Are you a foreigner interested in starting a business in Dubai? If so, you’re not alone.
Dubai has become a hub for entrepreneurs from around the world, thanks to its strategic location, supportive government policies, and competitive business environment. But can a foreigner really start a business in Dubai? Let’s find out.
Foreign Ownership Laws
One of the most important things to know about starting a business in Dubai as a foreigner is the ownership laws. Until recently, foreigners could only own up to 49% of their businesses in Dubai, with the remaining 51% being owned by Emirati nationals or companies. However, in 2019, the UAE government introduced new laws allowing full foreign ownership of businesses in certain sectors.
Eligible Sectors for Full Foreign Ownership
The sectors eligible for full foreign ownership include:
- Agriculture
- Manufacturing
- Renewable energy
- E-commerce
- Transportation and storage
- Hospitality and food services
- Information and communications
- Professional, scientific and technical services
If your business falls under one of these sectors, you can now own your business outright. However, if your business falls outside these sectors, you’ll still need an Emirati partner who will own at least 51% of the business.
The Business Setup Process
Setting up a business in Dubai involves several steps:
1. Determine Your Business Activity and Legal Structure
The first step is to determine what type of activity your business will be engaged in and what legal structure it will take (e.g., LLC, sole proprietorship, etc.).
2. Choose a Company Name
Next, you’ll need to choose a company name and get it approved by the Dubai Department of Economic Development (DED).
3. Obtain Necessary Licenses and Permits
Depending on your business activity, you may need to obtain certain licenses and permits from various government agencies.
4. Register Your Business
Once you have all the necessary documents and approvals, you can register your business with the DED.
The Benefits of Starting a Business in Dubai
Dubai offers several benefits for entrepreneurs:
- Tax incentives: Dubai has no income tax or corporate tax.
- Strategic location: Dubai is strategically located between Europe, Asia, and Africa.
- Supportive government policies: The UAE government has implemented several initiatives to support entrepreneurship.
- Competitive business environment: Dubai has a highly competitive business environment with low barriers to entry.
- Lifestyle: Dubai offers a high quality of life with modern infrastructure and amenities.
The Bottom Line
Starting a business in Dubai as a foreigner is possible, but it requires careful planning and research. Make sure you understand the ownership laws and the business setup process before taking the plunge. With the right approach, however, Dubai can be an excellent place to start and grow your business.