How to Start a Business in Dubai as a Foreigner

This guide is designed for foreign entrepreneurs, expatriates, and investors planning to establish a business in Dubai, UAE.

How to Set Up a Business in Dubai if You’re Living Abroad

Starting a business in Dubai while living in another country might sound like a logistical nightmare. It’s easy to assume that company formation in Dubai requires your physical presence, endless paperwork, and in-person meetings. That used to be true. But it isn’t anymore.

Thanks to updated laws, streamlined digital processes, and Free Zones that support remote entrepreneurs, setting up a business in Dubai while living abroad is not only possible but also becoming the norm.

Why this matters:

• Launching remotely is now possible for most business types.
• 100% foreign ownership is allowed in many Free Zones.
• No UAE residency or visa required to get started.
• Run your business from your home country with a UAE-registered entity.
• Enjoy 0% personal income tax and highly competitive corporate tax rates.
• Instant credibility with a Dubai business presence.

This setup is ideal for international consultants, digital freelancers, startup founders, and growing companies seeking a strategic Middle East hub without needing to relocate.

What Makes Dubai Free Zones Ideal for Foreign Entrepreneurs?

UAE has made it easier for international investors to start business in Dubai Free Zones, offering fewer restrictions and more benefits. Here’s why they’re so attractive to founders living abroad:

• 100% foreign ownership, no local partner required
• Fast, online registration
• Industry-focused licensing zones like DMCC, IFZA, and CommerCity are tailored to specific sectors
• Flexible office options, including virtual desks and co-working spaces
• Dedicated EZONE support to guide you through every step of the setup process

It’s no surprise that Dubai free zone business setup is one of the most searched phrases among international entrepreneurs. It’s not just about convenience, it’s about trust. Founders abroad need systems that are transparent, efficient, and legally recognized.

How Remote Company Formation Works Step-by-Step

Most Free Zones use a clear, repeatable system that works for founders abroad. Making it ideal for first-time entrepreneurs who want a straightforward experience. Here’s what typically happens:

• Choose your business activity:
  Selecting the type of business you want to operate determines the licensing and regulatory requirements your business needs.
• Select the right Free Zone:
  Research and pick a Free Zone that aligns with your industry and business goals. Options include Meydan Free Zone, DMCC, Dubai Silicon Oasis, IFZA, and more. For expert guidance in evaluating your options and ensuring you make the right choice, reach out to our professional business advisors.
• Decide on a legal structure:
  Determine whether you’ll operate as a sole proprietor, limited liability company, or another structure based on your needs.
• Register your trade name:
  Submit your preferred business name for approval to ensure it meets Free Zone guidelines.
• Submit the required documents:
  Prepare and upload necessary paperwork, usually including passport copies, application forms, and business plans, through the Free Zone’s online portal.
• Pay the relevant fees:
  Complete payment for registration, licensing, and any other applicable charges.
• Receive your business license:
  Once your documents are reviewed and approved, you’ll be issued your business license, often within days.
• Set up an office space:
  Choose from flexible options like virtual desks, co-working spaces, or private offices, depending on your business model.
• Start operations:
  With your license in hand, you can open a corporate bank account, hire staff, and begin trading often without needing to visit the UAE in person.

This streamlined, digital-first approach removes barriers for international founders and helps you launch your business with confidence, wherever you are.

What You’ll Pay: License Costs, Packages, and Optional Extras

Costs vary depending on the Free Zone, business activity, and whether you need visas or not. But overall, business setup in Dubai free zones is known for being cost-effective, especially for remote founders who start lean. Here’s what you can expect:

• License packages start around AED 5,750 to AED 15,000
  This usually includes a trade license, registration, and standard documentation.
• Visa-inclusive packages cost more
  If you plan to sponsor yourself or employees, add AED 2,500–5,000 per visa (plus medicals and Emirates ID fees).
• Low-cost zones include:
  IFZA, Meydan Free Zone, SPC Free Zone, SHAMS
• Premium zones include:
  DMCC, Dubai CommerCity, DAFZA, Dubai South
• Optional extras may include:
  • Additional business activities
  • Attested documents
  • Virtual office space
  • Corporate bank introductions
• Recurring costs:
  Trade license renewal (yearly), visa renewal (every 2-3 years), office lease (if applicable)

The best approach is to get a custom quote based on your business goals. Packages can be flexible, and many Free Zones are open to negotiation if you’re clear on your needs.

