Dubai has long been known as a business hub, attracting entrepreneurs and investors from around the world. Its business-friendly environment, strategic location, and modern infrastructure make it an ideal place to start a business.
In fact, in 2025, Dubai continues to be a top choice for foreigners looking to establish their own companies. With a booming economy and a government that encourages foreign investment, the opportunities for success in Dubai are endless.
One of the key factors that make Dubai attractive to foreigners is its ease of doing business. The city offers a streamlined process for setting up a company, with minimal bureaucracy, 100% business ownership, and efficient government services.
So, if you're a foreigner looking to start a business in Dubai in 2025, you’ve come to the right place. Here we will provide everything you need to know about Starting a Business in Dubai as a Foreigner, including the process, benefits, and the license cost.
Is Dubai Open to Non-Residents Starting Businesses?
Yes, Dubai welcomes non-residents to start businesses. Recent reforms allow non-residents to obtain business licenses more easily, and key sectors no longer require a local sponsor. These changes make Dubai highly accessible to foreign entrepreneurs looking to establish a company.
Benefits of Starting a Business in Dubai as a Foreigner (2025)
Starting a business in Dubai offers several distinct advantages for foreigners in 2026. Below are some of the key benefits:1. Geographical Location and Connectivity
Dubai is strategically located at the crossroads of Europe, Asia, and Africa which makes it a prime location for businesses to reach global markets. The city has world-class transportation infrastructure, including a modern airport and a vast network of highways for excellent connectivity.
2. Favorable Business Environment
Dubai has streamlined its business setup procedures, reducing red tape and making it easier for foreign investors to establish operations. Dubai continues to offer an appealing tax regime, with no personal income tax and competitive corporate tax rates.
3. Free Trade Zones
Dubai is home to multiple free zones, which are specifically designated areas that provide a wide range of incentives and benefits to enterprises. Businesses established in free zones enjoy numerous benefits, including tax exemptions, 100% foreign ownership, and simplified procedures.
4. Access to Investment and Financing Opportunities
Dubai’s strong regulatory framework, stability, and financial sector make it an attractive destination for investors. Foreign businesses can tap into global and regional capital markets.
5. Golden Visa
Foreign business owners who meet certain investment criteria can qualify for long-term residency (up to 10 years) under Dubai’s Golden Visa program which provides greater security and flexibility.Types of Business Licenses for Foreigners in Dubai
Dubai offers a variety of business licenses to cater to different types of businesses and activities. Here are some of the most common types:1. Commercial License
A commercial license is issued to businesses engaged in buying and selling goods, including trading, general trading, and e-commerce activities. For example, retailers, wholesalers, import-export traders, and distribution companies.
2. Professional License
The license is issued to service-oriented businesses that offer professional or consultancy services. It is suitable for individuals or companies with specialized skills. For example, consultancies (legal, financial, marketing), IT services, freelancers, and educational institutions.
3. Industrial License
Industrial license is for businesses involved in manufacturing, production, and industrial activities. Common businesses include factories, manufacturing plants, and industrial production companies.
4. Tourism License
A tourism license is for businesses operating in the travel, tourism, and hospitality sectors. The license is issued by the Department of Tourism and Commerce Marketing (DTCM) or free zones specializing in tourism.
Besides these, there can be other specialized licenses, depending on your business activity.Each business license has specific requirements, including the type of business structure, office space, and approvals needed. These licenses enable businesses to operate legally within Dubai's designated jurisdiction (mainland or free zone).
Business Setup Options in Dubai for Foreign Entrepreneurs
If you're a foreigner looking to start a business in Dubai, you have two main options: Mainland and Free Zone companies.- Mainland Company: This setup allows you to operate anywhere in the UAE, including free zones. You can choose from legal structures such as a Limited Liability Company (LLC), Professional License (for sole proprietorship), or Civil Company. One key advantage is that you can own 100% of the company.
- Free Zone Company: Dubai offers over 50 free zones, each designed for specific industries like technology, healthcare, media, and design. Establishing a free zone offers benefits such as full foreign ownership, complete repatriation of capital and profits, and exemptions from import and export duties.
Documents Required to Start a Business in Dubai as a Foreigner
Here's a general list of documents that you might need to Start a Business in Dubai as a Foreigner:- Passport copies of the business owners
- Proof of address for the business owners
- Business plan outlining your business activities
- No Objection Certificate (NOC) from the relevant government department (if required)
- Trade license application form
- Ejari (tenancy contract)
- Bank reference letter
Step-by-Step Guide to Starting a Business in Dubai as a Foreigner
Starting a business in Dubai as a foreigner requires different steps. The process is aligned with the government's regulations. Here’s a step-by-step guide for non-residents:
Step 1: Select Your Business Activity & Structure
The first step is to select a business type for your business. Select the type that suits your business perfectly. You can choose a Sole proprietorship. In a sole proprietorship, you are the single owner of the company. If you decide on a Limited Liability Company or LLC, it will provide a separate legal identity for your business.
