Can Foreigners Register a Company in UAE Without a Local Sponsor?
To register company in UAE as foreigner is a good idea for many expatriates. The UAE is one of the great places where one can open a business, with great opportunities, great infrastructure, and a very hospitable business climate.
You can establish your company with ease. Additionally, professional assistance can be sought if needed. Lastly, let’s examine how you can get started.
What is Company Registration in UAE?
Company registration means legally setting up a business in the UAE. It involves choosing your business type, getting licenses, and getting government approval. Once done, your company becomes legal.
The UAE has mainland, free zone, and offshore options. There are rules and advantages to each. A PRO services company in UAE can assist you with documents, approvals, and procedures.
About Company Registration in UAE as a Foreigner
Can you register company in UAE as foreigner? Yes! Foreigners can own companies 100% in most industries. You can do it either in free zones or on the mainland. Both permit foreign ownership UAE in most industries.
Free zones provide 100% ownership without a local sponsor. Mainland companies also permit expat business setup UAE without sponsors in most areas. It’s simpler now, easier than ever.
Types of Business Licenses for Foreigners in UAE
Foreigners need to select the proper license. The license varies based on what your business does. Here are the primary types:
- Commercial License: This is for trading activities. You can buy, sell, and export goods.
- Industrial License: Manufacturers and factories need this. You must have a warehouse or production space.
- Freelance Permit: Suitable for individual professionals. Suitable for content writers, photographers, and programmers.
- Tourism License: For travel agencies, tour operators, and hospitality services. Graded by Dubai’s tourism department.
- E-commerce License: If selling online, you need this. It accommodates digital shops and marketplaces.
Things to Know Before You Register a Business in Dubai as a Foreigner
Before you register company in UAE as foreigner, it is necessary to know a few things:
1. Ownership
Foreign ownership is permitted in most sectors of the UAE up to 100%. So, you can operate your business without a local partner in most situations.
2. Jurisdiction
Select mainland, free zone, or offshore. Each has its regulations. So, select one according to your business objectives and where you wish to operate.
3. Location
Free zones prohibit direct trading within the UAE. Still, there are ways to sell locally from within, using a registered distributor or service agent.
4. Licenses
Choose the proper license for your business activity. You don’t want your company penalized, delayed, or worse, rejected by authorities for having an improper license.
5. Visa
Businesspeople can apply for a UAE residency visa. It enables you to reside, work, and sponsor your family members as well.
6. Banking
There needs to be a local bank account. But it takes time. Therefore, it is very helpful to work with a PRO services company in UAE.
Eligibility Criteria to Register Company in UAE as Foreigner
To register company in UAE as foreigner, you should fulfill a couple of easy requirements.
1. Age of 18 years
You should be 18 or older. Otherwise, you aren’t lawfully permitted to own or run a UAE-based firm.
2. Valid passport
A valid passport is required. Without it, you cannot complete registration or get approval from government departments.
3. Choose a business activity
Select from the 2,000+ approved activities. Then, make sure it matches your business goals and chosen jurisdiction.
4. Not be on the UAE’s restricted list.
You must not appear on any UAE blocklist. Therefore, always verify your name through official sources before applying.
5. Follow the UAE business naming rules.
Choose a clean, legal, and non-offensive name. Additionally, do not use religious, political, or royal names.
6. Submit legal documents
All documents and IDs should be current. Furthermore, absent or expired documents can hinder the registration process.
Step-by-Step Process to Register Company in UAE as Foreigner
Company formation in the UAE can appear complicated, but it is simpler if you take simple steps.
Step 1: Select Jurisdiction
Pick mainland, free zone, or offshore. Free zones are ideal for 100% foreign ownership. In addition, look for local or international access.
Step 2: Apply for Initial Approval
Obtain a no-objection certificate from the authority. It indicates your business plan has been approved. In the meantime, you can prepare documents.
