Over the past seven years, we have helped hundreds of businesses set up a Dubai branch, rent office space, bring in employees from outside the UAE, and hire local talents. These new companies have thrived in the business-friendly environment of Dubai, where the tax legislation is geared towards helping them grow. Furthermore, they’ve  benefited from a diverse population with significant disposable income, and a growing community of expats from East Asia, Europe, North America, and Africa. 

Now, in the course of our work, we’ve consulted with thousands of SMEs who want to set up their company in Dubai. These discussions involved several questions that are crucial for any business looking to establish a presence in Dubai. In this article, we’ve collected some of the most common and relevant queries, and provided short answers to them. 

The idea is: if you’re a founder in the early stages of research into what it takes to establish your company in Dubai, you can find some insights here and work your way up. Of course, if you’d prefer a personalized one-on-one consultation, you can click this link now and book an appointment immediately. In this case, you can ask any questions you have and get direct guidance from our in-house Dubai company formation specialist. For now, let’s start with the most common question we get:  

• Can anyone open a business in Dubai?

Yes, anyone can start a new business or establish a local branch for their global business in Dubai. The United Arab Emirates actively welcomes investors and business owners from all over the world, and has created an environment that’s conducive for startups, growth-stage enterprises, and large companies. 

• Do small businesses need a license in Dubai?

All businesses that intend to operate within the city require a license from the Department of Economic Development (DED). It may be necessary to acquire other licenses and permits, but that depends on what type of services the business plans to offer. 

• Can foreigners own 100% of a company in Dubai? 

Yes. In the past, foreigners could only own 49% of onshore businesses in the UAE. That means they’d need an Emirati sponsor/partner or local shareholders. However, since June 2021, new legislation makes it possible for non-UAE citizens to have complete ownership of their company – a move the government hopes will encourage foreign investment and local economic development. 

• What are the best businesses to start in Dubai?

Due to the healthy nature of the UAE economy, businesses across several sectors have found sustained success. From fintech companies to investment services, artificial intelligence firms, blockchain tech, cryptocurrencies, and Web3 enterprises – the Dubai environment  is ripe for growth. Furthermore, companies involved in retail services, including clothing and fashion, jewelry, luxury goods, and food products are also welcome in Dubai. Service providers like dentists, barbers, spa therapists, fitness trainers, and estheticians can also set up a business. For inquiries that are tailored to a particular business, send a quick message through this link.  

• What are the steps to get a business license in Dubai?

There are three key steps involved for a foreigner to obtain a Dubai business license. The first one is to secure initial approval for the business they want to establish and the activities to be undertaken by the company. Secondly, they must meet certain legal requirements, including personal identification, educational qualifications, and financial checks. The final step involves a verification of the business premises and the approval of a business visa. This entire process may take between one to six weeks depending on a number of factors. 

• Do I need a business bank account to get a Dubai business license?

All businesses that operate in Dubai need a business bank account, and without one, they wouldn’t be able to secure a license. Thankfully, the process to open a corporate/business bank account is straightforward and you can learn more about it here. If you need professional help with this, send us a message.   

• Is it true that companies in Dubai have to pay taxes now? 

For years, Dubai has maintained a zero income tax policy, and that’s still in place now. Similarly, there’s no inheritance or withholding tax. However, the UAE government recently introduced a 9% corporate tax for companies that make over AED 375,000 in profits (approximately $100,000) annually. This policy took effect from June 2023, but given the high threshold required, most small businesses remain exempt from corporate taxes. And for those that make over $100,000 in profits per year, the 9% tax is still one of the lowest in the world. 

Another question we get a lot is “How much money will it cost to register a company in Dubai?” However, because this figure varies based on several factors, it is practically impossible to provide a general response. However, you can get a quote that’s tailored to your business directly from our company formation expert. All you have to do is click this link, book a one-on-one online appointment, and prepare a list of questions on your mind. This consultation will only take about 30 minutes, and it’s free of charge!