You can move your business to Dubai from any country and enjoy tax benefits by selecting the right jurisdiction (Mainland or Freezone) for your business activity and reserving your trade name. Then you can open your bank account. It’s a simple process, but engaging with a business setup consultant makes it more streamlined.
Dubai offers immense growth opportunities for any business. You can make a fresh business start or operate your already-running foreign business. Dubai offers 0% personal income tax, a well-developed business infrastructure, and a growing expat community. In this guide, you will learn about every aspect of moving a foreign business to Dubai, including legal structures, tax considerations, bank account opening, costs, and compliance requirements.
Why Move Your Foreign Business to Dubai?
Dubai has become a top destination for foreign businesses due to its location and tax benefits. The Dubai government also supports business initiatives with its tax-friendly policies. Here are some reasons why a foreign business should consider relocating to Dubai.
Dubai Business-Friendly Ecosystem
Dubai’s business environment and tax policies highly attract foreign business.
- Tax Advantages: Dubai offers 0% tax on personal income and 9% corporate tax if the profits are above 375,000 AED.
- World Class Connectivity: Dubai International Airport is one of the busiest, connecting it to more than 270 cities.
- Gateway to Asia, Middle East, and African Markets: The strategic location of Dubai provides access to business opportunities across Middle Eastern countries, South Asia, and some African countries.
Recent Government Reforms
The recent UAE government reforms make Dubai more favorable for foreign businesses.
- 100% Foreign Ownership: Foreign citizens can now have full ownership of the company in the UAE, without a local partner or investor.
- Golden Visa for Investors and Entrepreneurs: The UAE government issues 5-10 years renewable visas for business owners and investors. If you have a significant investment in Dubai, you can enjoy permanent residency in the form of renewable visas.
- Freezone Expansion: Freezones in Dubai offer full ownership and 100% profit repatriation for business owners. The UAE government recently introduced new free zones to attract global investors.
What Are the Business Relocation Options in Dubai?
For foreign business owners, usually 3 business structures are available for relocation. The right choice depends on your budget, target customers, and how long you want to stay in Dubai. Here are 3 main business jurisdictions in Dubai for foreign businesses.
| Factor | Mainland | Freezone | Offshore |
| Ownership | 100% | 100% | 100% |
| UAE Trade | Allowed Anywhere in the UAE | Limited (needs distributor) | Not Allowed |
| Setup Cost | Higher | Medium | Lower |
| Visa Eligibility | Yes | Yes | No |
| Office Requirement | Physical Office | Flexi Desk / Virtual Office | Not Required |
| Best For | Local UAE Business | International & Online Business | Asset Holding & International Trade |
| Corporate Tax | 9% above the taxable threshold | 0% on qualifying income | 0% (subject to activity) |
Key Factors to Evaluate Before Relocating Your Foreign Business
Keep in mind the following factors before choosing any legal structure for your foreign business.
- Target Clients: If your business targets local UAE clients, then a Mainland company would be the best option for you. However, if your company operates outside the UAE, then a freezone or offshore setup is the best.
- Visa Requirements: You can sponsor employees on the basis of both a mainland and a freezone license. The visa quota directly depends upon the size of your space and the scope of your business.
- Cost Considerations: The cost to set up a Mainland business is much higher than that of freezone and offshore setups. So, you must plan accordingly with your budget.
Choose the Right Legal Business Structure
The structure you choose for your company defines your ownership capability and legal compliance. The following company structures are available if you want to relocate your business to the UAE.
Limited Liability Company (LLC)
The Department of Economic Development (DED) of UAE issues mainland LLC licenses. You can have full ownership of the company and freedom to trade anywhere in the UAE. It requires at least 2 shareholders.
Branch Office
A branch office is not a new separate business entity. It is just an extension of the parent company and conducts the same business activities. A branch office requires a local service agent to help operate within the UAE.
Representative Office
A representative office is just for marketing and promotion of your business. It can not conduct commercial transactions or generate revenue. Its best option for companies that want a UAE presence for relationship building.
Sole Proprietorship
Sole proprietorship is the best legal structure for small business owners and freelancers. You can have full ownership of the business. Your personal assets are at risk with the company’s debts. The Dubai Department of Economic Development (DED) issues its license.
Legal Requirements to Move a Foreign Business to Dubai
You must understand the legal requirements before you start your business relocation process. It will save your time and make the process straightforward.
