Dubai has emerged as an exceptionally attractive destination for international investors. The United Arab Emirates (UAE) has made substantial advancements in recent years to simplify business operations for entrepreneurs worldwide, offering an unprecedented level of ease. For foreigners looking to start a new business in Dubai now known as LegalRaasta, can provide the right support to make this process accessible and efficient.

Can a Non-Resident Start a Business in Dubai?

In most cases, the answer is yes. However, specific restrictions may apply based on factors such as the type of business you intend to establish, your nationality, and your tax residency. While non-residents can benefit from the UAE’s low corporate tax rate, the applicability of this rate to personal income depends on your country of tax residency. LegalRaasta can offer guidance based on your unique circumstances.

Why Would a Foreigner Open a Business in Dubai?

Establishing a new company in Dubai provides foreigners with a number of strong benefits:

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● Strategic Location – Dubai’s strategic location at the crossroads of Europe, Asia, and Africa positions it as an exceptional gateway for businesses targeting multiple markets. Its geographical advantage provides easy access to a vast consumer base, enabling businesses to expand their global reach effortlessly.

● Strong Economy – Dubai boasts a robust and diversified economy with a favourable business environment. It is renowned for its strong infrastructure, world-class facilities, and pro-business policies. The city offers a stable and growing market for businesses to thrive.

● Free Zones – Dubai hosts multiple free zones, specifically designated areas that offer a range of incentives and benefits to enterprises. These zones allow 100% foreign ownership, exemption from customs duties, and simplified company setup procedures. Free zones cater to various industries, including technology, finance, media, logistics, and more.

● Ease of Doing Business – Dubai is committed to fostering a business-friendly environment. The government has implemented numerous initiatives to streamline bureaucratic processes, reduce red tape, and facilitate business setup. An efficient regulatory framework and online systems make it relatively easy to start and operate a business in Dubai.

Dubai has a workforce that is both highly trained and diversified. Professionals from all over the world are drawn to the city because it has a rich talent pool that spans several industries. Employers might gain from bringing on skilled workers with international experience and understanding.

Steps for Foreigners Starting a Business in Dubai

With LegalRaasta’s assistance, there are a few essential measures that foreigners must do when launching a new business in Dubai:

1. Hiring the LegalRaasta Experts:

Starting a business in Dubai requires specialised documentation that must be completed carefully, especially if you’re not a resident. LegalRaasta’s experts can ensure that all your documentation is accurate and in order before advancing with your application.

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2. Choose Your Business Activities

The nature of your business operations will influence the optimal structure and license type for your company. Firms engaged in manufacturing or other industrial activities, for example, need an industrial licence, whereas firms engaged in buying and selling need a commercial licence.

3. Free Zone or Mainland

The choice between a free zone or mainland business setup depends on your individual circumstances and the nature of your business. LegalRaasta’s team can provide guidance tailored to your specific needs.

4. Choose a Company Name

Dubai has unique naming rules for companies. You must follow specific guidelines, such as avoiding profane words and steering clear of well-known company names and acronyms. LegalRaasta can verify the availability of your chosen name before registration.

5. Apply for Your License

Applying for your trade license is a crucial step. If you’re establishing a mainland business, you should apply to the relevant agency, such as the Dubai Department of Economic Development (DED). LegalRaasta’s expertise can help free zone firms with the application process with the relevant government.

Different Types of Licences Offered in Dubai:

The Department of Economic Development issues all business licenses in Dubai. There are four primary types of business licenses available for foreigners looking to start a new business in Dubai:

1. Commercial License

A Commercial License is required for businesses involved in trading activities, encompassing buying, selling, or distributing goods. This licence is beneficial for retail enterprises, general trading firms, and e-commerce initiatives.

2. Professional License

A Professional License is essential for individuals or companies providing professional services or consultancy. Numerous service-oriented enterprises, including legal practices, accounting services, engineering consultancies, advertising agencies, medical facilities, IT firms, and other professional services, are eligible for this licence.

3. Dubai Industrial License

Businesses that package, process, or manufacture goods are eligible to apply for an industrial licence. This licence is required for companies who operate factories, assemble products, manufacture things, or take part in other industrial activities. It includes a wide range of industries, including textiles, machinery, food processing, and manufacturing.

