Starting a business in the United Arab Emirates: your gateway to global success

Market entry strategies should be tailored to the specific needs and contexts of businesses from different regions, shaped by trade agreements, cultural ties, regulatory familiarity and expansion goals. Below are some common considerations and market entry considerations if you’re setting up business in the UAE from:

The UAE and the UK share a long-standing economic relationship, complemented by strong trade flows and a large British expatriate community in the Emirates. Over 5,000 UK companies are operating in the UAE, with more than 240,000 British citizens living in Dubai.

British businesses often find the UAE's legal and business environment familiar, given the prevalence of English language and common law principles in certain jurisdictions like the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM).

Organisations such as the UK-UAE Business Council, the British Chambers of Commerce and the Department for Business and Trade (DBT) can also help British entrepreneurs with market entry and networking opportunities.

Entry strategy: UK firms typically establish a presence in reputable free zones such as DIFC, Dubai Multi Commodities Centre (DMCC), Dubai Internet City (DIC) and Jebel Ali Free Zone (JAFZA). These free zones offer benefits such as solid legal frameworks, tax incentives, 100% foreign ownership and strong industry-focused communities. They are particularly attractive for sectors like financial services, legal consultancy and education.

The European Union (EU) is the UAE’s second-largest trade partner, with non-oil trade reaching over AED240 billion in 2024. This robust trade growth signals expanding opportunities for European firms.

While free trade talks are underway, the UAE has pursued bilateral agreements with individual European states and signed CEPAs with countries like Turkey and Georgia, improving market access both ways.

Germany is also a leading European investor in the UAE. Over 1,200 German companies have offices in the UAE, most as headquarters for the region. Forums such as Investopia Europe have been launched to better connect UAE and EU business communities.

Entry strategy: European firms operate throughout the entire UAE, with a strong presence in the mainland to access local customers and a broader market. The UAE's Comprehensive Economic Partnership Agreements (CEPAs) with countries like Turkey and Georgia further facilitate trade and investment opportunities. A strong contingent of manufacturing and logistic companies are in Dubai South, Khalifa Economic Zones Abu Dhabi (KEZAD) and JAFZA free zones.

Southeast Asian nations and the UAE have accelerated their economic engagement, making the UAE a promising location for ASEAN-based companies looking westward. Exemplified by the 2024-2028 cooperation framework launched at the inaugural ASEAN-GCC Summit in 2023, companies can have increased confidence to register a company here.

The UAE has also signed CEPAs with several ASEAN countries, the latest being Malaysia. These agreements mean ASEAN businesses setting up in the UAE can expect easier market access and potential incentives.

Entry strategy: ASEAN firms show a strong preference for establishing operations in free zones that offer robust support and ecosystems tailored to trade, logistics and technology sectors. These include free zones such as the Dubai World Trade Centre (DWTC), DMCC and other strategic zones across Dubai and Abu Dhabi.

China is one of the UAE’s most significant economic partners. Bilateral trade between China and the UAE reached over AED 270 billion in the first nine months of 2024. Chinese businesses have also dramatically increased their footprint here, with over 15,500 having a presence in the UAE.

Hong Kong likewise maintains strong cooperation with the UAE and is currently exploring the potential of free trade agreements. The Belt and Road Initiative has further strengthened economic ties between the UAE, China, and Hong Kong.

Entry strategy: Chinese and Hong Kong firms often enter through designated free zones, taking advantage of full ownership and regulatory clarity. Proximity to key logistics corridors is a frequent consideration. On the practical side, you will need to be prepared to operate in an English-Arabic business environment and comply with local regulations.

When starting your business in the UAE, understanding the different legal structures available is a crucial first step. The UAE offers a variety of options to suit different business needs and objectives. Some of the most common structures include:

The limited liability company (LLC) is a particularly common choice if you're aiming to operate within the UAE market, especially in Dubai. In Dubai, LLCs are used not only for general trade but also as subsidiaries for foreign companies establishing a presence or as holding companies to manage assets and investments across the region.

Setting up an LLC involves key steps such as defining your business activity, choosing a trade name and getting necessary approvals and licences. It requires at least two partners with a maximum of 50. Each partner's liability is limited to their share in the capital and negotiable instruments do not represent these shares. Depending on your business activity, appointing a local service agent may be required.

LLCs can operate anywhere in the UAE and the Gulf Cooperation Council (GCC). This entity type caters to a range of business sizes, from SMEs to large corporates, though the specific requirements can vary.

A public joint stock company (PJSC) must have at least five shareholders, with its capital divided into equal, negotiable shares. Founders initially receive a portion of these shares while the remaining shares are offered to the public. Shareholders’ liability is limited to their investment in the company’s capital. A PJSC allows for the buying and selling of shares, making it ideal for businesses seeking to raise capital from the public. This type of company suits larger firms, including those wishing to list on a stock exchange.

A private joint-stock company (PrJSC) in the UAE allows shares to be privately bought and sold among a limited number of shareholders, capped at 200. It requires a minimum capital of AED 2 million and allows up to 49% foreign ownership (100% for GCC nationals).

The company's capital gets divided into shares of equal nominal value. If one person owns a PrJSC, it is called a ‘private joint-stock company – single ownership.’ In this structure, the owner's liability is limited to the capital specified in the company's Memorandum of Association.

A foreign branch office is an extension of the parent company that can perform contracts and other specified activities locally. For example, a company based in another member state of the Gulf Cooperation Council (GCC) or already registered elsewhere in the UAE can establish a branch office.

