Establishing a company in Dubai for foreigners is a strategic step for many investors looking to take advantage of the diverse business opportunities offered by this global city. Dubai is characterized by a flexible and encouraging business environment, as well as its advanced infrastructure, making it an ideal destination for business. In 2025, the Dubai government launched a set of initiatives and programs aimed at facilitating the procedures for establishing companies for foreigners, including granting long-term visas and easing restrictions on foreign ownership. The methods of establishing a company in Dubai for foreigners also include several key steps, such as choosing the appropriate business activity, determining the type of legal entity, and complying with legal and administrative requirements. Investors can also benefit from free zones that offer multiple advantages, such as tax exemptions and full ownership. In this article, we will review the details of these methods of establishing a company in Dubai for foreigners, in addition to the challenges that investors may face and how to overcome them.

Steps to establish a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires following several clear steps. Here are the basic steps for establishing a company in Dubai:

Determine the business activity: Choose the business activity you want to practice, as you must determine the type of company according to the activities permitted in Dubai.
Choose the legal entity type: Determine the type of legal entity that suits your business, such as a limited liability company (LLC), a subsidiary, or a free zone company.
Register a trade name: Choose a suitable trade name for your company and register it with the Department of Economic Development (DED). Ensure that the name complies with local laws and does not infringe on any other trademark rights.
Obtain approvals: Obtain the necessary approvals from the relevant authorities. You may need special approvals for some business activities.
Prepare legal documents: Prepare all required legal documents, such as the memorandum of association, articles of association, and copies of shareholders’ passports.
Open a bank account: Open a business bank account with a local bank. You may need to deposit the required capital depending on the type of company.
Register with the relevant authorities: Submit the required applications to government agencies such as the Department of Economic Development and Dubai Municipality to obtain a trade license.
Obtain a trade license: After completing all procedures and approvals, you will receive a trade license, allowing you to start operating legally.
Tax Registration: Make sure your company is registered with the Federal Tax Authority (FTA) if your activities require it.

Issuing other licenses: You may need additional licenses depending on the type of business activity, such as a license for tourism or health activities. By following these steps, you can successfully establish your company in Dubai and benefit from the dynamic business environment that the city offers.

Pros of establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners has many advantages that make it an attractive destination for investment. Here are some of these advantages:

Full ownership: It allows foreign investors to have full ownership of their companies in the free zones, which means that there is no need for a local partner.

Flexible business environment: Dubai has a flexible business environment that contributes to facilitating the procedures for establishing companies, making it an ideal choice for foreign investors.

Tax exemptions: Many free zones in Dubai provide tax exemptions on income and profit, which enhances the profitability of companies.
Advanced infrastructure: Dubai has a modern infrastructure that includes transportation, communications, and commercial facilities, which facilitates business operations.
Access to new markets: Dubai is a gateway to major markets in the Middle East, Africa and Asia, providing opportunities for business expansion.
Multiculturalism: Dubai is home to a diverse community of different nationalities, creating a business environment rich in cultural diversity and facilitating cross-cultural collaboration.
Strong government support: The government provides strong support to investors through incentive programs and initiatives that facilitate the establishment and operation of companies.
Long-term visas: The government allows foreign investors to obtain long-term visas, making it easier to reside and work in Dubai.
Diverse investment opportunities: Dubai offers a wide range of investment opportunities in various sectors, including tourism, technology, real estate and services.
Economic and political stability: Dubai enjoys economic and political stability, which enhances investor confidence and reduces investment risks. These positives make Dubai one of the best destinations for foreigners to establish companies, contributing to success and growth in the business world.

