A common question people ask when planning to set up a business in Dubai is whether a residence visa is necessary. Many wonder if they need one to start a business.
You can start a company in Dubai without a residence visa but you need one to engage in business activities and run the company. Dubai allows foreign investors to start businesses with full foreign ownership and a favourable economic environment.
In this blog, we will answer every question related to starting a business in Dubai without a residence visa.
Understanding the Basics
There are several elements you need to consider when opening and establishing a business in Dubai. This includes licensing, legal structures, and residency status. Although it may seem complicated, the process is well-organized to encourage entrepreneurial activities and foreign investment. Additionally, having a proper business plan in Dubai before starting can be helpful. You may want to consult business plan writers in Dubai for assistance.
A Guide to Launching a Business in Dubai without a Residence Visa
Setting up a company in Dubai as a non-resident is very simple. Follow these steps:
- Requirements for starting a business
Starting a business in Dubai as a non-resident requires one to know and fulfill specific prerequisites. These are the important elements:
- Choosing the business activity and legal structure for your company.
- Choosing the best jurisdiction.
- Applying for the suitable license type and trade.
- Drafting a Memorandum of Association (MOA).
- Registering your business.
- Opening a bank account specifically for corporate.
- Summary Of The Company Registration Procedure
Starting a business in Dubai as a non-resident needs a clear understanding of the company registration procedure. Here is the summary of the company registration process.
Step 1: Collaborate with Trade License Zone
Collaborating with company formation specialists such as Trade License Zone will successfully and speedily help you start your business in Dubai as a non-resident. We will assist you through the entire company registration procedure and beyond.
Step 2: Identify the Type of Business Activity
It is important to recognize the business activity your company plans to undertake. Dubai hosts over 200 business activities across various sectors. Your preferred activity will dictate the type of trade license you need to achieve, its jurisdiction, and its legal structure.
Step 3: Decide the Legal Structure
Deciding a legal structure for your company depends on various elements, such as business activities, stakeholders, and their nationalities. The most famous type of legal structure in Dubai for non-residents is a Limited Liability Company (LLC).
Step 4: Decide a Jurisdiction
Depending on your operational needs and business activity, you must choose between free zone jurisdictions and the Mainland. Each jurisdiction offers unique advantages and comes with its own set of rules. Free zones offer tax benefits and 100% foreign ownership.
Step 5: Apply for Your Trade License
There are several types of trade licenses, but picking the best for your business is important. Trade License Zone will assist you with this necessary step. All trade license applications can be submitted to the Department of Economic Development or the appropriate Free Zone authority.
Step 6: Get preliminary approval
After applying for your trade license, you must apply for preliminary approval from DED or the relevant Free Zone authority. This non-objection certificate lets you proceed with business setup formalities.
Step 7: Prepare the Memorandum of Association (MOA)
Next, prepare your company’s Memorandum of Association (MOA), specifically if you set up an LLC. This document shows the relationships between shareholders and must be notarized.
Step 8: Select an Appropriate Location
Depending on specific jurisdiction and your business needs, you must secure an appropriate location for your company. This could be any retail store, office, or warehouse. Specific Free Zones also give flexi-desk options, offering a cost-effective solution for startups and small businesses.
Step 9: Complete The Registration Process And Obtain The License.
Once all the above steps are completed, you can submit all important documents, pay the fesses, and finalize the registration of your company with DED or relevant Free Zone. After final approval is granted, you will receive your trade license. This document validates your business and allows you to begin operations and open a corporate bank account.
Advantages of Starting a Business in Dubai as a Non-Resident
Starting a business in Dubai as a non-resident provides several advantages:
- 100% Ownership
In most of the business sectors and Free Zones, Dubai lets foreign entrepreneurs fully own their businesses without requiring a local partner.
- 0% Tax
The city does not charge taxes on personal and corporate income, helping businesses save money.
- Excellent Infrastructure and Logistics
Dubai has modern infrastructure and a strategic location. This makes it a great place for businesses targeting markets in North Africa, Europe, and the Middle East. It also offers fast internet, reliable utilities, world-class ports and airports, and great roads for efficient shipping and operation.
Frequently Asked Questions
- Is it possible for a non-resident to open a business in Dubai?
Yes, many foreigners do this, they set up shops in Dubai. Approximately 80% of the residents there are foreigners and have their own businesses. Dubai is highly welcoming to foreign entrepreneurs and investors.
- Can you work in Dubai without residency?
You cannot work if you are on a work or tour visa. After accepting a job offer, your employer will apply for a residency visa for you. Once you have your residency visa, you will be issued a work permit by the Ministry of Labor. It is illegal to work in the country without a permit.
- Is it necessary to live in Dubai to start a business?
One of the key advantages of opening a company in Dubai as a non-resident is the ability to maintain 100% ownership. In some specific business sectors and free zones, Dubai allows 100% foreign ownership. This means that non-residents can fully own their businesses without needing any local partner.
Let Us Conclude
In summary, starting a business in Dubai as a non-resident is an attractive option because of the several benefits it offers. However, you do not need a residence visa to start a company, you just need it to carry out business operations. The process of establishing a company is simple, with clear steps.
Dubai’s business-friendly environment, with benefits like 100% foreign ownership and zero taxes on income. All of these elements make it an ideal location for international entrepreneurs. Additionally, the city’s modern infrastructure has a strategic location and supports efficient business operations. By following the above-mentioned steps and collaborating with experts you can successfully establish and operate a company in Dubai.