Documents Required to Register a Foreign Business in Dubai
Each legal structure (Mainland or Freezone) has its own specific document requirements. But the following standard documents are always required.
- Passport Copies: All the business stakeholders must provide their proof of identity in the form of a 6-month valid passport.
- Proof of Existing Business: You must provide a recent certificate of good standing of your home company. It is mandatory if you wish to transfer your business to Dubai.
- Business Plan: A detailed business plan will help in the fast application process and approvals. It must outline your business activity, the scope of your company, the target market, and staff plans.
- Attested Documents from Outside the UAE: You will need to provide attested documents like incorporation certificates, memorandum or articles of association, board resolutions, and powers of attorney, and must get them notarized by the UAE embassy.
- Local Documentation: You require documents like a trade name reservation certificate, the lease agreement (Ejari), and approvals from DED within the UAE.
Simple Process to Move a Foreign Business to Dubai
Follow these important steps to relocate your foreign business to Dubai.
Choose a Legal Structure for Your Company
Select the zone (Mainland, Freezones, Offshore) in which you think your business will have the best growth opportunity. Each zone has its own business activity and licensing requirements.
Get DED Approvals
Get approvals from the Department of Economic Development (DED) in case of mainland company formation. If you choose a freezone structure, then you have to get a license from that specific zone authority.
Get Your Documents Ready
Prepare all the necessary documents needed for your business relocation. Plan it early, as it is the most important phase of moving your business. Notarize the documents by the UAE embassy in your home country if applicable.
Apply for Trade License
Submit the documents, register your company, and get the trade license for your business from the Dubai official authorities.
Get an Office Space
You must get a registered office space (physical office for a Mainland company, Flexi desks for a freezone company) for your business operations.
Open Your Bank Account
It is another important step in your business restructuring process. Submit documents involving business plans and bank statements, and complete the KYC requirements. Apply to more than 1 bank and also consider digital banks.
Apply for Sponsor Visas
After getting your trade license, you can sponsor your employees and business personnel based on your business activity and office space requirements.
Transfer Your Business Operations
Now you can move all your business operations to Dubai, including contracts and employees. Inform your clients and update your website address and invoices.
Average Timeline to Move Your Business Operation to Dubai
The average time to make your business fully operational in Dubai depends on how well you manage your documents. The total time estimates for each step are given below.
| Step | Average Time to Complete |
| Document Preparation | 3-4 Weeks |
| Company Registration | 2-4 Weeks |
| Office Setup | 1-2 Weeks |
| Bank Account Opening | 6-8 Weeks |
| Visa Processing | 3-5 Weeks |
| Total Time Taken | 4-6 Months |
Visa & Residency for Business Owners Relocation to Dubai
It is possible to have a residence in Dubai and sponsor your family after moving your business. Dubai offers the following visa and residency options for business owners.
Investor / Partner Visa
An investor visa is a standard 2-year visa for company shareholders in either the Mainland or Freezone. It is sponsored by the Dubai company in which you have shares. The only condition is that your company must have a registered trade license, and you are designated as an authorized partner or shareholder of the company.
Golden Visa
The UAE Golden visa allows 5-10 years of residency on the basis of fixed capital and investments. It is renewable and does not depend on your trade license. You can sponsor your family, start a business of any kind, and operate anywhere in the UAE. The conditions for a golden visa are that you should have a minimum capital of AED 500,000, or your annual revenues should exceed AED 1,000,000, or you are holding an investment worth AED 2,000,000.
Visa for Relocating Employees
Your Dubai company can sponsor employees from your home country on the basis of employment visas. If you have a registered trade license and office space for employees, you can sponsor them. These employment visas are renewable and can be valid for 2-3 years.
Dependent Visa for Family Members
On the basis of your UAE residence visa, you can sponsor your family members to live with you. The monthly salary requirement to sponsor an individual in Dubai is 4000 AED. You can only sponsor your children who are under 18 or studying in a UAE university if they are above 18.
Tax Considerations While Moving Your Business to Dubai
As a business owner, you must clearly understand the tax regulations in Dubai. The UAE has conducted amendments in taxing policies recently. Here is a general overview of taxation in Dubai.
Personal Income Tax
There is absolutely no tax on personal income in any business or zone in Dubai.
