If you’re a savvy UK entrepreneur considering Dubai’s tax benefits and prime location, you might be asking: Can I open a company in Dubai without living there? Well, the answer is a resounding yes.
This concept of relocating to the UAE is huge. Over 2,500 UK-owned businesses have registered themselves in the UAE in 2024; with a 14.2% yearly jump in foreign company registrations. British entrepreneurs are clearly loving the idea of enjoying all that Dubai has to offer while happily remaining rooted in the UK.
Why are UK entrepreneurs choosing Dubai?
Dubai offers compelling advantages that go beyond the glossy skyline. Below are the benefits you will have as a UK entrepreneur:
1. Tax efficiency
- 0% corporate tax on profits below £82,000
Isn’t this better than paying 25% corporate tax in the UK?
2. Geographic location
In the heart of the UAE, Dubai sits at the crossroads of Europe, Asia, and Africa, giving you access to over 2 billion people within a 4-hour flight radius.
3. 100% Foreign ownership
Recent regulatory reforms mean you can own your company outright as no local partner is required in Free Zones and most mainland sectors.
4. Business-friendly environment
Dubai makes it easy to start a business remotely. Most paperwork can be done online or sent by courier, and there’s no need to be physically present when setting up.
5. Skilled international workforce
The UAE attracts talent from around the world, creating a diverse and skilled workforce. Companies have access to professionals in areas like technology, finance, and hospitality. This rich mix of talent encourages innovation and gives businesses more flexibility.
6. Strong banking system
The UAE has a safe and reliable banking system that helps both businesses and people. Local and international banks offer services like business accounts and online banking. Rules and regulations ensure that financial transactions are clear and trustworthy.
7. Quality of life
For those who do choose to spend time there, Dubai offers exceptional safety, modern amenities, and a multicultural environment.
How do the UAE legal frameworks apply to UK entrepreneurs operating remote companies?
UAE law now permits foreign nationals, including those without a residency visa, to fully own companies in Free Zones without the need for a local partner, which means:
- You can own 100% of your Dubai company from the UK
- No residence visa required for company ownership
- You must maintain a registered UAE office address
- Full profit repatriation is permitted
However, you’ll still need to comply with local regulations and maintain proper substance if you want to benefit from tax advantages.
Do you need a residence visa to register a Free Zone company in Dubai?
Owning or registering a Free Zone company does not require a UAE residence visa. Many overseas entrepreneurs start with a zero-visa package, obtain their trade licence, and operate internationally right away.
However, obtaining a visa offers clear advantages: smoother corporate bank account opening, ability to sponsor employees, and flexibility to spend extended periods in Dubai.
Which business structure will best suit your needs?
To start a remote business, you must understand the business structures that work in the UAE, and which one fits you better:
Free Zone Company
This is best for non-residents with 100% foreign ownership. Free Zones are purpose-built business districts, each with independent regulations and specializations. There are 20+ Free Zones in Dubai. This is best for Consultancy, e-commerce, IT services, digital marketing, and international trading.
The advantages and limitations are:
- Each Free Zone has its own regulating body
- 0% corporate tax on qualifying income, 0% personal income tax, and exemption from import/export duties
- Can be set up entirely remotely
- Simplified registration process
- 100% repatriation of capital and profits
Limitations of Free Zone:
- Limited direct access to the UAE mainland market
- Must trade within the free zone or internationally
Popular Free Zones for UK entrepreneurs:
- IFZA: Most budget-friendly
- DMCC: Premium option for trading and professional services
- Dubai Internet City: Tech and IT businesses
- Dubai Media City: Marketing and creative agencies
Mainland Company
Mainland companies can trade directly throughout the UAE but require physical office space and involve more complex setup procedures. These are better suited for businesses targeting local UAE consumers. Mainland companies can now have 100% foreign ownership in many sectors and can trade directly across the UAE market, giving you unrestricted access to local consumers and businesses.
Offshore Company
Offshore companies are registered in designated jurisdictions like RAK (Ras Al Khaimah) or Jebel Ali. These entities cannot conduct business within the UAE but serve specific functions:
- Intellectual property ownership
Do you need a residence visa to register a Free Zone company in Dubai?
Owning or registering a free zone company does not require a UAE residence visa. Many overseas entrepreneurs start with a zero-visa package, obtain their trade licence, and operate internationally right away.
However, obtaining a visa offers clear advantages: smoother corporate bank account opening, ability to sponsor employees, and flexibility to spend extended periods in Dubai.
How to start a company in Dubai without living there?
The steps for UK entrepreneurs to open a business in Dubai without living there:
1. Research market and business opportunities
Understand the Dubai market, industry regulations, and identify the most suitable business sector.
2. Select a business structure
Choose the suitable legal entity, i.e., Free Zone Company, LLC, or foreign company branch.
