Business Setup UAE: Cost and Documentation for a Fully Foreign-Owned Company
If you’re considering business setup in UAE as a fully foreign-owned company, understanding the necessary documentation and costs is crucial. The UAE has transformed into a global business hub, offering 100% foreign ownership in various sectors and free zones, making it easier than ever for entrepreneurs to establish a presence.
Why Choose UAE for Foreign-Owned Business Setup?
The UAE is well-known for its tax advantages, investor-friendly policies, and strategic location at the crossroads of global trade. By opting for a fully foreign-owned company setup, entrepreneurs gain complete control of their company without needing a local partner.
- 100% repatriation of capital and profits
- World-class infrastructure and logistics
- Tax-free zones and minimal bureaucratic hurdles
- Access to a skilled, multicultural workforce
Types of Business Jurisdictions in UAE
You need to choose between three types of jurisdictions when planning a business setup in UAE:
1. Mainland
Allows full operation within UAE markets and eligibility for government contracts. After recent reforms, full foreign ownership is now allowed in many activities.
2. Free Zone
Offers 100% foreign ownership with no import or export duties, designated for specific industries.
3. Offshore
Ideal for companies looking to operate internationally without physically being in the UAE. Offshore businesses cannot trade within the UAE.
Cost Breakdown: Business Setup UAE
Costs vary depending on your business type, license, and chosen location. Here’s a general breakdown:
- Trade License Fee: AED 10,000 to AED 25,000
- Registration Fee: AED 5,000 to AED 10,000
- Office Space/Business Center Rental: AED 15,000 to AED 50,000 annually
- Visa Costs per Employee: AED 3,000 to AED 7,000
- Sponsor/Local Agent (if applicable): Not required for 100% foreign-owned in most free zones
- Immigration Card and Establishment Card: AED 1,000–AED 2,000
These costs may vary depending on the jurisdiction and the business activity. For instance, some free zones offer packages tailored to startups.
Required Documentation for Foreign-Owned Companies
Collecting and submitting accurate documentation is vital to ensure a smooth business setup in UAE. Below are the essential documents required:
- Passport copies of all shareholders and managers
- Visa copy and entry stamp (if already in UAE)
- Passport-size photos (white background)
- Business plan (certain business activities may require it)
- Memorandum and Articles of Association (MOA and AOA)
- Board resolution from parent company (if applicable)
- Name reservation certificate
- Initial approval from the Department of Economic Development
Step-by-Step Guide for Business Setup in UAE
Step 1: Choose the Right Jurisdiction
Identify whether the mainland, offshore, or free zone suits your business model. Free zones are preferable for startups aiming at export or services.
Step 2: Select Your Business Activity
Over 2,000 business activities are approved in the UAE. Choose one that fits your model and complies with the regulations.
Step 3: Finalize Legal Structure
Entities may take the form of a Limited Liability Company (LLC), Free Zone Establishment (FZE), Free Zone Company (FZCO), or a branch of a foreign company.
Step 4: Reserve Trade Name
Your business name must comply with UAE naming guidelines.
Step 5: Apply for Initial Approval
This grants permission to proceed with other documentation and formalities.
Step 6: Prepare MOA & LSA Documents
Notarize the Memorandum of Association (MOA); a Local Service Agent (LSA) agreement might be needed for mainland businesses.
Step 7: Lease an Office Space
Physical office space is a requirement for business registration.
Step 8: Submit Final Paperwork and License Application
Once approved, you’ll receive your trade license, allowing legal operations.
Benefits of Setting up in a Free Zone
Setting up in a free zone offers streamlined processing, 100% foreign ownership, and sector-specific support. Here are some advantages:
- No personal or corporate income tax
- Full repatriation of profits and capital
- Light-touch regulatory environment
- Industry-focused zones like DAFZA (Dubai Airport Free Zone), DMCC, Dubai Internet City, etc.
Explore future business opportunities in Dubai South to find your ideal location.
How to Choose the Right Sector
Your chosen business activity must align with your jurisdiction and goals. Popular sectors for fully foreign-owned companies include:
- IT and tech services
- E-commerce
- Consulting and advisory
- Import/export
- Logistics
- Healthcare services
Timeline for Business Setup in UAE
Setting up a business in the UAE typically takes between 5 to 15 working days, depending on the nature and complexity of the business and selected free zone.
Important Things to Remember
While UAE makes it relatively easy to start a company, ensure you follow local compliance:
- Renew your trade license annually
- Maintain a valid lease contract (Ejari)
- Adhere to immigration and labor regulations
If you’re unsure, consulting a business setup advisor can save you time and money. Always verify information through the UAE Government Portal.
Conclusion: Is Business Setup UAE Worth It for Foreigners?
Absolutely. With 100% ownership options, thriving economic zones, and simplified procedures, business setup in UAE is a strategic choice for global entrepreneurs. The country offers diverse opportunities with comparative ease, transparency, and long-term benefits.
Always plan thoroughly, choose the right zone, and gather all required documents ahead of time to streamline the process. Taking these steps can ensure your business journey in the UAE starts off on the right foot.
For more expert insights, check out our article on fastest ways to launch your UAE business.
