Registering a Company in Dubai Without a Local Sponsor has, over the years, remained one of the most successful and best methods of investment among foreign investors in particular. Dubai, the Middle Eastern economic capital and one of the most successful business districts in the world, has immense business expansion and growth possibilities.
Until very recently, registering a firm in the nation depended on the need to have available an in-country UAE national sponsor. The foreign investor was compelled to surrender 51% ownership of the firm to an in-country partner. But with radical transformation of the country’s economic laws and the setting up of quite a number of free trade areas, registering a firm is possible with or without the necessity of an in-country partner involvement. This is the reform that has paved the way to 100% foreign investor ownership and made entering the Dubai market a smoother process than ever before.
We at Dxboffplan are going to provide an in-depth, professional, and step by step guide to the entire process of registering companies in Dubai without any sponsor.
The judicial structure of the UAE describes the term “sponsor” as an Emiri individual or entity that is the official partner in the process of registering the company among foreign expats. Previously—especially until 2020—registering the company in Dubai must have involved the service of the local sponsor. They had to have at least 51% ownership of the company’s shares. This provision limited the authorization of management and decision-making among most foreign business entrepreneurs.
But during the years that came after, and most notably reform years and the establishment of free trade areas, the setup has significantly changed too. Now, the firm may be registered with the absence of an in-country sponsor, and the foreign investor is allowed 100% ownership—most notably free trade areas and even under some conditions in the mainland. There are, however, sites which still require an in-country sponsor, among which 51% of the shares must be subscribed to an Emirati partner.
It has brought the Dubai business community nearer to being transparent, stable, and appealing to foreign investors.
Dubai business setup without Emirati sponsors allows the maximum entry point for foreign investors to enjoy the thriving business of the UAE with maximum assurance and control. Let’s take three most important benefits into consideration:
The most significant benefit of registering Dubai companies without the necessity of having a sponsor is the aspect of 100% ownership allowed to foreign nationals. Earlier, the foreign investor was bound to transfer some of the shares to an onshore partner, which restricted business management, besides taking most of the legal and financial burdens. This provision has been abolished with the new legislation, and now it is feasible for most of the areas of business that investors hold companies officially and autonomously without relinquishing even 1% of the shares. 100% ownership enhances freedom in deciding how to manage finances, run the business, and implement business policies.
Due to quality infrastructure, modern airports and ports, and being geographically in the ideal location, Dubai basically connects Europe, Asia, and Africa. Company registration without the necessity of being sponsored in the city implies direct entry into the world and the regional market. Through the laws supporting transfer of funds, transfer of intellect, and import and export in most of the Dubai free trade areas. Entrepreneurs in Dubai are entering a broad market earlier than even they expected and more clearly.
One of the key benefits of registering a company in Dubai without a local sponsor is unlimited freedom in the management and operation of the enterprise. Unlike partner-based structures, in which management must be shared collectively—decisions must be mutual—companies registered without any sponsor are free from any third-party involvement in the management, organizational setup, marketing policy, and financial strategy. This freedom to manage entitles entrepreneurs with the freedom to design and pursue their growth pattern simply based on their business agenda.
One of the benefits of registering a company in Dubai without a local sponsor is that the choice of structure is yours, based on your business activity type, investment objective, and capital. All the structures offered in Dubai have their features, advantages, and requirements. There are three common company types that may be used to register the Dubai sponsor-free company:
Foreign companies that are registered in the free zone of Dubai represent the most preferred and most taken course among foreign investors. Here, 100% foreign ownership is allowable without the necessity of having an Emirati sponsor. Most unique advantages of Free Zone companies are:
Some of the most prestigious freezones in Dubai are the DMCC, Dubai Silicon Oasis, JAFZA, and DAFZA, which provide unique strengths and services based on the type of business.
Until the most recent years, the foreign professionals couldn’t register mainland (non-free zone) companies without sponsorship. They had to transfer 51% of the shares to an Emirati partner locally. However, with the new foreign investment law that came into force in 2020, special business activities qualify to register with the mainland exempted from the sponsorship requirements. They are:
These corporations can operate anywhere in the UAE, unlike Free Zone corporations, which are often limited to the operation of business in the zone. Mainland corporations may, in addition, contract with the public sector and provide to domestic customers. But the business that is engaged must be among the list of approved activities of the UAE Ministry of Economy.
Offshore companies are appropriate business entities for entrepreneurs that plan to run business overseas but won’t be having an office or physical establishment in the UAE. They are used most often thanks to the following reasons:
Offshore entities are registered in the special regions like Jebel Ali (JAFZA Offshore) or Ras Al Khaimah (RAK ICC). Regardless of the fact that offshore entities are not allowed to work within the UAE, they are ideal for foreign business and 100 percent foreign ownership.
