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Thinking about moving your foreign business to Dubai? Many owners believe they can simply shift their existing company. It does not work like that. In most cases, the business opens a new presence in Dubai. That can be a branch, a subsidiary, a free zone company or a mainland company.
There is no complete manual for How To Start A Business In Dubai. Each route has its own rules and paperwork. This guide covers foreign company setup in Dubai in simple words.
Yes. But "moving" usually means "expanding". Your home company stays where it is. A new company or office is created in Dubai. So most owners who want to relocate business to Dubai actually expand a foreign company to Dubai through a new entity.
There are four common ways to do this:
Dubai company setup for foreigners is easier now. The Commercial Companies Law (Federal Decree-Law No. 32 of 2021) allows 100% foreign ownership of mainland companies. Activities with a "strategic impact" are the exception. Free zones have always allowed 100% foreign ownership.
Source: Ministry of Economy and Tourism (MoET).
A mainland company is licensed by the Dubai Department of Economy and Tourism (DET). It can trade across the UAE. Most owners choose an LLC. Foreign owners can hold 100% in most activities. A few activities still need a UAE shareholder. A registered office address is normally needed.
A free zone company is licensed by the free zone authority. It allows 100% foreign ownership. It can work inside the zone and with clients outside the UAE. To serve customers in mainland UAE, it needs a mainland branch or representative office. Federal Decree-Law No. 20 of 2025 confirms that the Commercial Companies Law applies to such mainland branches and offices. Free zone companies must still register for corporate tax.
A branch is not a new company. It is part of your parent company. The parent stays responsible for the branch's debts. The branch can only do the activities the parent already does. A UAE national agent is no longer required, as per Federal Decree-Law No. 26 of 2020. For mainland Dubai, the process usually has three stages: initial approval from MoET, a trade licence from DET, and final branch registration with MoET.
A representative office promotes the parent company. It can study the market. It generally cannot earn revenue or sign sales contracts.
A subsidiary is a separate legal company owned by the parent. It can be a mainland LLC or a free zone company. The parent's risk is usually limited to its shares.
| Point | Mainland Company | Free Zone Company | Branch | Representative Office | Subsidiary |
|---|---|---|---|---|---|
| Legal identity | Separate company | Separate company | Same as parent | Same as parent | Separate company |
| Ownership | Up to 100% foreign in most activities | 100% foreign | Parent owns 100% | Parent owns 100% | Parent can own up to 100% |
| Business activities | As per licence | As per free zone licence | Same as parent's activities | Promotion only | As per licence |
| Market access | Across UAE | Inside zone and abroad; mainland via branch or office | Depends on where registered | No trading | Depends on type |
| Licensing | DET (Dubai) | Free zone authority | MoET and DET, or free zone | MoET and DET, or free zone | DET or free zone |
| Typical use | Local trading and services | Export, holding, services | Extend an existing business | Market testing | Separate risk and local presence |
Not sure which route fits? Get a clear answer from Business consultancy Dubai,before you pay for a licence. The team at EFirst, a business consultancy in Dubai, can compare these options for your business.
No structure is best for everyone. International business setup Dubai plans work best when the structure follows your customers. Check these seven points.
| Factor | Why it matters |
|---|---|
| Business activity | Some activities have location limits. |
| Target customers | Selling to UAE customers needs mainland access. |
| UAE market access | Free zones need extra steps for mainland sales. |
| Ownership structure | Check any limits for your activity. |
| Number of shareholders | More owners means more documents. |
| Office requirements | Rules differ by authority. |
| Expansion plans | A branch can grow into a subsidiary later. |
Here is a quick guide:
| If your plan is... | You may look at... |
|---|---|
| Sell to customers across the UAE | Mainland company or subsidiary |
| Export, holding or online services | Free zone company |
| Run your existing business in Dubai | Branch |
| Test the market first | Representative office |
| Keep Dubai risk separate | Subsidiary |
The final choice needs a check of your activity and documents. A deep understanding of Dubai Free Zone Business Setup can help you compare zones.
