Every day in Dubai, a new skyscraper is completed, beautiful hotels are launched, luxury residential complexes are opened, and hundreds of businesses are established. Dubai has rapidly become one of the world’s top five global business destinations, a haven for foreign entrepreneurs, investors, and business professionals. As a result, business and investment in Dubai is booming. And for foreign nationals? Dubai’s population of 3.3 million comprises over 2 million foreigners – and growing each year.
But just why is Dubai good for business for foreigners?
In this blog, we’ll delve deep into the benefits of business setup in Dubai, the most popular business options and sectors for foreigners, the steps to set up a business here, and how Worldwide Formations can turn your dreams into reality in the UAE. Let’s dive right in!
Is Dubai good for business for foreigners?
Yes, Dubai is good for business for foreigners. The reasons why Dubai is an attractive business destination for foreign business owners are that it allows 100% foreign ownership, zero income tax, and full repatriation of profits. What’s more, the UAE’s economy and political landscape are stable, inspiring confidence and trust for investors and entrepreneurs alike.
The legal framework supporting 100% foreign ownership across various sectors is one of the most significant innovations of the Dubai government. This recent policy change eliminates the requirement for foreign business owners to have local sponsors, allowing them to hold full ownership and control of their business operations.
Benefits of starting a business in Dubai as a foreigner
Dubai offers incredible opportunities for foreigners looking to establish businesses here. Here are the top five benefits for foreigners setting up or expanding their businesses in Dubai:
1. Strategic location
The United Arab Emirates (UAE) is strategically located at the intersection of the Middle East, Africa, Europe, and Asia. This makes it an ideal base for business activities like international trade, import and export, logistics, tourism, hospitality, and more.
2. World-class infrastructure
Business in Dubai thrives because of its world-class infrastructure. It boasts world-renowned seaports, airports, and road networks, as well as office and retail spaces, manufacturing facilities, state-of-the-art warehousing, beautiful residential complexes, hospitals and clinics, schools and universities, and shopping centres. For a foreign entrepreneur or investor, setting up a business in Dubai is an easy choice.
3. Innovative free zones
Dubai’s government created over 40 free zones. Each free zone offers industry-specific incentives and benefits tailored to its specific needs. For instance, the DIFC is designed for financial institutions and service providers, Dubai Media City is tailored for media companies, and Dubai Healthcare City is specifically for healthcare providers.
4. Streamlined visa and residency options
Setting up a business in Dubai gives you access to work visas and residency permits for yourself, your family, and your employees. The visa process is designed to be efficient, making it easy to manage residency and immigration requirements.
5. Government support
Apart from the headline-grabbing zero income tax and 9% corporate tax rate, the Dubai government simplifies business setup processes. Streamlined business regulations, efficient licensing procedures, and advanced digital platforms reduce time and headaches for foreign nationals to do business in Dubai and across the UAE.
Popular business options and sectors for foreigners in Dubai
Here are the most popular business options and sectors for foreigners in Dubai:
- Real estate investment
- Online retail stores
- IT services such as software development and cybersecurity solutions
- Freight forwarding
- Last-mile delivery services
- Social media marketing
- Tour operators
- Management consultancy services
- Small business accounting services
- Fintech solutions
- Sustainable architecture
- Renewable energy infrastructure installation
- Recycling centres
How to start a business in Dubai for foreigners
1. Team up with Worldwide Formations
When setting up a business in Dubai, partnering with a business formation expert is a crucial step. Worldwide Formations have decades of operational experience in advising, guiding, and assisting entrepreneurs and investors in establishing and expanding their businesses in Dubai and across the UAE. Our team of specialists will save you time, money, and stress – so you can focus on building your business.
2. Select your business activity
Even before registering your business in Dubai, you must first determine and select the business activities your company will conduct. This will appear on your business license. With over 2,000 business activities to choose from, it is vital to select the right ones for your business license to enable you to operate legally.
3. Determine your legal structure and business jurisdiction
Now that you have selected your business activities, you must choose a legal structure and business jurisdiction to enable you to apply for a business license and register your entity. You can select from structures such as an LLC, sole proprietorship, a branch of a foreign company, and more.
At the same time, you must also choose a business jurisdiction: mainland or free zone setup. Each one has its pros and cons, and you must carefully consider each type in relation to your business goals. For foreign business owners, the most popular choice is a free zone setup.
4. Apply for your business license
All businesses in Dubai are required to hold valid and relevant business licenses to operate legally. Business licenses serve to regulate industries and provide credibility to businesses. There are four main types of business licenses: commercial, professional, industrial, and tourism, with additional subcategories specified by the relevant authorities. Business licenses are obtained from Dubai’s Department of Economic Development (DED) for mainland and offshore setups, while free zone companies can apply from their free zone authority. You will also need to submit various documents, such as your business plan, copies of the business owner’s passport, and proof of address.
5. Open a corporate bank account
Once your business license has been issued, you must open a corporate bank account. This is the final step before you can operate legally in the UAE. Worldwide Formations will guide you in this step to partner with the bank most suited to your industry and business operations.
About Worldwide Formations
With over two decades of expert experience, Worldwide Formations has successfully guided thousands of entrepreneurs and investors in establishing and expanding their businesses in Dubai. From selecting business activities and approvals to business license applications and visa assistance, our team of specialists streamlines the paperwork and process for business setup in Dubai.
Start the first step: contact Worldwide Formations today to begin your journey to a booming business in Dubai.
