FREQUENTLY ASKED QUESTIONS
How do I start a business in Dubai as a foreigner?
As a foreigner, you can start a business in Dubai by:
1) Choosing your business activity.
2) Selecting the right business structure (Mainland, Free Zone, or Offshore).
3) Preparing required documents.
4) Obtaining the appropriate trade license.
5) Processing visas.
6) Opening a corporate bank account.
Noble Core Ventures handles all these steps for you.
What are the different types of companies I can establish in Dubai?
You can establish several types of companies in Dubai:
- Limited Liability Company (LLC): Most popular for mainland and free zone
- Sole Proprietorship: Single owner business
- Partnership: Multiple partners sharing profits and losses
- Public Joint Stock Company: For large businesses with public shareholders
- Branch Office: Extension of an existing foreign company
- Representative Office: For market research and liaison activities only
Which business structure is best for my company?
The best structure depends on your business goals:
- Free Zone: Best for international business, 100% ownership, tax benefits
- Mainland: Best for local market access, government contracts, wider business activities
- Offshore: Best for international holding, asset protection, maximum privacy We provide free consultation to help you choose the right structure.
What business activities are allowed in Dubai?
Dubai allows over 2,000+ business activities across various sectors including:
- Trading and Commerce
- Professional Services
- Manufacturing and Industrial
- Technology and IT
- Healthcare and Medical
- Education and Training
- Tourism and Hospitality
- Real Estate and Construction
- Financial Services (with special approvals)
Can I change my business activity after company formation?
Yes, you can add or modify business activities by applying for a license amendment. This process typically takes 2-3 working days and involves updating your trade license and MOA. Additional government approvals may be required for certain activities.
What documents do I need to start a business in Dubai?
Required documents typically include:
- Personal Documents: Passport copy, visa copy, passport-size photographs
- Educational Certificates: Attested degree certificates (for professional licenses)
- Business Documents: Business plan, MOA draft, lease agreement
- Financial Documents: Bank statements, financial projections
- Additional: NOC from current employer (if applicable), medical certificate
Do I need a local partner to start a business in Dubai?
Not always. The requirements depend on your business structure:
- Free Zone Companies: No local partner required, 100% foreign ownership allowed
- Mainland Companies: Many activities now allow 100% foreign ownership, but some still require a UAE national partner or local service agent
- Offshore Companies: No local partner required We help you determine the requirements for your specific business activity.
What is a Local Service Agent (LSA) and do I need one?
A Local Service Agent is a UAE national who acts as your local representative for certain business activities. LSAs are required for:
- Professional licenses in mainland
- Some commercial activities
- Branch offices of foreign companies The LSA receives a fixed annual fee (typically AED 2,000-5,000) and has no ownership stake in your business.
What are the advantages of setting up in a Free Zone?
Free Zone companies enjoy several benefits:
- 100% foreign ownership with full profit repatriation
- 0% corporate tax for most business activities
- 0% personal income tax
- No currency restrictions or exchange controls
- Simplified business setup process
- World-class infrastructure and facilities
- Easy visa processing for employees
- Exemption from import/export duties for re-export
Which Free Zone should I choose for my business?
Free Zone selection depends on your business activity and requirements:
- JAFZA: Best for trading, logistics, and manufacturing
- DMCC: Ideal for commodities trading and precious metals
- Dubai Internet City: Perfect for technology and IT companies
- Dubai Media City: Designed for media and creative industries
- DIFC: Premier choice for financial services
- IFZA: Cost-effective option for general trading and services
- Ajman Free Zone: Most affordable option with flexible packages
Can Free Zone companies trade in the UAE mainland market?
Free Zone companies cannot directly trade in the UAE mainland market. To sell to mainland customers, they must:
- Appoint a UAE mainland distributor
- Set up a separate mainland company
- Use an authorized distributor arrangement However, they can freely trade internationally and with other free zones.
What office space options are available in Free Zones?
Free Zones offer various office solutions:
- Flexi-Desk: Shared workspace, most economical option
- Hot Desk: Non-dedicated desk in co-working space
- Dedicated Desk: Your own desk in shared office
- Private Office: Fully private office space
- Warehouse: For trading and logistics businesses
- Virtual Office: Business address without physical space (limited free zones)
How many visas can I get with a Free Zone company?
Visa allocation depends on:
- Office Space Size: Larger offices allow more visas
- Free Zone Rules: Each free zone has different visa policies
- Business Activity: Some activities allow more visas
- Typical Range: 2-6 visas for small offices, unlimited for larger spaces We help you choose the right office size for your visa requirements.
Can I live in Dubai with a Free Zone company visa?
Yes, a Free Zone business visa allows you to:
- Live anywhere in the UAE
- Travel freely between emirates
- Sponsor family members for residence visas
- Open personal bank accounts
- Own property in designated areas The visa is typically valid for 2-3 years and can be renewed.
What are the renewal requirements for Free Zone companies?
Annual renewal requirements typically include:
- License Renewal: Submit renewal application and pay fees
- Office Space: Maintain valid lease agreement
- Visa Renewals: Process employee visa renewals
- Financial Statements: Some free zones require annual financial reports
- No Audit Required: Most free zones don’t mandate annual audits Renewal costs typically range from AED 8,000-25,000 depending on the free zone.
