What are the ways to establish a company in Dubai for foreigners 2025? Dubai is considered one of the most attractive business destinations for foreigners, as it provides an ideal investment environment that allows investors to easily achieve their business ambitions. Thanks to its strategic location, advanced infrastructure, and government facilities, Dubai has become a global center for finance and business. Establishing a company in Dubai for foreigners is not just a business step, but an investment in a promising future full of opportunities. Dubai also offers a range of advantages, such as full ownership in free zones and no income taxes, making it an ideal destination for investors from all over the world. In addition, the simplified procedures for establishing companies, with continuous support from government agencies, enhances the ability of investors to quickly launch into the market. In this article, we will cover all aspects of establishing a company in Dubai for foreigners , from procedures and requirements to benefits and challenges, providing investors wishing to enter the UAE market with a comprehensive vision that helps them make informed decisions.
Ways to establish a company in Dubai for foreigners 2025
Establishing a company in Dubai for foreigners requires following specific steps. The following is a presentation of these steps:
- Choosing the type of company: The investor must determine the type of company he wants to establish, whether it is a limited liability company (LLC), a subsidiary, or a branch of an existing company.
- Determine the business activity: You must choose the business activity that the company will carry out, as this affects the licensing requirements.
- Choosing a company name: The name must be unique and comply with the naming laws in the Emirates, and names with religious or political connotations must be avoided.
- Obtaining approvals: It may be necessary to obtain prior approvals from some relevant government agencies depending on the type of activity.
- Preparing documents: The necessary documents must be prepared, such as passport, personal photos, and the lease contract for the office space.
- Submitting the application: The application for licenses is submitted to the Department of Economic Development (DED) in Dubai. This can be done online or through the relevant offices.
- Opening a bank account: After obtaining the license, a bank account must be opened in the company’s name.
- Company Registration: After completing all the steps, the company is officially registered.
- Obtaining other licenses: If additional licenses (such as health or environmental licenses) are required, they must be obtained.
- Recruiting employees: After completing the establishment procedures, you can start recruiting employees and implementing the approved work systems.
- It is advisable to cooperate with consulting companies such as “Atqan” to ensure that the procedures are accelerated and the establishment process is facilitated.
Conditions for establishing a company in Dubai for foreigners 2025
- Minimum Capital: The minimum capital varies depending on the type of company and business activity. For Limited Liability Companies (LLC), a minimum capital of AED 300,000 may be required.
- Determine the type of business activity: The investor must determine the type of activity he wishes to carry out, as some activities require additional licenses.
- Choosing a company name: The name must be unique and comply with the naming laws in the UAE, taking into account not using names that have religious or political connotations.
- Securing an office address: The investor must secure an address for the company’s headquarters, whether it is a real or virtual office, depending on the type of license.
- Compliance with legal requirements: You must comply with all local laws and regulations, including tax registration and required licenses.
- Submitting the required documents : A set of documents must be submitted, such as: A valid passport for the company founders. Recent personal photos.
- Obtaining the necessary approvals: Some activities require obtaining prior approvals from certain government agencies, such as the Ministry of Economy or local authorities.
- Appointment of a local agent: In case of a limited liability company (LLC), it is required to appoint a local agent who owns 51% of the company’s shares. However, foreigners can fully own companies in free zones.
- Opening a bank account: A business bank account must be opened in the company’s name after obtaining the license.
- Issuance of License: After completing all steps, the commercial license is issued by the Department of Economic Development (DED).
- It is advisable to cooperate with consulting companies such as “Atqan” to facilitate the procedures and ensure compliance with local laws.
Advantages of establishing a company in Dubai for foreigners
Establishing a company in Dubai for foreigners comes with many advantages that make it an attractive destination for investors. Here are the most prominent of these advantages:
- Full Ownership: Dubai’s free zone system allows foreigners to own 100% of the company without the need for a local partner, providing more control over the business.
- No income tax: Dubai does not impose any personal income tax, making it a preferred destination for investors and businesses.
- Ease of procedures : Dubai is characterized by the presence of fast and efficient company establishment procedures, as most procedures can be completed electronically.
- Strategic Location: Dubai is centrally located between East and West, facilitating access to global markets and boosting trade.
- Developing advanced infrastructure: Dubai offers world-class infrastructure of roads, ports and airports, facilitating shipping and transportation operations.