Requirements for moving a foreign business to Dubai change by authority and structure. Foreign company registration Dubai authorities ask for similar papers, but details differ. Confirm with your chosen authority.
| Document | Why it is needed |
|---|---|
| Parent company incorporation documents | Proof of existence |
| Certificate of incorporation | Shows legal registration |
| Memorandum or articles of association | Shows ownership |
| Board or shareholder resolution | Approves the Dubai setup |
| Passport and ID of owners and managers | Identity checks |
| UBO and shareholder details | Shows final owners |
| Business activity details | Decides licence type |
| Attested or legalised documents | Needed where the authority asks |
Home country documents usually need attestation, often including the UAE Ministry of Foreign Affairs. Start early. Delays are common.
| Step | What happens |
|---|---|
| 1. Choose the structure | Pick the route. |
| 2. Select the business activity | Match your real work. |
| 3. Choose mainland or free zone | Follow your customers. |
| 4. Reserve the company name | Done where applicable. |
| 5. Prepare and authenticate documents | Attest or legalise. |
| 6. Submit the application | File the licence form. |
| 7. Complete office requirements | Lease or address, if needed. |
| 8. Get the business licence | Your trade licence is issued. |
| 9. Complete immigration steps | Establishment card and visas. |
| 10. Set up banking and compliance | Open account, register taxes. |
Visas in simple words:
Check the UAE Government Portal for current details.
Tired of paperwork guesswork? Let EFirst handle the documents and filings. From structure to licence, a Dubai Company Formation expert can keep every step on track.
Moving to Dubai does not automatically transfer your existing legal company. Your home company remains a legal entity in its own country.
| Route | What it means for your existing company |
|---|---|
| Dubai entity | A new company is created. Home company continues. |
| Branch | Extension of the parent. Same legal entity. |
| Subsidiary | New company owned by the parent. |
| Representative office | Promotion presence only. |
| Re-domiciliation | Same company changes its place of registration, if the law allows. |
Re-domiciliation, also called continuation, is limited. Your home country must allow companies to leave. The Dubai side must allow companies to enter. Free zones such as DIFC, ADGM and DMCC have continuation rules. Federal Decree-Law No. 20 of 2025 also added rules for transfers between mainland authorities and free zones. Whether a foreign company can move directly into the mainland is not clear in every case. Check current rules before planning around it.
Verify limits on the Federal Tax Authority (FTA) website before filing.
| Item | Key point |
|---|---|
| Corporate tax | 0% on taxable income up to AED 375,000. 9% above that. Applies to financial years starting on or after 1 June 2023 (Federal Decree-Law No. 47 of 2022). |
| Registration and filing | All taxable persons, including free zone companies, must register with the FTA. Late registration can bring an AED 10,000 penalty. Returns are due within nine months after the financial year ends. |
| Small Business Relief | Businesses with revenue up to AED 3 million can elect 0% tax. This relief runs for tax periods ending on or before 31 December 2026. |
| VAT | VAT5% standard rate. Registration is mandatory above AED 375,000 and voluntary above AED 187,500. Non-resident businesses have no threshold. |
| Records | Keep proper accounting records. Failure can bring penalties. |
| UBO | Beneficial owner details must be filed with the licensing authority, as per Cabinet Decision No. 58 of 2020. |
| Economic substance | The old ESR no longer applies for financial years starting on or after 1 January 2023 (Cabinet Decision No. 98 of 2024). Free zone tax benefits still need adequate substance. |
| Challenge | How to avoid it |
|---|---|
| Incorrect company structure | Compare options before applying. |
| Incomplete corporate documents | Use a document checklist. |
| Attestation or legalisation issues | Start this step first. |
| Choosing the wrong business activity | Match activity to real operations. |
| Licensing delays | Submit complete and correct files. |
| Banking and KYC requirements | Keep ownership papers ready. |
| Understanding ongoing compliance | Plan tax and renewals early. |
| Stage | Tick when done |
|---|---|
| Planning | |
| Documentation | |
| Company registration | |
| Licensing | |
| Banking | |
| Compliance |
Yes. It can open a mainland company, a free zone company, a branch, a subsidiary or a representative office.
Yes, in most activities. Free zones allow 100% foreign ownership. Mainland companies allow it too, except for activities with a strategic impact.
Yes. A branch works under your parent company and can do only the parent's activities. It needs MoET and DET approvals on the mainland.
It depends on your customers. Mainland suits UAE-wide selling. Free zones suit exports, holding and services. Neither is best for everyone.
Usually the incorporation documents, certificate, memorandum or articles, and a board resolution. Owner IDs and UBO details are also needed.
Only through re-domiciliation, where both countries allow it. Otherwise, a new Dubai entity or branch is set up.
It depends on the authority, structure and document readiness. Attestation often takes longest.
Often yes. Mainland licences normally need a registered office address. Free zones may offer other options. Rules differ.
Yes. Banks run KYC checks and ask for ownership papers and licence copies.
Moving a foreign business to Dubai is not about shifting a company. It is about picking the right structure and doing the paperwork correctly.
EFirst supports foreign owners with:
Ready to take the first step? Talk to EFirst and get a clear setup plan for your business.
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