What Documents You Need (And Which Ones Are Often Missed)

Even with a remote setup, document accuracy is non-negotiable. Every company formation in the Dubai free zone relies on a clean file. Missing or outdated documents can delay or block the process completely.

For Individual Shareholders:

• Valid passport (minimum 6 months validity)
• Passport-size photo (white background, recent)
• Proof of address (utility bill, bank letter, tenancy)
• UAE visa or Emirates ID (only if already a resident)
• No Objection Certificate (NOC) from current sponsor (if employed in UAE)

For Corporate Shareholders:

• Certificate of Incorporation
• MOA & AOA (Memorandum & Articles)
• Board Resolution to form a Dubai entity
• Power of Attorney for appointed representative
• Certificate of Good Standing (if required)
• Proof of parent company address

Common Mistakes:

• Submitting low-resolution scans
• Expired trade name certificates
• Missing NOC when required
• Name mismatch across documents
• Untranslated or unnotarized foreign documents

Double-check everything before submission, or better yet, have a PRO service review it for you.

Banking, Visas, and What to Expect When You’re Not in the UAE

After receiving your business license, most founders focus on two key next steps: opening a UAE bank account and securing a residence visa.

Here’s what you need to know if you’re managing your company from abroad:

1. Opening a UAE Bank Account Remotely

• Remote account opening is possible, but not guaranteed. UAE banks have strict compliance requirements, and many will ask for the company owner to be physically present for identity verification.
• Bank introductions: Some Free Zones, including those partnered with EZONE, offer bank introduction services, meaning they forward your documents to partner banks to streamline the process.
• Despite these introductions, most banks still require at least a brief in-person visit to complete your application and verify your identity. However, if you’re unable to travel immediately, consider using international digital banks or fintech platforms to manage your business finances until you can open a local account.

2. Getting a UAE Residence Visa While Living Abroad

• No visa needed to register: You can set up your company as a non-resident; a UAE visa is not required for company formation. (Legal Framework for Foreign Ownership in Dubai)
• Applying for residency: If you wish to obtain a UAE residence visa under your company, you’ll need to:
  • Apply through your Free Zone after your license is issued.
  • Visit Dubai for a medical test and biometric registration (for your Emirates ID). (Avail our PRO Services in Dubai)
  • Receive a visa valid for 2-3 years.
  • Obtain an Establishment Card if you plan to sponsor family members or employees.
  • Flexible timing: Some Free Zones allow you to defer the visa application, giving you time to decide if and when relocation makes sense for you.

3. Running Your Company Without a Visa or Physical Office

Many international founders choose to prefer to go a fully remote route by using:

• Flexi Desk or virtual office setup for a cost-effective business address.
• Operating as a non-resident owner without a UAE visa.
• Managing the company remotely using digital tools, freelancers, or local representatives.
• Utilizing the expertise of EZONE business advisors to help guide you through each step, such as navigating, banking, visa options, and remote management solutions tailored to your needs.

With the right support and planning, you can efficiently launch and operate your UAE business from anywhere in the world.

Maintaining Compliance After Your Business is Set Up

Getting your company registered and your license issued is only the first phase in your business setup. To keep your business active and in good standing, you’ll need to follow certain compliance steps throughout the year. These apply whether you’re based abroad or eventually move to the UAE.

Here’s what to expect:

1. Annual License Renewal

Every Free Zone license must be renewed on time, typically every 12 months. The process is simple, but missing your renewal deadline can result in late fees or even suspension of your trade license.

