How to Start a Business in Dubai as a Foreigner (LLC, Free Zones & 0% Tax Explained)

I come from Europe (a beautiful country Slovenia) — and when my online business finally started growing, I realized I needed to find a legal and simple way to receive payments and work with clients around the world.
At that time, I was already living in Dubai, so I started researching how foreigners could open a company there.

When I discovered that it was possible to register a business entirely online, I honestly thought it was a scam.
It just sounded too easy.

So, I decided to do the research and among others, I contacted one of the official Meydan Free Zone agents to find out more.
He invited me to their office, located inside one of the most beautiful hotels in Dubai — a luxurious place owned by Sheikh Mohammed, with a racetrack and golf course nearby.

When I arrived, everything looked elegant and professional.
The agent greeted me kindly, offered me coffee, and took time to answer every single question I had.
He explained the process step by step, and it all sounded almost too simple to be real.

After our meeting, I returned to my apartment in Dubai and completed the entire registration process online from the comfort of my own home.
Even though I was in the same city, I didn’t have to go anywhere or sign a single piece of paper in person.

The setup cost was around USD 3,400, and at that time, there was no requirement for corporate tax registration yet.
This has since changed — today, most companies in the UAE must register for corporate tax if they exceed a certain income threshold or operate outside specific Free Zone activities. But there are some exceptions - I will clear later.

The whole process was fast, transparent, and incredibly straightforward.
And just like that, I became a proud owner of a Dubai-based LLC company — running my online business legally, freely, and without unnecessary complications.

If you work online or dream of creating your own digital business, Dubai truly offers one of the easiest and most efficient paths to make it happen.

Dubai has become one of the world’s hottest hubs for entrepreneurs, freelancers, and investors.

With zero personal income tax, full foreign ownership, and fast digital procedures, it’s not just a city of luxury anymore — it’s a global business playground.

When high tax rates and complex regulations push entrepreneurs to look elsewhere, the UAE has quietly become the go-to escape.
More and more business owners from all over the world are establishing companies in Dubai, driven by tax relief, simplicity, and global access.

In 2024 alone, the UAE saw a 20% increase in Foreign Direct Investment, especially into sectors that benefit from low taxes and Free Zone structures. (source:ecagincorp.com)

And even though the corporate tax rate in the UAE is now 9% for profits above AED 375,000, many Free Zone entities that meet specific substance criteria can still enjoy 0% tax on qualifying income. (source:Dentons+1)

Because of this, people are no longer just dreaming about moving their businesses to Dubai — they’re actually doing it.
That’s how I ended up exploring whether I could do the same for my online business.

Yes — and that’s one of the reasons why so many people choose Dubai.

Foreigners can own 100% of their business, whether it’s in a Free Zone or a Mainland company, depending on the type of business activity.

A few years ago, business ownership was limited (foreigners needed a local sponsor), but today those rules have changed — you can now register a company fully under your own name.

You don’t even need to live in Dubai to start a company there — you can open it remotely.
All you need is a passport copy, a few digital forms, and a verified business activity list.

Dubai has over 40 Free Zones, each designed for specific industries — from tech to trade to media.
Each zone operates like its own business district, with unique benefits and pricing.

Here’s why people love them:
✅ 100% foreign ownership
✅ 0% personal and corporate tax
✅ No import or export duties
✅ Easy online registration
✅ Office spaces or “virtual offices” available
✅ Fast visa process and residency options

For example, Meydan Free Zone, where I registered my company, is known for its simple digital process and beautiful location next to a racetrack and golf course.

Free Zone companies operate within special economic areas that offer 100% foreign ownership and 0% tax benefits, while Mainland companies are registered under the UAE government and can trade directly within the local UAE market.

There are more than 40 Free Zones across the UAE, each focused on different types of businesses.

Here are a few of the most popular ones:

• Meydan Free Zone – perfect for freelancers and online entrepreneurs (this is where I registered my company).

• Dubai Internet City (DIC) – for IT, AI, and tech startups.

• Dubai Media City – for content creators, marketing agencies, and digital media.

• Dubai Multi Commodities Centre (DMCC) – one of the largest and most prestigious, ideal for trading and investment.

• IFZA (International Free Zone Authority) – known for affordable packages and quick setup.

• RAKEZ (Ras Al Khaimah Economic Zone) – a budget-friendly option popular among small businesses.

• Sharjah Research Technology and Innovation Park (SRTIP) – focused on sustainability and innovation.

Each Free Zone has slightly different pricing, visa options, and permitted activities — so it’s worth comparing before you choose where to register.

