Dubai is one of the most prominent global investment destinations that attracts investors from all over the world thanks to its dynamic business environment and easy procedures for establishing companies. In 2024, Dubai continues to strengthen its position as a global business hub thanks to ongoing reforms and the development of policies that make it easier for foreigners to establish their own companies. If you are considering establishing a company in Dubai as a foreigner, the city offers a variety of options that suit different types of businesses, from commercial and service companies to industrial and technology companies.

One of the main options for foreigners is to establish in free zones, where they are allowed to own 100% of the company’s shares without the need for a local partner. Dubai’s free zones provide a stimulating business environment with extensive tax exemptions, advanced infrastructure, and easy establishment procedures. Areas such as “Jebel Ali” and “Dubai Internet City” are among the most prominent free zones that provide promising opportunities for investors.

In addition, foreigners can establish their companies in non-free zones, but this requires a local partner who owns 51% of the company’s shares. In this context, Dubai offers simplified and flexible legal procedures for registration and licensing, which contributes to accelerating the establishment process and reducing bureaucracy.

Dubai also benefits from its strategic location as a global business hub, which provides extensive opportunities to access regional and international markets. In addition, Dubai provides an advanced banking system and integrated support services that help achieve success and growth for new businesses.

By understanding the available options and the required procedures, foreigners can make the most of the business opportunities that Dubai offers and successfully establish their companies in this thriving economic environment.

Procedures for establishing a company in Dubai for foreigners
Establishing a company in Dubai for foreigners requires following a set of regulatory procedures. Here are the basic steps:

1- Choosing a business activity: Determine the business activity that your company will conduct, as this affects the type of license you need.
2- Choosing a location: Determine the location of the office or company headquarters, whether in a free zone or in Dubai itself.
3- Registering a trade name: Choose a trade name for your company and ensure that it complies with legal standards and is not repeated.
4- Obtaining a trade license: Apply for a trade license from the Department of Economic Development in Dubai or from the relevant authority in the free zone.
5- Opening a bank account: Open a commercial bank account in the name of the company in a local bank.
6- Registering the company: Register the company with the relevant government departments such as the  Department of Economic Development, which will issue the trade license.
7- Preparing the legal and financial system: Make sure to put in place the appropriate legal and financial systems, including defining roles and tasks and hiring accountants if necessary.
8- Employment procedures: If you plan to hire employees, complete the work visa procedures and register them in the social insurance system.

Advantages of establishing a company in Dubai for foreigners
Establishing a company in Dubai for foreigners comes with many advantages that make it an attractive destination for investors. Here are some of these advantages:

Full ownership for foreigners: In free zones, foreigners can own the company entirely without the need for a local partner, providing complete freedom in managing the business and making decisions.
An encouraging business environment: Dubai offers a sophisticated business environment with high-quality infrastructure, including modern business centers, transportation facilities, and a strong communications network.
Tax facilities: Companies in Dubai enjoy attractive tax privileges, such as no personal income tax and low corporate taxes, in addition to no value-added tax (VAT) on many activities.
Ease of procedures: Dubai is characterized by fast and efficient company establishment procedures, with online services provided to simplify operations.
Access to global markets: Dubai’s strategic location makes it a link between the East and the West, facilitating access to global markets.
Licensing and permit facilities: Free zones provide various licenses that suit different business activities, allowing you to do business without having to deal with a lot of administrative routine.
Continuous flow of investment opportunities: Dubai is a global hub for business and investment, with renewed opportunities in various sectors such as technology, real estate, and financial services.

Safety and stability: Dubai is characterized by political and security stability, which provides a safe and reliable environment for business.

Strong government support: The government in Dubai supports commercial projects through initiatives and programs that encourage investment and innovation.

Opportunities for expansion and growth: Dubai is considered a global business center, which provides great opportunities for expansion and growth in regional and international markets.

Cost of establishing a company in Dubai for foreigners

The cost of establishing a company in Dubai for foreigners depends on a set of factors that affect the total amount required. These factors can be summarized as follows:

Type of company: The cost varies depending on the type of company you wish to establish, whether it is a limited liability company (LLC), a subsidiary, or a company in a free zone.

Commercial license: Obtaining a commercial license requires paying fees related to the commercial activity that your company will carry out, which may vary depending on the nature of the activity.

Rental costs: You need to provide a workplace for the company, whether it is an office in a free zone or in Dubai itself, and this cost depends on the location and size of the office.
Registration and legal fees: These fees include costs related to registering the company, such as fees for registering a trade name, obtaining the necessary licenses, and legal advice if required.
Bank account opening fees: There may be fees related to opening a business bank account for the company, which vary depending on the bank and the account requirements.
Special documents and licenses: Some activities require additional licenses or permits that may have special costs, such as health or environmental licenses.
Recruitment and visa costs: If you intend to hire employees, you should consider the costs of work visas and social insurance.
Consulting and professional services: In some cases, you may need to use consulting services or company formation offices that provide assistance services, which also require additional fees.

In conclusion to our article on ways to establish a company in Dubai for foreigners in 2024, we find that Dubai remains one of the most attractive destinations for international investors thanks to its distinguished economic environment and investment-friendly policies. Establishing a company in Dubai for foreigners provides a variety of options that meet the needs of different business activities and economic sectors.

Through free zones, foreign investors can own 100% of their companies’ shares, benefit from comprehensive tax exemptions, and fast incorporation procedures. These areas provide modern infrastructure and strong support from government agencies, which contribute to accelerating the incorporation process and achieving success. The presence of a large number of free zones in Dubai, such as Dubai Silicon Oasis and Dubai Healthcare City, allows foreigners to choose the most suitable one according to the type of business activity. If the plans include establishing a company outside the free zones, a local partner is required to own 51% of the company’s shares. Although this option includes some restrictions, Dubai provides an integrated and encouraging business environment, with great facilities to attract investments.

Understanding the legal, procedural and financial requirements for setting up a company in Dubai is essential to ensure the success of the project. It is advisable to seek the help of local consultants and legal experts to facilitate the process and ensure full compliance with local laws.

In short, Dubai offers tremendous opportunities for foreigners to establish their companies thanks to its advanced and supportive economic environment. With clear procedures and diverse opportunities, investors can take advantage of this unique environment to achieve success and growth in the UAE and global market.

Top Frequently Asked Questions About Setting Up a Company in Dubai for Foreigners 2024

What are the options for full company ownership for foreigners in Dubai?

Foreigners can own 100% of the shares of their companies in Dubai through free zones, as these areas provide full ownership without the need for a local partner. However, for companies located outside the free zones, a local partner may be required to own 51% of the company’s shares.

What are the free zones available for setting up a company for foreigners in Dubai?
There are several free zones in Dubai such as Dubai Silicon Oasis, Dubai Media Zone, Dubai Healthcare City, and Jebel Ali Free Zone (JAFZA), each of which offers specific facilities based on the type of business activity.

What documents are required to set up a company for foreigners in Dubai?
Basic documents include the founders’ passports, passport photos, the company’s memorandum and articles of association, proof of address (such as an office lease), and a business plan. Some activities may require additional documents.

Are there taxes on companies set up in Dubai?
Companies in free zones are often exempt from taxes on profits and dividends. However, companies outside of free zones may face taxes, but Dubai generally offers a favorable tax environment.

How long does it take for foreigners to set up a company in Dubai?
The process of setting up a company usually takes from a few weeks to a month, depending on the type of company, the speed of submission of documents, and the licensing procedures.