Can I Open a Company in Dubai Without Residence Visa
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Dubai has established itself as a thriving destination for entrepreneurs from around the world. Recent surveys shed light on why expats increasingly consider the UAE their home.
37% of expats now plan to retire in the UAE, compared to 28% in 2021. This rise can be attributed to the introduction of attractive schemes like the Golden Visa and Retirement Visa, simplifying long-term stay options.
While the global average stands at 72%, 68% of expats express satisfaction with their lives in the UAE. This suggests that, despite being slightly below the global mark, the UAE remains a popular choice.
Job opportunities, high quality of life, and pleasant weather emerge as the primary reasons expats choose the UAE. Cities like Dubai, Abu Dhabi, and Sharjah particularly captivate expats.
Interestingly, even non-residents can establish and operate businesses in Dubai remotely. This ease of entry, coupled with a 0% personal and business income tax rate, prime locations, and streamlined business setup processes facilitated by companies like Khidmath, make Dubai an alluring proposition for aspiring entrepreneurs.
If you’re a foreigner seeking to launch a business in Dubai, this guide serves as your comprehensive roadmap to success.
Things to know before open a company in Dubai without residence visa
| Choose your location | Decide between the mainland (direct access to the local market) or a free zone (specific industry-focused benefits, customs exemptions). |
| Select your business structure | Opt. for sole proprietorship, limited liability company (LLC), or other options based on your needs. As a foreigner, you can opt to set up your business in a free zone, allowing 100% ownership, or in the mainland, where a local sponsor is required. |
| Obtain a business license | Apply for the relevant license through the Department of Economic Development (DED) or your chosen free zone. |
| Secure a visa | Different visas cater to entrepreneurs and investors. Khidmath Corporate Services can guide you through the process. |
| Open a corporate bank account | Choose a bank that aligns with your business goals and facilitates financial transactions. |
Benefits of open a company in Dubai without residence visa
Dubai’s pivotal role in hosting the first post-COVID-19 World Expo contributes to the UAE becoming the world’s second most attractive destination for millionaires.
By the end of 2023, around 4,500 millionaires were drawn to the UAE, enticed by its low-tax environment and rapid vaccination rates, as reported by Arab News.
Conversely, China is witnessing the largest millionaire exodus in 2023, with 13,500 individuals departing. India anticipates a departure of over 6,500 millionaires, while the UK is decreased by 3,200 due to post-Brexit economic changes and tax policy adjustments.
Dubai stable economy
Dubai’s GDP has consistently grown above 4% in recent years, even during the global pandemic (2022: 4.5%).
This stability provides a predictable environment for businesses to flourish.
Dubai’s economy is not solely reliant on oil, with strong sectors in tourism, logistics, finance, and technology.
This diversification mitigates risks and creates opportunities for diverse businesses.
Dubai tax-efficient economy
Dubai offers a low corporate tax rate of 9%, making it significantly lower than many other developed economies.
Companies operating in certain free zones enjoy even more tax benefits, including 100% exemption on corporate income tax and import duties.
Individuals in Dubai are not subject to personal income tax, further boosting disposable income and attracting talent.
Dubai strategic location
Dubai’s central location between Asia, Europe, and Africa provides access to a vast market of over 2 billion people within a 4-hour flight radius.
Dubai is a major hub for international trade, with world-class ports and airports facilitating efficient logistics and movement of goods.
Dubai’s proximity to high-growth emerging markets in Asia and Africa offers access to new and expanding consumer bases.
Dubai has world-class amenities
Dubai boasts top-notch infrastructure, including advanced transportation networks, high-speed internet connectivity, and modern office spaces.
Dubai offers a high standard of living, with excellent healthcare, education, and recreational facilities, attracting and retaining skilled professionals.
Dubai’s diverse population and welcoming culture create a vibrant and dynamic environment for businesses to operate in.
Low restrictions on foreign ownership
Unlike many other countries, Dubai allows foreigners to own 100% of their businesses in certain sectors, simplifying business setup and control.
Dubai actively promotes foreign investment through streamlined regulations and supportive government policies.
Business owners can obtain residency visas for themselves and their families, facilitating long-term stays and commitment.
Global hub for trade and commerce
Dubai has free trade agreements with over 150 countries, reducing trade barriers and boosting access to international markets.
Dubai’s advanced logistics infrastructure facilitates efficient import, export, and distribution of goods globally.
