The glittering city of the Emirates is transforming from the Middle East’s business hub to a global business hub, and the major factors contributing to this transformation include business-friendly policies and an advantageous location. In the past few years, the business setup in Dubai by foreigners or expatriates has shown a significant rise due to the introduction of more appealing business opportunities.
If you’re planning to be the next successful entrepreneur or business owner of this glamorous city of the Emirates, you’ve arrived at the right place. This blog will cover everything that will assist you navigate the complete procedure for establishing a successful business setup in Dubai, UAE, in 2025.
Why would a Foreigner Start a Business in Dubai?
- Tax Benefits: One of the most appealing benefits of starting a business in Dubai is low import duties, 0% income tax on individuals or corporations, and minimum corporate tax.
- Ease of Business: With minimal bureaucracy, a simplified-quick setup process, and other business-friendly policies, setting up and operating a business in Dubai is easy for foreign investors.
- Advantageous Location: Located on the crossroads of East and West, the city of skyscrapers features a prime location, which offers easy access to prominent regional, national, and international markets.
- Government Support: Apart from having prominent access to markets in Asia, Europe, Africa, and beyond, foreign business owners or entrepreneurs are actively supported by the government, which offers numerous programs to attract foreign investment.
- Lifestyle Appeal: Renowned for being one of the most luxurious and safest cities to work and live in, a business setup in Dubai offers a high standard of living through access to world-class infrastructure, top-tier leisure options, and a multicultural workforce.
Know About the Business Environment in Dubai
Before starting the navigation of the process of setting up a company in Dubai, it is crucial to get a basic understanding of the business environment there. This stunning city features a diverse economy and offers various types of corporate structure, jurisdiction, and license options with their advantages.
Two Most Popular Corporate Structures in Dubai
- Limited Liability Company (LLC): It is the most popular business entity in Dubai, which offers a separate legal entity and limits your liability to the company based on your investment. However, your business partner must be an Emirati who owns 51% of the company’s shares to establish an LLC.
- Sole Establishment: This type of corporate structure allows a foreigner to be the sole owner of an enterprise established in Dubai. However, it also makes the person responsible for the company’s complete liability, including debts and obligations.
Two Major Jurisdiction Options in Dubai
- Mainland: Establishing a company in this jurisdiction makes a foreign investor or business owner eligible to operate the business in the city and legalize the business operations within and beyond local markets. A local sponsor is required for business setup in UAE in this jurisdiction.
- Free Zone: Dubai is home to the largest number of free zones in the Emirates, and this jurisdiction type presents a lucrative opportunity for new business owners or entrepreneurs to start a company in the city. The various free zones in the city are developed to fulfill the demands of different sectors.
Types of Trade License in Dubai
- Commercial License: This type of trade business license in Dubai allows a company to legalize the buying, selling, and trading of goods and commodities, including export and import and other forms of trade.
- Industrial License: A physical office or location is necessary for a company to obtain an industrial license in Dubai, which allows it to manufacture products, import raw materials, and export finished goods.
- Professional License: This type of license is required by those companies that indulge in professional services, for example, consultancy companies, IT companies, medical service-providing companies, etc.
- Tourism License: It is essential to be acquired by businesses that provide tourism-related services, including travel agencies, hotels, restaurants, etc.
Steps to Start a Company in Dubai as a Foreigner in 2025
1. Research and Planning: The process for business setup in Dubai in 2025 starts with thorough research and planning, which can help you outline an effective business plan.
2. Choose a Company Name: In this step, a company name complying with standards and regulations set by DED and other relevant authorities.
3. Select the Business Structure: You need to proceed with selecting the most suitable structure for your company’s objectives and needs.
4. Choose the Jurisdiction: As discussed above, the city of skyscrapers offers jurisdiction options to start a company in the city, which must be chosen by you carefully after considering all the preferences and requirements.
5. Get Assistance from Business Setup Experts: To simplify the business setup procedure, you must connect with business setup specialists who can assist you in starting a successful business setup in Dubai.
6. Choose a Suitable Office Space: Select an office space that complements the needs of your company and its business activity.
7. Submit the Required Documents: Preparing and submitting the requested documents is the next step in the company setup procedure.
8. Obtain a Trade License: Submit request documents and application form with the fee asked for applying for a trade license to DED or a Free Zone Authority.
9. Register Your Company: The company setup process in Dubai is completed by obtaining all the necessary approvals from the governing authorities after submitting the requested documents.
10. Open a Corporate Bank Account: After company registration, you must proceed with opening a corporate bank account under your business name.
11. Obtain Visas and Work Permits: If you’re planning to hire employees from your home country or any other foreign nation, then you must apply for their visas and work permits.
Conclusion
Due to a strong diverse economy, pro-business policies, and several other advantages, the glittering city of the UAE has emerged as an appealing destination for foreigners who wish to expand or start their business on the international level. Connect with Start Any Business, UAE, and take a significant step towards building your business empire in Dubai. Their team of experienced business setup specialists and effective services accounts for their suitability as a perfect partner in starting a company in this luxurious city.
