How to Start a Business in UAE as a Foreigner in 2025

How to start a business in UAE as a foreigner? Establishing a business in the UAE is an attractive opportunity, thanks to its thriving economy and supportive business environment. In the following lines, the POA&More team explains the steps for starting a business in UAE as a foreigner.

How to start a business in UAE as a foreigner?

Starting a business in the UAE is an attractive opportunity for foreigners, thanks to its thriving economy and supportive business environment. Here is a comprehensive guide on how to start a business in UAE as a foreigner:

Determine the type of business activity

Market research: Conduct comprehensive market research to understand demand and competition in your field of interest.
Define the business idea: Choose a business idea that matches your skills and experience and meets market needs.
Develop a business plan: Prepare a detailed business plan outlining the project’s objectives, strategies, and financial projections.

Choose the legal form of the company

Limited Liability Company (LLC): This is the most common form of business in the UAE, offering limited liability protection to shareholders.
Free Zone Company: Allows foreign investors to fully own their companies and provides tax and customs benefits.
Branch of a foreign company: Allows foreign companies to establish a branch in the UAE.
Professional Company: For professionals such as doctors, engineers, and lawyers.

Choose the appropriate location

Mainland: Allows you to conduct business throughout the UAE.
Free zones: Provide tax and customs benefits, but may limit the ability to conduct business on the mainland.

Trade Name Registration

Choose a Unique Name: The trade name must be unique and not already registered in the UAE.
Get Approval: Submit a trade name registration application to the Department of Economic Development in the relevant emirate.

Obtain the Necessary Licenses and Approvals

Obtain a Trade License: Trade license types vary depending on the type of business activity.
Get Government Approvals: You may need to obtain additional approvals from the relevant government authorities.

Open a Bank Account

Choose a Suitable Bank: Choose a bank that offers corporate banking services.
Submit the Required Documents: Submit the required documents to open a company bank account.

Complete Legal Documents

Article of Association: Defines the rights and responsibilities of shareholders.
Approval Certificates: Obtain all necessary certificates and approvals from government authorities.

Pay Fees

Pay the Required Fees: Pay the required fees to obtain the license and complete registration.

Here: Company Formation in Dubai | Business Setup in Dubai

Benefits of Setting up Business in Dubai as a Foreigner

In the context of discussing how to start a business in UAE as a foreigner, Dubai enjoys many advantages that make it an attractive destination for foreigners to establish commercial projects. The most prominent of these advantages are:

Strategic Location: Dubai is located at the heart of the Middle East, making it a gateway to global markets in Asia, Africa, and Europe.
Diversified Economy: Dubai has a diverse economy based on various sectors such as tourism, trade, real estate, and financial services, providing extensive opportunities for investors.
Advanced Infrastructure: Dubai has a modern and advanced infrastructure, including airports, ports, roads, and telecommunications networks, making it easier for companies to conduct business efficiently.
Sensitive Business Environment: Dubai provides a stimulating business environment that encourages investment and innovation and supports startups and small and medium-sized enterprises.
Political and Social Stability: Dubai enjoys political and social stability, providing a safe and stable business environment.
Low Crime Rates: Dubai has very low crime rates compared to other major cities.
100% Foreign Ownership: Free zones in Dubai allow foreigners to own their companies 100%, without the need for a local partner. Tax Exemptions: Companies established in free zones enjoy tax exemptions on income and profits.
Residence Visa Facilitation: Dubai provides easy residency visas for investors and employees of foreign companies.
Easy Setup Procedures: Company formation in Dubai are simple and quick, and can be completed in a short period of time.
Diversity of Free Zones: Dubai offers a variety of free zones specializing in different sectors, allowing investors to choose the area that best suits the nature of their business.
Ease of Opening Bank Accounts: Dubai makes it easy for foreign investors to open bank accounts for companies and individuals.

Read more: Fast Online Company Registration in UAE Services 2025

Types of Business Licenses for Foreigners in Dubai UAE

Dubai offers a variety of business licenses designed to meet the needs of foreign investors. As part of the discussion on how to start a business in UAE as a foreigner, here is an explanation of the main license types:

Commercial Licenses:

Limited Liability Company (LLC): This is one of the most common types of companies in Dubai. It allows for partnerships between two or more partners, with limited liability. It can be established in onshore areas.
Branch of a Foreign Company: An extension of a foreign company operating in Dubai. It allows 100% foreign ownership.

Professional Licenses:

Are granted to individuals who provide professional services, such as consulting or specialized expertise.
Are allowed 100% foreign ownership.

