Dubai has long been known as a business hub, attracting entrepreneurs and investors from around the world. Its business-friendly environment, strategic location, and modern infrastructure make it an ideal place to start a business.
In fact, in 2024, Dubai continues to be a top choice for foreigners looking to establish their own companies. With a booming economy and a government that encourages foreign investment, the opportunities for success in Dubai are endless.
One of the key factors that make Dubai attractive to foreigners is its ease of doing business. The city offers a streamlined process for setting up a company, with minimal bureaucracy, 100% business ownership, and efficient government services.
So, if you're a foreigner looking to start a business in Dubai in 2024, you’ve come to the right place. Here we will provide everything you need to know about Starting a Business in Dubai as a Foreigner, including the process, benefits, and the license cost.
Benefits of Starting a Business in Dubai as a Foreigner
Starting a business in Dubai offers several distinct advantages for foreigners in 2024. Below are some of the key benefits:1. Geographical Location and Connectivity
Dubai is strategically located at the crossroads of Europe, Asia, and Africa which makes it a prime location for businesses to reach global markets. The city has world-class transportation infrastructure, including a modern airport and a vast network of highways for excellent connectivity.
2. Favorable Business Environment
Dubai has streamlined its business setup procedures, reducing red tape and making it easier for foreign investors to establish operations. Dubai continues to offer an appealing tax regime, with no personal income tax and competitive corporate tax rates.
3. Free Trade Zones
Dubai is home to multiple free zones, which are specifically designated areas that provide a wide range of incentives and benefits to enterprises. Businesses established in free zones enjoy numerous benefits, including tax exemptions, 100% foreign ownership, and simplified procedures.
4. Access to Investment and Financing Opportunities
Dubai’s strong regulatory framework, stability, and financial sector make it an attractive destination for investors. Foreign businesses can tap into global and regional capital markets.
5. Golden Visa
Foreign business owners who meet certain investment criteria can qualify for long-term residency (up to 10 years) under Dubai’s Golden Visa program which provides greater security and flexibility.Types of Business License in Dubai
Dubai offers a variety of business licenses to cater to different types of businesses and activities. Here are some of the most common types:1. Commercial License
A commercial license is issued to businesses engaged in buying and selling goods, including trading, general trading, and e-commerce activities. For example, retailers, wholesalers, import-export traders, and distribution companies.
2. Professional License
The license is issued to service-oriented businesses that offer professional or consultancy services. It is suitable for individuals or companies with specialized skills. For example, consultancies (legal, financial, marketing), IT services, freelancers, and educational institutions.
3. Industrial License
Industrial license is for businesses involved in manufacturing, production, and industrial activities. Common businesses include factories, manufacturing plants, and industrial production companies.
4. Tourism License
A tourism license is for businesses operating in the travel, tourism, and hospitality sectors. The license is issued by the Department of Tourism and Commerce Marketing (DTCM) or free zones specializing in tourism.
Besides these, there can be other specialized licenses, depending on your business activity.Each business license has specific requirements, including the type of business structure, office space, and approvals needed. These licenses enable businesses to operate legally within Dubai's designated jurisdiction (mainland or free zone).
Documents Required to Start a Business in Dubai as a Foreigner
Here's a general list of documents that you might need the Start a Business in Dubai as a Foreigner:- Passport copies of the business owners
- Proof of address for the business owners
- Business plan outlining your business activities
- No Objection Certificate (NOC) from the relevant government department (if required)
- Trade license application form
- Ejari (tenancy contract)
- Bank reference letter
How to Start a Business in Dubai as a Foreigner in 2025
Starting a business in Dubai as a foreigner involves several key steps. Here's the step-by-step process:1. Determine the Nature of Your Business Activity
The sort of business operations you want to do will influence the optimum structure and license type for your company. For instance, if your company operates in an industrial or manufacturing sector, you’ll likely need an industrial license. A commercial license is required if you work in the business sector, which includes purchasing and selling items.
2. Select the Jurisdiction
- Mainland: Allows you to trade both within the UAE and internationally. Full business ownership for most business activities. You can also take on government contracts.
- Free Zone: Offers full foreign ownership, tax exemptions, and no customs duty. However, trading within the UAE mainland may be restricted.
- Offshore: Ideal for international business operations without a physical presence in Dubai. Offers tax exemptions and confidentiality.
3. Reserve a Trade Name
Choose a unique name for your business that complies with Dubai’s naming guidelines. Ensure the name is not offensive, doesn’t include religious terms, and clearly reflects your business activity.
4. Lease Office Space
Leasing a physical office is mandatory for mainland businesses and some free zone companies. Obtain an Ejari (tenancy) contract to show proof of office space for mainland businesses.
5. Obtain a Business License
Submit the necessary documentation to obtain the business license from the Department of Economic Development (DED) (for mainland businesses) or the respective free zone authority. License fees will vary depending on the type of license and jurisdiction.
6. Open a Corporate Bank Account
Once your business license is issued, you can open a corporate bank account with a local or international bank.
7. Apply for Visas
As a business owner, you can apply for your own residence visa as well as visas for your employees, dependents, and partners.
Cost of Starting a Business in Dubai as a Foreigner
The cost of registering a company in Dubai as a foreigner in 2024 is between approximately AED 15,000 and AED 50,000, with the overall cost being dependent on various factors such as the type of business, number of Visa, location, and other necessary documentation.
Start your Business in Dubai with Shuraa
Starting a business in Dubai is a great opportunity for foreigners, thanks to all the advantages the city offers. With its perfect location, booming economy, no taxes on personal income, and simple processes for setting up a business, Dubai is a welcoming place for entrepreneurs. You also get access to skilled talent, world-class infrastructure, and a variety of business licenses suited to different industries.
Beyond business, Dubai offers an excellent quality of life and plenty of networking events to help you grow your business. If you're planning to start a business in 2025, we recommend getting expert guidance from Shuraa. Our team will assist you every step of the way, including handling your licensing, paperwork, PRO services, and visa applications.
