Are you considering starting a business in UAE as a foreigner? With its strategic location, business-friendly environment, tax incentives, and diverse economy, the UAE is a popular choice for entrepreneurs looking to expand their business horizons. Many expats ask: How can I start a business in UAE as a foreigner? Whether you want to start a business in Dubai, Sharjah, or Ajman, the process is relatively straightforward if you understand the regulations and requirements. Our team of experts specializes in helping foreign entrepreneurs establish their businesses in the UAE. From company registration to obtaining licenses and permits, we provide end-to-end support to ensure a smooth and hassle-free process. We have a deep understanding of the local market dynamics and regulations, allowing us to tailor our services to meet your specific needs and requirements.
- Why Start a Business in UAE as a Foreigner?
- Step-by-Step Process to Start a Business in UAE
- Step 1: Choose Your Business Activity
- Step 2: Decide the Jurisdiction – Free Zone vs Mainland
- Step 3: Select a Legal Structure
- Step 4: Register Your Company Name
- Step 5: Apply for Initial Approval
- Step 6: Draft the MOA (Memorandum of Association)
- Step 7: Choose Office Space
- Step 8: Obtain Business License
- Step 9: Open a Corporate Bank Account
- Step 10: Get Visas and Start Operations
- How to Start a Business in Dubai as a Foreigner
- Benefits of starting a business in Dubai:
- How to Start a Business in Sharjah as a Foreigner
- How to Start a Business in Ajman as a Foreigner
- Benefits of starting a business in Ajman:
- Costs of Starting a Business in UAE
- Documents Required to Start a Business in UAE
- Challenges of Starting a Business in UAE
- Benefits of Starting a Business in UAE with Us
- FAQs About Starting a Business in UAE
Why Start a Business in UAE as a Foreigner?
Before discussing the steps, let’s explore why thousands of foreigners move to the Emirates to establish companies every year.
- 100% Ownership for Foreigners – In most free zones and even in mainland sectors, foreign investors can now enjoy full ownership without needing a local partner.
- Tax Advantages – The UAE offers 0% personal income tax and low corporate tax rates, making it one of the most attractive tax havens globally.
- Global Business Hub – Dubai International Airport and Jebel Ali Port connect you to Africa, Asia, and Europe within hours.
- Ease of Doing Business – Streamlined government portals make it easier than ever to start a business in UAE.
- Diverse Economy – From tech to real estate, tourism, healthcare, logistics, and e-commerce, opportunities are endless.
Step-by-Step Process to Start a Business in UAE
Here is a simplified step-by-step process for foreigners who want to start a business in UAE.
Step 1: Choose Your Business Activity
The first step is selecting the type of business you want to establish. The UAE permits numerous activities, ranging from trading and e-commerce to consulting and real estate. The activity will determine the license you need.
Step 2: Decide the Jurisdiction – Free Zone vs Mainland
Foreigners must choose between mainland, free zone, or offshore jurisdictions:
- Free Zone – Ideal for 100% ownership, tax benefits, and limited liability.
- Mainland – Allows trading directly in the UAE market and government contracts.
- Offshore – Best for international trading and holding companies.
Step 3: Select a Legal Structure
Some options include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Branch Office
- Free Zone Company
Step 4: Register Your Company Name
Choose a unique business name that complies with UAE naming regulations. Avoid offensive or religious words.
Step 5: Apply for Initial Approval
Submit documents to the Department of Economic Development (DED) or the relevant Free Zone Authority.
Step 6: Draft the MOA (Memorandum of Association)
Required for LLCs and partnerships.
Step 7: Choose Office Space
Free zones offer flexi-desk options, while mainland businesses need a physical office.
Step 8: Obtain Business License
The license depends on your activity:
- Commercial License – For trading and e-commerce.
- Professional License – For consultancy and services.
- Industrial License – For manufacturing.
Step 9: Open a Corporate Bank Account
Choose a UAE bank that supports international investors.
Step 10: Get Visas and Start Operations
Apply for investor visas, employee visas, and residence permits.
How to Start a Business in Dubai as a Foreigner
Dubai is the most popular destination for entrepreneurs. If you want to start a business in Dubai, here’s what you need to know:
- Mainland vs Free Zone in Dubai – Dubai offers more than 30 free zones such as Dubai Internet City, Dubai Media City, and Dubai Multi Commodities Centre (DMCC). Free zones are best if you want 100% ownership, while mainland gives you access to the entire UAE market.
- Steps – The process to start a business in Dubai follows the general UAE procedure: choose an activity, register with DED or Free Zone Authority, secure office space, and obtain licenses.
- Costs – Starting costs vary from AED 15,000 to AED 50,000, depending on the business type and location.
