Ways to establish a company in Dubai for foreigners 2025

Learn how to establish a company in Dubai for foreigners in 2025, because Dubai is one of the most prominent global destinations for business and investment, as it provides an ideal work environment for foreigners wishing to establish their companies. In 2025, Dubai witnessed notable developments in the field of company formation, making it an attractive option for international investors. Dubai offers a range of options for establishing companies, from free zones that provide tax and administrative advantages, to commercial zones that allow company owners to obtain comprehensive business licenses. By adopting a flexible and simple approach to procedures, Dubai seeks to attract more foreign investors, which contributes to strengthening its economy and enhances its position as a global business center. Through this article, we will review the ways to establish a company in Dubai for foreigners in 2025.

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Conditions for establishing a company in Dubai for foreigners 2025

Establishing a company in Dubai for foreigners in 2025 requires compliance with a number of conditions and requirements that vary based on the type of company and the location where the establishment takes place. Below are the most important general conditions for establishing a company in Dubai for foreigners:

Choose the company type :
- Limited Liability Company (LLC) : Requires a local partner who owns 51% of the shares.
- Company in free zones : Foreigners can fully own the company without the need for a local partner.
Choosing a business activity : The company’s business activity must be carefully determined, as licenses and establishment requirements vary based on the type of activity (commercial, industrial, service, etc.).
Determine the company name : A trade name must be chosen that complies with the laws of Dubai and does not conflict with any of the reserved or banned names.
Securing the company’s website :
- In free zones, an office or work space is provided as part of the free zone package.
- If the company is established in commercial areas, a physical headquarters must be provided for the company that complies with the requirements of the local authorities.
Preparing the required documents :
- Providing passports and birth certificates to the founders and shareholders.
- Submitting documents proving residency in the Emirates or the lease contract for the headquarters.
- Signing the company’s incorporation contract and necessary agreements.
Obtaining a commercial license :
- In free zones, the license is issued by the free zone authority.
- In commercial areas, a license must be obtained from the Department of Economic Development (DED) in Dubai.
Opening a bank account : Opening a commercial bank account in the name of the company in a local bank to deposit capital and conduct financial transactions.
Employing a manager or employees : Some activities may require hiring a manager or employees depending on licensing requirements.
Registration with government agencies : Register the company with the relevant authorities such as the Ministry of Human Resources and Emiratisation, and the Tax Authority if necessary.
Social Insurance and Special Licenses : A company may need to register with the Social Insurance system if it employs employees.

Cooperating with a specialized consulting company such as Atqan can contribute to facilitating these procedures and ensuring that the company adheres to all legal conditions and requirements.

Ways to establish a company in Dubai for foreigners

Establishing a company in Dubai for foreigners in 2025 can be done through several main methods, suitable for different types of commercial and economic activities. Here are the most prominent ways to establish a company in Dubai:

Establishment in free zones :
- Free zones in Dubai provide an ideal environment for foreigners to establish their companies, as foreign investors can fully own the company without the need for a local partner. These areas, such as the Dubai World Trade Center (DWTC) and Dubai Science Park, include tax benefits such as exemption from corporate and dividend taxes.
- This option is characterized by ease of procedures and speed of establishment, in addition to the availability of integrated services such as office rental and logistical facilities.
Establishment in commercial areas :
- If the business activity requires direct dealing with the local market or requires the presence of branches in Dubai, foreigners can establish companies in commercial areas. In this case, a local partner who owns 51% of the company’s shares is required.
- This option provides direct access to the local market, but requires a local partner according to Dubai corporate laws.
Incorporation as a Limited Liability Company (LLC) :
- Establishing a limited liability company (LLC) in Dubai requires a local partner to own 51% of the shares, while foreigners can own 49% of the shares. This type of company allows business across the Emirates and can handle all types of business activities.
- This option is preferred for companies that want to expand within the local market and benefit from the advantages of diversification in activities.
Establishment as a sole proprietorship company :
- Foreigners can also establish sole proprietorship companies under certain laws, especially in free zones. This option allows the foreign owner to have full control of the company while benefiting from the administrative and tax advantages provided in free zones.

Each of these options comes with a range of legal and financial benefits and considerations, so it is advisable to consult with a legal advisor or a specialized services company such as Atqan to determine the most appropriate option based on the company’s needs and the type of targeted business.

