Starting a business in a new country can sound scary at first – new rules, new systems, and a lot of “what ifs.” But the truth is, starting a business in Dubai as a foreigner is much easier than most people think. Dubai has built its business setup process in a way that is clear, fast, and very welcoming for non-residents. In many cases, you can even set up your company without being physically present in the UAE.
Dubai continues to be one of the most popular choices for foreign entrepreneurs. In 2025, the UAE is seeing thousands of new business licenses issued every month, with foreign investors playing a major role in this growth. Small and medium-sized businesses make up over 90% of active companies.
What makes Dubai stand out even more is how smooth the setup process is for non-residents. There are multiple business jurisdictions to choose from, flexible visa options, and clear government procedures that help you move forward without confusion. So, let’s discuss what exactly you need to start your business in Dubai as a foreigner, step by step.
Can Foreigners Start a Business in Dubai?
Yes, foreigners can absolutely start a business in Dubai, and today it’s easier than ever. The UAE government has introduced several business-friendly reforms over the years to attract international entrepreneurs, investors, and startups. As a result, Dubai is now one of the most open and welcoming places for foreigners to set up a company.
100% Foreign Ownership:
One of the biggest advantages for foreign business owners is 100% foreign ownership. Earlier, many mainland businesses required a local Emirati partner, but this rule has changed. Today, most business activities in Dubai allow foreigners to fully own their company without needing a local sponsor. This applies to a wide range of sectors, including trading, professional services, consulting, e-commerce, and more.
Recent Reforms That Made Setup Easier (2024-2025):
Beyond ownership, the government has slashed red tape to make the process faster and cheaper.
- Instant Licenses: You can now obtain a license in minutes through digital government portals, sometimes without even having a physical office lease for the first year.
- Reduced Costs: Many government fees have been reduced or waived to lower the barrier to entry for startups.
- Long-Term Residency (Golden Visa): Property investors and entrepreneurs can now qualify for 5- or 10-year self-sponsored visas, giving you stability and peace of mind for you and your family.
The Three Ways to Start a Business in Dubai: Mainland vs. Free Zone vs. Offshore
Foreign entrepreneurs can choose from three main business jurisdictions, depending on their goals.
- Mainland companies are ideal if you want to operate anywhere in the UAE and work directly with the local market.
- Free zone companies are popular among foreigners because of lower setup costs, easy compliance, and full ownership, especially for international or online businesses.
- Offshore companies are mainly used for holding assets, international trading, or tax planning, without operating inside the UAE.
How to Start a Business in Dubai as a Foreigner in 2026
Planning to start a business in Dubai in 2026? This foreigner guide covers costs, documents, rules, and step-by-step process.
Step 1: Choose the Right Business Activity
Choosing the right business activity is the foundation of your company setup in Dubai. Everything else – license type, approvals, cost, and even banking, depends on this decision.
Dubai offers thousands of approved activities, including:
- Trading (general trading, import–export, retail)
- Professional services (consulting, marketing, IT, design)
- E-commerce and online businesses
- Manufacturing and industrial activities
Regulated vs Non-regulated activities:
- Non-regulated activities (like consultancy or e-commerce) usually have faster approvals and fewer formalities.
- Regulated activities (healthcare, education, finance, legal services) need extra approvals from government authorities, which can increase time and cost.
Step 2: Decide the Business Jurisdiction
After selecting your activity, the next step is choosing where your company will be registered. Dubai has three main jurisdictions, and each one serves a different business purpose.
Mainland:
A mainland company is suitable if you want to operate anywhere in the UAE and deal directly with local customers or government entities. Mainland businesses now allow 100% foreign ownership for most activities.
Free Zone:
A free zone company is often the preferred choice for foreign entrepreneurs, startups, and online businesses. Free zones offer full ownership, faster setup, and lower initial costs. They are ideal for service-based or international businesses, though there may be restrictions on direct mainland trading.
Offshore:
An offshore company is mainly used for holding assets, international trading, or investment purposes. These companies do not operate within the UAE market and do not offer residence visas, but they are cost-effective and easy to maintain.
Step 3: Select the Right Legal Structure
Your legal structure defines ownership, liability, and management control, so it’s important to choose wisely.
- Limited Liability Company (LLC): The most popular choice for 2025. It separates your personal assets from the business. If the business has debts, your personal savings are generally safe. Now available for 100% foreign ownership.
- Sole Proprietorship: Common for professional freelancers (like doctors or engineers). You have unlimited liability, meaning you are personally responsible for all business debts.
- Branch Office: Ideal for established international companies expanding to Dubai. The branch is an extension of the parent company, not a separate entity.
Step 4: Trade Name Reservation
Once your business activity and structure are decided, the next step is choosing and reserving your trade name. This is the official name under which your company will operate in Dubai.
The UAE has clear naming rules. Your trade name should reflect your business activity and must not include offensive language, religious references, or the names of countries or government authorities. If you plan to use a personal name, it should be written in full rather than initials.
Step 5: Apply for Initial Approval
Before you sign any lease or hire staff, you need the government’s “green light.” This is what we call Initial Approval. It is a “No Objection” certificate from the government (either the DED for Mainland or the specific Free Zone Authority). It confirms that the government has no problem with you starting a business in your chosen activity.
At this stage, the paperwork is light. You typically only need:
- Passport copy
- Visa copy (only if you are already a UAE resident)
- Your Trade Name Reservation certificate
Step 6: Office Space Requirement
Every business in Dubai needs a registered address, but the type of office space depends on your jurisdiction and business activity. Mainland companies typically require a physical office space, as this is linked to license issuance and visa eligibility. The size of the office can also affect the number of visas you can apply for.
