The UAE has become a global business hub, offering exceptional flexibility and opportunities for foreign investors. One of the most attractive options now available is the ability to open a company without the need for a local sponsor. This advancement has simplified the setup process and encouraged greater foreign participation.
In this article, we outline the main steps to establish your company independently — from planning and activity selection to licensing and registration.
1. Understanding the General Framework of Foreign Ownership in the UAE
Before starting the process, it’s crucial to understand how foreign ownership works in the UAE.
Investors can now establish companies with full foreign ownership, both in free zones and in many activities within the mainland. The best approach is to consult with a professional business setup firm to identify the most suitable structure based on your target market and business activity.
2. Choosing the Appropriate Legal Structure
Selecting the right legal structure is a key decision that determines your administrative responsibilities and operational flexibility.
Common legal forms include:
- Limited Liability Company (LLC)
- Sole Proprietorship
- Branch of a Foreign Company
- Representative Office
Your choice will depend on factors such as business size, investment goals, and the number of shareholders.
3. Defining the Business Activity Eligible for Full Ownership
Choosing your business activity precisely is essential, as approvals and requirements vary accordingly.
The UAE offers a broad list of commercial, service, and professional activities that allow 100% foreign ownership — such as consulting, technology, trading, and tourism services.
Selecting the correct activity from the start ensures a smooth and efficient setup process.
4. Registering the Trade Name and Obtaining Initial Approvals
Your trade name represents your company’s identity and must comply with local naming regulations.
Once the name is reserved, the next step involves securing initial approvals from the relevant authorities. These approvals confirm that your chosen activity and trade name meet local guidelines and can proceed to the licensing stage.
For detailed information on the official procedures, required documents, and business setup services, you can visit the Dubai Department of Economy and Tourism (DET)
5. Licensing and Registration Procedures
This stage includes preparing and submitting the required documentation, such as:
- Application form
- Passport copies of shareholders and managers
- Memorandum of Association (MOA)
- Office lease or Ejari certificate
After reviewing the documents, the relevant authority issues the trade license, allowing your company to operate legally.
6. Company Setup Costs and Final License Issuance
The total cost of setting up a company depends on several factors, including the business activity, location, and the type of license.
Typical expenses may include:
- Trade name reservation fees
- License issuance fees
- Office or virtual address costs
- Administrative and consultancy fees
On average, investors should expect the total setup cost to range between AED 15,000 and AED 25,000, depending on the complexity of the process.
Frequently Asked Questions
1. Can foreign investors own 100% of a company in the UAE?
Yes, full foreign ownership is allowed for a wide range of activities and in designated business areas.
2. How long does it take to open a company?
Usually, the process takes between 5 to 10 working days once all documents and approvals are ready.
3. Is it possible to complete the setup remotely?
Yes, many procedures can now be completed online through government portals without physical presence.
4. How can MachX assist with the process?
At MachX Business Consulting, we offer end-to-end business setup support, including:
- Selecting the right legal structure and business activity
- Preparing and submitting all required documents
- Managing approvals and license issuance
- Providing post-setup administrative support
Overview
Opening a company without a local sponsor in the UAE is now a straightforward and well-regulated process. With the right guidance from professional consultants like MachX, investors can establish their businesses with confidence, ensuring compliance with all official requirements and building a solid foundation for long-term success.
