Yes, and a lot of foreigners do open for company setup in Dubai. Foreigners make up more than 80% of the population, and many of them own their enterprises. Dubai actively invites foreign businesspeople and investments.
Overview on Foreigner Company Setup in Dubai
Contents
- Overview on Foreigner Company Setup in Dubai
- Types of Business Entities
- Benefits for foreigners to set up business in Dubai
- Dubai is a major commercial hub
- Significant Tax Benefits
- Continuous Airline Connectivity
- Friendliness in business setup
- International Market Access
- Steps for company setup in Dubai as a foreigner/non-resident
- 1. Choose your business category
- 2. Select a trade name
- 3. Get your license
- 4. Company setup and registration
- 5. Obtain a business visa
- Top 10 Successful Company setup in Dubai 2023
- 1. Sector of Construction
- 2. Online Ecommerce store solutions
- 3. Tourism and Travel
- 4. Cafe or restaurant
- 5. Cleaning services
- 6. IT Solutions & services
- 7. Travel company
- 8. Delivery & courier Services
- 9. Garment Trading
- 10. Trading in cryptocurrencies
- Conclusion –
Dubai actively invites foreign businesspeople and investments. In order to help international business owners with the license, visa, and company incorporation processes, the emirate is home to a sizable number of setup agents and company formation professionals. A few advantages for foreigners founding new enterprises in Dubai and other UAE emirates include tax exemptions, ease of starting a firm, swift procedures, a flourishing economy, and political stability. The crux of the answer is that foreign nationals can apply to form a new company in the UAE. If you’re interested in these advantages but are unsure about your ability to establish a business as a foreign national in the UAE.
Types of Business Entities
Foreigners in Dubai have several options when it comes to choosing a business entity. The two most common structures are:
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a) Limited Liability Company (LLC): An LLC allows for full foreign ownership, provided a local Emirati partner or entity holds at least 51% ownership. This partnership arrangement ensures compliance with UAE laws while offering flexibility and control to foreign investors.
b) Free Zone Company: Free zones are designated areas where foreign investors can have 100% ownership of their businesses. Each free zone has its own set of rules and regulations, along with industry-specific benefits and incentives.
Benefits for foreigners to set up business in Dubai
Dubai is a major commercial hub
Did you know that among the top global commercial centers, Dubai is currently ranked 17th in the world? Being a commercial hub with rapid expansion has significant advantages, especially for new businesses searching for a growth foundation. Dubai is a recognized leader in this field on a global scale for High-quality administrative infrastructure liberal tax laws for startup businesses Options for commercial real estate with a high return on investment.
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Significant Tax Benefits
Foreign investors can take advantage of significant tax savings because the UAE government seeks to create a business-friendly environment in each of its emirates. For instance, personal and capital gains taxes are not due to foreign investors. Dubai only has 5% VAT in place, which is significantly less than most global economic hubs. Many new businesses are attracted to this prosperous region by these business-friendly tax regulations, which also help to create conglomerates there.
Continuous Airline Connectivity
The need for transportation is paramount for many company leaders and business owners trying to establish a firm in Dubai. They are particularly interested in flight availability and airport accessibility, both of which are best provided in Dubai. Dubai provides seamless aviation connectivity for frequent business travelers. This translates to thousands of weekly flights to every region of the globe and easily reachable international airports.
Friendliness in business setup
Avoid being intimidated by the legal and regulatory requirements that typically follow the formation of a company in Dubai. Actually, all you need to submit is a good name for your Dubai business and copies of your passports. We will assist you with company setup in Dubai- registration, licensing, legal process, and any other certification that you would need to set up a business in Dubai. from submitting your name for registration to turning into a legal silent partner who doesn’t participate in company decisions.
International Market Access
For new businesses trying to grow and find their first customers, this is an additional benefit. As a major international economic hub, Dubai hosts participants from practically all fields and sectors. This is a huge benefit for both B2B and B2C companies. More groups are setting up shop in Dubai’s region as the UAE moved to the 11th position on the worldwide “ease of doing business” ranking. Additionally, the presence of ports and a large work pool makes it easier for trading enterprises to expand there.
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Steps for company setup in Dubai as a foreigner/non-resident
If you are familiar with the government’s rules and regulations, starting a business in Dubai is simple. Follow these steps to launch a business in Dubai as a visitor or non-resident:
1. Choose your business category
When starting a business in Dubai as a foreigner, one of the most pivotal decisions you need to make is selecting the appropriate company structure. The type of business you wish to establish will determine the framework of your company. Opting for a sole proprietorship allows you to operate your business as the sole proprietor, granting you complete ownership and control. Additionally, you can establish a limited liability corporation (LLC), which enables you to have a distinct legal structure and is the most typical business structure in Dubai.
2. Select a trade name
The reservation of a trading name is a requirement to register company in Dubai. Your business must be clear from your company name. We are the legal professionals who can assist you in selecting a name that hasn’t already been registered, doesn’t offend anyone, and fits with your company’s operations.
3. Get your license
To open a business in Dubai as a foreigner, you must obtain a business & trade license. The DED or the relevant free zone authorities can be contacted directly for a trading license.
4. Company setup and registration
After completing the aforementioned stages, you can register your business with the relevant authority and begin carrying out operational operations in the UAE. To initiate the registration process, it is necessary to obtain all the pertinent documentation such as identification papers, business licenses, permissions, and bank accounts. Only upon completion of the registration process does your company in Dubai attain the status of a legal entity.
