Setup a Company in Dubai and Get Residency

Dubai has long been celebrated as the City of Gold—a global business powerhouse strategically located between East and West. If you’re a foreign entrepreneur looking to expand your business while enjoying the perks of living in the UAE, there’s one route that offers the best of both worlds: set up a company in Dubai and get residency.

In this guide, we’ll cover everything you need to know—from the business formation process to obtaining a UAE residence visa. Whether you’re an investor, digital nomad, or startup founder, this article will help you navigate the Dubai business landscape with clarity and confidence.

Why Dubai Is a Magnet for Global Entrepreneurs?

Dubai is more than just luxury shopping and skyscrapers—it’s an economic engine powered by pro-business policies and unmatched infrastructure. Here’s why thousands of investors and founders choose Dubai every year:

• 0% personal income tax
• 100% foreign ownership in Free Zones
• Quick and efficient company setup process
• Robust legal framework and access to global banking
• World-class lifestyle and security

Dubai’s government is actively pushing to make the UAE one of the easiest places to do business globally—and it’s working.

How to Set Up a Company in Dubai and Get Residency?

There are two main ways to register a company in Dubai, and your choice affects the type of visa and benefits you receive.

1. Free Zone Company Formation

Free Zones are specialized economic areas where you can enjoy:

• 100% foreign ownership
• No import/export duties
• Full repatriation of capital and profits
• Streamlined licensing process

Each Free Zone has its own authority and caters to specific industries like technology, media, logistics, healthcare, etc. Popular ones include:

• Dubai Multi Commodities Centre (DMCC)
• Dubai Internet City (DIC)
• Dubai Silicon Oasis (DSO)
• Dubai South

Residency Perk: When you open a company in Dubai Free Zone, you can apply for a UAE residency visa for yourself and your dependents. Most Free Zones offer 1-5 visas per license.

2. Mainland (Onshore) Company Formation

Mainland firms permit you to do business anywhere in the United Arab Emirates, including directly with government entities.

Recent changes now allow:

• 100% foreign ownership in numerous sectors (no need for a local Emirati sponsor)
• No restrictions on office location
• Access to more visa quotas

Residency Perk: Mainland companies in Dubai allow you to sponsor a greater number of visas, especially beneficial if you plan to build a large team.

Steps to Set Up a Company in Dubai and Get Residency

Here’s a simplified breakdown of the steps involved in registering a company in Dubai and getting your visa:

Step 1: Choose Your Business Activity

Dubai has over 2,000+ permitted business activities. Choose the one that aligns with your service or product to get the correct license—commercial, industrial, or professional.

Step 2: Select the Jurisdiction

• Free Zone for 100% control and easier compliance
• Mainland if you need broader market access
• Offshore for international operations (note: no UAE visa eligibility)

Step 3: Register Your Company Name

Choose a business name that follows UAE naming guidelines:

• The language used should not be offensive 
• Must be relevant to the business activity.
• Cannot include religious references

Step 4: Submit Documentation

In order to set up a company in Dubai and get residency, you’ll need certain documentation such as:

• Passport copies of all shareholders
• Passport-size photos
• Entry visa or tourist visa copy
• Business plan (depending on Free Zone)
• Lease agreement or office address

Step 5: Get Your Business License

Once approved, you’ll receive your license, usually within 5–10 working days, depending on the Free Zone or mainland authority.

Step 6: Apply for UAE Residency Visa

This involves:

• Entry permit issuance
• Medical fitness test
• Emirates ID application
• Residency stamping in your passport

Once your visa is issued, it’s typically valid for 2–3 years, renewable as long as your business license remains active.

Benefits of Getting a UAE Residency Through Business Setup

By setting up a company in Dubai and getting a residence visa, you unlock a range of personal and professional advantages:

• Long-Term Residency: Live in Dubai legally with renewable 2–3 year residence visas. Sponsor your family and dependents, too.
• Tax Efficiency: UAE offers 0% personal income tax and no tax on dividends or capital gains.
• Banking Access: Open corporate and personal bank accounts with UAE and international banks.
• Business Growth: You can hire employees, rent office space, sign contracts, and scale your operations globally.
• Education and Healthcare: Access top international schools and world-class medical facilities.

Free Zone vs Mainland: A Quick Comparison

Read More: Difference between Free Zone and Mainland Company in Dubai 

What is the Cost to Set Up a Company in Dubai?

The estimated cost to set up a company in Dubai and get residency includes:

• Free Zone Setup: Starting from AED 12,500 (~USD 3,400)
• Mainland Setup: AED 15,000 – AED 25,000 (~USD 4,000 – USD 6,800)
• UAE Residence Visa: AED 3,500 – AED 5,000 per visa (~USD 950 – USD 1,360)
• Office Rent (optional): AED 8,000 – AED 20,000/year (~USD 2,200 – USD 5,400)

Conclusion

Dubai is the gateway to international success. Its favorable tax policies, streamlined business setup, and residency options make it one of the top destinations for foreign entrepreneurs. Whether you want to launch a startup, move your headquarters, or simply gain long-term residency in the UAE, business formation is your smartest route.

Book your free consultation today with our International Business Advisors and start your journey to living and growing in the heart of the Middle East.