4. Licence for Tourism

Businesses that operate in the travel and tourist sector require a specific licence called a tourism licence. It is issued by both the Department of Economic Development (DED) and the Department of Tourism and Commerce Marketing (DTCM). Businesses such as travel agencies, tour operators, hotel establishments, holiday home operators, event management companies, and other tourism-related activities require this license.

The specific activities covered by each license type may vary, and additional licenses or permits may be necessary based on your business’s nature. Additionally, some business activities have specific regulations and criteria established by the relevant regulatory authorities. Therefore, consulting with relevant authorities or business consultants is crucial to determine the precise license requirements for your specific business activity.

Why Choose LegalRaasta as Your Business Consultants in Dubai:

Selecting the right business consultant is a critical decision when you’re planning to start a new business in Dubai as a foreigner. LegalRaasta stands out as a top-tier choice, and here’s why you should consider them for your business venture.

1. Expertise in Business Setup

LegalRaasta boasts extensive experience and expertise in helping businesses navigate the complexities of setting up and running a company in Dubai. Their seasoned professionals understand the nuances of local regulations and procedures, ensuring a seamless business setup process.

2. Tailored Solutions

One of the key advantages of choosing LegalRaasta is their ability to provide tailored solutions. They take the time to understand your specific business needs, goals, and industry requirements. As a result, you receive a comprehensive plan designed to meet your unique objectives.

3. In-Depth Market Knowledge

LegalRaasta’s consultants possess in-depth knowledge of the Dubai market and business landscape. They are well-versed in the local business culture and can offer insights and recommendations that are invaluable for foreign entrepreneurs seeking to establish themselves in this dynamic environment.

4. Regulatory Compliance

Dubai has its own set of rules and regulations that must be strictly adhered to. LegalRaasta ensures that your business complies with all the legal requirements, reducing the risk of costly errors or complications down the line. Their meticulous attention to detail helps you avoid regulatory pitfalls.

5. Cost-Efficiency

Partnering with LegalRaasta can be cost-effective in the long run. They understand the financial considerations of starting a new business and provide solutions that optimize your budget. This financial prudence ensures that you make the most of your investment.

6. Networking Opportunities

LegalRaasta has built a strong network in Dubai’s business community. This network can provide your new business with valuable connections and opportunities. Leveraging these relationships can be instrumental in your company’s growth and success.

7. End-to-End Support

From the initial consultation to the issuance of licenses and permits, LegalRaasta offers end-to-end support. They handle the paperwork, applications, and processes, so you can focus on other critical aspects of your business, knowing that the administrative tasks are in expert hands.

8. Quality Customer Service

Exceptional customer service is a hallmark of LegalRaasta. You’ll benefit from their responsiveness and their commitment to ensuring your business setup journey is as smooth as possible.

9. Focus on Your Business Goals

By partnering with LegalRaasta, you can concentrate on your business goals and strategies. Their consultants take the burden of administrative and regulatory tasks off your plate, allowing you to direct your efforts towards building and growing your business.

10. Long-Term Success

LegalRaasta’s support extends beyond the initial setup. They are committed to your long-term success and can continue to provide guidance and assistance as your business grows and evolves in the Dubai market.


Starting a new business in Dubai presents a plethora of opportunities for foreigners. Dubai’s strategic location, strong economy, tax-free environment, ease of doing business, access to talent, and robust infrastructure create a conducive ecosystem for entrepreneurs. With various types of licenses available and a supportive business environment, Dubai provides opportunities across diverse industries.

Moreover, the quality of life, business support, and networking opportunities make Dubai an enticing destination for foreign entrepreneurs seeking to establish their ventures and access global markets. With careful planning, market research, and adherence to local regulations, foreigners can embark on an exciting journey of business growth and success in Dubai.

For expert guidance on starting a new business in Dubai as a foreigner, turn to LegalRaasta. Their experienced team can assist you throughout the setup process, ensuring compliance, efficiency, and a smooth transition into the dynamic business landscape of Dubai. Get started today and seize the numerous business prospects Dubai has to offer.