How to open a business in Dubai

How to open a business in Dubai

Written By MEHRU

starting a business in dubai as a foreigner


Are you a foreigner looking to open a business in Dubai? Learn more about the steps and procedures to start a business in Dubai as a foreigner.

As a foreigner, investing in Dubai is quite a challenge. Because foreign investment is still subject to various restrictions. 

However, setting up and running a business in Dubai can be rewarding.


Dubai’s growing economy offers many opportunities. Profits can be made through services. 

Financing, commerce, real estate, and real estate. In addition, Dubai is considered the business center of the Middle East.


Dubai is also an excellent place to establish a business and develop in the Middle East and North Africa.

The next section gives you a better idea of ​​what to expect if you are a foreigner interested in investing and starting a business in Dubai.


Why should you invest in Dubai?


Foreigners looking to start and run a business in Dubai face many obstacles. However, it has several benefits, including:

  • Dubai-based companies are exempt from corporate tax. Withholding tax, VAT, import/export tax, and capital gains tax.
  • The UAE has signed more than 66 international double tax treaties with key countries such as China. The United States, and most members of the European Union.
  • Foreign currencies are easily accessible to foreigners as there are no currency restrictions.


Foreigners wishing to relocate to Dubai. Because can also take advantage of the multicultural atmosphere of the city. 

The people of Dubai are made up of people from all over the world.

As a result, the city is always up to date on continued events and trends. 

It is also a dream come true for any restaurant that wants to experiment with different cuisines.

Dubai is also a great place to shop because it does not have VAT. Residents are not required to pay personal income tax.


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Establishment of a company in Dubai


The main step in setting up a company in Sharjah or Dubai or anywhere in the UAE is to determine the right type of company for your business.

It is preferred to establish a company in one of the free zones of Dubai. A Dubai Free Zone company allows foreign investors to own the entire business.

Foreigners can only own up to 49 percent of a Dubai limited liability company. A citizen of the United Arab Emirates will control the remaining 51 percent of the shares.

Government officials will only allow a 100 percent foreign-owned LLC in exceptional circumstances.

If you register your LLC in a free zone, you have a better chance of getting approved.


Dubai Free Zones


In Dubai, there are more than 30 free zones for each industry.

When you start a business in a free zone, you are in full control.

 Dubai Free Zone Company allows you to return your earnings and earnings to your home country.


In addition, Dubai Free Zones offer the following benefits:

  • A simple onboarding process;
  • Free restrictions on hiring staff;
  • Zero import or export taxes
  • High-quality infrastructure
  • Low-cost tools
  • In the free zone, foreign investors can form an LLC or a branch.
  • The establishment of a free zone can be constituted by a company with a single shareholder. A Free Zone company can be constituted by a company with two to five shareholders (FZC).

Not all free zones are allowed in the ZEVs. In Dubai, most free zones require at least two shareholders. Before joining, pay attention to the specific needs of each free zone.

A minimum payment capital is required in all Dubai Free Zones. The amount of capital is determined by the free zone and the form of the organization.

Customers are another crucial factor to consider when starting a business in a free zone. 

A free zone company must not do business with residents of the United Arab Emirates.

You must hire a service agent if you want to do business in the United Arab Emirates.

You must hire a service agent if you want to do business in the United Arab Emirates.

In her name, the agent sells and distributes goods and services.


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Register Your Bussinss in A Dubai


To register a business in a Dubai Free Zone, you must present the following documents to the Dubai authorities:

  • A complete business plan.
  • The following items should be included in your business plan:
  • The business description of the specific business activity;
  • Employee size and organizational structure
  • The amount of money invested;
  • Contact information


Receipt of capital investments.

A company in Dubai must open a bank account to deposit the required paid-in capital prior to consolidation.

Government officials will review your application for permanent registration. 

Once you have received the official approval, you must apply for the necessary licenses and permits.

The licenses you need may vary depending on the type of business you run. 

The business registration is complete once you have purchased the licenses.


This is the best time to start a business in the UAE. Establish your dream business in Dubai without any hassle.


Is there anything else you’d like to know more about and wish was inserted in this article? Let us know in the comments below!

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