February 28, 2024
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:
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:
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.
As a foreign business owner, you’ll need to obtain a trade license to legally operate in Dubai. The type of license 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.
As a foreign business owner, you’ll need a 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.
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.
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:
The business structure you choose depends on your needs and priorities. The options for foreigners include:
Once you choose a structure, you can apply for a trade license through the Department of Economic Development (DED). You’ll need:
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.
Once you’ve obtained a trade license in Dubai, there are a few key steps to finally start your business setup in Dubai.
You’ll need to officially set up your business by opening a corporate bank account and setting up an office space. However, many businesses start in a free zone with pre-built offices and warehouses.
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.
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!
