Can Foreigners Start a Business in Dubai?

Foreigners can start a business in Dubai and have complete ownership over it. The mainland removed its local sponsor restriction in 2021, and free zones have always offered full foreign ownership.

Most foreigners choose to work with a local business setup consultant to make the process easier. Aurum supports foreign investors and entrepreneurs with every stage of the business setup process, from recommending a jurisdiction to opening a business bank account. 

Benefits of Starting a Business in Dubai

Business setup in Dubai offers 100% foreign ownership, no personal income tax, low corporate taxes, international connectivity, and a large expat population. Entrepreneurs also face less red tape when setting up their company, when compared to other countries.

1. Full Foreign Ownership

You can own 100% of your company without a local sponsor. This applies to free zone companies as a default and to most mainland activities following the 2021 reform to the UAE’s Commercial Companies Law. Certain activities like defence and oil and gas exploration still require a local sponsor. 

2. No Personal Income Tax

The UAE does not charge tax on personal income. Whatever your company pays you as salary or dividends stays with you in full. This applies regardless of your nationality or residency status, as long as the income is earned through a UAE-registered structure.

3. Low Corporate Tax 

Dubai levies a 9% corporate tax, and only on annual profits above AED 375,000. Profits below that threshold are taxed at 0%, which shelters most startups and small businesses in their early years.

Qualifying free zone companies can retain a 0% rate on qualifying income indefinitely, provided they meet substance and activity requirements set by the Federal Tax Authority. A 5% VAT also applies to most goods and services once your turnover passes AED 375,000.

 4. Global Connectivity

Dubai sits within a four-hour flight of roughly two-thirds of the world’s population, connecting you to Europe, Asia, and Africa. Dubai International Airport is one of the busiest in the world for passenger traffic, and Jebel Ali Port is a major hub for sea freight

5. Large Expat Population

Foreign nationals make up the vast majority of Dubai’s residents, so you’re building a business in a city already shaped around expat life. English is the working language of commerce, schools, and government services

How Can Foreigners Start a Business in Dubai?

Foreigners can start a company in Dubai by choosing between mainland and free zones, picking a legal structure, reserving a trade name, getting initial approval from the relevant regulatory authorities, applying for a trade license, getting an establishment card, applying for a residency visa, opening a bank account, and registering for corporate tax. 

1. Choose a Jurisdiction 

You can set up your business in a free zone or on the mainland. There are over 25 free zones in Dubai, each set up to support a different industry. For example, DIFC (Dubai International Financial Center) is popular for fintech, trading, and banking activities.

The choice between mainland vs free zone comes down to your budget and office space needs. Free zone businesses can operate with a virtual address or flexi-desk while mainland businesses need physical office spaces. 

Both mainland and free zones businesses in Dubai can trade directly with UAE customers and internationally, although most free zone businesses are set up to cater to international audiences.   

2. Select a Legal Structure

You then pick a legal structure, usually a Limited Liability Company (LLC), a sole establishment, or a branch of a foreign company. The right one depends on how many people own the company and how much personal risk each owner is willing to take on if the business runs into debt. 

Most foreign-owned mainland companies register as an LLC, since your personal assets stay protected beyond what you’ve put into the business. 

3. Reserve a Trade Name

Your trade name must follow UAE naming rules, so it can’t reference religious or political groups, and any descriptive word in it must match your licensed activity. A trade name check tells you if a name is free to use, and approval usually takes one to two working days.

 4. Get Initial Approval

Initial approval is a no-objection confirmation from the Department of Economy and Tourism, or your free zone authority, saying the government has no problem with you starting this business. You submit passport copies and your business plan, and most approvals come back within one to three working days.

5. Apply for a Trade License 

You apply for your trade license next, choosing a commercial, professional, industrial, or tourism category based on what your business does. Free zone licenses are often issued within three to five working days, while mainland licenses can take a week or two.

6. Get an Establishment Card

An establishment card registers your company with the General Directorate of Residency and Foreigners Affairs (GDRFA), separately from your trade license. You need it before you can sponsor any residence visa, and it’s usually issued within a few days. 

7. Complete the Visa Process

With your establishment card in place, you apply for investor, dependents, and employee residence visas, each involving an entry permit, a medical test, and Emirates ID biometrics. A Golden Visa gives investors a 10-year residency, with no limit on how long you can stay outside the country. Investors can do a Golden Visa check to see if they’re eligible.

8. Open a Bank Account

You open a UAE corporate bank account using your trade license and shareholder passports, and the bank checks your documents and business activity before approving you.

9. Register for Tax

You register with the Federal Tax Authority as soon as your license is issued, and for VAT once your turnover crosses AED 375,000. You still need to file returns even if you fall under the 0% tax threshold, and missing the deadline brings a fixed penalty regardless of how much profit you made.

Cost of Business Setup in Dubai for Foreigners

Business setup in Dubai starts at AED 12,500 for a free zone license. Mainland company formation starts at AED 25,000. A business setup cost calculator will give you a better estimate of your startup costs. 

The cost of starting your business includes: 

• Initial approval: AED 500–2,000 (higher, up to ~5,000, for regulated activities)
• Trade name reservation: AED 620–2,000
• Trade license: AED 12,500–30,000+ (free zone) or AED 15,000–30,000+ (mainland)
• Office lease: AED 2,500–12,000/year (free zone flexi-desk) or AED 15,000–80,000/year (mainland physical office)
• Residency visa: AED 3,000–7,500 per person (entry permit, medical test, Emirates ID, stamping), plus health insurance from AED 600–2,000/year
• Attestation and notarization: AED 300–2,000 per document, with MOA notarization for an LLC closer to AED 1,500

How Long Does it Take to Start a Business in Dubai?

Most foreigners get their Dubai business license in one to two weeks. Free zone licenses are usually the fastest, with some zones issuing a license in three to five working days.

Mainland licenses usually take one to two weeks once your documents and approvals are ready. After that, getting your visas and opening a bank account can take another two to three weeks, since these go through separate offices and separate checks.

Register Your Dubai Business With Aurum

Aurum has helped founders from more than 40 countries license, staff, and bank their UAE companies since 2016. Our consultants handle your jurisdiction choice, licensing, visas, and corporate banking. Contact us for a free consultation. 

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Frequently asked questions

Is Dubai 100% tax-free?

Dubai isn’t entirely tax-free. There’s no personal income tax, but companies pay 9% corporate tax on profits above AED 375,000, and most goods and services carry 5% VAT. 

Is Dubai a good place to invest? 

Dubai consistently ranks among the world’s top destinations for foreign investment and entrepreneurship, backed by low tax rates, full foreign ownership, and strong global connectivity. 

What is the easiest business to start in Dubai?

Service-based businesses like consultancy, e-commerce, and trading are the easiest to start, since they need little physical infrastructure and qualify for straightforward free zone licenses. These activities also cost less to set up and license than businesses needing warehouses, retail units, or specialist approvals.

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Ready to start a business in Dubai as a foreigner? Aurum helps you choose the right business structure, understand setup costs, obtain your trade licence, and complete the registration process with confidence.

Speak with our business setup consultants in Dubai for a free consultation and get expert guidance on starting your business in the UAE.

Last updated: 20 October 2026

This article is for general information only and is not tax, accounting or legal advice. E-invoicing rules and timelines may change. Check the latest UAE Ministry of Finance and Federal Tax Authority guidance and take advice for your own circumstances.