Yes, UK citizens can start a business in Dubai, and thousands already have. In 2024 alone, over 2,500 new UK companies were registered in Dubai, a 14.2% jump from the year before. This brings the total to more than 5,000 British businesses now running in the UAE. The rise is no surprise. Dubai’s business-friendly rules, growing economy, and prime global location make it a natural choice for UK entrepreneurs.
Dubai is also a major hotspot for global investment. In fact, Dubai pulled in a record AED 52.3 billion in new projects in 2024, which is 33% higher than the year before. On top of that, UK investors can enjoy 0% personal income tax, full foreign ownership in many sectors, and world-class infrastructure. For many British entrepreneurs, this means lower costs, access to international markets, and a thriving, expat-friendly environment where business can grow fast.
Why Dubai is a Popular Choice for UK Entrepreneurs?
Dubai has built a reputation as one of the most welcoming places in the world for business, and UK entrepreneurs are feeling right at home here. Here are some of the main reasons why:
1. Tax-Friendly Environment
One of Dubai’s biggest draws is its 0% personal income tax and competitive corporate tax rates. This means you keep more of your profits and can reinvest directly into your business growth instead of losing a chunk to high tax bills.
2. Full Foreign Ownership
In most sectors, UK entrepreneurs can now own 100% of their business, without a local partner. This gives you complete control over decision-making, operations, and profits.
3. Strategic Global Location
Dubai is perfectly positioned between Europe, Asia, and Africa, with world-class ports and airports connecting you to over 200 cities worldwide. For UK businesses looking to expand internationally, this location offers easy access to billions of potential customers.
4. Strong UK–UAE Trade Relations
The UK is already one of the UAE’s biggest trade partners, which means there’s a well-established network for British businesses here. This makes it easier to build partnerships, import products, and access familiar brands and services.
5. Ease of Doing Business
The UAE ranks high globally for ease of doing business, thanks to fast company registration processes, simplified visa systems, and proactive government support for entrepreneurs.
6. Expat-Friendly Lifestyle
With a large British expat community, English widely spoken, and familiar brands, it’s easy to settle in. At the same time, Dubai offers an exciting multicultural lifestyle, high-quality healthcare, top schools, and plenty of leisure options.
Can a UK Citizen Legally Set Up a Business in Dubai?
Yes, a UK citizen can legally set up and own businesses in Dubai. In fact, with recent updates to UAE business laws, foreign investors, including British nationals, can now enjoy 100% ownership in most sectors without the need for a local Emirati partner.
When starting a business, you’ll need to choose where and how your company will be registered. The three main options are:
- Mainland Company: Licensed by the Dubai Department of Economic Development (DED), this allows you to operate anywhere in the UAE and take on government contracts. With the new rules, UK citizens can fully own many types of mainland businesses.
- Free Zone Company: Located within one of Dubai’s 40+ free zones, these offer 0% corporate tax (in most cases), full foreign ownership, and simplified setup. However, direct trading in the UAE mainland requires working with a local distributor, establishing a branch, or obtaining a special permit from DED.
- Offshore Company: Ideal for holding companies, international trading, or asset protection. Offshore businesses don’t require a physical office in Dubai and are generally not allowed to trade within the UAE.
What are the Eligibilities and Legal Requirements for UK Entrepreneurs?
Business setup in Dubai from the UK is straightforward, but there are certain eligibility criteria and legal steps you need to follow.
Eligibility Criteria
- Minimum Age: You must be at least 18 years old to register a company in Dubai.
- Business Activity Approval: Your chosen business activity must be allowed in the UAE. Some sectors (like finance, healthcare, and education) require special approvals.
- Clean Legal Record: While minor past issues may not be a problem, certain criminal convictions can affect approvals.
- Visa Status: You can set up a business whether you’re in Dubai on a visit visa, residence visa, or even while still in the UK, but you will need a UAE visa later to live and work here.
Legal Requirements
- Trade License: Every business in Dubai must have a valid trade license issued by the relevant authority (Mainland: DED; Free Zone: respective free zone authority).
- Registered Office Address: You must have a physical office or a flexi-desk in Dubai, depending on your license type.
- Share Capital: Some business activities or jurisdictions may have minimum capital requirements (though many free zones now have zero minimum capital).
- Company Name Registration: Your trade name must follow UAE naming rules (no offensive words, religious references, or political terms).