Step 3: Submit Documents
Submit all necessary documents, such as passports, forms, and business plans. Then, a PRO services company in UAE can proceed with the process easily.
Step 4: Obtain a Business License
Pay the fees as required. Then, receive your license. Depending on your activity, it can be issued by DED or your free zone.
Step 5: Obtain Office Space
Select a workspace—flexi-desk, shared, or private office. Most free zones have affordable spaces. Further, some even provide virtual offices.
Step 6: Open a Bank Account
Choose a reputable UAE bank. Now, present your license, MoA, and IDs. Also, be prepared to comply with their KYC checks.
Step 7: Get a Visa
Get your visa and that of your employees. It normally involves medical checks and ID registration. You will ultimately receive full residency rights.
Benefits of Starting a Business in Dubai as a Foreigner
Dubai is a favorite among foreigners for many reasons. These are the most important advantages:
- 100% Foreign Ownership: You can register company in UAE as foreigner without any local sponsor. Mainland and free zones facilitate this.
- No Personal Income Tax: You get to keep what you earn. The UAE does not impose income tax on individuals.
- Low Corporate Tax: Only 9% tax after AED 375,000 in profits. Several free zones still provide 0%.
- Investor-Friendly Free Zones: More than 40 free zones provide incentives such as 0% customs duties and quick setups.
- Residency Visa: If you have a business, you can reside in the UAE. Get family visas as well.
- World-Class Infrastructure: From office spaces to roads, Dubai boasts the best. It’s perfect for any sector.
Cost to Register Company in UAE as Foreigner
Business setup in the UAE comes at some expense.
1. Trade License
Trade licenses typically run between AED 12,000 and AED 25,000. It all, however, depends on your trade activity and location.
2. Office Space
A flexi-desk or shared office can be around AED 10,000 or more. Again, location plays a huge role in rent costs.
3. Visa Fees
You will have to pay between AED 3,000 and AED 5,000 per visa. It has medical, Emirates ID, and stamping fees.
4. Registration Fee
The registration fee is one-time and costs between AED 9,000 and AED 10,000. So, account for this at the initial setup.
5. Bank Account Setup
Fees differ between banks and services. Additionally, certain banks charge a minimum deposit to open a corporate account.
PRO services in Dubai can package services at a discounted price. Opt wisely to save.
PRO is Here to Help
Business establishment in Dubai can seem easy, but documentation can hold you back. At this point, Dubai PRO services enter the picture. A UAE pro services firm assists with approvals, paperwork, government affairs, and visa procedures.
They walk you through A to Z. Whether it’s DED approvals or trade name registration, they’ve got you covered. Having a PRO service gets your launch done faster and prevents errors.
FAQs
Q1: Can I truly own 100% of my business in Dubai?
Yes, you can! With the new legislation, numerous industries today support full foreign ownership UAE, particularly in free zones and even on the mainland.
Q2: What is the most convenient method for expats to establish a business?
Free zones are the most convenient because they provide quick approval, easy documentation, and 100% ownership. And they are created for expat business setup UAE.
Q3: How much time does it take to register company in UAE as foreigner?
It normally takes 5 to 10 working days. But with PRO services in Dubai, it can be even quicker and trouble-free.
Q4: Which business is best for an expat entrepreneur UAE?
Good choices include e-commerce, consulting, IT services, and trading. Many investor-friendly free zones support these industries very well.
Q5: Is a local sponsor still needed to open a company?
Not anymore. Most sectors now allow foreigners to open businesses without local sponsors, especially when choosing 100% ownership UAE company models.
Conclusion
You can register company in UAE as foreigner, and you can do so without a local sponsor. If you want to establish a startup, consultancy, or online shop, the UAE has the tools, assistance, and liberty to create something grand.
With 100% ownership, low taxation, investor-friendly free zones, and the best PRO services in Dubai, it is intelligent and feasible to start your business here. Act now. Establish your dream business in a land built for international entrepreneurs like you.
