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Dubai is a global business hub known for its strong economy, welcoming business climate, and strategic location. Starting a business in Dubai as a foreigner gives entrepreneurs from all over the world, including those who are not citizens or residents, a huge range of opportunities.
You are not from Dubai and want to start your business there? Don’t worry, you are at the right place. In this blog, we will come to know about starting a business in Dubai as a foreigner, the benefits, and things you should take into consideration.
Foreign business owners can now usually keep full control of their companies. They can also take advantage of the UAE’s lower company tax rate and no personal income tax. One of the newest changes is the long-term visa, which lets foreigners stay in the UAE for a long time and maybe even retire here when their careers are over.
With the proper guidelines, people who don’t live in the UAE can still set up businesses in Dubai and run them from anywhere in the world.
Below you can see some survey findings that show why expats consider the UAE as their home and always dream of starting a business in Dubai as a foreigner:
The National Bonds surveyed in 2023, and more than 2,000 locals and expats took part. Here are some other interesting outcomes from the survey:
Overall, the survey found that the UAE is a widespread destination for expats and that they are generally happy with their lives here.
Yes, Dubai actively supports foreign investment and allows people who don’t live there to start and own businesses. The government has introduced policies that make it easier for foreign direct investment to take place. This makes the country attractive to business owners from all over the world.
According to one of the Arab News estimations, 4500 millionaires have been moved to the United Arab Emirates (UAE) by the end of 2023. This will make it the second most popular country in the world for millionaires. Why is this? The UAE has one of the lowest tax rates in the world and one of the fastest vaccine rates. Dubai also hosted the first World Expo after COVID-19.
The UAE’s immigration policies are meant to bring in bright and wealthy people from all over the world. These very wealthy people have also come to the UAE because of those rules.
Notably, a lot of rich Russians are moving to the UAE to get away from the effects of Western authorizations on their country. Over 6,500 millionaires are likely to leave India by the end of this year. All this is happening because of changes in the economy and tax laws after Brexit.
Dubai Has A Lot To Offer Foreign Business Owners, Such As:
Safe Economy:
Dubai has one of the world’s fastest-growing and most diverse economies, which makes it a safe place for businesses to run.
Tax-Friendly Economy:
The UAE has one of the best tax systems in the world. Businesses that operate from a free zone don’t have to pay VAT (Value-Added Tax ) on private property, and income tax is low.
Strategic Location:
Dubai serves as a strategic place that makes it easy to reach new markets in Asia, Africa, and Europe.
World-Class Facilities:
The city has great infrastructure, healthcare, and public spaces, which makes life better for business owners and their staff.
Safety:
Due to its low crime rate and strict law implementation, Dubai is often ranked as one of the safest places in the world.
Low corporate tax rate:
The UAE has one of the lowest commercial tax rates in the world, at 0%. This means you won’t have to pay any taxes on your income as a business.
Government that’s good for business:
Dubai’s government is great for business. They are committed to making the business environment smooth and efficient and offer a number of incentives to fascinate foreign investment.
Overall, the pros of starting a business in Dubai as a foreigner are more than the cons. Dubai is a great spot to do business because it is business-friendly, has a minimum company tax rate, and doesn’t put any limits on foreign ownership.
There are different kinds of business licenses that expats can get in Dubai. What kind of license is needed for starting a business in Dubai as a foreigner varies on what type of business it is. Most people have one of these types:
Commercial License:
Any type of business that does any kind of selling needs this license. This includes buying and selling goods, import and export, and other kinds of trade.
Professional License:
This license is for service providers, artisans, and craftsmen. It helps individuals to give their expertise and skills to customers. Examples of companies that require a professional license include consultancies, medical services, and repair services.
Industrial License:
Businesses who plan to engage in manufacturing or other industrial operations must obtain this license. It covers companies that convert natural material or raw materials into finished goods.
Tourism License:
This license is necessary for businesses that operate in the tourism industry. This includes travel companies, tour operators, and hospitality services.
Each of these licenses has its own set of requirements and processes for application. It is notable that some business actions may require approval from other governmental sections outside of the Department of Economic Development.
Starting a business in Dubai as a foreigner includes a series of steps. Here is a full breakdown of the whole process:
1. Decide the niche of Your Business:
The first step is to decide on the type of your business. It will further decide the kind of license you will need to apply for.
2. Choose a Business Name:
After deciding the type of your business, you will have to choose a unique name for your business that fits with the UAE’s naming conventions.
3. Select a Business Structure:
The UAE offers a number of business arrangements, such as Sole Proprietorship, Limited Liability Company (LLC), and Free Zone Company. The choice depends on your business activity, the level of control you want to keep, and your financial plan.
4. Pick a Location:
You can decide for starting a business in Dubai as a foreigner or in one of the many free zones. Each has its own benefits and rules.
5. Register Your Business
Once you’ve decided on the above, you can continue to register your business. This involves sending the necessary documents to the relevant authorities, which may include a business plan, passport copies, and application forms.
6. Obtain a Business License:
Apply for the proper business license based on your business action. This could be a commercial, professional, industrial, or tourist license.
7. Open a Corporate Bank Account:
Once your business is registered, you can open a corporate bank account. You will need to provide your business registration documents and other requirements specific to the bank.
8. Obtain Visa As a foreign business owner:
Get Visa for starting a business in Dubai as a foreigner. To live and work in the UAE, you will require a visa.
Keep in mind that the process can vary based on the specific requirements of the business activity and the authority (mainland or free zone). It is always advisable to consult with a business setup advisor to ensure you follow the proper procedures and regulations.
The specific documents required for starting a business in Dubai as a foreigner depend on the type of business license chosen.
Here are some of the main documents you will usually need:
Passport Copy:
This is an essential document for all business-related tasks in Dubai. You will have to provide a copy of your passport.
Visa Copy:
If you’re not a UAE resident, you will need to provide a copy of your visa.
Business Plan outlines your business goals, strategies, and financial projections. It is a major part of your business setup process.
Letter of Intent from a Local Sponsor:
This is relevant if you’re applying for a mainland license. You will need to provide a letter of intent from a neighborhood sponsor. You must know that this is needed for very limited activities.
Certificate of Good Conduct:
This certificate proves that you have no criminal record. It is an important part of your business setup process.
Financial Statement:
This paper shows your financial assets and responsibilities. It is important for representing your financial capacity to run a business.
In addition to these, you may also need to provide other documents based on the specific requirements of your chosen business license and working location.
In Dubai, the cost of starting a business depends on the kind of business, where it is located, and other things. A company license, on the other hand, will likely cost between AED 15,000 and AED 25,000.
As a foreigner or non-resident, you can start a business in Dubai, which has a strong economy, a decent location, and an ecosystem that is friendly to business.
Together with Archtechs.ae expert help, you can start and grow your business in this exciting city if you get the right advice and proper business plan.
Yes, as of 2019, people from outside of Dubai can own 100% of a business in a number of different industries without requiring a local partner or investor.
Foreigners usually need to register their business with the Department of Economic Development, get the accurate licenses, and follow certain rules based on the type of business and the industry it works in.
Foreigners can set up their businesses in several ways, such as a Free Zone Company, a Limited Liability Company (LLC), a Branch Office, or a Representative Office. Each has its own needs and benefits.
While foreign investment is welcome in many areas, businesses like banking, insurance, and energy may have extra rules or restrictions on foreign ownership.
Business persons from other countries can usually get residency visas and work permits when they start a business. Usually, they need to be sponsored by their own company or through an investment visa program. Guidelines may be different depending on the type of business and other factors.