This setup allows you to retain 100% foreign ownership. The branch operates under the same name and business activities as your parent company but must lease office premises. It’s worth noting that as of late 2024, the bank guarantee of AED50,000 is no longer a prerequisite for setting up a branch office.

A representative office in the UAE functions primarily as a cost centre and focuses on marketing and promotional activities for the foreign parent company. It is restricted to gathering information, conducting market research and soliciting orders or projects for your parent company. The business setup process and requirements are like those for a branch office, ensuring alignment with local regulations.

A holding company is a corporate entity established to hold the shares of other companies without conducting active trading. It can be set up in the mainland or in free zones such as the DIFC, ADGM and DMCC. It is worth noting that holding companies in free zones can benefit from more advantageous tax regimes.

FZ Co or FZ LLC refers to companies set up in one of the UAE's numerous free zones. You might encounter variations of this term such as the free zone company (FZCO) for entities with multiple shareholders and free zone establishment (FZE) for single-shareholder entities.

If you’re already registered in a UAE free zone, you can establish a branch in the mainland to conduct commercial, industrial or professional business, provided your parent company's activity is authorised.

Setting up a business in the UAE involves a range of costs, which vary depending on several key factors. These include the chosen legal structure, the specific business activity, the selected jurisdiction and the business' operational requirements.

We provide transparent and detailed cost breakdowns tailored to your unique needs, ensuring clarity and facilitating effective financial planning.

Registration fees: Costs associated with registering your company with the relevant authorities, such as the DET in the mainland or the respective free zone authority.

Licensing fees: Fees for getting the necessary trade licence, which varies based on your type of business activity (e.g., commercial, industrial, professional).

Visa costs: Expenses related to getting employment visas for expatriate employees, including application fees, medical examinations and Emirates ID costs.

Office space rental: Costs for leasing office space, which can vary significantly depending on the location, size and quality of the premises.

Government fees: Various fees payable to government entities for approvals, permits and other administrative processes.

Professional fees: Costs for engaging professional services, such as legal counsel, business setup consultants and accounting services.

Other potential costs: These may include translation costs, bank charges and other miscellaneous expenses.

At Hawksford, we follow a meticulously structured step-by-step process to ensure a smooth, efficient and compliant business setup in the UAE, customised to your specific needs and objectives. Our expert team guides you through each stage, minimising potential delays and ensuring a seamless experience.

We begin with a comprehensive consultation to gain a thorough understanding of your business objectives, operational requirements and long-term goals. This in-depth analysis allows us to provide tailored advice on the optimal legal structure, jurisdiction (mainland or free zone) and licensing activities for your business.

Based on the initial consultation, we develop a strategic setup plan, outlining the most efficient and effective approach for establishing your business. This includes advising on company formation, corporate structuring and any specific legal considerations relevant to your industry and activities.

Our team provides expert assistance with the preparation and processing of all required documentation, ensuring accuracy and compliance with UAE regulations. This includes drafting legal documents, completing application forms and getting necessary approvals from relevant government authorities.

We manage the company name registration process and the application for your trade licence, liaising with the relevant authorities (e.g., DET or free zone authority) to secure the necessary approvals and complete the required formalities.

We can assist with the application and processing of employment visas for you and your employees, managing the documentation and liaising with the General Directorate of Residency and Foreigners Affairs (GDRFA) or relevant free zone authorities.

We can help with the opening of a corporate bank account in the UAE, providing guidance on the required documentation and liaising with leading banks to facilitate a smooth and efficient process. With our extended portfolio of clients and years of operations in the country, we maintain trusted relationships with banks.

Beyond the initial setup phase, our team is committed to providing ongoing support to ensure a seamless and successful business establishment in the UAE. This includes helping with office setup logistics, telecommunications setup and other essential services necessary for the smooth commencement of your business operations.

We can also support you with ongoing accounting and tax compliance, including corporate tax, value added tax (VAT) registration and filing, financial statement preparation and bookkeeping.

The overall timeline for setting up a business in the UAE can vary depending on a range of factors that influence the setup process. These factors include the chosen legal structure, complexity of your intended business activity and the specific licensing requirements associated with it, the requirements of the selected free zone as well as the overall efficiency of document processing by the relevant authorities.

We are dedicated to expediting the setup process and providing clients with realistic and well-defined timelines for each stage, ensuring that you can plan effectively and commence your business operations as quickly as legally permissible.

Chosen legal structure: The choice of jurisdiction and legal structure (mainland or free zone) can influence the timeline, with free zone setups sometimes being quicker, although this is not always the case and varies significantly.

Complexity of business activity: Business activities that require special approvals from specific government entities may inherently take longer to process.

Specific free zone requirements: Each individual free zone has its own specific processing times and requirements, which can affect the overall timeline.

Efficiency of document processing: The efficiency with which documents are submitted and processed by the relevant authorities can also play a role.

Our extensive expertise and proactive approach can significantly contribute to streamlining your business setup process. We provide clear and concise guidance on all required steps and potential bottlenecks, enabling you to meet deadlines and prepare effectively. We will also work with you to ensure all documentation is accurate, complete and submitted correctly, minimising delays that can be caused by errors or omissions.

Initial planning and document preparation: Typically one week.

Company registration and licensing: Generally takes up to four weeks.

Visa processing: Usually takes two to three weeks.

Bank account opening: Typically takes six to eight weeks.

While providing these estimated timelines, we place a strong emphasis on consistent communication and proactive management of the entire setup process. This ensures that the fastest possible setup is achieved within the bounds of the prevailing legal framework and regulatory requirements.