are looking to start their business journey in this thriving emirate. But how exactly do you open a company in Dubai as a foreigner? To get you started, here is a thorough instruction.  Company Formation

1. Choose the Right Business Activity

Before anything else, decide what kind of business you want to set up. Dubai offers a wide range of activities, from trading and consulting to hospitality, technology, and e-commerce. Your chosen activity will determine the type of license you need and the legal structure of your company.

2. Select a Business Jurisdiction

Dubai offers three main types of business jurisdictions:

• Mainland: Enables you to do business anywhere in the United Arab Emirates.
• Free Zone: Offers full foreign ownership, tax benefits, and simplified procedures, but limits business to within the free zone or internationally.
• Offshore: Ideal for holding companies and international trading, without a physical presence in the UAE.
  

Choose the one that suits your business goals best.

3. Pick a Company Name

Your business name should comply with UAE’s naming guidelines to avoid offensive language, religious references, or names of known organizations. After deciding on a name, you must have it accepted and registered with the appropriate authority.

4. Apply for a Business License

Based on your business activity, you’ll need to apply for one of the following licenses:

• Commercial License – for trading businesses

• Professional License – for service providers, consultants, etc.

• Industrial License – for manufacturing and industrial activities
  

The license is issued by the Department of Economic Development (DED) if you’re opening a mainland company, or by the specific Free Zone authority if you’re choosing a Free Zone setup.

5. Finalize Legal Structure and Ownership

Depending on your chosen jurisdiction:

• In a mainland setup, you can now have 100% foreign ownership in many sectors (though some activities may still require a UAE national sponsor).

• In a free zone, you’re guaranteed 100% ownership as a foreigner.
  

6. Secure Office Space

You’ll need a legal business address in Dubai. In Free Zones, they often provide flexible office solutions (shared desks, private offices, or warehouses). For mainland businesses, you must lease physical office space that complies with DED requirements.

7. Submit Required Documents

Prepare and submit necessary documents, which typically include:

• Passport copies of shareholders and managers

• Visa copies (if applicable)

• Business plan (in some zones)

• Name reservation and initial approval certificates
  

Each jurisdiction may have slightly different document requirements.

8. Obtain Initial and Final Approvals

Start by getting initial approval for your business activity and structure. Once all documents are submitted, and approvals granted, you can move on to final licensing, including paying the license fee.

9. Apply for Visas

Once your business has been registered, you can submit an application for:

• Your own residence visa

• Employee visas if you plan to hire staff
  The number of visas you can apply for may depend on your office size and license type.
  

10. Open a Corporate Bank Account

Finally, open a UAE business bank account. Banks will require your company documents, license, visa copy, and sometimes a business plan or reference letters.

Much Money Is Needed To Start A Company in Dubai?

Starting a company in Dubai typically requires a minimum investment that can vary widely depending on the type of business, location (mainland or free zone), and business structure. On average, setting up a company in a Dubai free zone may cost around AED 15,000 to AED 50,000 (approximately USD 4,000 to USD 13,500), which includes the license fee, registration, and office space. For mainland businesses, costs can start from AED 20,000 and go much higher based on legal structure, local sponsorship, and commercial space requirements. Additional expenses may include visa fees, approvals from relevant authorities, and legal documentation. Therefore, while Dubai offers business-friendly options, it’s essential to have a clear business plan and budget accordingly for both setup and operational costs.

Can A Non Citizen Start A Business in Dubai?

Yes, a non-citizen can start a business in Dubai, and the process has become increasingly accessible in recent years. The UAE government offers various options for foreign investors, including setting up a business in mainland Dubai or in one of its many free zones. Free zones are particularly popular among non-citizens as they offer full foreign ownership, tax benefits, and simplified procedures. For mainland businesses, a local service agent or partner was once required, but now 100% foreign ownership is allowed in many sectors. To start a business, a non-citizen must choose a business activity, register the company, obtain the necessary licenses, and meet visa and immigration requirements. Dubai’s business-friendly environment, strategic location, and robust infrastructure make it an attractive destination for entrepreneurs from around the world.

Conclusion

Setting up a company in Dubai as a foreigner is quite streamlined compared to many other countries especially with the availability of Free Zones that offer full ownership and simplified processes. However, it’s always smart to consult a local business setup advisor to ensure your specific requirements are met efficiently and legally. Contact Montgo Health

Frequently Ask Questions

Q. What are the main types of companies you can open in Dubai?

A. Common options include Mainland companies, Free Zone companies, and Offshore companies.

Q. How long does it take to open a company in Dubai?

A. Depending on the business type and approvals, it can take anywhere from a few days to several weeks.

Q. Do I need a local partner to open a company in Dubai?

A. Mainland companies may require a local sponsor, while Free Zone companies allow 100% foreign ownership.

Q. What documents are required to start a company in Dubai?

A. Typically, you’ll need a business plan, passport copies, visa applications, and any required licenses.

Q. How much does it cost to open a company in Dubai?

A. Costs vary by company type, location, and industry, starting from a few thousand dirhams.

Q. Can I operate my Dubai company internationally?

A. Yes. Many Dubai company structures allow international operations and trade, depending on licensing