Starting a business in Dubai from the UK in 2024 is an exciting opportunity for UK entrepreneurs looking to tap into the growing Middle Eastern market. With its tax advantages, world-class infrastructure, and investor-friendly regulations, Dubai has become a top choice for international businesses.
Whether setting up in a free zone or mainland Dubai, understanding how to start a business in Dubai from the UK is essential for a smooth experience.
This blog will cover all the essential steps, from choosing the right business structure to getting approvals and licenses.
What are the Benefits of Starting a Business in Dubai?
Starting a business in Dubai from the UK offers a unique opportunity to expand into a booming market with numerous advantages for international entrepreneurs.
1. Tax Advantages
Dubai offers some limited tax for corporations, and there’s no tax on personal income. It makes it an attractive destination for UK entrepreneurs to maximise profits.
2. Business-Friendly Environment
Dubai’s policies are designed to encourage foreign investment. It also offers streamlined processes for company registration and setup, especially for those from the UK.
3. World-Class Infrastructure
With modern transportation, advanced technology, and top-tier business facilities, Dubai provides the ideal setting for businesses to grow and succeed.
4. Free Zone Benefits
Setting up in one of Dubai’s many free zones allow for full foreign ownership, easy repatriation of profits, and exemption from import and export duties.
5. Diverse Workforce
Dubai’s multicultural workforce gives UK businesses access to skilled talent worldwide. It makes finding employees suited to any industry easier.
6. Business Growth Potential
Dubai’s rapidly expanding economy and booming sectors such as technology, tourism, and real estate create endless opportunities for growth and profitability.
7. High Quality of Life
Dubai provides a high quality of life with exceptional healthcare, top-tier education, and vibrant entertainment options. It’s an appealing destination for business owners and employees.
8. Business Setup cost
The cost of setting up a business in the UAE is not much; you can quickly form a company at a lower price. Additionally, some free zones benefit you from no minimum share capital requirements.
9. Crypto Hub
Entrepreneurs are growing in the UAE’s cryptocurrency market as the country attracts new talent. It offers a supportive regulatory environment and advanced infrastructure for forming crypto businesses.
Mainland vs Free Zones
To start a business in Dubai from the UK, you must know about the business setup zones. The table below down will help you understand more about free zones and mainland company formation:
| Category | Dubai Mainland | Dubai Free Zones |
| Business Registration | By the Department of Economic Development (DED) | Registered within specific free zones with unique regulations |
| Ownership | Full ownership for most activities, following recent regulations | 100% foreign ownership allowed |
| Personal Income Tax | No personal income tax | No personal income tax |
| Business Activity Scope | Access to a wider range of business activities across the UAE | Limited to activities approved by the specific free zone |
| Market Access | Can trade directly within the UAE market and with government entities | Can only trade within the free zone or internationally; requires a local distributor to trade in the UAE mainland |
| Hiring Employees | No restrictions on nationality and more flexibility in hiring | Hiring is restricted to within the free zone; easier visa processing |
| Setup Complexity | More complex setup processes and regulations | Simpler and faster setup process |
| Popular Free Zones | N/A | JAFZA, IFZA, DIFC, DMCC, DMC, DWTC, RAKEZ |
| Infrastructure | Access to local market infrastructure and resources | World-class infrastructure within the free zone |
| Additional Benefits | Serve domestic and international markets without restrictions | Exemption on import duties, depending on the free zone |
| Ideal for | Businesses targeting the UAE domestic market or government contracts | International trading, consultancy, technology, manufacturing |
Both options offer distinct advantages, and consulting with a business setup expert like Shuraa can help you choose the best fit for your needs.
Types of Business Licenses in Dubai
Before starting a business in Dubai, you must choose a suitable business license to align with your business activity. Below are the main types of business licenses that you might need:
1. Commercial License
Perfect for businesses involved in trading goods or general contracting. It’s the most common type and covers various commercial activities.
2. Industrial License
Essential for companies engaged in manufacturing, production, or processing. This license supports operations that involve creating or altering goods.
3. Professional License
Ideal for service-oriented businesses, including professionals, artisans, and craftsmen. It also covers specialised licenses for E-commerce, freelance work, and tourism.
Each license type is made for different business needs, so choosing the right one will help your operations run smoothly in Dubai.
How to Start a Business in Dubai from the UK?
If you want to start a business in Dubai from the UK, the steps below will help you form your own company in the growing city.
Step 1: Identify Your Business Activity
The first step is to identify the Dubai’s market. You can conduct various market research and choose your business-specific activities. Make sure that whatever activity you choose is allowed in Dubai.
