Born and Raised in Dubai

In Dubai, most business activities, including various professional, commercial, and industrial sectors, permit 100% foreign ownership. However, a few activities mandate the requirement of either a local sales or service agent or 51% local sponsorship. Dubai’s broad allowance for foreign ownership demonstrates its dedication to promoting an all-inclusive and varied business environment.

In the process of setting up a company in Dubai, it’s essential to meet several key requirements. Every partner of the company must have visited the UAE at least once. While a residency visa is not required to open a company, it is necessary for operational functions such as opening a bank account, VAT registration, and corporate registration. Invest Dubai offers an online platform for business setup, which requires personal verification through passport copies and a photo of the individual holding their passport. A unique business name must be selected and approved, and a Trade Name Certificate is needed as part of the initial steps. An Ejari, or tenancy contract, is also a critical element of the licensing process. Although the instant license option may waive the Ejari requirement for the first year for LLCs, obtaining an Ejari is recommended to avoid future issues, especially with banking services.

Additionally, providing contact details is a requirement, and international contact numbers are acceptable. Consulting with a business setup consultant is strongly advised to navigate the process effectively, choose the appropriate business activity, and circumvent potential legal complexities. Expert advice can ensure all legalities are addressed, and future obstacles are foreseen, facilitating a seamless business establishment.

In Dubai, the requirement for a local sponsor for company formation has been significantly reduced to compete globally. This shift has allowed most businesses to have 100% foreign ownership, which is a major change from the previous requirement of local sponsorship. Although a few specialized sectors still require 51% local sponsorship, these are exceptions rather than the norm. If you are considering starting a business, consult a business setup consultant to navigate the legal landscape effectively and choose the right path for your business venture.

Every business that operates in the UAE must have a valid trade license. Whether you are involved in commercial, professional, or industrial activities, having this license is essential. It is linked to various processes, including VAT registration, corporate tax obligations, and staff hiring. Additionally, banks require a trade license for business accounts, and landlords ask for it when renting office space. Demonstrating a valid trade license also helps to build trust with customers. It is important to remember that specific emirates may have different licensing requirements. Therefore, it is crucial to check the rules for your location.

You can easily register a company in Dubai without physically being there using online platforms like Invest Dubai. Expert business consultants can assist you with the process by obtaining the necessary details, such as your contact information, company name suggestions, a photo, and a scanned copy of your passport. With this information, they will create a login on Invest Dubai and proceed with the registration process, which includes verifying your profile, confirming your trade name, obtaining initial approval, and acquiring the trade license. Additional steps, such as obtaining the establishment card, can be completed remotely. This simplified approach lets you register your company in Dubai without a physical presence.

The time required to set up a company in the UAE depends on its location and the type of license needed, with the most basic license taking as little as 48 hours to acquire.

The cost of starting a business in Dubai is influenced by several factors, including the type of trade license, amount of capital invested, number of partners, tenancy contract value, business activity, and required approvals. The cost can also vary based on the company name – Arabic and Western names can have different values. Additionally, the cost will differ depending on whether you opt for an instant license, a sole owner LLC, or require a local service agent. On average, the approximate cost of issuing a license can start from 13,000 to 15,000 AED. However, this is an estimate, and the actual cost may vary based on specific circumstances.

Dubai offers many business opportunities with 100% foreign ownership in professional, commercial, and industrial sectors. However, in some cases, local sales or service agents or a 51% local sponsorship may be required. Dubai’s extensive support for foreign ownership reflects its commitment to promoting a diverse and inclusive business environment.

Dubai is not entirely tax-free but offers some favorable conditions for businesses and individuals. There is no personal income tax, which means residents don’t pay tax on their earnings. However, there is a Value Added Tax (VAT) of 5% on certain goods and services within the UAE. Additionally, corporate tax exists at a rate of 9% on profits, but there are ways to minimize its impact. For VAT, international transactions (both sales and purchases) are exempt from this tax. So, while Dubai isn’t completely tax-free, its tax structure is relatively business-friendly.