Industrial Licenses:

Are granted to companies operating in the manufacturing and manufacturing sectors.
Their requirements vary depending on the type of industry.

Free Zone Licenses:

Allow foreign investors to own 100% of the company’s shares.
Are provided with tax and customs incentives.
There are free zones specialized in specific sectors, such as technology and media.

E-commerce Licenses:

Allows online commerce.
Covering a wide range of e-commerce activities.

Documents Required to Start a Business in Dubai as Non-Residents

Starting a business in Dubai for non-residents requires a set of basic documents. These requirements vary slightly depending on the type of business activity and the legal form of the company. Therefore, in the context of discussing how to start a business in the UAE as a foreigner, we mention the following documents required to start a business in Dubai as non-residents:

Personal Documents:

Passport Copy: The passport must be valid for at least 6 months.
Personal Photographs: You may need to provide recent personal photographs.
Proof of Address: You may be asked to provide proof of your current residence.

Company Documents:

Business Plan: A detailed business plan must be submitted outlining the project’s objectives and financial and commercial strategies.
Memorandum and Articles of Association: The company’s articles of association and memorandum must be prepared and notarized.
Trade Name: A trade name must be chosen for the company and registered with the relevant authorities.
Lease Contract or Title Deed: A lease contract or title deed for the company’s headquarters must be submitted.
Government Approvals: Some business activities may require additional approvals from the relevant government authorities.
Certificate of Experience: In some cases, you may be required to provide a certificate of experience in the field of business you wish to work in.

Additional Documents:

License Application Form: The required license application form must be completed by the competent authority.
License Fee: The required fees must be paid to process the license application.
University Degree: In some cases, you may be required to provide a university degree relevant to the business you wish to practice.

Here: POA&MORE | Best Public Notary Near Me in Dubai

Steps to Start a New Business in the UAE as a Foreigner

The UAE is an attractive destination for foreigners looking to start new businesses, thanks to its thriving economy and encouraging investment environment. Here are the basic steps to follow to how to start a business in UAE as a foreigner:

Determine the type of business activity and legal form:

Determine the activity: Determine the type of business activity you wish to pursue, whether commercial, industrial, service, or professional.
Choose the legal form: Choose the appropriate legal form for your company, such as a limited liability company (LLC), a free zone company, or a branch of a foreign company. The choice of legal form depends on the nature of the business and the size of the investment.

Choose a location:

Determine the appropriate location for your project, whether on the mainland or in one of the free zones. Free zones offer benefits such as full foreign ownership and tax exemptions.

Register a trade name:

Choose a unique and appropriate trade name for your business and register it with the Department of Economic Development in the relevant emirate.

Obtaining the necessary approvals and licenses:

Apply for preliminary approvals from the relevant government authorities.
Obtain the necessary licenses to operate your business from the Department of Economic Development and other relevant authorities.

Preparing legal documents:

Draft the company’s articles of association and memorandum of association and have them notarized with the relevant authorities.

Opening a bank account:

Open a business bank account to manage your company’s financial transactions.

Obtaining visas:

If you plan to reside in the UAE, apply for an investor visa or a work visa.

Completing other procedures:

Depending on the type of business activity, you may need to obtain additional approvals from other government authorities.

Read more: Best Online Notary Service

Cost of Starting a Business in the UAE

The cost of starting a business in the UAE varies greatly depending on the type, size, and location of the project. Therefore, in the context of discussing how to start a business in UAE as a foreigner, we mention the following factors that determine the cost of starting a business in UAE:

Type of Business Activity:

Costs vary depending on the type of business activity. Some activities require large capital investments, such as manufacturing, while others require less investment, such as consulting services.
Costs also vary depending on the regulatory requirements of each activity. Some activities require special licenses and approvals, which increases costs.

Project Size:

Costs increase with the size of the project. Larger projects require greater investments in capital, staff, equipment, and facilities.

Location:

Rent and utility costs vary greatly depending on location. Locations in free zones are typically more expensive than locations on the mainland.
Costs also vary depending on the city, with Dubai and Abu Dhabi being among the most expensive cities in the UAE.

Licenses and Permits:

License and permit costs vary depending on the type of business activity and location. Information on required licenses and permits can be obtained from the Department of Economic Development in the relevant emirate.

Capital:

You must have sufficient capital to cover startup costs and initial operating expenses.
The amount of capital required depends on the type and size of the project.

