6 FAQs When Starting a Business in Dubai – Vigor Business Centre

a Business in Dubai
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The United Arab Emirates (UAE) is a popular location for business owners and investors worldwide. It is not just an investor-friendly country, but its low tax policies and ease of doing business in Dubai have bolstered its status as a Middle Eastern commercial powerhouse.

If you’re thinking about it, here are the answers to six fundamental questions about how to establish a business in Dubai.

What is a Free Zone?

In the UAE, free zones are economic zones where products and services can be exchanged at favorable tax and customs rates. They were first implemented to encourage international business in the region by providing 100 percent foreign ownership incentives.

There are many distinct types of free zones, each with its own set of rules for authorized activities and office space. It is usually less expensive and requires a more straightforward process than forming an LLC. At Vigor Business Centre, one of the most popular free zones within the UAE is the Jafza free zone.

What are the limitations of having a Free Zone company?

There are a few limitations. One of these is the restriction to trade with the UAE market directly. Companies would be permitted to sell exclusively through locally designated distributors within the UAE. There is also a 5% customs fee to pay, and workers must only work from the company’s headquarters within the Free Zone.

How do LLCs differ from Free Zone companies?

A Limited Liability Company (LLC) allows you to operate freely anywhere in the UAE and trade both domestically and internationally. Previously, before you can set up a business, you would need to have a local Emirati sponsor or partner who owns 51 percent of your business. However, as of November 2020, the UAE granted 100% foreign ownership of all onshore commercial companies.

How long does it take to set up a business in Dubai?

Whether it’s an LLC or a Free Zone Company will determine this. It will also differ based on the Free Zone and whether an individual or a corporation owns it. It is commonly stated that it may be created in 48 hours. However, it will take anything from 3 to 6 weeks in actuality.

Do I need to live in Dubai to open a business there?

No. Dubai is the world’s first city to allow remote investors to create and operate enterprises from anywhere in the globe. This is because 100 percent foreign ownership in Free Zones and onshore UAE-based firms is now feasible.

Supporting tip:

However, you must determine if you will require a resident visa after registering your firm. This will be determined by whether you obtain an LLC or Free Zone license. The General Manager of your company, who has the power to sign on behalf of the firm, must have one. The visa holder must visit Dubai every six months, or the visa will be revoked.

Do I need to have an office in Dubai?

Yes, having a physical address in Dubai is necessary when setting up a business. You must have a current lease for office or warehouse space to be considered for a license for business setup in Dubai.


Choosing to start a business in Dubai is a significant choice. It entails, among other things, planning, conceptualizing, researching, budgeting, and making hundreds of decisions. It also necessitates advice and support in determining the appropriate trade license for your firm.

If you are looking for company setup consultants in Dubai, Vigor Business Centre can show you the ropes in setting up and establishing a business in the emirate. We can simplify the formation of your business by providing professional counseling and advice. Get in touch with us today!