How to Start a Business in the UAE as a Foreigner (2026)
Short answer: Yes, a foreigner can start and own a business in Dubai and the UAE. Since the 2021 changes to the UAE Commercial Companies Law, most mainland activities allow 100% foreign ownership. Free zones have always allowed it. The usual steps are:
- Choose your activity and jurisdiction (mainland or free zone).
- Pick a legal form and trade name, and get initial approval.
- Sign the Memorandum of Association and lease an office.
- Get your licence, then apply for investor and staff visas.
You can also buy a running business on BusinessFinder.me.
Can a foreigner own 100% of a business in the UAE?
For most activities, yes. The amended Commercial Companies Law (Federal Decree-Law No. 32 of 2021) removed the general requirement for a UAE national to hold 51% of a mainland company. Some activities with “strategic impact”, such as certain security, banking and utilities activities, still have special conditions. Free zone companies can be fully foreign-owned but generally trade inside the free zone or abroad. Trading on the mainland usually needs a distributor or a mainland licence. Check your activity with the licensing authority: the Department of Economy and Tourism (DET) in Dubai or the relevant free zone.
Should I choose a mainland or free zone company?
| Point | Mainland | Free zone |
|---|---|---|
| Ownership | 100% for most activities | 100% |
| Where you can trade | Anywhere in the UAE and abroad | Inside the free zone and abroad. The mainland usually needs a distributor or a separate licence |
| Office | Physical office with an Ejari-registered lease | Flexi-desk or office in the free zone |
| Government contracts | Eligible | Usually limited |
| Best for | Shops, restaurants, services to UAE customers | Trading, consulting, e-commerce, international business |
Read more in our guide to UAE free zones.
What are the steps to start a business as a foreigner?
- Write a business plan: your market, customers, costs and funding.
- Choose the business activity: it decides which licence and approvals you need.
- Choose the legal form: for example a sole establishment, a limited liability company (LLC) or a branch of a foreign company.
- Reserve a trade name that follows the naming rules.
- Get initial approval from DET or the free zone.
- Draft and sign the Memorandum of Association (for LLCs), notarised as required.
- Lease premises and register the lease (Ejari in Dubai).
- Get any external approvals, for example from Dubai Municipality, the health authority or KHDA, depending on the activity.
- Pay the fees and collect your licence.
- Apply for visas: an investor or partner visa for you, and employment visas for staff.
- Open a corporate bank account and register for corporate tax and VAT as required.
Which visas can a foreign business owner get?
- Investor or partner visa: linked to your company and licence.
- Golden Visa: long-term residence for qualifying investors and entrepreneurs.
- Green Visa: a self-sponsored option for some freelancers and investors.
Eligibility rules change, so check the current criteria on u.ae and with the GDRFA or ICP.
Why do foreigners choose Dubai for business?
- A central location with major ports and airports
- Laws that allow foreign ownership and protect investors
- No personal income tax and a 9% corporate tax on taxable profits above AED 375,000
- A skilled, international workforce
- Excellent infrastructure and a safe, welcoming environment
See why Dubai is a global hub for business.
Can a foreigner buy an existing business in Dubai?
Yes. Buying a running business can be faster than starting from scratch: you take over the licence (through an amendment), premises, staff and customers. Browse businesses for sale, and read how to buy a business in Dubai for due diligence and transfer steps.
What mistakes should foreign founders avoid?
- Choosing the wrong jurisdiction: a free zone licence may not let you serve mainland customers directly.
- Picking an activity that doesn’t fit: your licence must cover everything you plan to do, or you may face fines.
- Ignoring external approvals: food, health, education and some trading activities need approvals beyond the licence.
- Underestimating costs: budget for rent, visas, insurance, bank requirements and renewals, not just the licence fee.
- Skipping tax registration: check corporate tax registration and the VAT threshold early.
Key takeaways
- Foreigners can own 100% of most mainland businesses and all free zone businesses.
- Choose mainland to trade across the UAE, or a free zone for international and specialised activities.
- The steps run: activity, legal form, trade name, initial approval, MoA, lease, approvals, licence, then visas.
- Buying a running business is another route into the market.
Frequently asked questions
Can a foreigner start a business in Dubai?
Yes. Foreigners can set up mainland or free zone companies, with 100% ownership for most activities.
Do I need a local sponsor or partner?
Not for most activities since the 2021 changes to the Commercial Companies Law. Some strategic activities still have special conditions.
Can I get a visa through my business?
Yes. Company owners can usually get an investor or partner visa, and qualifying investors can apply for a Golden Visa.
What is the difference between mainland and free zone?
A mainland company can trade across the UAE. A free zone company trades inside its zone and abroad, and usually needs a distributor or a separate licence for the mainland.
Can a foreigner buy a running business in Dubai?
Yes. Running businesses are listed on BusinessFinder.me, and ownership is transferred through a licence amendment.
Last updated: 19 October 2026