Read more: Notary Public Dubai Fees

Advantages of POA&More in start a business in UAE as a foreigner

POA&More Power of Attorney Dubai offers a range of benefits to foreigners wishing to start a business in the UAE, including:

The company has extensive experience in UAE law, helping clients understand the complex legal procedures involved in establishing a company.
The company provides comprehensive legal advisory services, including choosing the appropriate legal form for the company and preparing the necessary contracts and legal documents.
The company assists clients in completing all government procedures necessary for company establishment, saving them time and effort.
The company provides customs clearance and document attestation services, facilitating clients’ import and export of goods.
The company offers a comprehensive range of services, including company registration, issuing commercial licenses, opening bank accounts, and issuing residency visas.
The company provides administrative support services, such as account management, financial reporting, and marketing.
The company has an extensive network of relationships with government and special entities in the UAE, helping clients obtain the best services and solutions.
It facilitates access to notary publics and the attestation of powers of attorney and transactions, as all necessary procedures can be completed remotely (online). The company offers competitive prices for its services, making it the ideal choice for many clients.

Finally, we discussed how to start a business in UAE as a foreigner. POA&More is a good choice for foreigners looking to start a business in the UAE, offering a comprehensive suite of services to help them establish and manage their businesses successfully.

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Frequently asked questions

Can a foreigner own a business in UAE?

Yes, foreigners can own businesses in the UAE. UAE investment laws have undergone significant changes in recent years to facilitate this. Here are some key points:

The UAE allows foreigners to own 100% of businesses in many sectors under Federal Law No. 26 of 2020, which amends Federal Law No. 2 of 2015 on Commercial Companies.
This change aims to attract more foreign investment and strengthen the UAE’s position as a global business hub.
Free Zones:
UAE free zones provide an attractive investment environment for foreigners, allowing full company ownership and simplified incorporation procedures.
Business establishment procedures vary depending on the type of business activity, the legal form of the company, and the location (mainland or free zones).
In general, the procedures include identifying the business activity, choosing the legal form, registering the trade name, and obtaining the necessary approvals and licenses.
Foreigners can establish various types of companies in the UAE, such as limited liability companies, branches of foreign companies, and free zone companies.

Can I open a company in the UAE without a residence visa?

Yes, you can establish a company in the UAE without a residence visa in some free zones. How to start a business in UAE as a foreigner? Here is some detailed information about establishing a company in the UAE:

Free zones in the UAE allow foreign investors to own their companies 100% without the need for an Emirati partner or attorney.
These zones offer a stimulating business environment and simplified establishment procedures.
Investors can obtain a trade license without a residence visa, but they must visit the UAE periodically to renew the license.
Choosing the appropriate free zone: Free zones in the UAE vary in the specializations and services they offer, so you must choose the zone that best suits the nature of your business.
Determining the type of company: You must determine the legal form of the company, such as a limited liability company or a branch of a foreign company.
Obtaining a trade license: You must submit an application for a trade license to the free zone authority, submit the required documents, and pay the fees.
Complying with laws and regulations: You must comply with the laws and regulations applicable to the free zone, including periodic license renewal.

Can I start a business while working full-time in UAE?

Yes, you can start a business while working full-time in the UAE, but there are some things to consider:

You must ensure that UAE labor laws permit it and that your employment contract does not conflict with starting your own business.
You can obtain a freelance license to legally organize your business.
There are many free zones in the UAE that offer freelance licenses.
It can be difficult to manage time between your full-time job and your own business, so you must develop a solid plan and manage your time efficiently.
You must be willing to put in the extra effort and dedicate sufficient time to your business.
Avoid any conflict of interest between your job and your own business, and ensure that your business does not compete with your current work.
You must be aware that some companies include clauses in employment contracts that prohibit employees from engaging in any other business activities.

Do I need a noc to start a business in Dubai?

How to start a business in UAE as a foreigner? Obtaining a No Objection Certificate (NOC) in Dubai depends on the type of business you wish to engage in. In general, there are certain situations in which you may need this certificate:

If you plan to operate an online business in Dubai, you may need to obtain a No Objection Certificate (NOC) from the Telecommunications Regulatory Authority (TRA) and the Digital Government.
These activities include online buying and selling, providing online services, e-marketing, and more.
Some business activities in Dubai require special approvals from certain government entities, such as activities related to health, education, or real estate.
In these cases, you may need to obtain a No Objection Certificate (NOC) from the relevant government attorney before commencing the activity.
Some real estate transactions may require a NOC, for example, when selling a mortgaged property.