Free zone companies often offer more flexibility. Many free zones provide flexi-desk or shared office options, which are cost-effective and ideal for startups, consultants, and online businesses. Virtual offices may be allowed in limited cases, mainly for specific free zone setups, but they are not suitable for all business activities.
Step 7: Apply for the Business License
The final step in this phase is applying for your business license, which officially allows you to operate in Dubai.
There are three main types of licenses:
- Commercial license for trading and buying/selling goods
- Professional license for services, consultancy, and skilled activities
- Industrial license for manufacturing and production businesses
Once issued, a business license is typically valid for one year and must be renewed annually to keep the company active. For foreigners, the cost of a business license can vary based on jurisdiction, activity, and visa requirements.
Step 8: Visa Process for Foreign Business Owners
Once your business license is issued, the doors to UAE residency open. This is where you transition from a visitor to a resident.
Investor Visa Eligibility:
- Standard Partner Visa: Valid for 2 years (Mainland) or up to 3 years (Free Zone). This allows you to live in the UAE and enter/exit freely.
- Golden Visa (10 Years): In 2025, many business owners qualify for this self-sponsored visa if they own property worth AED 2 million or have a substantial bank deposit (typically AED 2 million).
- Green Visa (5 Years): A newer option for freelancers and skilled professionals that does not require a sponsor.
Sponsoring Family (Dependents):
- Once you have your visa, you can sponsor your spouse and children.
- New Rule: Sons can now be sponsored up to age 25 (previously 18), and unmarried daughters can be sponsored indefinitely.
Medical Test & Emirates ID:
- You must pass a standard medical fitness test (Blood test for infectious diseases + Chest X-ray for TB).
- You will also visit a government center to give your biometrics (fingerprints) for your Emirates ID – this card is your “key” to everything in Dubai, from renting a home to opening a bank account.
Step 9: Open a Corporate Bank Account
To open a business bank account, banks typically ask for company documents such as the business license, incorporation certificates, passport copies of shareholders, and details about the nature of the business. Some banks may also request a brief business overview or expected transaction details.
Can Foreigners Open a Business Bank Account in Dubai?
Yes, foreigners and even non-residents can open a corporate bank account in Dubai. However, banks follow strict compliance procedures, especially for foreign-owned companies, to ensure transparency and regulatory compliance.
Documents Required to Start a Business in Dubai as a Foreigner
The exact list may vary depending on your business activity, jurisdiction, and nationality, but most foreign entrepreneurs will need the following:
Basic Documents:
- Valid passport copy of the owner(s) and shareholder(s)
- Passport-size photographs (as per UAE requirements)
- Visa copy (if you are already in the UAE)
- Emirates ID copy (for residents, if available)
Business Setup Documents:
- Trade name options for approval
- Business activity details
- Initial approval application
- Memorandum of Association (MOA) or Articles of Association (as applicable)
Additional Documents (If Required):
- No Objection Certificate (NOC) from a current sponsor (for UAE residents)
- Educational or professional certificates (for regulated or professional activities)
- Board resolution (for corporate shareholders)
What is the Cost of Starting a Business in Dubai for Foreigners?
One of the first questions every entrepreneur asks is: “How much does it cost to start a business in Dubai?”
The honest answer is: It depends on your “flavor” of business. In 2025, you can launch a lean digital startup for as little as AED 12,500 ($3,400), or you can spend upwards of AED 50,000 ($13,600) for a premium mainland retail setup.
Typical Cost Range: Mainland vs Free Zone:
- In 2025, basic free zone packages for foreigners typically start from AED 12,000 to AED 20,000, especially for zero-visa or single-visa setups. These packages are popular among startups, consultants, and online businesses because they bundle the license and office solution together.
- Mainland company setup usually costs more because of office space and compliance requirements. On average, mainland business setup for foreigners can range from AED 18,000 to AED 35,000 or more, depending on the business activity, office size, and number of visas.
Hidden Costs to Watch Out For:
The license fee isn’t the only thing you will pay. To avoid nasty surprises, budget for these hidden expenses:
- Health Insurance (Mandatory): Every resident visa holder must have health insurance. For a basic package for a healthy young entrepreneur, budget around AED 700 – AED 1,500 per year.
- Annual License Renewal: Remember, your license is not a one-time purchase. You must renew it every year. The cost is usually similar to your initial license fee (minus the one-time registration costs).
- External Approval Fees: If you are opening a restaurant, clinic, or gym, you need approvals from extra government bodies. These certificates can cost an extra AED 2,000 – AED 10,000 depending on the complexity.
For a more accurate cost breakdown for your business, get in touch with experts at AE Setup.
How AE Setup Can Help Foreigners
Starting a business in Dubai as a foreigner can feel like a big step, but it’s actually a lot more doable than it looks on paper. Dubai has created a system that’s clear, supportive, and built to welcome international entrepreneurs.
If you plan things properly, follow the rules, and make informed choices early on, you can avoid most of the common headaches and start your business on the right foot.
That’s where All Emirates Setup comes in. Instead of figuring everything out on your own, you get a team that guides you through the entire process – from choosing the right jurisdiction to setting up your license, visas, PRO work, and even helping with your business bank account. We offer a free consultation, explain things in simple terms, and keep pricing transparent, so you’re never caught off guard. Get in touch today!