While registering a company in Dubai without a local sponsor today is an easy and clear-cut procedure in contrast with the previous past, it is still important to enter with clearly defined, proper, and lawful procedures. Knowledge of the procedures assists in starting the business in the proper way and avoids losing time or running into lawful hurdles. Most essential procedures included in the process are as follows:
The first phase of the process is the establishment of the juridical structure of the firm. Depending on the activity type, business objectives, number of partners, it is possible to select any of the structures:
Selecting the appropriate type of company at the outset has an implication on licensing, laws, and tax exemption, too.
You must select the type of the company and if the business is to be conducted in the Mainland or the Free Zone. This is based on the business activity, the business’s targeted market, and the degree of exposure that is required to the internal market of the UAE. It has long-term business growth implications to choose the best location.
Now, an individual is required to choose an original business trade name and register it with the Dubai Department of Economic Development (DED) or the relevant Free Zone authority. This business trademark has to signify the activity of the firm and has to be in accord with the laws and ethics of the UAE.
Once the trade name is chosen, identification documents, application forms, and sometimes a business plan need to be submitted.
The fourth and final step is the acquisition of the Trade License. Varying with the business activity of the firm, the license may or may not comprise any of the following:
There may be the need in specific cases to obtain yet more approvals from the likes of Municipality, Ministry of Health, or Central Bank.
Registration of an office branch, or company in Dubai without any domestic sponsor is the special process which means the preparation and submission of the series of the juridical documents. Filling the correct and valid documents is the most crucial in quickly registering and avoiding the delay. Documents which may be required may vary based on the area which is being used (Free Zone or Mainland), business activity, and type of company. Documents which are generally required are:
One of the most significant investor requirements is the clarity of the costs of registration. Though registering a company in Dubai without a local sponsor has its advantages, one has to plan the finances accordingly and is aware of the amounts paid at the various levels. The expenditures are fixed depending on the company type, the filing location (Mainland or Free Zone), and the activity type:
| Service | Cost Range (AED) | Notes |
| Company Registration | 12,000 – 20,000 | Includes issuance of Certificate of Registration and document verification |
| Trading License | 10,000 – 18,000 | Depends on license type (commercial, etc.) |
| Office Rental | 5,000 – 30,000+ | Shared, virtual, or physical offices; varies by type and location |
| Family Residence Visa (per person) | 3,000 – 7,000 | Typically for Owner or CEO |
| Registration and Consultancy Services | 5,000 – 10,000 | — |
| Document Translation, Attestation, Admin | 1,000 – 3,000 | Depending on document type and service complexity |
Although there are specific banking and political limitations, it is possible for foreigners who live in countries that are under sanctions to register a company in Dubai without a local sponsor legally and practically without any sponsor—when the procedure is conducted through Free Zones or credible consultancy companies. But due to specific sanctions, it might cause hindrances and higher vigilance from banks in opening corporate banking accounts. Hence, it is best to engage professional companies with experience in registering companies to fast-track and simplify the procedure.
Foreigners with the aim of registering a company in Dubai without a local sponsor usually seek locations with easier application terms toward their condition, lower fees, and adequate service assistance. The most preferred Free Zones among foreigners are the following:
Registering a Company in Dubai Without a Local Sponsor is that shining chance. It is granted to foreign investors, which brings with it the option of single business operation and full ownership. Without an Emirati partner, foreign entrepreneurs can gain entry into the thriving and productive UAE trade market without any form of dependency. Free Zones with their diverse infrastructures, tax free, simplified company incorporation, and hassle free support systems offer the most favorable platform to commence business operations in trade, technology, service, schooling, export and import etc.
But it is unwise to run Dubai business without an adequate office or commercial setup. To register the company, obtain the residency visa, and obtain business credibility, it always helps if there is an appropriate office or commercial property which is situated in the best location of Dubai. If you are considering buying, renting, or investing in commercial and office structures in Dubai, our professional team at Dxboffplan is here to provide the best office prices in Dubai and free professional consultation included.
Indeed, foreigners may lawfully register a Dubai company without the help of a sponsor via the Free Zones or an appropriate Mainland activity, based on activity type and documents.
DMCC, Meydan, IFZA, RAKEZ, and Dubai Silicon Oasis are the most preferred, flexible, fully owned, and available with moderately-priced setup fees.
Along the way, establishment of physical or virtual office locations is often needed in the process of registering companies, licenses, and visas.
