Can a UK citizen set up a business in Dubai?

Dubai attracts many foreign investors due to its tax regime and vibrant economy. It is known as the business hub of the Middle East, with an increasing number of entrepreneurs and startups setting up shop in the city. As a UK business owner, you may be wondering if it's a viable opportunity to start a new business in the UAE or relocate your existing company.

The UAE government is supportive of foreign investment, making it an attractive option for many UK company owners. In order to set up a business in Dubai as a UK citizen, you will need to obtain a residence visa and a trade license, as well as register with the relevant government authorities in line with your business activities.

In this article, we’ll explore the process of setting up a business in Dubai as a UK citizen, what you need to know before taking the leap, and how Capture Accounting can help you navigate the process.

Dubai is particularly popular with influencers right now due to its high-end lifestyle and Insta-friendly locations. UK influencers are starting to take advantage of the city's vibrant social media culture and global popularity to gain exposure and followers.

If you are an ambitious digital entrepreneur interested in setting up in the UAE, then Capture Accounting can help. Fill in our enquiry form for a quick response.

What should you do before setting up a business in Dubai?

Before you decide to set up a business in Dubai, there are several things you need to consider. It’s important to research the market to identify the demand for your product or service. Dubai has a diverse economy with a range of sectors, from tourism and hospitality to finance and technology. Understanding the market demand will help you identify the best business activity and sector to invest in.

You also need to decide upon the legal structure of your business. There are several options, including a partnership or limited liability company (LLC). Each structure has its advantages and disadvantages, depending on your business objectives.

It's then essential to identify the cost of setting up a business in Dubai, including the cost of rent, utilities, and salaries. It’s important to budget for these expenses to ensure that your business can operate smoothly.

What is a free zone?

Its important to select the right business location when setting up in Dubai. There are several "free zones", which are set up to promote specific economic activities, such as technology, media, or logistics.

Free zone companies can take advantage of benefits such as 100% foreign ownership, tax exemptions, and simplified registration processes.

So if you want to benefit from reduced bureaucracy, streamlined procedures, and access to a skilled workforce, then it's important to research which free zone is suitable for your business activities.

Do you need a visa?

As a UK business owner and citizen, you will need a residence visa to set up a business in Dubai. There are several visa options, including a business visa, investor visa, or employment visa.

Each visa has its requirements and advantages, depending on your circumstances. It’s important to consult with a legal advisor to identify the best visa option for your business.

Capture Accounting works closely with a specialist in Dubai who can help you with the visa process. To get in touch, please fill in our contact form.

How do I register a company in Dubai from the UK?

Dubai offers several advantages for businesses, including a strategic location, world-class infrastructure, and a supportive government. By following the steps below, you can successfully set up a business in Dubai and take advantage of the opportunities available.

Setting up a business in Dubai requires obtaining a trade license, registering with the Department of Economic Development (DED), and obtaining a residency visa.

The process can be complex, especially if you’re unfamiliar with the local laws and regulations. However, with the right support from Capture Accounting, the process is far less daunting.

To register a company in Dubai from the UK, you need to follow these steps:

Decide on the legal structure of your business
Choose a company name and obtain approval from the relevant authorities
Submit the required documents to the DED, including a business plan, passport copies, and proof of residency
Obtain a trade license from the DED
Apply for a residency visa from the General Directorate of Residency and Foreigners Affairs (GDRFA)
Open a corporate bank account

How can Capture Accounting help you set up your influencer business in Dubai?

Capture Accounting is an accounting firm based in the UK that specialises in helping social media influencers and content creation businesses set up in Dubai.

As your expert business consultant, we can guide you through the process, from deciding upon the right legal structure for your business to obtaining the necessary licenses and permits.

Our services include:

Review of your residence position to see how much tax you could save by becoming non-resident
Advice around the formation of a company in Dubai together with a comparison of costs between Mainland and Free zone companies.
Assisting you with company formation and obtaining a visa and holding your hand throughout the process.
Tax and accounting services covering both your UK and UAE requirements.

To see if we'd be the right fit for you as you start your new venture in Dubai, please get in touch to apply for a callback.

Watch our exact process of getting a company set up and obtaining a VISA, we documented our own journey of setting up Capture Accounting Dubai:

Conclusion

UK businesses, including social media influencers, can set up a business in Dubai, but it requires careful planning and execution. It’s essential to identify the legal structure of your business, research the market, and budget for the expenses involved.

Working with a trusted advisor, such as Capture Accounting, can make the process easier and ensure that you comply with local laws and regulations.

FAQs about setting up a business in Dubai

To learn more about setting up a business in Dubai check out our frequently asked questions below or contact us today:

Should your business bank account be registered in Dubai?

Yes, it’s advisable for UK citizens to open corporate bank accounts in Dubai as part of the business setup process. Having a local business bank account for your new company makes it easier to manage your finances and pay suppliers and employees.

It’s important to note that some banks require you to have a trade license before opening a company bank account, while others require a minimum deposit.

If your business operates as a free zone company, it is essential to understand that each free zone has a different relationship with banks. You must also ensure you comply with central banking regulations.

Depending on which bank you choose, it could take anywhere between 2 days and 2 weeks to set up - again we can help you decide which bank would be best for you depending on your business activities and requirements.

What is the difference between a trade license, business license and commercial licence?

A trade license is a permit that allows you to conduct business within a specific trade, such as construction, retail, or tourism. It’s issued by the Department of Economic Development and is valid for one year.

A business license, on the other hand, allows you to operate a business in a specific location. It’s issued by the Dubai Municipality and is valid for three years. Depending on the nature of your business, you may need both a trade license and a business license.

A commercial license grants permission for companies to conduct various activities that involve manufacturing, wholesaling, managing, importing and exporting goods across the UAE.

Do I need to reside in Dubai to manage my business?

You don't need to reside in Dubai to manage your business but if you remain UK resident, then you would not benefit from any of the tax advantages that being Dubai resident has. This is because you are taxed where you are resident for tax purposes. That said, if you are planning on being resident in another country which is also a lower tax jurisdiction or does not tax foreign income such as Bali, then you can still take advantage of the tax breaks that Dubai offers.

This is a complex area and requires consideration of other countries' tax laws together with double tax treaties that exist between countries which govern which country has 'taxing rights' over any individual. At Capture we have UK national clients that reside in countries all over the world including Bali, Malaysia, Portugal, Singapore, Cayman Islands and others. As such, we are aware of the issues involved and have accountant contacts worldwide that allow us to provide a full holistic service to our clients who wish to operate in different countries or as digital nomads.

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Meet Reza

Reza is an accounting expert, content creator and founder of Capture Accounting. He regularly shares his knowledge here and on other channels such as LinkedIn.

Book a call today to learn more about what Reza and Capture can do for you.

Meet Reza