- Banking Facilities: Local and international banks provide various banking facilities to companies, including easy options to open business bank accounts.
- Diverse investment opportunities: Dubai offers a wide range of investment opportunities in various sectors, including tourism, real estate, trade, and technology.
- Convenient work environment: Dubai has a professional and culturally diverse work environment, making it easy to attract highly skilled and qualified employees.
- Government Support : The UAE government offers many incentives and facilities to investors, including financial support and guidance.
- Distinctive lifestyle: Dubai offers a diverse and distinctive lifestyle, with a range of entertainment and commercial options, making it an attractive place to live and work. Establishing a company in Dubai for foreigners is a smart investment option, especially with the availability of these many advantages that enhance the chances of success and growth.
Cost Factors of Company Formation in Dubai for Foreigners
Establishing a company in Dubai for foreigners requires considering several factors that affect the total cost. Here are the most important factors in the cost of establishing a company in Dubai:
- Company Type: Incorporation costs vary depending on the type of company, whether it is a limited liability company (LLC), a subsidiary, or a company in a free zone.
- Business Activity: Licensing costs vary depending on the type of business activity. Some activities require additional licenses which increases the cost.
- Licensing fees : These include fees for obtaining a commercial license from the Department of Economic Development (DED), which vary depending on the type of company and activity.
- Office Rent: A company headquarters must be secured, and rental costs vary depending on the location and type of office (physical or virtual).
- Local Agent: If the company is a limited liability company (LLC), a local agent is required, which means additional costs.
- Bank Account Opening Costs: Business bank account opening fees vary by bank and minimum capital requirements.
- Visas: Includes costs related to obtaining work and residence visas for employees and investors.
- Consulting Services: In case of using consulting companies such as “Atqan” to assist in the establishment procedures, the cost of their services will be added.
- Taxes and Additional Fees: Although there is no income tax, some activities may require the payment of additional taxes or fees, such as value added tax (VAT).
- Operating expenses: These include salaries, utility bills, and equipment purchases, which are factors to consider when estimating the total cost.
Estimating the total cost of setting up a company in Dubai requires careful consideration of the above factors, and costs can range from several thousand to hundreds of thousands of dirhams depending on the different options.
Documents required to establish a company in Dubai for foreigners
To establish a company in Dubai for foreigners, a set of basic documents is required. Here is a list of the required papers:
- Passport: A copy of the valid passport of the company founders and investors must be provided.
- Personal Photos: Provide a number of recent personal photos of the company founders, usually passport size.
- Establishment Application Form: Fill out the establishment application form that can be obtained from the Department of Economic Development (DED) or the relevant authorities.
- Lease Contract: A document proving the security of a company’s premises, whether it is a physical or virtual office, and it must be certified.
- Business Activity Statement: A document that describes the business activity that the company will conduct, including all activities to be undertaken.
- Appointment of a local agent (if required): If the company is a limited liability company (LLC), documentation is required to prove the appointment of a local agent who owns 51% of the shares.
- Approval from competent authorities: Some commercial activities may require additional approvals from certain government agencies, such as the Ministry of Economy or other regulatory bodies.
- Personal data: Filling out the personal data form, which includes information about the company founders, such as nationality, residence, and job.
- Financial reports (if applicable): If proof of financial solvency is required, some entities may require financial reports.
- Tax Registration: In some cases, you may need to register for a tax number, so the relevant documents must be prepared. Requirements may vary slightly depending on the type of company and business activity, so it is best to consult a consulting company such as “Atqan” to ensure that all documents are prepared correctly.
Establishing a company in Dubai for foreigners is a strategic step that opens wide doors for investors to realize their business ambitions. Dubai is characterized by a stimulating business environment, as it allows full ownership in free zones, provides various investment opportunities, in addition to advanced infrastructure. With easy and efficient incorporation procedures, investors can quickly access global markets. When considering establishing a company in Dubai, it is important to seek the necessary advice from the competent authorities and understand all the terms and requirements. Hiring a consulting firm such as “Atqan” can help speed up the incorporation process and simplify procedures, ensuring success and growth.
Frequently asked questions about establishing a company in Dubai for foreigners
What types of companies are available to foreigners in Dubai?
Can foreigners fully own a company in Dubai?
What are the papers required to establish a company in Dubai?
What are the costs of setting up a company in Dubai?
Costs vary depending on the type of company, business activity, and office location. It is important to estimate all fees, including licensing fees and rent.
