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Registering a company in the Emirates is one of the ways to obtain a long-term residence permits, also known as a residence permit. Currently, there are over 10 million residents in the United Arab Emirates, of which only 12% hold citizenship. The remaining residents are foreigners, typically holding residence visas. Expatriates choose Dubai, Abu Dhabi, and other cities because they provide a comfortable work, business development, investment, and living environment.
Content:
- What does a Dubai residence permit provide?
- Advantages of opening a company in the UAE
- How to apply for a green visa in The UAE
- Legal aspects of company registration in the Emirates
- Popular places to open a company in the UAE
- Timelines and costs of obtaining a residence visa
- Conclusion
What does a Dubai residence permit provide?
Most foreigners have been living in Dubai on a residence permit for many years. What does this document offer? Here are the main advantages:
- The right to open bank accounts with local banks and use government healthcare and educational institutions.
- Getting Emirates ID card, which grants access to many government services.
- The opportunity to obtain a local driver's license valid in 50 countries worldwide.
- The ability to apply for permanent visas for family members, including spouses and children.
When opening a firm, you get a 5-year residence permit. It is commonly referred to as a "green visa" and is available to entrepreneurs, investors, and freelancers. It can be renewed multiple times as long as the company continues to operate, and the visa holder does not remain outside the country for more than 6 months.
Thanks to convenient online services, you can register a company remotely. However, to obtain resident status, you will need to visit the country for a medical examination and submitting biometric data.
Advantages of opening a company in the UAE
Among the main advantages of launching a business in the Emirates are:
- Favorable taxation conditions.
- Convenient online services for registering and managing private enterprises, allowing remote company setup in just a few weeks.
- Numerous free economic zones with reduced tax rates and simplified registration and annual auditing report processes.
- Low levels of corruption and a positive government attitude toward private business and foreign investors.
- 5% VAT - domestic trade within the UAE and 0% - the sale of goods to countries outside the Gulf region.
How to apply for a green visa in The UAE
To obtain an entrepreneur visa in Dubai when opening a company, individuals need to undergo a security check and must not have any serious diseases such as tuberculosis or HIV. All applicants over 18 years of age must undergo a medical examination, including blood tests and chest X-rays. Additionally, applicants need to apply for an Emirates ID card.
Dubai investors obtaining resident permits based on business registration in the UAE will also need to provide:
- A certificate of offshore company registration.
- A business license and an enterprise immigration card.
- Investment approval from the Federal Authority for Identity and Citizenship (ICA).
- A bank letter confirming the owner's investment in the company's share capital.
- A passport with an entry stamp into the country and a photograph of the applicant.
Types of UAE residence permits
Opening a firm in the Emirates is not the only way to get a residence permit. This document can also be obtained based on:
- Purchasing residential or commercial property in Dubai for over $204,000.
- Employment.
- Enrolling in a local university.
- Investments in government bonds.
- Conducting business in the future technology sector with a value of at least $136,000.
- Programs for wealthy retirees.
- Buying a villa or apartment in Dubai is not only an excellent option for obtaining long-term residency but also a great way to preserve and grow your wealth. Property prices in the city rise annually, and long-term rental of apartments or houses can yield up to 8% annual returns.
To get a residence permit, a foreigner can purchase one or more properties. If the total investment in Dubai real estate exceeds $204,000, a residence permit duration is 2 years. When purchasing property/properties in the country worth over $544,500, you can obtain resident status for 5 years.
Today, many developers offer various off-plan properties. Foreigners can buy off-plan apartments and villas in Dubai at attractive prices. By the time the project is completed, such properties typically appreciate by approximately 20%. You can explore available offers, including residential and commercial real estate on our website.
What a UAE business visa looks like
An investor visa in Dubai obtained based on business registration in the country is affixed to the passport and contains the following information:
- Full name.
- Passport number.
- Unique identification number assigned to everyone entering the UAE.
- Emirate name where the document was issued.
- Immigration file number, including the emirate code, issuance date, and document number.
- Applicant's status: "investor" if the enterprise is fully owned by a foreigner or "partner" if they are one of several shareholders.
Additionally, the founder of the business in the Emirates also receives an Emirates ID. This local identification card contains personal data, a photo, and the owner's fingerprints. The card allows access to services provided by many government and private enterprises, as well as expedited passage through automatic border control points at Dubai Airport.
Legal aspects of company registration in the Emirates
To open a business in the UAE, you are required to get a license. The document is valid for 1 year and includes information about the types of permitted activities and owner details. License renewal should be done 1 month before its expiry.
The most common types of licenses are:
- Commercial (trading and rental businesses).
- Professional (service industries).
- Industrial (factories and manufacturing).