5. Obtain a business visa
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A business visa makes it easier for people to travel for business within and outside of the nation. Additionally, it enables three of the senior business staff to petition for residency. An extended visa for the applicant and any dependents is available to expats who wish to launch a business in Dubai. By getting in touch with the regional embassy, you can obtain a visa. In addition, anyone willing to move to the UAE in order to start a business is qualified to apply for a business visa.
Top 10 Successful Company setup in Dubai 2023
1. Sector of Construction
With the construction of industrial facilities, skyscrapers, and other infrastructure, Dubai continues to expand. Considering gaining experience in the construction industry can be advantageous. If you possess ample knowledge and experience in this field, establishing a business in Dubai’s construction sector presents considerable prospects for growth.
2. Online Ecommerce store solutions
In the contemporary UAE market, e-commerce solutions emerge as the most effective and prosperous business concepts in Dubai. Compared to many other business sectors, starting an e-commerce business in Dubai requires only a small investment. E-commerce solutions are expanding exceptionally, particularly since the COVID-19 epidemic.
3. Tourism and Travel
Dubai has long been regarded as one of the world’s top tourist destinations. Trade, tourism, and related businesses are the main sources of income for the emirate that lacks petroleum reserves. Numerous brand-new attractions are frequently launched in an effort to increase visitor numbers. Hence, if you have an interest in the field, it is highly recommended to venture into the travel and tourism industry.
4. Cafe or restaurant
Opening a restaurant is one of the top business concepts in Dubai. This bustling city is home to a sizable population and millions of restaurants that are profitable. You can open your ideal restaurant and attract consumers with a small investment and a love for serving a variety of cuisines.
Since workers in Dubai make a solid living, they appreciate fine cuisine and go out to dine frequently. However, when establishing a restaurant business in Dubai, keep in mind that you must abide by the government’s legal requirements and food code.
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5. Cleaning services
The cleaning industry is in great demand in the UAE since new businesses are opening up everywhere. It offers business owners a good chance to get into Dubai’s booming industry and establish a niche for themselves. You can establish a cleaning agency and your own cleaning crew depending on the model you desire. Additionally, you can choose to focus on the home market or offices and other sectors where daily cleaning services are needed.
6. IT Solutions & services
One of the world’s IT hotspots is the UAE. The IT industry has been a major driver of the nation’s digital revolution, which presents enormous prospects for expanding IT enterprises. UAE is a wonderful location for the IT sector thanks to recent advances in technology.
Dubai has already established itself as one of the top-ranked smart cities in the MENA area as it formalizes its aspiration to become one. Numerous IT advancements, including app development, online security, digital marketing, and others, have prospects in this area.
Consequently, establishing an IT company in Dubai will strengthen both your business operations and your reputation in the international market.
7. Travel company
Dubai has always drawn businesspeople from all over the world because of its value and the opportunity it offers for modern investors. Dubai is one of the best locations in the world for opening a travel agency because it is a haven for travelers and a recognized tourism hotspot on a worldwide scale. The tourism industry in the United Arab Emirates has been able to flourish year after year, creating new opportunities for interested business owners thanks to its cutting-edge construction, pleasant environment, and constantly changing vacationing culture. You can easily start a travel company in the UAE by working with the appropriate partners.
8. Delivery & courier Services
In Dubai, the demand for courier services is growing with time. To communities and residents in the UAE, it offers crucial services. Delivering packages throughout the nation may help you make a lot of money and is one of the greatest business ideas in the UAE because people are becoming more and more reliant on online purchasing. As a result, starting a business as a courier is a fantastic option for you. To establish a third-party logistics company, you can either expand your delivery fleet or collaborate with the current courier services.
9. Garment Trading
Apparel firms are taking advantage of the fact that Dubai is a fashion destination. The increased demand for trendy clothing makes this business a potentially lucrative proposition. Being a global metropolis, Dubai is home to a multicultural population who enjoy towering structures and luxurious lifestyles. You can either build your own fashion business or work as a reseller of well-known brands in Dubai. However, when selecting a company activity, this particular industry can need a little bit of thought. Whether you wish to engage in import/export, design, tailoring, costume rental, or any other business is up to you to determine.
10. Trading in cryptocurrencies
The UAE government has adopted a proactive stance towards cryptocurrencies and blockchain technology, fostering a legislative environment that is conducive to the expansion of the market for digital assets. Due to this, a number of cryptocurrency traders have established operations in the UAE, and many industries have accepted cryptocurrencies for a variety of use cases, including cross-border transactions, real estate, and retail payments.
Cost of starting a company in Dubai for foreigners
The cost of a company setup in Dubai as a foreigner or expat varies based on several factors, such as the nature of the business, license expenses, location considerations, and additional paperwork requirements. For instance, depending on the region, the trade license will cost you between AED 17,000 and AED 27,000.
Moreover, selecting a foreign name for your business that is not in Arabic incurs an additional AED 2000 fee. Specific enterprises in Dubai are required to obtain permits from various governmental organizations. For instance, you must obtain a permit from the municipality for food and safety in order to start a restaurant in Dubai. In a similar vein, in order to conduct any industrial activity, you must lease or rent factory space of a required minimum area.
Conclusion –
Foreigners wishing to do company setup in Dubai, have to get a business and trade license. The city provides a conducive atmosphere for entrepreneurial activities due to the availability of numerous business forms, attractive incentives, and an economic boom.