Dubai is one of the most inviting places on the planet for foreign investment. In recent years, the UAE has made it easier than ever for entrepreneurs from all over the world to do business there.

Foreign businesses can not only benefit from the UAE’s 0% tax rate on corporate and personal income, but they can also keep 100% business ownership in most situations. Other recent reforms include the long-term visa, which allows foreigners to stay in the UAE for lengthy periods of time and perhaps retire here at the conclusion of their careers.

Starting a business in the UAE is so simple with the correct support that non-residents can set up shop and conduct their operations from anywhere in the globe.

Rules of Setting a New Business in Dubai

A new business setup in Dubai may seem scary for many, especially foreigners. As a foreign entrepreneur beginning in the UAE, your first duty should be to become acquainted with local business conventions and practices. Many people will be unfamiliar with the arrangements for the company formation procedure out here. Gaining an early awareness of these processes will aid in the smooth running of the process.

That’s why your first move should be to choose a company formation agent who can walk you through each process and offer guidance and support along the road.

One of Dubai’s peculiarities in a business establishment is its company naming procedure. When naming your company in the UAE, consider the following:

  • Must not damage the country’s public morals or public order.
  • For example, the legal form of the corporation has to be followed (FZE, LLC, etc.)
  • Must not have previously been registered
  • The required type of activity and legal status must be compatible.
  • Should not include the names of any religion or governing power, as well as the names or logos of any external bodies.
  • If you want to utilize your full name in your company name, rather than just your surname or initials, you must do so.

Each phase, as well as matching your company with one of the 2,000-plus approved business activities, can be assisted by your chosen setup agent. They can make the business setup in Dubai process easier for you.

With this preliminary administration completed, you can proceed to the licensing process.

The Different Kinds of Licenses in Dubai

In Dubai, the most prevalent forms of trade licenses are commercial, industrial, and professional.

The sorts of businesses that belong under each licensing group are self-explanatory, and your firm activity will determine which license category you fit under. If you are involved in business activity, such as purchasing and selling items or services, you will nearly always require a commercial license, for example.

You can submit your application once you’ve determined the type of license you need. While 100% foreign ownership of mainland enterprises is now permissible in many circumstances, it is usually wiser for overseas entrepreneurs to launch a business in a free zone where 100% ownership is guaranteed.

In addition to taking advantage of Dubai’s 0% tax policy, free zone enterprises enjoy customs duty exemption, no currency restrictions, and the opportunity to repatriate all capital and earnings.

Simply offer your company setup representative some basic documentation and a few data about your firm to create your free zone application, and they will take care of the rest.

What are the Benefits of Starting a New Business in Dubai as a Foreigner

Dubai has evolved into a global commerce hub with numerous business prospects. Here are a few reasons why international entrepreneurs should participate in this thriving economy:

  • Dubai is strategically located as a gateway to both Africa and Asia.
  • Excellent airports and seaports for easy trade with the Middle East and Asia.
  • Corporate taxes, withholding taxes, import or export taxes, and capital gains taxes do not apply to companies in Dubai.
  • There are about 66 international double-tax treaties with large corporations.
  • There are no exchange controls in place.
  • The economy is very varied. Dubai no longer relies on petroleum or natural gas reserves and instead survives on industries such as innovation, technology, trade, tourism, transportation, and others.
  • Dubai has a reduced crime rate, making it an excellent area to live and work.
  • Option to conduct business in Free Zone locations. Foreign ownership is allowed in free zones.
  • Doing business on the Mainland provides trading prospects that are not limited by geography.
  • A government that is pro-business. The Department of Economic Development (DED) was established to assist in the establishment of firms and the support of business operations.


The procedure of registering a business in the UAE has been intended to be straightforward and accessible to anyone. It does, however, demand full awareness of the region’s diverse cultures and conventions.

That is why hiring a business setup firm that can not only advise you on the process but also locate the ideal license and setup type for your business depending on your demands and budget is always a smart option.


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