Conditions for establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires meeting a set of conditions and requirements. Here are the most important conditions for establishing a company in Dubai:

Determine the type of company: You must determine the type of legal entity you wish to establish, such as a limited liability company (LLC), a free zone company, or a subsidiary.
Choose a trade name: You must choose a trade name that complies with local laws and register it with the Department of Economic Development (DED). The name must be unique and not used before.
Required documents: Submit a set of documents, such as the passports of shareholders and directors. Personal photos of shareholders. A no-objection certificate if the shareholders are employees in the government sector. The articles of association and bylaws.
Determine the business activity: You must determine the business activity to be practiced and ensure that it is permitted in Dubai.
Provide capital: You must determine the capital required for the company. Requirements vary depending on the type of company and business activity, and you may need to deposit a certain amount in a commercial bank account.
Obtain the necessary approvals: You may need approvals from different government agencies depending on the type of business activity, such as the Ministry of Health or the Tourism Authority.
Tax Registration: The company must be registered with the Federal Tax Authority (FTA) if the business requires it.
Securing a business location: A physical location must be provided for the business, whether through an office or commercial space, and proof of this location must be provided.
Submitting the necessary applications: Submitting all the required applications and documents to the competent authorities to obtain a commercial license.
Obtaining a commercial license: After completing all the procedures, you will receive a commercial license that allows you to start working legally. Make sure to review all the requirements with the relevant authorities or seek the help of specialized companies such as Atqan to help facilitate the establishment process.

Required documents to establish a company in Dubai for foreigners

To establish a company in Dubai for foreigners, you need to submit a set of papers and documents. Here is a list of the required documents:

Copy of passport: Passports of all shareholders and directors of the company must be submitted.
Personal photos: Submit a number of personal photos of the shareholders and directors, usually passport-sized.
Memorandum of Association: Prepare the memorandum of association that includes the details of the company, such as the trade name, type of legal entity, and capital.
Articles of Association: Submit the articles of association that outline the company’s internal rules and operating procedures.
Determine the business activity: You must specify the business activity you wish to engage in, along with documents proving that this activity is permitted in Dubai.
No Objection Certificate: If any of the shareholders are government employees, you may need a No Objection Certificate from your employer.
Proof of Business Address: Submit documents proving the business location, such as an office lease or ownership certificate.
Approval from the relevant authorities: Some businesses require additional approvals from specific government entities, such as the Ministry of Health or Tourism Authority.
Trade License Application Form: Complete and submit the designated trade license application form.
Capital Details: Provide details of the required capital, including a bank deposit if required.
Power of Attorney: If you are using an agent to submit applications, you may need to provide a power of attorney allowing them to transact on your behalf. It is important to ensure that any additional requirements or documents specific to the type of business you plan to establish are up to date. Hiring a consulting firm such as Atqan can be a useful step to facilitate this process.

In conclusion, establishing a company in Dubai for foreigners is a strategic step that opens wide doors to investment opportunities and commercial growth. Dubai has a dynamic business environment and offers a range of benefits, such as full ownership, tax exemptions, and advanced infrastructure, making it an ideal destination for investors from all over the world. Although there are some conditions and requirements, adhering to these procedures can lead to success and prosperity in the business world. Cooperating with specialized companies such as Atqan can greatly contribute to facilitating the establishment process and saving time and effort. In short, Dubai represents a golden opportunity for anyone seeking to enter the business world, and with good planning and proper preparation, foreign investors can achieve fruitful results in this vital market.

Frequently asked questions about establishing a company in Dubai for foreigners

Can foreigners obtain full ownership of their companies in Dubai?
Yes, foreigners can obtain full ownership in companies established in free zones, while limited liability companies require a local partner who owns 51% of the shares.

How much does it cost to establish a company in Dubai?
Costs vary depending on the type of company, its activity, and location. It is important to do thorough research on the expected fees.

How long does it take to set up a company in Dubai?
The process of setting up a company in Dubai usually takes between one and three weeks, but this can vary depending on the type of company and the activities required.

Frequently Asked Questions about Setting Up a Company in Dubai for Foreigners

Can foreigners have full ownership of their companies in Dubai?
Yes, foreigners can have full ownership in companies established in free zones, while limited liability companies require a local partner who owns 51% of the shares.

How much does it cost to set up a company in Dubai?
Costs vary depending on the type of company, its activity, and the location. It is important to do thorough research on the expected fees.

How long does it take to set up a company?
The process of setting up a company in Dubai usually takes between one and three weeks, but this can vary depending on the type of company and the activities required.