Do You Need a Local Sponsor for Dubai Free Zone Company Setup?
One of the most common questions entrepreneurs ask when exploring company formation in the UAE is: “Do I need a local sponsor to start a business in Dubai?” The answer depends on where you choose to register your company—and if you’re considering a Dubai free zone business setup, the good news is that you don’t need a local sponsor.
That’s right—Dubai free zones allow 100% foreign ownership, making them an ideal solution for expats and international investors seeking full control of their businesses without a UAE national partner.
Here’s what you need to know about Dubai free zone company formation, and why it’s a great option for those seeking no sponsor UAE business opportunities.
Understanding the Local Sponsor Requirement in the UAE
In traditional UAE mainland (onshore) company setups, foreign investors were historically required to partner with a UAE national sponsor. This sponsor held 51% ownership, while the foreign investor held 49%.
However, the landscape has changed dramatically since the 2021 reforms allowing 100% foreign ownership in many mainland sectors. Even so, some specific business activities still require a local Emirati partner or service agent.
But in Dubai’s free zones, these limitations have never applied.
Dubai Free Zone 100% Ownership Explained
Free zones in Dubai were specifically designed to attract foreign investment by offering:
- 100% foreign ownership
- No requirement for a local sponsor or service agent
- Full profit repatriation
- 0% import/export duties within the free zone
- Streamlined setup process
This means you can setup a company in Dubai free zone without giving up any equity or control to a UAE national. You retain full decision-making power, profit rights, and ownership.
Top Free Zones Offering No Sponsor UAE Business Setup
Dubai is home to over 30 free zones, each catering to specific industries. Some of the most popular options include:
- Dubai Multi Commodities Centre (DMCC) – for trading, tech, and commodities
- Dubai Internet City (DIC) – for IT and software companies
- Dubai Media City (DMC) – for media, marketing, and content firms
- Dubai Silicon Oasis (DSO) – for electronics and high-tech businesses
- Dubai Airport Free Zone (DAFZA) – for logistics and aviation-related companies
Each free zone offers Dubai free zone 100% ownership as a standard feature.
Documents Required for Dubai Free Zone Business Setup
To establish a no sponsor UAE business in a free zone, you typically need:
- Passport copies of shareholders
- Visa and entry stamp (if available)
- Business plan or activity details
- Passport-size photographs
- Company name options for approval
Some zones may request financial statements or a no-objection certificate (NOC), depending on your visa status.
Types of Business Licenses in Dubai Free Zones
When you setup a company in Dubai free zone, you’ll choose a license based on your activity:
- Commercial/Trading License – for import/export and product trading
- Service License – for consultants, freelancers, and agencies
- Industrial License – for light manufacturing or assembly work
- eCommerce License – for online retail and digital platforms
Each license category supports 100% foreign ownership and requires no local sponsor.
Office Space and Visa Options
Free zones offer a range of workspace options:
- Flexi-desk (shared space)
- Private offices
- Warehouses (for logistics or production businesses)
Visa quotas depend on the office size. Even with a flexi-desk, most zones allow up to 2–3 visas, and you can scale as your business grows.
Timeline and Cost Estimates
The average time to setup a company in Dubai free zone is 7 to 14 working days. Costs vary by zone and business type but typically range from:
- AED 12,000 – 25,000 for license and registration
- AED 10,000 – 20,000 for office or desk space
- AED 3,000 – 5,000 per visa
There are no hidden costs for local sponsorship—because you don’t need one.
Key Benefits of No Sponsor UAE Business in Free Zones
Benefit | Description |
100% Ownership | You control all shares, profits, and decisions |
No Local Sponsor Required | Total independence and privacy for foreign investors |
Easy Setup | Simplified application process through free zone portals |
Tax Advantages | 0% income tax, corporate tax exemptions in many zones |
Strategic Location | Proximity to ports, airports, and global markets |
Final Thoughts
If you’re looking to start a business in the UAE without giving up control, Dubai free zone business setup is your best bet. You’ll enjoy 100% foreign ownership, no local sponsor obligations, and access to a highly competitive, globally connected market.
Whether you’re launching a tech startup, a consulting firm, or a trading company, free zones give you the flexibility, speed, and ownership rights you need to succeed.
Still not sure which free zone suits your goals? Reach out to a certified business setup consultant to compare the best options and get started with your no sponsor UAE business today.