Start a Business in Dubai Without Zero Local Sponsorship | Business Consultants in Dubai"
Dubai has become one of the world’s most appealing places to do business, providing an energetic and welcoming setting for investors. In the past, to start a company in Dubai, you needed a local sponsor who would own 51% of the business. But new changes in the law now let business owners set up shop with full foreign ownership, so they don’t need a local sponsor in many fields anymore. Business consultants in Dubai can help navigate these legal changes and ensure a smooth setup process.
If you’re a business owner or investor who wants to start a company in Dubai without a local sponsor, this guide will show you how to do it, what’s good about it, and what you need to think about.
Table of Contents
Benefits of Starting a Business Without a Local Sponsor
Full Ownership: Foreign investors can keep 100% control of their business in allowed fields.
No Revenue Sharing: Because there’s no local sponsor, you don’t have to split profits or pay a UAE citizen every year.
Access to Global Markets: Dubai is a fantastic place with access to Europe, Asia, and northern Africa.
Tax Benefits: All free zones in Dubai enjoy the benefit of zero personal and corporate taxes.
Business Setup Ease: The establishment of businesses in Dubai under government direction is a straightforward process, accompanied by less red tape.
Step-by-Step Guide to Starting a Business in Dubai Without a Local Sponsor
Step 1: Choose the Right Business Activity
Consult the Dubai Department of Economic Development. Dubai permits 100% foreign ownership for specific types of businesses such as technology, e-commerce, trading, consulting and professional services. Research and select an activity within this class
Step 2: Select the Best Jurisdiction
There are two main jurisdictions in Dubai:
Free Zone: Recommended for business owners who want 100% ownership, tax benefits, and easy setup; includes DMCC, Dubai Internet City and Dubai Silicon Oasis.
Mainland: Permits to trade directly in the UAE market, but with certain activities still requiring a local service agent.
Step 3: Register Your Trade Name
Your business name needs to be unique, and your name choice must comply with Dubai’s naming regulations. Names should not contain offensive terms or references to religious or political organizations.
Step 4: Apply for a Business License
Depending on what your business will be doing, you will need one of three licenses:
- Commercial License (for trading businesses)
- Professional License (for consultancy and service-based businesses)
- Industrial License (for manufacturing businesses)
Step 5: Approvals and Paperwork
- Submit your passport copies and business plan.
- Obtain preliminary approval from DED or the appropriate free zone authority.
- Sign and notarize the Memorandum of Association (MoA), if applicable.
Step 6: Secure Office Space
Businesses in Dubai are required to have a physical office. Free zones are flexible in offering either a virtual office, shared workspace, or dedicated office.
Step 7: Set Up a Corporate Bank Account
Choose the bank that best balances your business goals and profit schemes. Some popular names are Emirates NBD, Mashreq Bank, and HSBC.
Step 8: See After Closure Visas and Sponsorship
You may apply for residence visas for yourself and your employees through Dubai’s immigration services if you need to hire people.
Step 9: Tax and Regulatory Obligations
Dubai is a zero-tax jurisdiction for almost all businesses. However, businesses with revenues higher than AED 375,000 annually will have to register for VAT.
cost of starting a business without a local sponsor
| Business Requirement | Estimated Cost (AED) |
|---|---|
| Business License | 10,000 - 30,000 |
| Office Space Rent | 15,000 - 50,000 |
| Visa Fees (Per Person) | 3,000 - 7,000 |
| Bank Account Setup | 5,000 - 10,000 |
Note: Costs may vary based on the business type and location.
Conclusions
The atmosphere for business in Dubai facilitates foreign entrepreneurs to set up and develop their operations without requiring a local sponsor. With the right place of jurisdiction, legal framework, and consultancy, Dubai easily becomes your base for the launching of business operations.
For professional advice, consult a business consultants in Dubai to ensure the registration process runs smoothly.
Ready to launch your business in Dubai? Get a free consultation today and start your journey with expert guidance!
FAQs
Yes, you can establish a business in Dubai Free Zones and select mainland sectors with 100% foreign ownership.
Some of the best free zones include Dubai Internet City (DIC), Dubai Media City (DMC), and Jebel Ali Free Zone (JAFZA).
Yes, a physical office or a virtual office is mandatory for business registration.
The process typically takes 7 to 14 days, depending on the business type and documentation requirements.
Besides licensing and office costs, you may need to pay for visa processing, bank guarantees, and legal documentation.