Dedicated free zones cater to specific industries, creating specialized clusters and attracting targeted investments.
Business-friendly government
Dubai’s government has implemented streamlined business regulations and efficient administrative processes to facilitate business setup and operation.
The government provides various incentives and programs to support businesses, including grants, subsidies, and training initiatives.
Dubai has a strong commitment to transparency and anti-corruption measures, creating a fair and predictable business environment.
Types of business licenses for non-residents in Dubai, UAE
Choosing the right business license is crucial. Here’s a breakdown of the most common types for foreigners, along with relevant statistics to guide your decision:
| Commercial license | Ideal for general trading, import/export, and wholesale/retail businesses. Most widely used license type, accounting for over 60% of issued licenses in Dubai. Over 2,000 specific business activities classified under this license. |
| Professional license | Geared towards service-based businesses like consultancy, healthcare, education, and engineering. Typically requires professional qualifications and experience in the chosen field. Growing demand due to Dubai’s focus on knowledge-based economy. Image: |
| Industrial license | Encompasses manufacturing, assembly, and processing of goods within Dubai. Requires a physical office and industrial space within the UAE. Significant contributor to Dubai’s economic diversification, with over 500 active industrial establishments. |
| Tourism license | Covers travel agencies, hotels, restaurants, car rentals, and other tourism-related services. Stringent regulations and specific approvals needed, depending on the activity. Dubai’s thriving tourism sector makes this a lucrative license option. |
Remember, these are just the main categories, and each license type has sub-categories and specific requirements. To ensure a smooth setup, consulting with business specialists and government authorities is recommended.
Documents required to open a company in Dubai without residence visa
The required documents to start a business in Dubai as a foreigner can vary depending on several factors, such as the type of business you’re setting up, whether you’re operating in a free zone or on the mainland, and whether you have a local sponsor. However, here’s a general overview of the essential documents you’ll likely need:
| Basic documents | 1. Passport 2. Passport-sized photos 3. Residence visa 4. Emirates ID |
| Business setup documents | 1. Completed application form 2. Business plan 3. Memorandum of Association (MOA) 4. Local Service Agent (LSA) agreement (if applicable) 5. Shareholder certificates |
| Additional documents | 1. Lease agreement 2. No Objection Certificate (NOC) from current sponsor (if applicable) 3. Educational certificates and CVs 4. Bank statements |
| Free zone specific requirements |
If you’re setting up your business in a free zone, there may be additional documents required. It’s best to check with the specific free zone authority for their exact requirements. |
Point to ponder
- All documents must be attested by the relevant authorities, usually the Dubai Chamber of Commerce and Industry.
- Fees will apply for various stages of the business setup process.
- It’s highly recommended to seek professional guidance from a business setup consultant who can help you navigate the process and ensure you meet all the necessary requirements.
8 steps to open a company in Dubai without residence visa
- Define your business concept and target market
Clearly define your business idea, its unique value proposition, and how it fills a gap in the market. Conduct thorough market research to understand your target audience, their needs, and competitor landscape.
Over 30,000 new businesses established in Dubai in 2023, highlighting the entrepreneurial spirit and diverse market opportunities. - Choose your business structure and location
Decide on a partnership, sole proprietorship, or limited liability company (LLC) structure based on your business goals, risk tolerance, and investor considerations.
Select a mainland location for full market access or a Free Zone with specific industry clusters and attractive benefits like 100% foreign ownership.
Mainland accounts for over 80% of businesses in Dubai, while Free Zones cater to specialized sectors like technology and finance. - Register your trade name with the DED
Submit your chosen trade name to the DED for approval, ensuring it aligns with regulations and doesn’t infringe on existing trademarks. The DED website offers a streamlined online platform for trade name registration. - Apply for the relevant business license
Choose the appropriate license type based on your business activities, such as Commercial, Professional, Industrial, or Tourism. Gather necessary documents like business plan, NOCs, and sponsor agreements (if applicable) for license application.
Over 85 different business activities listed under commercial licenses alone, showcasing the diversified economy. - Lease office space or secure permits for other business premises
Secure a suitable office space based on your budget, operational needs, and desired business district.
For non-office based businesses, obtain necessary permits and approvals for industrial setups, retail locations, or home-based operations. - Open a corporate bank account
Choose a reputable bank in Dubai and open a dedicated corporate bank account to manage your business finances.
