UAE Residence Visa: Business Setup Guide 2024

Dubai remains one of the most attractive hubs for business setup, thanks to its zero corporate tax policies, strategic geographic location, and simplified residency visa processes. In 2024, global entrepreneurs can benefit from specific changes in residency and business setup regulations. Here is a detailed breakdown to help you navigate the requirements effectively.

If you're considering securing your residency in the UAE, we’re here to guide you every step of the way! With our extensive experience assisting applicants from all walks of life, we simplify the process of obtaining your UAE Residence Visa. Let us help you achieve your goals with a personalized assessment, click here.

Choose Your Business Category

The category you choose will have an impact on the legal structures, licensing, and tax implications of your business. Three main categories remain pivotal:

Trading: Free zones in the UAE, including those in Dubai like the Jebel Ali Free Zone, provide 100% import and export tax exemption. Licensing costs here start at AED 15,000, with added benefits like warehousing options.

Manufacturing: Requires facilities that adhere to the UAE’s industrial regulations. Investment in manufacturing typically starts around AED 500,000, covering machinery, permits, and operational space. It's worth noting that the actual investment required can vary significantly based on factors such as:

The specific type of manufacturing activity
The scale of operations
The technology involved
The size of the facility needed

Professional Services: Ideal for consultants, tech firms, and legal entities, often requiring a smaller office footprint, starting with virtual office setups from AED 8,000 per year approximately.

Understanding the right business category will help you determine applicable regulations, ownership rights, and capital requirements.

Decide on Your Business Activity and Jurisdiction

There are no strict restrictions on the type of business you can open to obtain residency in Dubai. However, there are different options and considerations to keep in mind. Foreigners can establish several types of companies in Dubai to obtain residency:

Mainland companies: These can operate throughout the UAE and across 2000 different sectors, though some activities may require a local partner.
Free zone companies: Free Economic Zones (FEZs) in the UAE allow 100% foreign ownership and residency visas for entrepreneurs and employees. Companies can trade internationally and are exempt from import/export duties. FEZ businesses also benefit from full operational control and can own assets, including real estate. They enjoy tax benefits and don't require a local partner. Each free economic zone has its own list of permitted activities.
Offshore companies: Limited to conducting business outside the UAE but can take advantage of UAE incentives for international business.

Determine your Business Structure and Number of Shareholders

Both free zone and mainland businesses can now have multiple shareholders (up to 50). Full foreign ownership is permitted in specific industries as per 2024 amendments, particularly in high-demand sectors like tech and e-commerce.

These are the most common business structures:

Sole Proprietorships are owned by one individual with full control and unlimited liability. It's particularly suitable for professionals and small businesses.
Partnerships are owned by at least two individuals sharing profits and liabilities.
Limited Liability Companies or LLCs are the most popular. Shareholders' liability is limited to their capital contribution. Recent changes now allow 100% foreign ownership in certain sectors, which is a significant update.
Free Zone Companies offer benefits like 100% foreign ownership, tax exemptions, and simplified business setup processes
Branch Offices are local extension of an already existing foreign company; it is the same legal entity.

Can You Open a Business from Outside the UAE?

In 2024, remote business setup has been simplified. Entrepreneurs can appoint local agents or use Power of Attorney to set up a company without physical presence. Once the business is registered, you can apply for a residency visa remotely. However, residency is required to finalize certain aspects, such as opening a corporate bank account.

Apply for your License and Register your Business

Select a Commercial, Industrial, or Professional license based on your business category. Apply for initial approval through the Department of Economic Development (DED) or the relevant free zone authority. Reserve your business name and assemble all necessary documents, such as the Memorandum of Association (MOA) and Articles of Association (AOA). Submit your license application along with the required fees. Upon approval, you will receive your business license. Depending on your business activities, you may also need additional permits from concerned authorities, including health permits, environmental clearances, or sector-specific approvals.

Select your Office space

The office space is determined not only by the business category but also by the number of visas required:

Virtual Offices: Suitable for startups or service businesses with limited physical presence. Costs start at AED 8,000, but visa quotas are limited.

Shared Offices: Flexible workspace options, ideal for SMEs needing 2-3 visas. These start at AED 20,000 annually.

Private Office: Required for mainland operations, starting at approximately AED 30,000, with flexible options for expansion.

Different free zones offer various packages with different visa quotas.

Open a Bank Account

Explore well-known banks in Dubai offering corporate banking services. Some of the most popular include Emirates NBD, Dubai Islamic Bank, and HSBC.

To open a corporate bank account, you typically need the following documents:

Business license
Passports of shareholders and directors
Memorandum of Association (MOA) and Articles of Association (AOA)
Proof of address
Board resolution authorizing the account opening

Hiring employees and applying for Residency Visas

Apply for an entry permit, using your company as the sponsor, to enter the UAE for residency purposes. Once received, enter the UAE within the permit's validity (usually 60 days). After arrival, apply for your residency visa through the Federal Authority for Identity and Citizenship (ICP) either online or at authorized typing centers.

These are some of the required documents:

Completed UAE visa application form
Passport copy
Two passport-size photos
Entry permit
Proof of your company's trade license
Proof of address (lease contract or property ownership)
Medical fitness certificate
Emirates ID application receipt
Health insurance

It is important to note that most free zones in the UAE require a minimum investment to establish a company within their jurisdiction. Depending on the visa type, approval from the Federal Authority for Identity, Citizenship, Customs & Ports Security (ICP) may also be necessary in relation to the investment. Visas are often issued for up to five years and permit the inclusion of dependents.

In conclusion, setting up a business in Dubai in 2024 offers a strategic pathway to obtaining residency while taking advantage of the city's pro-business policies, zero corporate taxes, and strategic location. The process, while straightforward, involves several critical decisions regarding business structure, jurisdiction, and investment requirements. To ensure your business setup and residency process aligns with your specific goals, we recommend

Contact us now!

If you're ready to explore your options for residency and take advantage of the Golden Visa or Residency programs, you're in the right place! Our team is experienced, having assisted applicants from various backgrounds in obtaining their residency through investment. Reach out to us now, click here.

If you’re ready to apply and would like a 1-on-1 session with one of immigration team members at INGWE, you can also book a session directly using this consultation link.

UAE Residence Visa - How to Set Up a Business In DUBAI - Dubai Residence Vis