Can Foreigners Start a Business in Dubai?

Year after year, more foreign investors and businesses travel to the emirate to take advantage of its favorable economic climate. Dubai now enables foreigners to own 100% of their businesses in most circumstances. While it does not have to be difficult, starting a business in Dubai as a foreigner does necessitate some local, expert expertise, so keep reading to learn how.

So, can foreigners start a business in Dubai?

Yes, foreigners or international entrepreneurs can Start a Business in Dubai, and many do. Over 80% of the local population is expatriate, many running their enterprises. Dubai actively seeks out foreign investors and business owners. First and foremost, as an overseas investor, you must understand how to create a firm in the emirate. According to the World Bank’s 2019 ease of doing business report, the UAE rated 11th in ease of doing business and 25th in establishing a business out of 198 worldwide countries.

The following is a step-by-step guide to starting a business in Dubai as a foreigner:

Choose a structure

The first thing you should learn about starting a business in the UAE as a foreigner is how the corporate structure works and what kinds of businesses you can start. One of the most significant decisions you must make before starting a business in Dubai is what type of company you want to launch. Some of the factors that influence this include:

• The type of business you run
• The goal of your company
• The operational features of your company

The following are the most prevalent types of companies in the UAE corporate structure:

• Limited Liability Company (LLC)
• Sole proprietorship

Other categories include branch corporations, private shareholding companies, and so forth. Which structure you choose is entirely dependent on your particular circumstances and business objectives.

Decide the jurisdiction

The United Arab Emirates provides investors with various business opportunities, including mainland and free zones. The next step in Business Setup in Dubai as a foreigner is deciding jurisdiction. If you already have a business in another country, you can incorporate it into the UAE and register an offshore company.

The main difference between a Mainland license in Dubai and a free zones license is that a free zone company cannot operate in the other zones without the assistance of a local agent, while a mainland company can conduct business anywhere in the UAE.

Mainland- Owning and operating a business in Dubai on the Mainland, you can trade both inside and outside the local marketplaces. A corporation license can also be obtained in as little as one day.

Free zone—For new businesses, establishing a firm in a free zone is a viable and advantageous alternative:

Some of the free zones in Dubai:

• JAFZA – Jebel Ali Free Zone
• DAFZA – Dubai Airport Free Zone
• Dubai Media City, Dubai Silicon Oasis
• DIFC – Dubai International Financial Centre
• DHC – Dubai Healthcare City
• DMCC – Dubai Multi Commodities Center

So the question is: which is better, the free zone or the Mainland?

The choice between Mainland and a free zone Business setup in Dubai depends entirely on the type of activities and business you wish to pursue. Both offer benefits and drawbacks and investment potential, and both are geared to attract different sorts of investors. Companies’ laws and regulations and the timescale for completing business formation procedures may vary from one free zone to the next, as each has its own set of rules and regulations.

Pick a company name:

The procedure of naming a business in Dubai differs from that in much of the world. In essence, you must adhere to a set of naming rules. It is critical to choose a decent name because it will represent your brand and reputation. If you’re unable to decide on the right name for your business, seek advice from our professionals. We are familiar with the country’s norms and naming regulations, which will aid you in the procedure.

Complete the paperwork for incorporation

Before applying for a license, be sure you have all of the necessary papers. Before you start your application, we may double-check that all of your paperwork is correct and in order. At this point, it’s preferable to deal with a local specialist like us.

The following documents may be required:

• Filled application form
• Signatures of the company’s shareholder(s) and the new company’s chosen Manager/Director
• Two years of audited financial records for a business organization or a certificate of reference from an individual shareholder’s bank
• Current sponsor’s approval
• A business strategy
• Colored passport copies of the company’s shareholders and the new company’s chosen Manager/Director

Obtain a license

If you start a business in Dubai on the Mainland, you must apply to the appropriate authority, such as the Dubai Department of Economic Development (DED). You can apply directly to the controlling authority if you are establishing a business in a free zone.

Visa application

Many sponsored individuals may apply for a visa in some Free Zones. To ensure that you follow the Free Zone’s visa application protocol, hire an expert from any Company Formation Firm to assist you in getting the process completed for you and your family.

Establish a bank account.

Your organization can now open a financial institution account to meet all of its needs. A corporate bank account can take two to three months to open. Dubai and the UAE are home to various banks with high standards and outstanding reputations, such as HSBC, Citibank, Barclays, and the Commercial Bank of Dubai.

As in any new country, a new business setup in Dubai as a foreigner in Dubai can be difficult. As a result, it’s best to think about it and seek assistance from business setup consultants wherever feasible to minimize financial wastage or strategic mistakes. While working with us, you just need to help us with some basic documents, and the rest of everything will be handled by our experts.