Benefits of starting a business in Dubai:
- Strategic location between East and West.
- World-class infrastructure and connectivity.
- Strong government support for innovation and startups.
Whether you are in retail, real estate, or e-commerce, Dubai is one of the best places to start a business in UAE.
How to Start a Business in Sharjah as a Foreigner
Sharjah is the cultural capital of the UAE and an emerging hub for industry and education. If you want to start a business in Sharjah, here are the details:
- Free Zones in Sharjah – Sharjah Media City (Shams), Hamriyah Free Zone, and Sharjah Airport International Free Zone are popular choices for foreign investors.
- Lower Costs – Sharjah generally offers more affordable setup and rental fees compared to Dubai.
- Industries – Manufacturing, logistics, education, and cultural services thrive in Sharjah.
Advantages of starting a business in Sharjah:
- Affordable business setup packages.
- Proximity to Dubai while offering lower overhead costs.
- Access to international markets through seaports and airports.
For budget-conscious investors, Sharjah is one of the most attractive options to start a business in UAE.
How to Start a Business in Ajman as a Foreigner
Ajman may be the smallest emirate, but it offers unique opportunities for startups and SMEs. Many expats choose Ajman when they want to start a business in UAE at a lower cost.
- Ajman Free Zone (AFZ) – Offers some of the most affordable business setup packages in the UAE.
- Business Types – E-commerce, trading, consulting, and service-based companies.
- Low Costs – Setup fees can start as low as AED 8,500, making Ajman perfect for startups with limited budgets.
Benefits of starting a business in Ajman:
- Affordable licensing and rental costs.
- Easy access to Dubai and Sharjah markets.
- Quick and simple registration process.
Ajman is an excellent choice for entrepreneurs looking to start a business in UAE without high startup expenses.
Costs of Starting a Business in UAE
The costs depend on location, activity, and license type. On average:
- Dubai Mainland – AED 20,000 to AED 50,000
- Dubai Free Zone – AED 15,000 to AED 30,000
- Sharjah Free Zone – AED 10,000 to AED 25,000
- Ajman Free Zone – AED 8,500 to AED 20,000
Additional expenses:
- Office rent
- Visa fees
- Bank account minimum deposit
- Trade license renewal
Documents Required to Start a Business in UAE
Typical documents include:
- Passport copies of shareholders
- Passport-size photos
- Visa copy (if applicable)
- No Objection Certificate (NOC) from current employer (if in UAE)
- Business plan (for some activities)
- MOA and Articles of Association
Challenges of Starting a Business in UAE
While the UAE is business-friendly, foreigners may face some challenges:
- Navigating Legal Requirements – Each emirate has its own rules.
- Cultural Differences – Respecting local customs is essential.
- Costs – Premium locations like Dubai can be expensive.
- Bank Account Opening – Some banks have strict compliance checks.
Working with a business setup consultant can make it easier to start a business in Dubai, Sharjah, or Ajman smoothly.
Benefits of Starting a Business in UAE with Us
Our team of experts specializes in helping foreign entrepreneurs establish their businesses in UAE. From company registration to obtaining the necessary licenses and permits, we provide end-to-end support to ensure a smooth and hassle-free process. With our in-depth knowledge of local regulations and business practices, we can help you navigate the complexities of starting a business in a foreign country, allowing you to focus on what you do best – growing your business.
- Expert Guidance: Our team of professionals has years of experience in assisting foreign entrepreneurs with business setup in UAE.
- Tailored Solutions: We provide customized solutions to meet your specific business needs and goals.
- Efficient Processes: With our streamlined processes and industry knowledge, we can expedite the setup of your business and minimize delays.
- Ongoing Support: We offer continuous support and guidance even after the establishment of your business, ensuring its successful operation and growth.
In conclusion, starting a business in UAE as a foreigner can be a rewarding and profitable venture. With the right guidance and support, you can navigate the legal requirements and set up your company successfully. If you are ready to take the next step and start your business in UAE, contact us today to learn how we can assist you every step of the way. Let’s make your entrepreneurial dreams a reality together!
FAQs About Starting a Business in UAE
Can a foreigner own 100% of a business in UAE?
Yes, in most free zones and many mainland activities, foreigners can own 100% of their business.
How much does it cost to start a business in Dubai?
Starting a business in Dubai costs between AED 15,000 and AED 50,000, depending on the license type and location.
Is Ajman good for business setup?
Yes, Ajman offers affordable packages and is popular with startups and SMEs.
How long does it take to start a business in UAE?
The process can take anywhere from 3 days to 4 weeks, depending on the jurisdiction.
Do I need a local sponsor to start a business in Sharjah?
Not if you set up in a free zone. Mainland businesses may still require a local agent for some activities.
