FAZAK
The Owner's Choice
We offer comprehensive services that help you make informed decisions and achieve your financial goals.
FAZAK
The Owner's Choice
We offer comprehensive services that help you make informed decisions and achieve your financial goals.
FAZAK
The Owner's Choice
"Open company in Dubai" is a phrase often used by international entrepreneurs searching for guidance on how to start a business in this vibrant city. Opening a company in Dubai is a straightforward process when you have the right information and support. Here, we’ll walk you through what it takes to open a company in Dubai, highlighting key considerations and steps, especially from a foreign investor’s perspective.
Dubai is a global business hub that welcomes investors with open arms. The city offers 0% income tax, excellent connectivity (a central location between Europe, Asia, and Africa), a stable political environment, and strong legal protection for businesses. By opening a company in Dubai, you also gain access to a growing market in the Middle East and a prime base for international operations. The government’s pro-business policies include initiatives like instant licensing and one-stop service centers to make company setup easier than ever. Additionally, Dubai’s diverse economy means whatever your sector – be it technology, trading, real estate, or retail – there's a good chance of success and growth if you plan well.
1. Decide Your Business Activity: Determine the nature of your business. Dubai classifies licenses mainly into Commercial (trading), Professional (services), Industrial (manufacturing), and so on. Knowing your activity will guide you on license type and if any special approvals are needed.
2. Choose the Jurisdiction: Based on your business model, choose between Mainland (onshore) or a Free Zone (offshore within UAE). If you need to sell to the local market or have a physical shop/office in the city, mainland is preferable. If you aim primarily for export or services and want full ownership plus tax benefits, a free zone might be ideal. (There is also an Offshore company option purely for holding or international business, which is a separate route under jurisdictions like JAFZA Offshore or RAK ICC).
3. Select a Company Name: Pick a unique name that meets UAE naming rules – it shouldn’t conflict with existing names and must not include prohibited words (like religious terms or offensive language). We’ll help check name availability and reserve it.
4. Prepare Documents: Common documents include shareholder passport copies, and if you already have a UAE visa, a No Objection Letter from your sponsor. We will draft the required application forms and legal documents (like Memorandum of Association for an LLC, or service agent agreement for a professional firm).
5. Obtain Initial Approval: For mainland, an initial approval from the DED (Dubai Economy) is obtained, indicating they have no objection to you proceeding with the company setup. For free zones, usually this step is integrated into the license application. If any external approvals are needed (for example, from Municipality, Health Department, etc.), we will secure those at this stage.
6. Lease an Office: Every company in Dubai needs a registered address. For mainland, you must secure an office or shop lease (even a small shared office in a business center can do, depending on license). For free zones, you’ll often choose a facility option, which could be a flexi-desk or physical office. We can arrange suitable office solutions through our network, whether you need a prestigious downtown address or an affordable desk space.
7. Final License and Registration: After submitting all documents and paying the fees, the trade license is issued. For mainland LLCs, this comes with your registration in the commercial registry. In free zones, along with the license, you get the certificates of incorporation. Now your company is officially open!
8. Post-Setup Steps: These include applying for your Establishment Card (immigration card) so the company can sponsor visas, and then applying for residence visas for you (the investor) and any employees. Finally, you’d open a corporate bank account to handle your company’s finances – we will introduce you to banking options that suit your profile.
By following these steps methodically (and with our team handling the heavy lifting), opening a company in Dubai is a lot easier than it might seem initially. Many tasks can be done remotely or online – for example, Dubai Economy’s e-services allow for digital submission of documents and even video verification in some cases. We keep up with these innovations to make your experience efficient.
The cost to open a company in Dubai can range widely depending on license type and jurisdiction. As mentioned earlier, a simple service license on the mainland might cost around AED 12k–15k in fees, whereas a free zone could start at AED 10k or so. We will provide an upfront quote for your specific case. The timeline, as noted, is usually 1-2 weeks for most setups, assuming documents are ready. If you’re in a hurry, we can explore instant license options – Dubai offers an Instant License service where you can get a license issued in one day for certain activities (the physical MOA and other formalities can be completed within the first year). This is great for a quick start, and we can check if your business qualifies.
Contact FAZAK to get personalized assistance on opening a company in Dubai. From brainstorming your company name to seeing the license in your hand, we’ll ensure the process is clear, quick, and tailored to you. Unlock the opportunities Dubai offers by starting your company with us as your reliable partner.