UAE Corporate Tax
The UAE has recently imposed a 9% corporate tax if you earn profits from your business exceeding 375,000 AED per year. It means the small and medium-sized businesses are still exempt from tax. Companies operating in Free Zones also do not fall under this tax category if they are earning profits from the resources outside the UAE.
Small Business Relief for Startups
According to the UAE Federal Tax Authority, if your business’s annual revenues are AED 3,000,000, it will be considered a small business and no tax will be imposed.
VAT Tax
The value-added tax (VAT) in the UAE is 5% only (one of the lowest in the world). It is imposed on taxable supplies and imports worth 375,000 AED annually.
Double Taxation Agreements
The UAE has signed double tax treaty agreements with over 130 countries. It means that you don’t have to pay tax in both Dubai and your home country. You can consult a tax advisor from both Dubai and your country to get a better idea.
Opening a Bank Account in Dubai As a Foreign Company
The UAE banks are strict about the KYC (Know Your Customer) and AML (Anti Money Laundering Regulations). They apply detailed scrutiny to any business moving to Dubai. The simple tip is to maintain a proper ownership structure and clean documentation for smooth account opening.
The key documents required for a bank account are a business plan, bank statements, a business profile, proof of funds, and other identity documents. The time for bank account opening is usually 4-6 weeks.
Best Banks in Dubai for Foreign-Owned Businesses
Here are some banks that allow you to open an account after business relocation.
| Bank | Best For |
| Emirates NBD | Large international businesses |
| Mashreq Bank | New companies startups |
| RAKBANK | Small and Medium Enterprises (SMEs) |
| Wio Bank | Digital account opening |
Cost of Moving a Foreign Business to Dubai
Are you looking for the average cost of relocating your business to Dubai? The total cost always depends on your business type and the location where you are setting up your business. Each zone in Dubai has different cost requirements. Here is a general cost breakdown.
| Factor | Estimated Cost |
| Free Zone Setup | AED 12,000 – 55,000 |
| Mainland Setup | AED 55,000 – 120,000 |
| Office Rent | AED 30,000 – 120,000 per year |
| Licence Renewal | Similar to a setup fee |
| Visa Renewal | AED 3,500 – 6,000 per visa |
| PRO Services | AED 4,000 – 10,000 per year |
| Medical & Biometrics | AED 350 – 600 per person |
| Document Attestation | USD 100 – 500 |
Common Mistakes to Avoid While Moving Your Business to Dubai
Business relocation is a major step for your business, and you must be careful during the whole process. A single mistake can impact your business operations. Here are some mistakes you should avoid.
- Choosing the wrong jurisdiction or legal structure for your company
- Starting the bank account opening process at the end
- Not preparing your legal documents before time
- Ignoring the tax deductions in your home country
- Not planning the visa processing early
- Not consulting a registered business consultant
Conclusion
Dubai is indeed an ideal destination for business relocation from any country, due to its strategic location, developed business infrastructure, and low-tax environment. Entrepreneurs are dreaming of having a business setup in Dubai. The Dubai government has also made investor-friendly policies. A successful business relocation involves choosing the right legal jurisdiction depending on your business activity, keeping in mind the visa and banking requirements, and registering your company and business with the right authorities.
Relocate Your Foreign Company to Dubai With KWS ME
Are you thinking of moving your business to Dubai? Contact our business setup consultants at KWS ME, who have hands-on experience in moving thousands of businesses to Dubai from various foreign countries. We know every aspect of business relocation in Dubai, whether it’s preparing documents, suggesting the best zones based on your business needs, bank account opening, or visa processing. We also maintain relationships with government departments and freezone authorities. Contact us now at +971 800 59763 and let us help you move your business to Dubai.
FAQs
Can I Relocate My Existing Company to Dubai?
Yes, you can relocate your existing company to Dubai by making a branch office for the same business activities or a representative office for marketing of your business.
How long does a business relocation take in Dubai?
The business relocation process takes almost 4-6 months. The time-consuming processes are document preparation and bank account opening.
Do I need to live in Dubai to run my business and company?
No, the UAE trade license does not require you to live in Dubai. However, if you have a UAE residence visa, you cannot be absent from Dubai for more than 6 months.
What’s the most cost-effective way of setting up a business in Dubai?
The most affordable way to set up a company in Dubai is to start a small business in a free zone like IFZA, Meydan, Shams, or Ajman Free Zone. It can cost about 12000-18000 AED for the first year.
