Business Setup for Expats in Dubai Your Complete Guide

Table of Contents

1. Introduction
2. Why Dubai Attracts Expat Entrepreneurs?
3. Basic Business Structure for Expats in Dubai
4. Steps to Set Up a Business in Dubai for Expats 
5. Final Thoughts

Dubai is the hottest business hub. It welcomes entrepreneurs, investors, and expats. It offers a tax-flexible system, state-of-the-art infrastructure, a strong economy, stability, and growth opportunities worldwide. If you are a Dubai expatriate and seeking to start a business there, you will find thriving business opportunities in different business fields and will have your trade around the globe in less time. 

In this blog, we will describe the process of starting a business in Dubai as an expat. The blog will guide you through your business setup journey with simple, step-by-step instructions. Don’t skip any single detail!

Why Dubai Attracts Expat Entrepreneurs?

Dubai’s investment-friendly policies, as well as its diverse lifestyle, make it an ideal and iconic hub for foreigners to start their businesses. The following are some reasons that attract expats:

• Dubai is situated in a strategic location between East and West, serving as a bridge for international trade.
• Modern infrastructure includes free zones, the mainland, parks, technology, and fast transportation.
• Acquire talent from the whole world, as it’s a city with a diverse population. 
• It offers 100% foreign ownership of businesses in most sectors, and 100% foreign in free zones.

Basic Business Structure for Expats in Dubai

Three primary business structures are available for expatriates to establish a business in Dubai.

1. Mainland Company

The mainland company allows you to operate your business in the UAE trade market. It also doesn’t restrict you from bidding on any government work. According to current policies, mainland businesses and expatriates can own 100% of a company in certain specific fields. 

Pros

• Businesses can provide services or work anywhere in the UAE and the world.
• You can obtain multiple visas without any restrictions.
• You can bid for government contracts with freedom.

To start a business, you

• You must get the Department of Economic Development (DED) approval.
• Getting office space for rent is compulsory for businesses.
• Free Zone Company

Starting a business in a free zone has several benefits. The free zones are designed to attract substantial foreign investments.

Pros

• 100% foreign ownership
• Quick and easy setup process
• No currency restrictions

Cons

• You can only trade or operate a business in the free zone.
• You need to establish a mainland license for trading in the mainland.
• You can also get only a limited number of visas, depending on the office space. 
• Offshore Company

If you are running a business outside the UAE, an offshore company is a great option.

Pros

• 100% foreign ownership
• Asset protection and confidentiality
• No office space required

Cons

• You cannot operate your business in the UAE.
• An offshore company helps you hold your registered companies, protects intellectual property, and is beneficial in international trade. 

Steps to Set Up a Business in Dubai for Expats 

1. Choose the Right Business Activity

The government of the UAE has listed over 2,000 business activities for businesses to choose from. You can select one or more to operate under your business.

• Decide on the Legal Structure

When deciding on a legal structure, focus on your business goal. Your legal business structure could be an LLC, a sole proprietorship, a branch office, or any other. 

• Select the Jurisdiction

The third step is choosing the jurisdiction. You can choose from the mainland, free zones, or offshore companies. The selection must be according to your business’s nature.

• Register your Trade Name

As you know, a name is like an identity. Without a name, no one can recognize the company as a separate legal entity. Thus, having a trade name is essential. You can name your business, which must be unique and not copied from any other company, and fulfill UAE naming policies.

• Apply for Initial Approvals

An initial approval is the permission that you are starting a business in the UAE. While starting a business, you have to take approval from the relevant authorities, such as:

• Dubai Municipality
• Telecommunications Regulatory Authority (for tech-related businesses)
• Other sector-specific regulatory bodies
• Draft and Notarize MOA

After getting initial approval, you must make a Memorandum of Association (MOA). This is an official certificate or form of legal ownership of the business, along with its operational guidelines and procedures.

• Choose Office Space

Choosing an office space is a crucial step in starting a business. On the mainland, you have to lease an office. On the other hand, freezone authorities can provide flexible desks or coworking spaces in free zones according to your business activity and working needs.

• Submit Final Documents and Pay Fees

To obtain the license, you must submit all necessary documents and pay the fees, which will vary according to your business location.

• Obtain License

After getting approval from the relevant authorities, you must get your business license. Depending on your business activity, your license type could be commercial, industrial, or professional.

1. Apply for Visas

The last step is the visa application. You can apply for an investor or employment visa. 

Final Thoughts

Individuals worldwide consistently strive to capitalize on robust growth and the best business opportunities to achieve a comfortable and luxurious life. Dubai is like a magnet for all those. Suppose you are a new startup or an expert and want to set up a business in any sector in Dubai, according to your expertise. In that case, Dubai will provide you with limitless opportunities and benefits. The UAE government is one of the best in many ways, offering numerous investment-friendly and legal business advantages within a vibrant community.

Setting up a business in Dubai is not difficult at all. You just need to fulfill some requirements, and you can jump into it. If you are still confused, don’t worry. There is always a way—we at Kanoony have our experts to guide you through the legalities and process. 

Call or visit us today. We will assist you with business setup and other business-related matters, including obtaining a visa, selecting a suitable business activity, and acquiring the necessary licenses and permits.

FAQs

1. Are expats allowed to own a business 100% in Dubai?

Yes, both in free zones and most mainland industries, expats are allowed to have 100% ownership.

• What is the most affordable way for expats to set up a business in Dubai?

Free zones are often the most cost-effective and beneficial for foreigners living and working abroad.

• Is it required to have a local sponsor to begin a mainland business in Dubai?

Most business sectors allow 100% expat ownership.

• What is the usual length of the business setup process in Dubai?

Generally, processing a company takes 3 to 10 days, but this timeframe may vary depending on the setup and permissions received.

• Is it possible to obtain a visa after setting up my business?

When your business is licensed, you are then eligible to apply for investor or employment visas.