An LLC (Limited Liability Company) is the most common and flexible business structure in the UAE.
It allows you to trade within the UAE market, work with local clients, and even hire employees.

Here are a few major benefits:

• ✅ Full ownership for foreigners

• ✅ Limited personal liability

• ✅ Option to sponsor visas for yourself and your family

• ✅ Simple renewal and license procedures

• ✅ Eligibility for Emirates ID and residency visa

This is also where Dubai stands out compared to countries like the United States or the United Kingdom.

When you open an LLC in the UAE, you can also apply for a residency visa and Emirates ID — something you don’t automatically get when forming a company through platforms like Bizee (US) or 1st Formations (UK).

In Dubai, your company can actually give you the legal right to live and work in the country, which makes it a far more practical choice for digital entrepreneurs, freelancers, and remote workers who want to base themselves there full-time.

Once you register your business, you can apply for an Emirates ID.
It’s your official identification in the UAE, needed for:

• Renting an apartment

• Opening a bank account

• Getting a local SIM card

• Accessing healthcare

• Driving license conversion

Having an Emirates ID also gives you resident status, which simplifies almost every process in the country — from airport immigration to government portals.

One of Dubai’s biggest attractions is its 0% personal income tax.
That means you keep what you earn — no extra deductions.

Companies in Free Zones also enjoy 0% corporate tax, as long as they meet certain activity requirements and stay compliant with UAE’s regulations.
In 2023, a 9% corporate tax was introduced for some mainland businesses earning above a specific profit threshold — but small companies and freelancers in Free Zones are still largely exempt. (source: FTA)

Setup costs vary depending on the Free Zone and business type, but most entrepreneurs start with around €1,000–3,500 for the full setup.

This part can get confusing — trust me, I’ve been there.

When I opened my company in the Meydan Free Zone, I heard a dozen different versions of the same story:
“You must register for corporate tax.”
“You don’t need to.”
“You’ll need an Emirates ID first.”
“You can’t open a bank account without it.”

So, here’s the truth — straight from my experience and official sources:

💼 Corporate Tax
You only need to register for corporate tax if your company earns more than AED 3 million per year, or if you trade directly with businesses on the UAE mainland.

If your business is small, online, and based in a Free Zone, you likely qualify for Small Business Relief — meaning no corporate tax registration is required.

If you still want to register voluntarily (for full compliance), most agents can do it for you, and the fee is around €250–€350.
(You can double-check the official information here).

🏦 Bank Account
If you want to open a UAE business bank account (like with Emirates NBD, Mashreq, or Wio Bank), you’ll need an Emirates ID or residence visa.

However, that’s not mandatory for running your business.

You can legally operate your Free Zone company and receive payments through international accounts like Wise or Payoneer — which work perfectly for online entrepreneurs.

🪪 Emirates ID (EID)
You don’t need an EID to open or renew a Free Zone company in Meydan.
It’s only required if you want a local bank account, a residence visa, or certain government services.
In my case, I didn’t need one — and everything still worked seamlessly.

Absolutely.
You can set up your company remotely and manage it online — even from another country.
Many entrepreneurs do this to have an international business base without physically moving.

However, if you plan to stay longer or open a local bank account, having your Emirates ID will make everything easier.

This is important.
There are many agencies and “consultants” that offer to open your company for you — and charge double or triple the real cost.
You don’t need them.

You can register directly through official Free Zone websites or via authorized government portals.
Always make sure you’re dealing with verified representatives — or contact a Free Zone directly to confirm.

You can even do everything via Zoom or email, without paying unnecessary middlemen.

If you plan to open a company in Dubai, take your time to explore different Free Zones.

Each one has its own pricing, industries, and visa options.
Start with the official websites, compare what fits your business best, and avoid anyone who pressures you into paying upfront “consulting fees.”

Dubai makes it easy for foreigners to do things the right way — as long as you stay informed and patient.

I’m not a lawyer or tax advisor — everything shared in this post is based on my own experience, research, and understanding at the time of writing.

UAE laws and regulations (including corporate tax, economic substance, and Free Zone policies) can change, so always double-check the latest information before making any decisions.

I strongly recommend verifying details directly through official UAE government sources or by consulting a certified business setup agent in Dubai.

Free Zones, prices, and their internal rules can differ significantly — this post offers a general overview, a kind of Firefly-lit path to guide your research, not a one-size-fits-all rulebook. ✨

This article is meant to guide and inspire you — not to replace professional advice. 💛