Absolutely, yes. You do not need to be a UAE resident to start a company here. In fact, thousands of foreign entrepreneurs open companies in Dubai while initially on a tourist visa or even from abroad. Once your company is set up, you can then obtain a residence visa through the company (as the owner or employee). We often handle the entire company formation for clients who are overseas; they only travel to Dubai when it’s time to process their residence visa or open a bank account (some banks may require a personal visit). Dubai actively welcomes foreign investors, and the procedures allow for remote incorporation in many cases. We’ll let you know if any step requires you in person – for example, some free zones might ask you to come for signature, but many have digital alternatives today.
When you open a company, you become eligible for an Investor Visa (also known as Partner Visa) if you are a shareholder, or an Employment Visa if you appoint yourself as a manager or employee of your company. Investor visas in the UAE are typically issued for 3 years (in free zones it’s 3 years, in mainland Dubai it can be 2 or 3 years). This visa designates you as an investor in the UAE and allows you to live in the UAE, sponsor family, get a driving license, etc. There is also now the possibility of a 10-year Golden Visa for larger investors (for example, investing AED 2 million or more in property or business qualifies some people for long-term visas). But for most entrepreneurs starting a normal business, the standard 2-3 year investor visa is what you’ll get. We handle the visa application after the company is formed – this involves entry permit, status change (if you’re in country), medical test, Emirates ID, and visa stamping. All told, within a couple of weeks after your license is issued, you can have your residence visa as well.
For free zone companies, no local partner is needed at all (you can own it 100%). For mainland companies, as of now, no local partner is required for the vast majority of activities either – you can also own it 100%. There remain a few specific activities (mostly in sectors like oil & gas, transport, telecom, etc.) where if you were to engage, local ownership might be mandated by law, but these are not common for most investors. If you are opening a professional service company in mainland (like consulting, IT services), you technically require a local service agent (LSA) by law, but that agent has no equity or profit share. We can fulfill the LSA role via our contacts for a nominal fee, ensuring you have no management interference. So in summary, most new businesses do not need a local partner. If you personally know someone local you want to partner with for strategic reasons or you prefer to have a local ally, that’s fine too and we’ll structure the company accordingly. But it’s no longer an obligation in general to find a local sponsor just for the sake of the law.
Ongoing responsibilities include: annual license renewal (discussed earlier), maintaining a physical address (you need to have a valid lease each year for mainland, and for free zone either renewing your flexi-desk or office lease), and bookkeeping for your own good practice. The UAE has VAT at 5% on sales of goods/services – if your business turnover exceeds AED 375,000 per year, you must register for VAT and file quarterly VAT returns. We can assist with VAT registration and returns. As for corporate tax, effective 2023, if your net profit exceeds AED 375,000 in a year, you’ll be subject to 9% corporate tax on the profit above that threshold. That means you’d need to file an annual corporate tax return and pay any due tax. Free zone companies that earn income only outside UAE or within the free zone can remain tax-free (0%) if they comply with regulations (no branching into mainland). There are no payroll taxes or social taxes payable (just a small pension contribution if you hire Emirati staff, as per law). Also, no requirement to publish accounts publicly for most companies. In summary, compared to many countries, ongoing compliance in Dubai is relatively light: renew license, do basic accounting for VAT/tax if needed, and maintain your facility. We provide services to help manage all these, so you can concentrate on business.
Company bank account opening has its process, but we assist closely with this. After your company is formed, you’ll approach banks to open a corporate account. UAE banks will require KYC documents: your company license, incorporation documents, passport copies, visa (if obtained by then, if not, that’s okay for some banks), proof of address, and information about your business plan (what the company will do, expected transaction volumes, etc.). They may also ask for personal bank statements or professional references to understand your banking history. The process can take anywhere from 1 to 4 weeks for the bank to review and approve. It’s not “automatic” because banks must follow compliance, but with our guidance – like choosing the right bank that fits your profile – it goes smoother. We often set up a meeting for you with the bank manager or have a representative meet you to collect forms. As long as your business is legitimate and you can explain the flow of funds, you should be fine. There are many local and international banks in Dubai (Emirates NBD, Mashreq, ADCB, HSBC, etc.). If one bank declines (sometimes they have internal policy about certain nationalities or industries), we try another. Generally, free zone and mainland companies have equal footing in account opening, though some banks prefer mainland if the business is local. We’ll navigate this with you. Keep in mind, opening the bank account might be the step that takes a bit of patience compared to the quick licensing, but it’s a one-time setup that’s well worth it.
