Business Setup in Dubai for Foreigners
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Business Setup in Dubai for Foreigners: The New Ownership Era
For international investors, the landscape of business setup in Dubai has undergone a historic transformation. The implementation of the amended Commercial Companies Law now permits 100% foreign ownership for onshore Mainland companies, eliminating the mandatory requirement for a local sponsor in most sectors. This regulatory shift positions Dubai not just as a regional hub, but as a global domicile for foreign capital.
At Infico, we specialize in navigating these new privileges. Whether you are a non-resident seeking a remote holding structure or an expat entrepreneur planning a physical HQ, we ensure your market entry is legally robust, tax-efficient, and fully compliant with the Ministry of Economy regulations.
Mainland vs. Free Zone: Choosing Your Jurisdiction
Foreign nationals must choose between two distinct jurisdictions, each serving different strategic goals. The Mainland business setup offers unrestricted access to the local UAE market and government contracts. Conversely, the Free Zone business setup provides a ring-fenced tax environment with repatriable profits, ideal for international trade and digital services.
Understanding 100% Mainland Ownership
Previously, foreign investors were restricted to 49% equity in Mainland entities. Today, over 1,000 commercial and industrial activities are approved for full foreign ownership. This includes trading, manufacturing, and consultancy services. Infico verifies your specific activity code against the Department of Economic Development (DED) "Positive List" to confirm your eligibility.
How to Start a Business in Dubai as a Non-Resident
Physical presence is not always a prerequisite for incorporation. Many investors initiate the business setup process in Dubai remotely. We manage the legalization of your passport copies and corporate documents via digital channels, allowing you to secure your trade license before you even land in the UAE.
Remote Setup and Virtual Operations
For foreigners operating digital businesses, a virtual office solution satisfies the statutory address requirement without the overhead of a physical lease. This is particularly popular for e-commerce and consultancy licenses, enabling you to maintain a legal UAE domicile while residing abroad.
Securing Your UAE Residence and Golden Visa
Company formation is the primary gateway to residency. As a business owner, you are eligible for a standard 2-year (Mainland) or 3-year (Free Zone) investor visa. For high-value investments, we assist in applying for the prestigious 10-year Golden Visa, which decouples your residency from your company's status.
Sponsoring Family and Dependents
Once your investor visa is stamped, you gain the right to sponsor your spouse, children, and parents. This process requires a minimum salary threshold (drawn from your company) and a registered tenancy contract. We handle the entire family visa application to ensure your relocation is seamless.
Banking Challenges for Foreign Entities
Opening a corporate bank account in Dubai is often the most scrutinized step for foreigners due to global KYC/AML standards. Banks require proof of business activity, a clear source of funds, and a physical presence. Infico prepares your banking profile to meet the compliance standards of top-tier UAE financial institutions.
Tax Residency and Corporate Tax
Foreign investors often establish UAE companies to optimize global tax efficiency. By obtaining a Tax Residency Certificate (TRC), you may benefit from Double Taxation Avoidance Agreements (DTAA). However, you must comply with the 9% UAE Corporate Tax on profits exceeding AED 375,000. Proper accounting from day one is mandatory.
Cost Analysis for Foreign Investors
The total business setup cost in Dubai for foreigners varies by visa requirements and allocation. While license fees are standard, foreigners must budget for medical insurance, Emirates ID processing, and potential visa deposit fees. We provide a transparent capital requirement analysis before you commit.
Common Questions from Foreign Investors
Can I own 100% of my business in Dubai Mainland?
Yes. Following the 2021 amendments to the Commercial Companies Law, most commercial and industrial activities no longer require a local sponsor. You can own 100% of your shares. Refer to the official UAE Government Portal for specific activity lists.
Do I need to live in Dubai to own a company?
No. You can own a Dubai company as a non-resident. However, if you wish to maintain a UAE residence visa, you typically need to visit the country at least once every 180 days (terms vary for Golden Visa holders).
Can I open a bank account without a residency visa?
It is difficult but possible to open a "Non-Resident" corporate account, though features may be limited. Most investors prefer to obtain their residency visa first to access full banking facilities. Our business setup consultants can guide you on the best banking strategy.
What documents are needed for foreign company setup?
Standard requirements include your passport copy, a passport-sized photo, and an entry stamp (if already in UAE). For branch office setups, you will also need attested parent company documents from your home country.
Is repatriation of profits allowed?
Yes. Both Mainland and Free Zone companies in the UAE allow for 100% repatriation of capital and profits to your country of origin, making it a secure environment for international investment.
Launch Your Dubai Business with Confidence
Navigating a foreign legal system requires a partner who understands both local regulations and international expectations. Don't risk compliance errors or banking rejections.
Infico provides a complete "Hand-Holding" service for foreign investors—from the initial trade name reservation to your final visa stamping. Contact us today for a strategic consultation tailored to your nationality and business goals.