Can Foreigners Start a Business in Dubai?

Who this guide is for

If you are an entrepreneur, professional, or family looking to establish a company and life in Dubai, this guide is for you. We explain ownership rules, the types of structures available, and how business licensing connects with visas and banking. The aim is to help you move quickly, stay compliant, and make confident decisions about the best setup for your goals.

Your ownership and setup choices

Foreigners can now own 100% of companies in most mainland activities in the United Arab Emirates. This reform means you can keep control while accessing the full UAE market. Free zones have always offered full foreign ownership and continue to provide targeted benefits. A few strategic sectors still require additional review, so activity selection is important.

Dubai offers three primary routes: mainland (onshore), free zone, and offshore or holding structures. Mainland companies are licensed by Dubai’s Department of Economy and Tourism. They can trade across the UAE and bid for government work, typically needing a physical office. Free zone companies are regulated by their specific Free Zone Authority. They provide efficient setup, 100% ownership, and customs advantages, but direct mainland trading may require an agent or distributor. Offshore and holding entities support asset protection and international activity with lighter operational footprints.

Licensing ties everything together. You choose a business activity, legal form, and licence type: commercial, industrial, or professional. Core steps usually include trade name reservation, initial approval, drafting a Memorandum of Association, leasing suitable premises, and issuing the licence. Immigration follows with establishment cards, investor or employment visas, medical checks, and Emirates ID.

Compliance matters from day one. The UAE applies 5% Value Added Tax and a federal corporate tax regime, with registration timelines linked to licence issuance and revenue thresholds. Mainland companies typically require annual audits, and many free zones enforce bookkeeping standards. Banking requires a clear business model, source-of-funds evidence, and standard company documents. Sector-specific activities like tourism or financial services may require extra approvals from the relevant regulators, which can extend timelines.

Clarity reduces delays - align activity, licence, and visa planning before you submit any application.

Control is possible: 100% foreign ownership is widely available in Dubai.

How ARK moves you forward

ARK is a Dubai-based partner focused on relocating both your business and your life. We help you choose the right structure, secure your trade licence, arrange compliant offices, and coordinate visas for founders, family members, and staff. Our team handles timelines, approvals, banking introductions, and ongoing compliance so you can launch with confidence and grow without surprises.

Next steps

1. Define your business activity and ideal customer base in the UAE.
2. Decide between mainland, free zone, or holding based on market access.
3. Gather passports, proof of address, and a simple business plan.
4. Align licence selection with visa needs for you and dependents.
5. Plan your office solution: flexi-desk, serviced, or dedicated space.
6. Speak with ARK to map costs, timelines, and banking requirements.

Good to know before you relocate

Dubai’s licensing and immigration systems are fast and digital, but details matter. Your visa options include investor and employment routes, with long-term residency available to qualifying entrepreneurs and investors. Opening a bank account is smoother with clear invoices, contracts, and source-of-funds documentation. If your activity is regulated, allow extra time for approvals. Visa quotas often scale with your office size, which can inform your property decision. Finally, budget for compliance from the start, including VAT, corporate tax registration, and annual reporting where required. With the right planning, most setups can move from application to licence in weeks, not months.