Can Foreigners Register a Company in UAE Without a Local Sponsor?

Foreigners can now register company in UAE as foreigner without the requirement of a local sponsor. It is welcome news for international investors and entrepreneurs. Dubai and other Emirates have simplified the procedure significantly and sped it up. 

What is Company Registration in the UAE?

Company registration in the UAE is the law for forming a company. It involves selecting a type of company and a name and obtaining a license. You require approval from the appropriate authorities. Registering legalizes your company and enables you to do business in the UAE.

About Company Registration in UAE as a Foreigner

Foreigners have the freedom to own companies in most UAE sectors fully. It is a significant step towards developing global investment. You do not require a local Emirati partner for most endeavors. It is one of the steps being taken by the UAE to attract expat entrepreneurs.

In order to register company in UAE as foreigner, you have the option of either a mainland or a free zone. Free zones provide 100% foreign ownership without any customs duties. The mainland offers 100% ownership for most sectors due to new regulations. This offer makes the expat business setup UAE more convenient than ever before.

Types of Business Licenses for Foreigners in UAE

If you are looking to operate a legitimate business in the UAE, then you require an appropriate license. 

• Commercial License: This license is for businesses that deal with buying, selling, and trading goods or services within the UAE or abroad.
• Professional License: It is given to professionals who offer service-based services. For instance, consultants, IT specialists, and instructors require this license to operate lawfully.
• Industrial License: This is necessary for businesses that produce, make, or assemble products. 
• Tourism License: You require this license if your business offers tour, travel, or hotel reservation services. The tourism department issues it.
• E-Commerce License: It enables you to sell goods or services on the internet. So, it’s ideal for online stores, marketplaces, or digital platforms.
• Freelance Permit: It is ideal for people working singly. Designers, writers, and programmers use it to provide services without setting up a full company.

Business setup consultants in Dubai may assist you in making the best choice.

Key Considerations Before Starting Your Business

Here are some considerations before you start your business in UAE:

1. Ownership Structure

Determine whether or not you want 100% ownership UAE company. Otherwise, you might require a local partner based on your business activity and structure.

2. Business Location

Opt between mainland or investor-friendly free zones. Local trading is available on the mainland. On the other hand, free zones facilitate global business with a simple setup.

3. Visa Requirements

You might require a visa for yourself and your employees. Besides, certain types of businesses have certain visa eligibility requirements to be met.

4. Bank Account Setup

Banks in the UAE adhere strictly to KYC regulations. Therefore, collect proper documents accordingly. Also, keep the minimum required balance.

Planning them saves time and money. Business setup experts in Dubai can assist you step by step.

Documents Required to Register Company in UAE as Foreigner

These are what you will require:

• Passport Copies
• Business Name Approval
• Business Plan
• Application Form
• Visa Copies
• No Objection Certificate (NOC)

Company formation in Dubai becomes simpler when you get these ready beforehand.

Step-by-Step Process to Register Company in UAE as Foreigner

It is easier than ever to start a company in the UAE. It is a simple process, but you have to do it the right way. 

Step 1. Choose Business Activity

Start by selecting your business activity from the approved list of over 2,000 options. Selection defines what your company will legally do in the UAE market.

Step 2. Select Jurisdiction

Next, decide where to set up your company: mainland, free zone, or offshore. Each zone has different rules, benefits, and market access.

Step 3. Choose a Company Structure

Next, select the legal structure, such as LLC, sole proprietorship, or branch office. This selection determines ownership, liability, and the way you operate your business.

Step 4. Reserve a Trade Name

Then, pick a trade name. It has to be in accordance with UAE regulations—no religious or offensive words. Also, ensure that your selected name is available.

Step 5. Apply for Initial Approval

Present your company information to the authorities. This validation means you can go ahead. But it’s not the final license yet.

Step 6. Prepare Documents

Collect passport copies, application forms, and business plans. These need to be correct. Because missing or incorrect information can slow down your registration.

Step 7. Obtain a Business License

Apply for a business license according to your activity. This application is your official authorization to run legally in the UAE business ecosystem.

Step 8. Open Bank Account

After getting licensed, open a corporate bank account. Select a bank that accommodates your business type. Additionally, keep the minimum balance as required.

Step 9. Apply for a Visa

Lastly, apply for a residency visa. You can sponsor yourself, your employees, and your family. Therefore, you can stay and operate your business in the UAE.

With business setup in Dubai, it can all be achieved in a matter of days.

Benefits of Starting a Business in Dubai as a Foreigner

Let’s discuss the principal advantages one by one.

1. No Personal Income Tax

You don’t pay personal tax on your earnings. Thus, you retain more cash from your profits annually.

2. Easy Access to Markets

Dubai joins Asia, Africa, and Europe. Therefore, it is convenient to sell and transport goods globally from here.

3. Business Support Services

Lots of consultants assist new companies. For instance, business setup consultants in Dubai help you through all the stages.

4. Fast Company Formation

You can register company in UAE as foreigner within days. Due to this, you begin functioning promptly with minimal delays.

5. Residency Visas

Obtain a visa for you and your family. Thus, you are able to reside and work in the UAE without additional hassle.

Expat business setup UAE is now simpler and more rewarding.

Cost to Register Company in UAE as Foreigner

Budgeting is essential. Compare everything before making your choice.

1. Business License Fee

Be prepared to pay AED 12,000 up to AED 25,000. Furthermore, the price varies based on your activity and chosen license type.

2. Office Rent

Flexi-desk areas begin at AED 6,000 yearly. However, larger areas or mainland offices are more expensive depending on the location.

3. Visa Costs

Each visa may cost AED 3,500 up to AED 7,000. Additionally, prices depend on medical tests and the emirate.

4. Registration Charges

One-time registration charges for companies are between AED 9,000 and AED 15,000. Therefore, compare zone packages for better offers.

5. Bank Account Opening

Some banks have a minimum balance requirement of AED 50,000. Hence, select a bank that suits your business model and finances.

You can save costs by planning wisely. Free zone packages are great. Business setup experts in Dubai assist you in selecting economical choices.

Get Help From Us

Initiating a business in the UAE does not have to be complicated. Our business setup consultants in Dubai are here to assist. We support you from A to Z. From trade name to license and bank account — we do it all for you.

Let our specialists make company formation in Dubai easy for you. Just concentrate on your business aspirations.

FAQs

Q1. Is it possible to register company in UAE as foreigner without a sponsor?

Yes! Full foreign ownership UAE is now allowed in most sectors. So, you don’t require a local sponsor anymore, particularly if you select the appropriate business activity.

Q2. What is the quickest way to incorporate a company in Dubai?

Select a free zone. Most of the free zones have same-day or next-day setups. Thus, you can begin your business very speedily and without much difficulty.

Q3. Is Dubai suitable for expat business setup UAE?

Dubai provides tax advantages, advanced infrastructure, and good support for expatriates. Therefore, it’s a very popular destination for starting a business overseas.

Q4. Can I obtain a visa after registering my business?

Yes, after the registration of your company, you can apply for a residence visa. Next, you can also sponsor your family members and employees.

Q5. Do I need a physical office for my company?

Not necessarily. Free zones offer virtual offices or flexi-desks. So, you don’t need to rent a full physical office space to run your business.

Conclusion

You can register company in UAE as foreigner. With 100% ownership UAE company choices and minimal taxation, it’s a shrewd decision. Dubai is full of opportunities for expat entrepreneur UAE.

Obtain the correct zone and license, and follow the steps. If in doubt, our experts in business setup in Dubai can assist you. Begin today and reap the benefits of being a business owner in the UAE.