Step 2: Choose Your Business Structure
Once you have chosen a business activity, the next step is to select your business structure.
You can choose a legal form of your business mentioned below:
- Sole proprietorship
- limited liability company
- Partnership Company
Decide on the legal form of your business based on ownership preferences, liability considerations, and growth objectives. Many entrepreneurs opt for a Mainland LLC.
Step 3: Select a Jurisdiction
The next step is to select a jurisdiction for your business. Choose between Dubai Mainland and a free zone based on your business needs, target market, and desired ownership control. Each option offers different advantages depending on your business goals.
Step 4: Register Your Trade Name
The next step is choosing a trade name for your business. Once you have selected a trade name, the DED should approve it. Make sure you check the naming guidelines before finalising a business name.
Step 5: Apply for a Trade License
Submit your application to the Department of Economic Development (DED) for a trade license, including all required documents. If setting up in a Freezone, apply through the relevant Freezone authority.
Step 6: Choose Your Location
Now, you have to choose your business location. Whatever jurisdiction you select, you will be advised that you need a physical or virtual office.
If opting for Mainland, then you need physical space, and you need to get a tenancy contact from Ejari. Getting a tenancy contract is essential; without it, you can’t rent a space in the mainland.
Step 7: Open a Corporate Bank Account
The last step is to open a corporate bank account. There are many banks in the UAE; like Emirates NBD, RAK bank, Meshreq bank etc. Depending on your business requirement you can choose it accordingly. Provide necessary documentation, including your trade license and MOA.
The steps mentioned above will help you start a business in Dubai from UK. If you need help with any step, contact our Shuraa Business Setup experts. We are here to help you from the start of the process to the end. Contact us today for a free business consultant.
Documents Required to Start a Business in Dubai from the UK
To start a business in Dubai you need to submit the documents mentioned below:
- Passport Copies
- Application form
- Passport-Sized Photographs
- Tenancy Contract (Ejari)
- Business Plan
- Memorandum of Association (MoA)
How Much Does it Cost to Start a Business in Dubai?
Starting a business in the UAE typically costs between AED 12,500 and AED 28,500 for a basic license. Beyond this, you’ll need to consider additional expenses such as government registration fees, visa costs, bank charges, initial approval fees, and Ejari registration.
The total cost can vary based on several factors, including whether you’re setting up in Dubai Mainland or a Free Zone, as Mainland setups usually incur higher costs. The type of business activity you choose will also impact fees, with different licenses having different costs.
For a precise breakdown and guidance, consulting experts like Shuraa can help ensure a smooth and cost-effective business setup.
Start Your Business in Dubai from the UK with Shuraa!
Starting a business in Dubai from the UK offers exciting opportunities in a market with tax benefits, top-notch infrastructure, and a business-friendly environment. This guide has covered essential steps like choosing a business structure, obtaining licenses, and understanding costs.
Dubai’s strategic location and Free Zone benefits make it an attractive destination for entrepreneurs. For personalised support and a smooth setup process, Shuraa Business Setup is here to help. Contact us today to get started on your Dubai business venture.
Frequently asked questions
1. Can I set up a company in Dubai from the UK?
Yes, you can set up a company in Dubai as a UK resident.
2. Can I move my UK business to Dubai, UAE?
Yes, relocating your UK business to Dubai is possible and often beneficial.
3. Do I need to pay UK tax when in Dubai?
The UK and Dubai have a double taxation agreement, meaning you won’t have to pay UK tax while working in Dubai.
4. What company types can be formed in Dubai from the UK?
Common options include LLCs, sole proprietorships, and free zone companies.
5. How much do I have to invest to set up a business in Dubai?
Initial investments can start from AED 17,500*, depending on the business type.
6. What business licenses are available in the UAE?
Available licenses include trading, professional, industrial, and tourism licenses.
7. What are the reasons to set up a business in the UAE from the UK?
Reasons include tax benefits, strategic location, and a diverse market.
8. What is the minimum investment amount needed to start a business in Dubai?
The minimum investment often starts around AED 17,500*, depending on the business structure.
9. Can I live in Dubai, UAE with a British passport?
Yes, British passport holders can live in Dubai with the appropriate visa.
10. Can I register my UK business in Dubai?
Yes, you can register your UK business in Dubai under certain conditions.
11. Do I need a business visa for Dubai from the UK?
Yes, a business visa is required to operate in Dubai.
12. Can I retire in Dubai, UAE from the UK?
Yes, retiring in Dubai is possible with the right visa options.
13. Should your business bank account be registered in Dubai?
Yes, it’s advisable to have a business bank account registered in Dubai for local transactions.