Dubai is known to welcome foreign investors with open arms. The regulations that apply to foreign investors are some of the most lenient compared to other countries. However, the process of setting up a sustainable business here is not simple. If you are unfamiliar with the language, business ethics and the laws applicable there is no doubt that you will be getting yourself into hot water.


Before you invest get to know the region, the applicable laws, their culture and areas most suitable for your business plan. This is the best way to avoid trouble in future.

Business set up for foreign investors

When you are setting up a business in Dubai you can either choose to do so in the freezone or in the city. In the freezone you are allowed to have 100% ownership of the business and can benefit from all of the privileges given in the freezone. However, if you choose to start-up a business in the city you will need a local partner who owns 51% of your company. This partner can turn out to be your biggest asset or your worst nightmare.

Forming a partnership with a local must be done with utmost care. The local partner does not need to contribute at all to the capital investment or to the business proceedings, but they do have the right to make authoritative decisions regarding the business. Also in the event of closing down a business you will need a cooperative partner because time will be on his side. If things drag on you will have to face situations you may not have anticipated.

On the other hand freezone company formation gives you more freedom to make decisions. You are free to start when you want and close when you need to. The major drawback in this area is that the cost of setting up is high. Each freezone has its own rules and regulations as well as its own facilities. These zones are separate from the city. Thus, if you need to be close to the city, setting up in a freezone is going to cost your business. You must also see if the freesone you choose is suitable for the business you choose to open.

Have a reliable advisor

Always find a legal and experienced business set-up company or a lawyer to help you through the process. You will be unfamiliar with the language and may get confused with the different requirements of each authority. Always choose a legit person or company. Illegal partners will be with you while the going is good, but you will not get any compensation or legal protection when trouble comes.

If you are interested in investing in Dubai don’t be put off by the legal proceedings. Many successful businesses have taken off in Dubai. All you need is reliable advisor to help you through the process.