To stay compliant:

• Renew your license before the expiry date.
• Submit updated documents if requested.
• Pay your renewal fee.

Some Free Zones allow multi-year renewals, which help you lock in costs and reduce admin time. Check this option if you plan to keep the business long-term.

2. Office Lease Renewal

If you’ve leased a Flexi Desk or physical space through your Free Zone, that contract must also be renewed alongside your license. A valid office agreement is required to maintain your license, even if you’re still managing operations remotely.

• Flexi Desk contracts are often bundled with the license
• If you’re upgrading to a larger space, submit updated lease documents
• Some Free Zones offer auto-renewal options if you’re not changing anything

3. Visa Validity & Renewals (If Applicable)

If you’ve sponsored yourself or employees under your Free Zone company, those visas need to be renewed periodically, usually every 2 or 3 years.

Stay aware of:

• Medical tests and Emirates ID renewals.
• Timelines for canceling expired or unused visas.
• Immigration file maintenance (Establishment Card updates)

For founders still living abroad, you can delay the visa process until needed. But once activated, it comes with renewal and residency rules.

4. Economic Substance Regulation (ESR)

Depending on your business activity, you may be required to file an ESR notification or report. This applies more to holding companies, IP businesses, and certain service firms.

• You must declare whether your business falls under ESR
• If yes, you must submit an annual return or risk penalties
• EZONE experts can help determine if this applies to you if this applies to you by reviewing your business activities and structure, ensuring you meet all Economic Substance Regulation requirements, and guiding you through any necessary compliance steps.

5. Ultimate Beneficial Owner (UBO) Declarations

UAE law requires every company to disclose who ultimately owns and controls the business.

• Submit your UBO declaration at the time of setup
• Update it annually or when shareholder changes occur
• Some Free Zones have digital platforms for this; others require PDF submissions via email or their online portals.

Failing to declare UBOs correctly can trigger fines or freeze business services.

6. Accounting, Audit & VAT (If Applicable)

• Corporate Tax Registration:
  As of 2024, corporate tax registration is mandatory for all business entities in the UAE, including both mainland and free zone companies. Every business must register with the Federal Tax Authority (FTA) and obtain a corporate tax registration number, regardless of size or activity, unless specifically exempted. Failing to register on time can result in a penalty of AED 10,000.
• Corporate Tax Filing:
  All registered businesses must submit annual corporate tax returns within nine months of their financial year-end. Even exempt businesses are required to file returns as per FTA guidelines..
• Accounting & Audit:
  While many free zone companies are not legally required to file audited accounts, some zones such as DMCC and DIFC mandate annual audited financial submissions. Regardless of the requirement, it’s best practice to maintain clear, up-to-date books, especially if you plan to open a bank account or seek investment in the future.
• VAT Registration:
  If your business earns over AED 375,000 annually, VAT registration is mandatory. You must submit quarterly VAT returns through the Federal Tax Authority.
• Practical Tips for Overseas Owners:
  • Use cloud accounting software or work with our in-house accountant and bookkeeping team to ensure compliance if you’re managing your company remotely.
  • Maintain proper records and supporting documents to substantiate any claims for tax exemption or compliance.
  • Even if your free zone doesn’t require audited accounts, keeping organized financial records will support banking, investment, and regulatory needs.

Conclusion

You don’t have to live in Dubai to own a business there. You don’t need a visa to register your company. You don’t even need a local partner. What you do need is clarity, accuracy, and the right guidance, especially when setting up from overseas. That’s where EZONE comes in.

We help remote founders:

• Choose the right Free Zone.
• Submit every document correctly.
• Handle attestation, translation, and approvals.
• Register your license, even if you’re not in the UAE.
• Support your post-setup with visas, banking, renewals, and compliance.

Don’t let paperwork, unknowns, or bad advice slow you down. If you’re serious about business setup in Dubai and want to do it right the first time, we’ll walk with you step-by-step. Let’s get your business launched with a flight required.