Thinking about starting a business in the UAE? You’re not alone. Thousands of foreigners launch companies there every year — and for good reason. Zero income tax, strong infrastructure, and access to global markets. But let’s break down how it actually works.
1. Decide on Your Business Type
First off, you need to figure out what kind of business you’re starting. Are you offering services? Selling products? Trading goods? Your activity will decide what kind of license you need — commercial, professional, or industrial.
2. Pick Mainland or Free Zone
Big decision here. You’ve got two main options:
- Mainland: You can trade anywhere in the UAE and globally. You’ll need a local service agent (for some activities), but you own 100% of your company as a foreigner.
- Free Zone: Easy setup, 100% ownership, and often cheaper. But business is limited within the free zone and for international clients — not the local UAE market.
If your business is mainly online or export-focused, Free Zone could be the way to go.
3. Choose a Company Name
Sounds simple, but UAE has naming rules. No religious terms, no offensive words, and no abbreviations like “Inc.” or “Co.” Your name needs to reflect the business activity — and yes, it must be unique.
4. Apply for a Business License
Once your name and activity are approved, it’s time to apply for your license. You’ll submit:
- Passport copies of all shareholders
- Business plan (sometimes)
- Application forms
- Initial approval letter
Each Free Zone or Mainland authority has its own process — but overall, it’s pretty streamlined.
5. Get Office Space (Even Virtual)
Most setups require a physical address — but many Free Zones offer flexi-desks or virtual offices, which keep costs low while ticking the legal boxes.
6. Open a UAE Business Bank Account
This can take some time, especially with international shareholders. Be ready with full documents, proof of business activity, and some patience. It’s not hard, just procedural.
7. Get Your Visa (and Employees’, if Needed)
As a business owner, you can apply for your own residency visa through your company. Want to hire others? You’ll need to register with the Ministry of Human Resources & Emiratisation (for mainland) or your Free Zone’s portal.
Few Quick Tips:
- Hire a business setup consultant if you want to skip the legwork — they really help.
- Some Free Zones offer package deals — license + visa + office in one.
- Costs vary, but you can expect AED 10,000–30,000+ depending on setup type.
Bottom line?
Starting a company in the UAE as a foreigner is very doable. It’s not “cheap” — but it’s efficient, clear, and worth it if you’re serious about scaling in a business-friendly hub.
