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What are the key legal requirements for setting up a business in Dubai as an expat?

To establish a business in Dubai as an expat, you need to determine the legal structure of your company (e.g., LLC, Free Zone, Sole Establishment). You must also obtain the necessary trade license from the Department of Economic Development (DED) or a Free Zone authority, depending on the business location. Partnering with a local sponsor is required for mainland companies carrying out certain activities, but Free Zones offer 100% foreign ownership. Additionally, you will need to comply with visa, labour, and taxation regulations.

What is the difference between setting up a business in Dubai Mainland vs. Free Zones?

The key difference is ownership and scope of business activities. In a Mainland setup, a local UAE national (or a UAE-owned company) must hold at least 51% ownership unless you operate in specific industries that allow 100% foreign ownership. In contrast, Free Zones allow 100% foreign ownership but limit you to operating within the Free Zone or conducting international business. Free Zone companies cannot directly trade in the Dubai Mainland unless a local distributor is used.

What are the tax obligations for businesses in Dubai?

Dubai offers a favourable tax environment. As of June 1 2023, a standard corporate tax rate of 9% applies to all business and commercial activities on taxable profits exceeding AED 375,000 (approximately USD 100,000). However, extractive industries (like oil and gas) continue to be subject to corporate taxation at the Emirates level. 

How can expats hire employees for their businesses in Dubai?

Expats must apply for work permits and visas for any foreign employees through the Ministry of Human Resources and Emiratisation (MOHRE) or the Free Zone authority if the company is located in a Free Zone. Mainland companies must also comply with the Emiratisation quota—a policy encouraging employment of UAE nationals. Additionally, ensure employment contracts align with the UAE Labour Law regarding working hours, benefits, and termination processes.

How can I access banking and financial services for my business?

Expats can open business bank accounts in Dubai, but the process often requires valid trade licenses, company incorporation documents, a physical office address, and information on shareholders. It’s important to choose a bank that aligns with your business needs, whether for local transactions or international trade. Some Free Zones also offer banking support to streamline the setup process. Be mindful of minimum deposit requirements and transaction fees, which vary between banks.

What are the benefits of networking with the British Chamber of Commerce in Dubai?

Building and maintaining a strong professional network is a crucial part of doing business in Dubai and the UAE. For businesses and expats that are new to the region, or those that are already in the region, networking through the British Chamber of Commerce offers significant value, including access to key business contacts across a variety of industries, support in navigating regulations, and opportunities to join business briefings, masterclasses and industry-specific groups. The Chamber also provides advocacy services, helping British expats resolve business issues, stay informed on market trends, and expand their reach through the Chamber’s events, trade missions, and member platforms.

Should I have medical insurance?

Yes. While Dubai residents and visitors enjoy excellent healthcare standards, healthcare costs in Dubai and the UAE in general can be significant, especially in case of an emergency. According to regulations, all Dubai residents – expats and Emirati alike – must have medical insurance, so it is highly recommended to arrange insurance as soon as possible after moving to the UAE. For businesses and families travelling to Dubai, or exploring the country ahead of moving, it is advisable to have appropriate insurance in place, covering your itinerary and activities in case of emergency.

Are there any restrictions on specific industries for foreign businesses?

Yes, some industries such as real estate, media, banking, and telecommunications may have stricter regulations, ownership limitations, or require additional approvals from local authorities. It's essential to research the sector-specific laws or consult with a local business advisor to ensure compliance. Free Zones often have their own guidelines, so it's crucial to select the correct zone for your industry.

What are the common challenges expats face when doing business in Dubai?

Expats may face challenges like navigating cultural differences, understanding local regulations, and dealing with bureaucracy. Other hurdles include the high cost of setting up in some zones, the need for a local sponsor for Mainland companies, and the competitive nature of certain industries. However, with the right guidance and support, many of these challenges can be managed effectively.

What support is available for new businesses through Dubai’s government and free zones?

The Dubai government and Free Zones offer numerous incentives to new businesses, including business incubators, grants, tax exemptions, and customized license packages. Many Free Zones provide a one-stop-shop for company registration, visa processing, and administrative support, which can significantly ease the setup process. The government also actively encourages innovation and startups through its Dubai Future Accelerators program and other initiatives.

What cultural factors should I consider when doing business in Dubai?

Understanding local business culture is vital. Relationships are key in Dubai, so networking and building trust are highly valued. Respect for local customs and traditions is essential, especially during Ramadan or in interactions with Emiratis. Being punctual, dressing appropriately, and understanding that negotiations may take longer than in Western markets due to the focus on relationship-building are important considerations.

What schooling options are available for expats in Dubai?

Dubai offers a wide range of international schools that follow British, American, IB, and other curricula. The most well-regarded schools often have waiting lists, so it’s advisable to apply early. School fees can be high, so budgeting is essential. Many schools offer facilities and extracurricular activities that are excellent for both educational and personal development.

How can expats travel around Dubai and internationally?

Dubai has excellent travel infrastructure. Taxis and ride-hailing services (like Careem and Uber) are widely available. The Dubai Metro is a convenient and affordable option for commuting within the city. For international travel, Dubai is a major global hub with DXB Airport, offering flights to nearly every major city. Expats should also ensure their visa and residency permits are in order for smooth travel.

Do expats need to create a will in Dubai?

It is highly recommended for expats in the UAE to create a will, especially if they have family or assets in the country. Without a will, local Sharia law will govern inheritance, which may not align with the expat’s wishes. Expats can register their will with the DIFC (Dubai International Financial Centre) Wills Service, Dubai Courts, or the Abu Dhabi Judicial Department, all offering services in English. Consulting a lawyer experienced in UAE inheritance law is advisable to ensure the will is valid and covers assets and guardianship, as Sharia law may apply in the absence of a registered will for non-Muslims.

What types of visas are available for expats in the UAE?

In the UAE, a range of visa options cater to different expatriate needs. The Golden Visa offers long-term residency (5-10 years) for investors, entrepreneurs, specialised talents, and outstanding students. The Freelance Visa allows individuals to work independently in sectors like media, technology, and education, with flexible sponsor arrangements. There are also standard employment visas tied to a job in Dubai Mainland or Free Zones, alongside family visas for sponsoring dependents. 

Each visa has specific eligibility requirements and benefits designed to attract and retain global talent.

The British Chamber of Commerce Dubai (BCCD) membership ecosystem includes established experts who specialise in providing the services mentioned above, from legal and business setup advice to schooling, insurance, travel arrangements, and estate planning. Our members have extensive local knowledge and experience in helping expats navigate the complexities of doing business and living in Dubai. 

If you are a member and require assistance in any of these areas, please don't hesitate to get in touch with us for a personalised introduction to the relevant experts.