If you plan to try various business activities and have not yet decided which business to start in Dubai, you can apply for multiple licenses at once. The cost of registration for 1 year ranges from $2,700 to $13,500.
Those looking to open a business in Dubai and hire employees should keep in mind that the duration of the workweek in the country is strictly regulated and should not exceed 48 hours. The standard weekend falls on Saturday and Friday. The number of vacation days depends on the contract's duration. If the contract lasts 6–12 months, the employee is entitled to 2 days of vacation for each worked month. If contracts last more than 1 year, the standard vacation period is 30 days.
Types of companies in the UAE and legal nuances
There are three types of companies in the UAE: offshore businesses, companies in free economic zones (FEZs), and mainland companies. The first type does not grant the owner the right to obtain resident status since the firm can only conduct business outside the country.
Mainland enterprises can be registered in any region of the country. Their legal form can vary, including partnerships, joint-stock companies, sole proprietorships, branches of foreign corporations, and more.
A business in a FEZ can operate only within the territory of the specific free economic zone where it is registered or, in some cases, outside the country. Each of these zones has a specific list of permitted types of commercial activities and a minimum capital requirement for company registration. Today, establishing a firm in a free zone is the simplest and most accessible way to start a business in the Emirates.
Tax obligations and benefits
When calculating the cost of firm registration in Dubai, it's essential to consider taxes. Companies with annual income exceeding $102,000 are subject to a standard corporate income tax rate of 9%. If the annual profit is lower than this threshold, no tax is levied. Branches of foreign banks pay an income tax of 20%.
There is an additional excise tax imposed only on those trading or manufacturing enterprises that sell or produce goods harmful to health or the environment. The tax is calculated based on the price, e.g., 50% – carbonated beverages, 100% – tobacco products, and energy drinks.
Companies with an annual income exceeding $102,000 must pay a 5% value-added tax (VAT) quarterly. Firms with lower revenue are not applicable to VAT.
Tax incentives apply within the free economic zones. Businesses operating in these zones are exempt from VAT. Moreover, companies in FEZs may be eligible for a 0% tax rate on income from specific types of activities and transactions. These include services related to fund, asset, and investment management, manufacturing and processing of goods, reinsurance services, ownership of shares and other securities, among others.
Popular places to open a company in the UAE
Where and how should you open a business in the UAE to maximize your income? The simplest and cost-effective option is to register a company in one of the free economic zones. Many of these zones boast excellent infrastructure, including residential areas, office centers, warehouses, as well as shops, cafes, and restaurants.
Dubai
Among the promising areas for private business development that allows you to apply for an investor visa in Dubai, we can highlight:
- Dubai Internet City – a district designed for IT companies' growth. It features modern office buildings, high-speed internet, and regularly hosts thematic conferences, exhibitions, and events related to the IT industry.
- Media City – a media industry hub. It houses the offices of television corporations, advertising agencies, and publishing houses. There is a metro station nearby.
- JLT – a modern elite business district where the offices of major international corporations such as Samsung, Microsoft, Mastercard, and more are located.
- DIFC – the primary financial centre in the Middle East. This area has a special legal status, making it an ideal place for foreign firms involved in financial activities.
Abu Dhabi
Attractive areas for launching a business and getting an investor visa in Abu Dhabi are the free zones:
- Abu Dhabi Global Market;
- Khalifa Industrial Zone;
- Masdar City.
In these areas, there is also a simplified tax system, and various options for commercial real estate are widely available.
Timelines and costs of obtaining a residence visa
How to get an investor visa in Dubai when launching a company, and how long does it take? The first step is to register your business. If you choose a free economic zone for this purpose, the registration process will take up to 3 weeks.
The second step is to register the immigration establishment card. Based on the company establishment card, investors in the UAE can get a residence permit. The card issuance period is up to 1 week.
Next, you need to submit an Emirates ID application. The application processing period is up to 1 week.
The cost of obtaining a green visa for one person is $1,430. This amount includes payment for:
- entry permit – $280;
- the visa itself – $600;
- change of status – $155;
- medical examination – $205;
- Emirates ID card – $190.
Conclusion
Today, there are more than 40 free economic zones in the UAE, which are the optimal places for startups, small private businesses, and international companies to thrive. Quality infrastructure, minimal tax rates, a convenient digital registration system, and many other advantages make Dubai, Abu Dhabi, and other emirates attractive for businessmen and investors from around the world. It is genuinely possible to start your business with minimal investments here and further develop your brand.
One significant advantage of the country is the possibility of obtaining long-term residence permits not only for the applicant but also for their family. Moreover, the UAE offers a high level of security, a quality healthcare system, and a wide selection of residential properties within the free zones and nearby. You can find suitable apartments or villas in our website's catalogue.
