Establishing a company in Dubai for foreigners is a strategic step that opens up vast horizons for investment and expansion in a thriving global market. Thanks to its strategic location linking East and West, Dubai is a major economic hub that provides an attractive investment environment for foreigners, thanks to its advanced infrastructure and legal facilities. Dubai boasts multiple free zones that allow foreigners to fully own their companies without the need for a local partner, with flexible laws and regulations that support foreign investment. In addition, Dubai offers tax incentives and efficient government services that make the process of establishing a company in Dubai for foreigners easy.

How to Establish a Company in Dubai for Foreigners

Establishing a company in Dubai for foreigners requires specific steps, which vary depending on the type of company and the location where it is established, such as free zones or the local market. Here are the general steps for establishing a company in Dubai for foreigners:

Choosing the Company Type: You must first determine the type of company you wish to establish, whether it is a limited liability company, a branch of a foreign company, or a company in a free zone. Each type requires different procedures.
Choosing the Business Activity: Determining the business activity you wish to pursue is a fundamental step, as it must align with the classifications approved by the Dubai Department of Economic Development or the selected free zone.
Choosing the Zone: You can establish your company in a free zone that allows 100% foreign ownership, or establish it in the local market. However, in this case, you may need a local partner who owns 51% of the company.
Obtaining Initial Approvals: You must obtain initial approvals from the relevant authorities, such as the Department of Economic Development or the free zone administration.
Preparing the Required Documents: Required documents typically include a passport, a copy of the residency permit (if applicable), and the company’s articles of association. Documents may vary depending on the type of activity and company. Determining a location for the company: You must rent an office or headquarters, whether in the local market or in a free zone.
Obtaining a trade license: After completing all the previous steps, a trade license will be issued, authorizing you to begin operating.
Opening a bank account: UAE law requires opening a bank account for the company once you have obtained a trade license.
Following these steps carefully will ensure that your company is established in Dubai smoothly, while benefiting from the facilities provided by the UAE government to attract foreign investment.

Requirements for establishing a company in Dubai for foreigners

The requirements for establishing a company in Dubai for foreigners vary depending on the type of company and the location where it is established, whether in the local market or in a free zone. Here are the most important general requirements for establishing a company in Dubai for foreigners:

Foreign ownership: In free zones, foreigners are allowed to own 100% of the company without the need for a local partner. In the local market, the law requires a local partner (an Emirati citizen) who owns 51% of the company if it is located outside the free zones. However, there are exceptions in some new sectors that allow full foreign ownership.
Business Activity: The type of business activity the company will undertake must be determined, as it must comply with the activities approved by the Department of Economic Development or the administration of the selected free zone. Some activities may require special approvals from the relevant government authorities.
Required Documents: Passport copies for each partner. Copy of the residence visa (if the applicant is a UAE resident). Passport-sized photographs. The company’s articles of association (certified by official authorities) if there is more than one partner.
Capital: Some types of companies may require a specific capital. In free zones, the required capital is determined based on the type of activity and the region.
Company Headquarters: The company must have an approved legal address. An office or headquarters may be rented in a free zone or in the local market, depending on the company’s needs.
Government Approvals: Some activities require special approvals from the relevant government authorities, such as health, tourism, or industry.
Obtaining a Trade License: After completing all requirements and approvals, a trade license will be issued, allowing you to practice the activity in Dubai.
Opening a Bank Account: UAE law requires the company to open a bank account. The trade license and all required documents must be submitted to open the account. By following these conditions and procedures, foreigners can establish their companies in Dubai and benefit from the unique investment environment.

Can foreigners fully own a company without a local partner?
Yes, foreigners can fully own a company in Dubai without the need for a local partner, in several cases and specific areas. One of the most prominent of these is establishing a company in Dubai’s free zones, where foreign investors are allowed to own 100% of the company’s shares without the need for an Emirati citizen as a partner. Free zones offer a flexible economic environment and include numerous benefits, such as tax exemptions, no restrictions on remittance transfers, and the ability to easily lease office space.

Furthermore, with recent legal reforms, the UAE has issued new laws allowing foreigners to own 100% of companies in certain vital economic sectors outside of free zones, without the need for a local partner. These reforms enhance Dubai’s competitiveness as a global investment hub, allowing foreigners to establish their companies in a variety of sectors, including trade, technology, and service industries.

Despite these possibilities, some specific activities still require a local partner, especially in sensitive sectors such as defense and energy. Therefore, foreign investors must ensure that the activity they intend to pursue does not fall within these restricted activities. In short, Dubai offers extensive opportunities for foreigners to fully own their companies, making it an attractive destination for foreign investment thanks to its supportive legal and legislative facilities.

Documents Required to Establish a Company in Dubai for Foreigners

To establish a company in Dubai for foreigners, there are a set of papers and documents that must be provided to ensure the procedures are completed legally and smoothly. Requirements vary depending on the type of company and its location, whether in the local market or in one of the free zones. The following are the generally required documents:

Passport Copy: A copy of the passport of each partner and shareholder must be provided.
Residence Visa Copy (if applicable): If the applicant is a UAE resident, a copy of the residency visa must be provided.
Personal Photographs: Passport-sized photographs of each partner or shareholder must be provided.
Company Articles of Association: This includes the articles of association, which specify the names of the partners, the percentage of each partner’s share, and the distribution of profits. The articles of association must be certified by the relevant authorities.
Specimens of Signature: A signature form must be provided for each partner or director of the company to be certified by the relevant authorities.
Office Lease Contract: Establishing a company requires a legal address, so a lease contract for the company’s headquarters in Dubai or a selected free zone must be submitted.
Obtaining Initial Approvals: For some commercial activities, approvals may be required from relevant authorities, such as the Ministry of Health or the Ministry of Tourism.
No Objection Certificate (NOC): If one of the partners is employed in the UAE, a No Objection Certificate (NOC) must be provided from their current employer. With these documents in hand, you can begin the company formation process and benefit from Dubai’s unique investment environment.

The specific timeframe for establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners may take between one and four weeks, depending on the type of company and the required procedures. The timeframe varies depending on the following factors:

Choosing the type of company: If you choose to establish a company in a free zone, the process may be faster, as free zones offer a fast track for company registration. This process often takes between one and two weeks.
Obtaining approvals: Some businesses may require additional approvals from certain government agencies, such as the Ministry of Health or the Department of Tourism. These approvals may take additional time, increasing the incorporation period to four weeks.
Preparing documents: Properly preparing and submitting the required documents can help expedite the process. If the paperwork is complete and ready, the company can be incorporated quickly, within one to 10 business days.
Obtaining a trade license: After submitting all the required documents, the trade license is generally issued within one to two weeks, depending on the type of business and the location where it is registered.
Office lease agreement: Finding a suitable location and completing the lease agreement may require some additional time if the space is not ready.