- Free Zone Company: 100% foreign ownership, well-suited for companies that will not directly deal with the local market.
- LLC (Limited Liability Company): Local sponsor (UAE national) is required for 51% ownership, except if it is formed within a free zone.
- Foreign Branch of a Company: 100% foreign ownership is permissible but restricted to the extent of activity of the parent company.
- Offshore Company: Primarily for global business and protection of assets; no local activities permissible.
3. Identify a local sponsor or partner (if necessary)
If you are opening an LLC (Onshore Company), you will require a UAE national local sponsor. The sponsor should normally own 51% of the shares but not have anything to do with the day-to-day business.
4. Choose a business name and register it
Make sure the name follows the naming rules in Dubai and have it officially registered.
5. Get initial approvals and licenses
Apply for the initial approvals from the respective Dubai authorities.
These approvals are often received from:
- DED (for onshore businesses)
- Free Zone Authority (for businesses within a specific free zone)
6. Secure a business location
For an LLC or onshore company, you need a physical office space. However, Free Zone companies might not require a physical office initially, depending on their operations.
7. Prepare documentation
Collect necessary documents such as passport copies, proof of address, No objection certificate (NOC), and business plans.
- Apply for a business license
Submit your application to the Dubai Department of Economic Development or the concerned Free Zone authority and provide the required documents.
9. Receive final licenses
Following approvals and payment, your business license will be released, and you will be sent an electronic copy instantly and a physical copy through courier.
10. Open a bank account
Once your business is licensed, you can open a corporate bank account in Dubai. A video verification or trip later may be requested from certain banks.
11. Compliance and ongoing requirements
Ensure ongoing compliance with Dubai’s business laws and tax regulations. Consulting with Stratrich Consulting can assist you in understanding and managing specific legal and procedural requirements.
What are the banking difficulties for UK entrepreneurs, and how can they be solved?
This is where most non-residents face difficulties. Opening a corporate bank account as a non-resident can involve extra scrutiny because UAE banks have strict compliance rules, with many preferring at least one signatory to have a residence visa.
Apply to multiple banks: Submit applications to 3-4 banks simultaneously (Emirates NBD, Mashreq, RAKBANK, HSBC UAE)
Plan a Dubai visit: You should expect to attend an in-person meeting with your chosen bank. Schedule 3-5 days for bank appointments.
Prepare comprehensive documentation:
- Detailed business plan (10-15 pages)
- Financial projections (3 years)
- Proof of existing business activity
- Expected transaction volumes
What are the tax implications for UK entrepreneurs?
This is a critical and often misunderstood concept by non-residents. British entrepreneurs must understand the tax implications before opening a business in Dubai.
- Corporate Tax: 9% on taxable profits exceeding AED 375,000 (around £82,000). Free Zone companies may qualify for 0% if they meet specific conditions.
- Personal Income Tax: 0%
- VAT: 5%, with mandatory registration once turnover exceeds AED 375,000 (approximately £80,000) annually
UK tax implications that you should not ignore
If you remain a UK tax resident, you’re taxed on worldwide income, including your Dubai company profits. Consider these:
- Statutory Residence Test: Spending 183+ days in the UK generally makes you UK tax resident.
- Controlled Foreign Company (CFC) Rules: UK may tax your Dubai company’s profits if you control it as a UK resident.
- Double Tax Treaty: UK-UAE treaty prevents double taxation but doesn’t eliminate UK tax for UK residents.
Contact Stratrich’s advisors before setting up your structure. Whether you’re staying a UK tax resident or relocating, we’ll help you choose what’s best for you.
How to manage your Dubai business from the UK
Office requirements: Free Zones make this easy with flexi-desk or virtual office packages, sufficient for licensing and mail handling without needing a permanent office lease.
Local representation:
- PRO (Public Relations Officer) services for government liaison (£440-£1,760/year)
- Power of Attorney for urgent document signing
- Mail forwarding/scanning services (usually included in flexi-desk)
Time zone: Dubai is 4 hours ahead (3 during British Summer Time) manageable with proper scheduling.
Technology: All standard business tools work perfectly (Xero, QuickBooks, Zoom, Slack, Google Workspace).
Conclusion
Starting a Dubai company without actually living there is entirely possible, and more people from the UK are pursuing this option. The UAE offers full foreign ownership, straightforward licensing, and support services, making it simple to establish a business remotely if you’re involved in consulting, e-commerce, technology, trading, or similar industries.
The key is to approach it as a serious business decision, rather than a quick tax fix. Treat it like any significant business move: plan ahead, keep expectations realistic about banking, seek proper advice from Stratrich’s expert, and ensure your business has real substance. Done correctly, UK entrepreneurs can establish a presence in Dubai while still calling the UK home.
The tax benefits are real, the market’s there, and though it takes some effort, plenty of British business owners have already made it work.