- Bank Account: After receiving your trade license, you will need to open a corporate bank account in the UAE to manage your business finances.
- Compliance with UAE Laws: This includes immigration laws, labour laws, and, if applicable, tax registration like VAT (if your annual turnover exceeds AED 375,000).
Visa-Related Requirements
- Entry Permit: You will first be issued an entry permit, which allows you to enter the UAE to complete your residency visa application.
- Medical Fitness Test: A mandatory medical examination in the UAE to screen for communicable diseases such as HIV and tuberculosis.
- Emirates ID Application: You must apply for an Emirates ID, which is the official identification card for residents of the UAE.
Given the nuances of the setup process, many UK entrepreneurs choose to work with a business setup consultant such as All Emirates Setup to ease the process.
What are the Documents Required?
While the exact documents may vary based on the business activity, location, and licensing authority, most setups require the following:
- Passport copies of all shareholders and directors
- Visa copy (if you already have a UAE residence visa)
- Recent passport-sized photographs (as per UAE specifications)
- Emirates ID copy (if applicable)
- Trade name reservation certificate
- Utility bill or bank statement as proof of residential address (for KYC purposes)
- Ejari (tenancy contract) for Mainland companies
- Free zone office lease agreement (if setting up in a free zone)
- Special approvals from government departments (e.g., health authority, education regulator, or municipality) for certain activities like healthcare, education, or food trading.
How to Set Up a Business in Dubai from the UK?
Starting a business in Dubai as a UK entrepreneur is easier than you might think, especially with the right guidance. Here’s the typical process:
1. Decide on Your Business Activity
Choose what type of business you want to run – trade, consultancy, e-commerce, manufacturing, etc. This will determine the license type and approvals you need.
2. Choose the Right Jurisdiction
Decide between Mainland, Free Zone, or Offshore based on where you want to operate, your target market, and your budget.
3. Pick and Register a Trade Name
Select a business name that follows UAE naming rules, no offensive terms, religious references, or political phrases. Submit it for approval with the relevant authority.
4. Secure Office Space
Almost every business in Dubai must have a registered office address.
- Mainland: Lease an office or shop in a permitted commercial area.
- Free Zone: Rent a physical office or opt for a flexi-desk/shared workspace.
- Office lease contracts must be registered (Ejari for mainland).
5. Pay Fees and Receive Your License
After all the previous steps are completed, you will receive a payment voucher. Once the fees are paid, the relevant authority will issue your trade license. This document officially permits you to operate your business in Dubai.
6. Open a Corporate Bank Account
Set up a UAE-based corporate bank account to manage your business finances. Some banks may require you to have a UAE residence visa first.
7. Apply for Your Residency Visa
As an entrepreneur, you can apply for an Investor Visa or a Partner Visa to live and work in the UAE. This process involves:
- Submitting your visa application and necessary documents.
- Undergoing a medical fitness test at a government-approved health centre.
- Providing your biometric data for the Emirates ID application.
How Much Does it Cost to Set Up a Business in Dubai from the UK?
Setting up a business in Dubai as a UK entrepreneur involves a range of costs, which can vary significantly depending on the company structure you choose, your business activities, and your specific needs.
Trade License Fees: This is one of the main costs when starting a business in Dubai. Depending on your business activity and jurisdiction (Mainland or Free Zone), trade license fees usually range between AED 12,000 to AED 35,000 annually.
Visa Costs: If you plan to live and work in Dubai, you’ll need a residence visa. The cost for a visa can range from AED 3,000 to AED 7,000 per person, depending on the type and validity period.
Office Space & Business Address: Dubai requires you to have a physical office or a flexi-desk package (especially for Mainland companies). Flexi-desks can cost from AED 8,000 annually, while private office rentals vary greatly based on location and size.
Other expenses include bank account setup fees, translation services, insurance, and marketing. These can range from AED 5,000 upwards, depending on your business needs.
All-in-One Support for Your Dubai Business Setup
If you’re from the UK and want to start a business in Dubai, the process is much simpler than you might think. Dubai welcomes foreign investors with open arms, offering low taxes, world-class infrastructure, and a thriving market full of opportunities.
With All Emirates Setup, you don’t need to stress about the details. We handle everything for you – getting your trade license, securing all approvals, arranging visas for you and your staff, opening a corporate bank account, and even helping you find the right office space.
For UK entrepreneurs, we offer a free first consultation where you can discuss your business idea, costs, and requirements. Get in touch today!