What are the benefits of setting up a Mainland company?
Mainland companies offer several advantages:
- Full UAE market access without restrictions
- Government contracts eligibility
- Unlimited business activities (over 2,000+ activities)
- Banking advantages with easier account opening
- Lower setup costs compared to some free zones
- Flexible office options including virtual offices
- Direct import/export to UAE market
Do Mainland companies need to pay corporate tax?
UAE corporate tax applies to mainland companies:
- Tax Rate: 9% on profits exceeding AED 375,000
- Tax-Free Threshold: First AED 375,000 is tax-free
- Small Business Relief: Additional benefits for qualifying small businesses
- Free Zone Comparison: Most free zones remain 0% tax for qualifying activities We provide comprehensive tax consultation to optimize your structure.
What office requirements exist for Mainland companies?
Mainland companies must have:
- Physical Address: Registered office address mandatory
- Office Options: Traditional office, co-working space, or virtual office
- Ejari Registration: Tenancy contract must be registered with Ejari
- Minimum Space: No minimum size requirement for most activities
- Location Flexibility: Can be located anywhere in Dubai mainland
How many employees can a Mainland company hire?
Mainland companies have flexible employment options:
- No Maximum Limit on employee numbers
- Visa Quota: Based on office space, business activity, and salary levels
- Emiratization: Some sectors have UAE national employment requirements
- Labor Card: All employees need valid labor cards
- Minimum Salary: AED 2,000 minimum salary for visa eligibility
What are the ongoing compliance requirements for Mainland companies?
Mainland companies must comply with:
- Annual License Renewal: Renew trade license annually
- Corporate Tax Filing: Annual tax returns and payments
- VAT Registration: If turnover exceeds AED 375,000
- Labor Compliance: Employee contracts, WPS, and labor regulations
- Economic Substance: For certain business activities
- Audit Requirements: Companies meeting certain criteria must conduct annual audits
What is an Offshore company and why choose it?
UAE Offshore companies are designed for:
- International Business: Cannot trade within UAE
- Holding Structure: Ideal for holding investments and assets
- Tax Optimization: Typically 0% corporate tax
- Privacy Protection: Enhanced confidentiality
- Asset Protection: Shield assets from operational risks
- Estate Planning: Succession planning for family wealth
Which Offshore jurisdiction should I choose in UAE?
Popular UAE Offshore jurisdictions include:
- Ras Al Khaimah (RAK): Most established, cost-effective
- Ajman: Competitive pricing, flexible structures
- Fujairah: Growing popularity, modern regulations
- Jebel Ali: Premium option, established reputation Each offers different benefits in terms of cost, regulation, and international recognition.
Can Offshore companies open bank accounts?
Yes, but with limitations:
- UAE Banks: Limited options, strict requirements
- International Banks: Better options in Singapore, Switzerland, etc.
- Digital Banks: Emerging options for international banking
- Documentation: Enhanced due diligence required
- Business Justification: Must demonstrate genuine business purpose We assist with identifying suitable banking options for your offshore structure.
What are the reporting requirements for Offshore companies?
Offshore companies typically have minimal reporting:
- No Audit Requirements: Most jurisdictions don’t require annual audits
- Annual Returns: Simple annual confirmation required
- Beneficial Ownership: Must maintain UBO registers
- Economic Substance: New requirements for certain activities
- International Reporting: May need to comply with CRS/FATCA
Can Offshore companies invest in UAE real estate?
Yes, UAE Offshore companies can:
- Own Freehold Property: In designated areas
- Commercial Real Estate: Purchase and lease commercial properties
- Real Estate Investment: Hold property as investment
- Rental Income: Earn rental income tax-efficiently
- Property Development: Participate in development projects This is a popular structure for real estate investment.
How do I open a corporate bank account in Dubai?
Corporate bank account opening process:
- Choose Bank: Select from ADCB, Emirates NBD, FAB, HSBC, etc.
- Required Documents: Trade license, MOA, passport copies, salary certificates
- Minimum Deposit: Varies by bank (AED 3,000-100,000)
- Physical Presence: Most banks require in-person visit
- Processing Time: 1-4 weeks depending on bank and business type
- Account Activation: Usually immediate after approval
Which banks are best for business accounts in Dubai?
Popular business banking options:
- Emirates NBD: Largest local bank, comprehensive services
- ADCB: Strong business banking, competitive rates
- FAB: Good international connectivity
- HSBC: Best for international business
- CBD: Competitive packages for SMEs
- RAKBank: Flexible terms, good for startups
- Digital Banks: CBD Now, Liv, ENBD X for simple banking needs
What are typical banking fees for business accounts?
Common business banking fees:
- Account Opening: AED 0-1,000
- Monthly Maintenance: AED 25-500
- Minimum Balance: AED 3,000-100,000
- Transaction Fees: AED 2-10 per transaction
- International Transfers: AED 50-200 per transfer
- Cheque Books: AED 50-100 We help negotiate better terms based on your business profile.