Documents required to establish a company in Dubai for foreigners

To establish a company in Dubai for foreigners in 2025, a set of papers and basic documents must be submitted. These papers vary based on the type of company and place of incorporation, but generally include:

Passports : A color copy of the passport of all founders, shareholders and directors.
Personal photos : Recent personal photos of the founders, shareholders and directors.
Birth Certificates : In some cases, a birth certificate for the founders and shareholders may be required.
Company Articles of Association : A copy of the Articles of Association or social contract that specifies company details such as commercial activity, administrative structure, and shares.
Local Partner Agreement (in the case of LLC) : If the company is a limited liability company (LLC), an agreement must be submitted with the local partner that specifies ownership shares, rights, and duties.
Lease contract : A copy of the lease contract for the company’s headquarters, or proof of the business location in the free zones.
Business Plan : A summary or business plan outlining the business activity, target market, and financial and operational plans.
Permits and Licenses : Documents proving obtaining the necessary permits and licenses according to the type of activity.
Commercial licenses : If the activity requires additional licenses (such as health or industrial licenses).
Insurance : Proof of obtaining required insurance such as employment insurance or company insurance.
Establishment application forms : Establishment application forms that are filled out and submitted to the competent authorities.
Verifying the trade name : Submitting documents proving the reservation and registration of the trade name.

Businesses are recommended to cooperate with a legal advisor or service company such as Atqan to guide them in preparing and compiling the required paperwork and ensuring that all legal and procedural requirements are met.

Advantages of establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners comes with a host of advantages that make it an attractive destination for business and investment. Here are the most prominent features:

Full ownership by foreigners : Foreigners can own 100% of the company in the free zones without the need for a local partner. This allows them to have full control of the company and make all strategic decisions.
Tax exemptions : Dubai provides attractive tax exemptions, including exemption from corporate and profits tax in most free zones, which reduces the financial burden on companies.
Flexible business environment : Dubai’s commercial laws and simple and flexible procedures contribute to accelerating the process of establishing and managing a business. The system is characterized by reducing bureaucracy and enhancing transparency.
Easy access to global markets : Dubai’s strategic location as a link between East and West makes it an ideal platform for international trade. The city provides advanced infrastructure and logistics facilities that support global expansion.
Advanced infrastructure : Dubai provides world-class infrastructure that includes seaports, modern airports, advanced transportation networks, and technological facilities that support business operations.
Economic and political stability : Dubai enjoys economic and political stability that enhances investment attractiveness and reduces risks associated with business.
Ease of opening bank accounts : Companies can easily open business bank accounts, making it easier to manage funds and conduct financial transactions.
Government facilities and support for investors : The government in Dubai provides a range of facilities and support to investors, including advisory services and facilitating administrative procedures.
Diversity of business activities : Investors can choose from a wide range of business activities and services, including technology, financial services, trade, and industry.
A supportive legal and legislative environment : Dubai provides a legal and legislative framework that protects the rights of investors and encourages innovation and business growth.

These advantages contribute to making Dubai a preferred destination for foreigners wishing to establish their companies and achieve success in a prosperous business environment that keeps pace with global developments.

The cost of establishing a company in Dubai for foreigners

The cost of establishing a company in Dubai for foreigners depends on several factors, including the type of company, location of incorporation, and scope of business activity. Here is an overview of the factors that affect the cost of incorporation:

Incorporation and registration fees : Incorporation fees vary depending on the type of company and its location. For example, establishing a company in a free zone is often less expensive than establishing a company in commercial zones.
License Fees : Each business requires a specific license. Fees vary based on license type and activity. In free zones, fees may include license and concession fees.
Office rent : In free zones, office space is provided as part of the foundation package, but in commercial zones, you may have to rent an office or work space which increases the cost.
Special license costs : For some activities you may need additional licenses or special permits, such as health or industrial licenses.
Legal and administrative fees : These include fees related to preparing legal documents, legal consulting services, and preparing incorporation documents.
Bank fees : Opening a business bank account may require additional fees, as well as the minimum required capital in some cases.
Other costs : Other costs may include such as insurance, administrative services, and preparatory work necessary for incorporation.

Establishing a company in Dubai for foreigners in 2025 represents a promising investment opportunity that gives international investors access to one of the fastest growing and most dynamic economies in the world. With its encouraging business environment and flexible procedures, Dubai provides an ideal platform for growth and expansion into global markets. By choosing the appropriate model of establishment, whether in free zones or commercial zones, and carefully meeting the legal conditions and requirements, foreign investors can benefit from many advantages, including tax exemptions, ease of establishing companies, and the possibility of expansion into local and regional markets.

The move towards Dubai to establish companies reflects a strategic vision for the future, driven by economic stability, innovation and the facilities provided. With the right guidance from specialized consultants like Atqan, it is possible to overcome challenges and achieve success in this dynamic market. Ultimately, establishing a company in Dubai is a step towards realizing business ambitions and investing in the future in one of the most vibrant business environments in the world.