Why Should You Start Business in Dubai as a Foreigner?

So you want to start a business in Dubai? As an international hub for trade and commerce, Dubai seems like an exciting place to launch your startup dreams. But before you dive in, there are a few things you should know as a foreigner looking to set up a business in Dubai. Dubai's economy is booming, tax rates are low, and the government actively encourages foreign investment - all of which sounds very appealing if you're an entrepreneur.

However, establishing a business in Dubai as a foreigner can be complicated. There are rules around business ownership, licensing, visas, and office space that you'll need to navigate. The good news is that with some advance planning and the help of a knowledgeable advisor, starting a business in Dubai as a foreigner is absolutely possible.

Here's what you need to know to hit the ground running in one of the world's most enterprising cities.

Jump right in:

Why Should You Start Business in Dubai as a Foreigner? Rules and Regulations for Foreign-Owned Businesses Obtaining a Trade License in Dubai as a Foreigner Key Steps for a Business Set Up Dubai Conclusion FAQs

Why Should You Start Business in Dubai as a Foreigner?

Dubai is a global hub for trade and business, so it's no wonder foreigners are attracted to the opportunities here. As an expatriate, there are several reasons for you to start a business in Dubai:

Low taxes.

Dubai has no income tax for individuals or corporations. This means you get to keep more of your profits. Dubai also has low import duties and

Ease of business.

Dubai makes it straightforward for foreigners to start a company. You can establish most business entities in Dubai as a sole proprietor or. The process is efficient, and bureaucracy is minimal.

Strategic location.

Dubai's geographical position makes it an ideal base for doing business globally. It offers convenient access to markets in Africa, Asia, Europe, and beyond. Dubai's advanced infrastructure also makes global trade and logistics seamless.

Lifestyle appeal.

Dubai's high standard of living, safety, cosmopolitan culture, and amenities are appealing to many business owners and their families. The emirate provides an attractive environment for work and leisure.

Government support.

The UAE government actively encourages foreign investment and entrepreneurship. It offers incentives like free business licenses and funding programs for innovative startups and SMEs. The government's pro-business policies foster growth and success.

All these reasons are enough to convince you to start a business in Dubai as an expatriate.

Rules and Regulations for Foreign-Owned Businesses

To start a business in Dubai as a foreigner, you’ll need to understand the rules and regulations around business ownership and licenses. Dubai is a popular hub for global trade and business, but there are a few extra steps foreigners have to take.

Trade Licences

As a foreign business owner, you’ll need to obtain a trade licence to legally operate in Dubai. The type of licence depends on your business activity, such as commercial, industrial, or professional. You’ll have to register your business and provide details like business activity, location, and ownership structure. The process typically takes 3 to 4 weeks and fees range from AED 8,000 to AED 50,000 per year.

Visas

As a foreign business owner, you’ll need an visa to live and work in Dubai. Your local partner or business can sponsor your visa, allowing you to stay in Dubai for up to 2 years. Visa rules depend on your nationality but typically require a university degree and a certain level of business investment or turnover. Family members may also be eligible for dependent visas.

Business Banking

You’ll need a corporate bank account in Dubai to conduct business financial transactions. Opening a business account requires submitting documents like your trade license, memorandum of association and tenancy contract. Choose between local and international banks—local banks typically have lower fees but limited English services, while international banks cater well to foreign businesses.

Obtaining a Trade License in Dubai as a Foreigner

To start a business as a foreigner, the first thing you'll need is a trade license, also known as a business license or commercial license. This allows you to legally conduct business in Dubai. There are licenses for 100+ business activities, from retail to consulting.

Here are the steps you need to go through:

Choosing a business structure

The business structure you choose depends on your needs and priorities. The options for foreigners include:

• Sole proprietorship: Simple, but liability is not limited.
• Civil company: Partnership where liability is not limited.
• LLC: Limited liability company with limited personal liability. Most common.
• Branch of a foreign company: Extension of a parent company abroad.

Applying for a trade licence

Once you choose a structure, you can apply for a trade licence through the Department of Economic Development (DED). You’ll need:

• A local service agent: Can be an individual or corporate to help you through the process.
• Business plan: Suggesting the proposed company name, Outlining the business activities, target market, operational details, and financial projections.
• KYC Details: The KYC Documents, including the passport, photographs and the address details of the people involved in the proposed company.
• Office lease agreement: For your business premises if required for your activity.
• Company documents: MOA/AOA, shareholder details, board resolution, etc., depending on company type.

The DED will evaluate your application and documents. If approved, you’ll need to pay the required fees, which depend on business activity and structure. The entire process typically takes 2-4 weeks.

With the right preparation and knowledge of the requirements, obtaining a trade license in Dubai as a foreigner can be achieved efficiently. And once licensed, you’ll be ready to start your business in one of the world’s most prominent trade and financial hubs.

Key Steps for a Business Set Up Dubai

Once you’ve obtained a trade license in Dubai, there are a few key steps to finally start your business set up Dubai.

Business Set Up

You'll need to officially set up your business by opening a corporate bank account and setting up an office space. However, there are many businesses that are start in a free zone with pre-built offices and warehouses.

Visas and Permits

Don't forget to obtain the proper permits and visas for yourself and any employees. As a business owner, you'll need an investor visa, usually a Two -year renewable visa. Employees will also need work permits and employee visas to legally work for your company in Dubai.

Starting a business in Dubai as a foreigner may seem complicated, but by following these key steps and with the help of Water And Shark services, you can have your Dubai business up and running in a matter of weeks.

Conclusion

So there you have it, everything you need to know to start a business in Dubai as a foreigner. While the process may seem complex, Dubai makes it relatively straightforward. With low taxes, world-class infrastructure, and a strategic location, Dubai offers significant opportunities for business growth and success.

Water and Shark services are here to help you navigate the licensing and visa requirements in Dubai. The potential to expand into new markets, gain global exposure, and build something meaningful is huge. Take the plunge - start your business in Dubai and see where the entrepreneurial journey takes you!