Provide required documents like trade license, company registration certificate, and shareholder information for account opening. - Obtain necessary visas for yourself and employees
Apply for appropriate work visas for yourself and any foreign employees, meeting sponsorship requirements as needed.
Streamlined online visa application systems are available for various visa categories. - Comply with any additional regulations specific to your industry
Each industry may have specific permits, certifications, or health and safety guidelines to adhere to. Consult with relevant government authorities or industry associations to ensure compliance.
Cost of starting a business in Dubai for a foreigner
The cost of setting up a business in Dubai can vary depending on factors like your chosen business structure, location, license type, and additional permits. However, here’s a rough estimate:
Mainland:
| Trade license | Visa sponsorship | Office space |
| The cornerstone of your business, licensing fees range from AED 15,000 to AED 25,000 depending on your chosen activity and location. | Bringing in talent? Expect visa fees per employee, alongside medical tests and deposits. Factor in an average of AED 4,500 to AED 5,500 per visa. | Rent varies vastly based on location and size. Budget between AED 20,000 to AED 60,000 per year for a basic office in a central area. |
Example: Setting up a small consulting firm on the mainland might involve a trade license at AED 18,000, three employee visas at AED 15,000 each, and basic office rent of AED 30,000 per year. This equates to roughly AED 81,000 in initial costs.
Free Zones:
| Company setup | Office space |
| Free zones offer pre-packaged solutions, typically costing AED 12,000 to AED 20,000, inclusive of a basic license and visa allocation. | Rent within free zones tends to be higher than the mainland, averaging AED 30,000 to AED 80,000 per year. |
Example: Opting for a free zone for your technology startup might require a setup package of AED 15,000 and office rent of AED 50,000 per year, totaling approximately AED 65,000 initially.
Important Note: These are ballpark figures, and your specific costs will depend on your chosen business type, desired location, and the number of employees.
With careful planning and a realistic budget, launching your business dream in Dubai can be an exciting and rewarding journey. For the most accurate and up-to-date information, consult the Khidmath Corporate Services Business Consultant in Dubai.
Start your business in Dubai with Khidmath Corporate Services
Navigating a foreign business landscape can be daunting, but with Khidmath Corporate Services, you have a reliable partner. Our unique selling point is providing seamless business solutions in Dubai. We combine expertise with a deep understanding of the local landscape to ensure your business setup is smooth and successful.
Embark on your entrepreneurial journey in Dubai today, and let Khidmath Corporate Services be your trusted companion, offering tailor-made solutions for your business needs.
For additional information or assistance, feel free to contact us at Khidmath Corporate Services or explore the services we offer here.
Frequently asked questions about starting a business in Dubai
1. Can non-residents start a business in Dubai?
2. What type of companies can I establish in Dubai?
3. What are free zones and why should I consider them?
a. 100% foreign ownership: You can completely own your business without needing a local partner.
b. Tax-free environment: Companies in most free zones are exempt from corporate income tax and customs duties.
c. Simplified business setup: The process of obtaining licenses and permits is often easier and faster in free zones.
d. Flexible regulations: Free zones allow more operational freedom compared to the mainland.
If your business caters primarily to international markets and prioritizes operational ease, a free zone could be a good option.
4. How do I obtain a trade license in Dubai?
a. Choose a business activity and legal structure.
b. Apply for an initial approval.
c. Obtain necessary visas and permits.
d. Submit required documents and fees.
e. Rent or own office space.
Several government agencies assist with the process, and business setup consultants can offer valuable guidance.
5. Can I start a Limited Liability Company (LLC) in Dubai?
a. Limited liability for owners up to their investment amount.
b. Simple shareholding structure.
c. Flexibility in management structure.
You can establish an LLC with a minimum of two shareholders, one of whom must be a UAE national unless operating in a free zone.
6. What type of business thrive in Dubai?
a. Tourism and hospitality: Dubai’s booming tourism industry creates demand for hotels, restaurants, travel agencies, and related services.
b. E-commerce and online marketplaces: With a growing internet population, e-commerce businesses have significant potential.
c. Logistics and transportation: Dubai’s strategic location as a trade hub makes it a center for logistics and transportation companies.
d. Professional services: Consulting, financial services, and legal services are in high demand, especially for businesses catering to international clients.
e. Technology and innovation: Dubai promotes itself as a tech hub, offering opportunities for IT startups and companies in various technology sectors.
