Dubai has become one of the most attractive destinations for British entrepreneurs and investors. With 100% foreign ownership in many sectors, zero income tax, and a booming economy, it’s no surprise that UK citizens are increasingly setting up businesses in Dubai.
Whether you’re launching a consultancy, e-commerce brand, tech startup, or service business, here’s a comprehensive guide for UK citizens to start a company in Dubai, covering legal, financial, and operational aspects.
Step 1: Choose the Right Business Jurisdiction
Dubai offers three main types of company jurisdictions:
1. Mainland
- Full access to UAE and international markets
- Requires physical office space
- Regulated by the Department of Economy & Tourism (DET)
2. Free Zone
- 100% foreign ownership
- No corporate or personal tax (in most cases)
- Ideal for e-commerce, consulting, and trading companies
- Regulated by specific Free Zone Authorities (e.g., DMCC, DIFC, Dubai South)
3. Offshore
- Used for holding companies, IP management, and international trading
- Not allowed to do business within the UAE
- Cost-effective and private
Tip: Most UK entrepreneurs prefer Free Zone setups for their ease, 100% ownership, and lower startup costs.
Step 2: Define Business Activities
You’ll need to specify the exact activities your company will engage in. Each activity must be licensed and approved by the relevant authority. Common business activities include:
- Consulting
- Digital marketing
- Software development
- Trading (import/export)
- E-commerce
You can combine certain related activities, but not all (e.g., consultancy + trading is typically not allowed under one license).
Step 3: Choose a Company Name
The UAE has strict naming guidelines:
- No offensive or religious terms
- Avoid abbreviations (e.g., “J. Smith Consulting” not allowed)
- Must reflect the nature of the business
- Cannot be similar to existing trademarks
You’ll reserve your company name with either the Free Zone authority or Dubai’s Department of Economy and Tourism (DET), depending on your jurisdiction.
Step 4: Apply for the Trade License
This is the official permission to operate your business.
Types of licenses include:
- Commercial license – For buying/selling goods
- Professional license – For service-based businesses
- Industrial license – For manufacturing
The Dubai trade license is valid for one year and must be renewed annually. Free Zones often bundle the license cost with other services like visas and office space.
Step 5: Finalize Office Requirements
Depending on your jurisdiction:
- Mainland companies require physical office space with a tenancy contract (Ejari).
- Free Zone companies can use flexi-desk packages (shared workspace).
- Offshore companies don’t require office space in most cases.
Free zones like IFZA, Dubai South, and SHAMS offer startup-friendly desk packages that save costs.
Step 6: Submit Legal Documents
Here’s what UK citizens generally need:
- Passport copy
- Passport-size photographs
- Entry visa or UAE visit visa (if applying from within the country)
- Proof of address in the UK
- Business plan (for certain activities, like finance or education)
- No Objection Certificate (NOC) if you’re under employment in the UAE
Once documents are approved, your business license is issued within 3–10 business days (depending on jurisdiction).
Step 7: Open a UAE Corporate Bank Account
Opening a business bank account in Dubai may require:
- Trade license
- Shareholder documents
- Company stamp
- Office address proof
- Business plan or invoice samples
Popular banks for UK citizens:
- Emirates NBD
- RAKBANK
- ADCB
- WIO (for digital banking)
- Mashreq NeoBiz
Pro Tip: A Free Zone setup with a physical address speeds up bank approval.
Step 8: Apply for Residency Visa (Optional but Recommended)
A business license allows you to apply for:
- Investor visa (2-year or 10-year Golden Visa)
- Dependent visas for family
- Employee visas (if hiring)
You’ll need:
- Medical test
- Emirates ID
- UAE health insurance
Residency gives you full access to local services, bank accounts, driving license, and property ownership.
Advantages for UK Entrepreneurs in Dubai
- No income tax or dividend tax
- 100% ownership in Free Zones
- 0% import/export duties in many zones
- Modern banking and digital infrastructure
- Time zone advantage between UK, Asia, and Africa
- British-friendly community and culture
Final Thoughts
Starting a company in Dubai as a UK citizen is easier than ever, thanks to modern Free Zone ecosystems and simplified regulatory frameworks. Whether you’re scaling globally or launching your first venture abroad, Dubai offers a robust environment for growth, wealth preservation, and global networking.
If you want expert support, working with a business setup consultant in Dubai can save you time, avoid paperwork errors, and fast-track your approvals—especially helpful if you’re applying remotely from the UK.