Step 2: Choose a Business Name (Trade Name Registration)
Once you have completed your Business type, the next step is to choose a business name. Choose a name that matches the nature of your business. Legal advisors like Shuraa can assist in selecting a unique, not previously registered name that aligns with your business activities.
Step 3: Choose Your Jurisdiction (Mainland or Free Zone)
Select the right jurisdiction based on your business goals. Mainland allows full UAE market access, while free zones offer 100% ownership, cost-effective setup, and industry-specific advantages.
Step 4: Apply for the Necessary Business License
Get a business license, a mandatory requirement for non-residents. Get the license from relevant authorities, either directly from free zone authorities or the Department of Economic Development (DED).
Step 5: Complete Business Registration & Incorporation
Collect all your important documents. Including identity proofs, trade licenses, permissions, and bank account details. Then, register your business with the appropriate jurisdiction and transform it into a legal entity within Dubai.
Step 6: Apply for a Business Visa (Optional)
Apply for a business visa to facilitate international travel for business purposes. Business visas also allow senior staff members to apply for residency. Non-resident entrepreneurs can get long-term visas for themselves and their dependents by liaising with the local embassy.Step 7: Open a Corporate Bank Account
Open a corporate bank account to manage business transactions smoothly. Submit required documents, meet compliance checks, and choose a bank offering services aligned with your company’s needs.
Step 8: Start Operations in Dubai
Once your license, visas, and bank account are ready, you can officially begin operations. Set up your workspace, hire staff if needed, and launch your products or services in Dubai’s dynamic market.
Cost of Starting a Business in Dubai as a Foreigner (Updated 2026)
The cost of registering a company in Dubai as a foreigner in 2026 is between approximately AED 15,000 and AED 50,000, with the overall cost being dependent on various factors such as the type of business, number of visas, location, and other necessary documentation.
Furthermore, selecting a non-Arabic foreign name for your company incurs an additional fee of AED 2,000*. These costs are essential for expats planning to start their entrepreneurial business in Dubai.
Note: The cost of setting up your business depends on its type and subject change. To find out the exact cost, contact Shuraa Business Setup.
Final Thoughts – Begin Your Dubai Business Journey Today
Starting a business in Dubai is a great opportunity for foreigners, thanks to all the advantages the city offers. With its perfect location, booming economy, no taxes on personal income, and simple processes for setting up a business, Dubai is a welcoming place for entrepreneurs. You also get access to skilled talent, world-class infrastructure, and a variety of business licenses suited to different industries.
Beyond business, Dubai offers an excellent quality of life and plenty of networking events to help you grow your business. If you're planning to start a business in 2025, we recommend getting expert guidance from Shuraa India. Our team will assist you every step of the way, including handling your licensing, paperwork, PRO services, and visa applications.
Faq
1. Can I open a company in Dubai without a residence visa?
Yes, non-UAE residents and foreigners can open an LLC (Limited Liability Company) business in Dubai2. Can I open a business in Dubai?
Yes, Indian or foreign citizens own 100% of a business in Dubai. Yes, Indian or foreign citizens can own 100% of a company in Dubai's free zones. Recent changes in the law also allow for 100% foreign ownership in certain sectors on the Free zone or mainland.
3. Can I get a residency visa after opening a business?
Yes. Business owners can apply for a residency visa, and in many cases, they can also sponsor visas for their family and employees.
4. What’s the biggest advantage of starting a business in Dubai as a foreigner?
The biggest advantage is the combination of full ownership, low taxes, global access, and fast-growing markets. Dubai is designed to help businesses grow quickly and profitably.
5. Do I need a physical office to set up a business?
This depends on your jurisdiction.- Mainland businesses typically need an office space.
- Free zone companies often offer flexi-desks or shared office options.
6. Is Dubai a good place for small businesses and startups?
Absolutely. Dubai offers zero personal income tax, great international connectivity, strong infrastructure, supportive free zones, and an active startup environment.
7. How long does it take to get a business license in Dubai?
In many cases, you can get a business license within 3–7 working days, provided your documents are ready and your business activity doesn’t require special approvals.
8. Do I need to live in Dubai to open a company there?
No, you don’t have to live in Dubai to start a business. Many entrepreneurs set up their company remotely and only travel when needed for banking or residency procedures.