Dubai has earned its reputation as one of the world’s most attractive destinations for entrepreneurs and global investors. With its strong infrastructure, strategic location, and business-friendly regulations, the city continues to draw companies from across industries.
In recent years, there has been a rising interest among foreign investors in setting up businesses with 100% ownership. Thanks to changes in UAE laws, it’s now possible to register a company in Dubai without needing a local sponsor—something that was previously required for most Mainland businesses.
Whether you’re planning to launch a startup, open a branch office, or expand your business into the UAE, understanding how to form a company without a UAE national sponsor is key to retaining full control and ownership of your venture.
This guide will walk you through everything you need to know to get started—simply and legally.
What Is a Local Sponsor in Dubai?
In the traditional business setup model in Dubai Mainland, a local sponsor is a UAE national who legally holds 51% ownership of the company on paper, while the foreign investor owns the remaining 49%.
This arrangement was mandatory for most business activities, especially those outside free zones. While the local sponsor usually had no involvement in day-to-day operations, the shared ownership structure could limit the foreign investor’s control and flexibility.
Today, however, many activities are eligible for 100% foreign ownership, removing the need for a local sponsor entirely and giving investors greater freedom.
Can You Register a Company Without a Local Sponsor?
Yes, you can. Thanks to the UAE’s recent reforms, many business activities in Dubai now allow 100% foreign ownership, especially in both Free Zones and select Mainland sectors. This means you can fully own and operate your business without needing a UAE national as a sponsor or shareholder.
The new law applies to a wide range of commercial and industrial activities. However, certain sectors—such as those related to defense, oil & gas, or strategic industries—may still require a local partner due to national interest regulations.
Always consult with a trusted business setup advisor to confirm whether your chosen activity qualifies for full ownership.
Business Setup Options Without a Local Sponsor
Thanks to progressive reforms in UAE company law, you now have two main options to register a business in Dubai without needing a local sponsor:
Free Zone Company
Free Zones offer 100% foreign ownership with no requirement for a UAE national as a shareholder. They’re especially popular among e-commerce businesses, consultants, service providers, and trading companies. These zones provide streamlined setup processes, business-friendly environments, and dedicated infrastructure to support various industries.
Mainland Company (for eligible activities)
Under the new UAE commercial law, many Mainland business activities now qualify for full foreign ownership, eliminating the need for a local Emirati sponsor. However, this applies only to specific sectors approved by the Department of Economic Development (DED). It’s a great choice for entrepreneurs looking to access the wider UAE market, work directly with government clients, or open physical retail or service locations.
Documents Required
To register a company in Dubai without a local sponsor, you’ll need to submit a few essential documents. Having these ready will help streamline the setup process:
- Passport Copy of All Shareholders: Valid passport copies of each business partner or owner are required to verify identity.
- Visa Page or Entry Permit (if applicable): If you are already in the UAE, your valid visa or entry permit must be submitted.
- Business Name and Activity Details: You must provide your proposed trade name and a clear description of your intended business activities.
- Passport-Sized Photo: A recent color photo with a white background is typically needed for government records.
- Tenancy Contract (if required): For Mainland setups or certain Free Zones, a registered tenancy contract (Ejari) may be needed to prove a physical business address.
These documents are necessary for initial approvals and to obtain your trade license. Consulting a professional can help ensure everything is in order from the start.
Costs Involved
Starting a company in Dubai without a local sponsor is now more accessible—and knowing the costs upfront helps you plan effectively:
- Free Zone Setup: Packages start from as low as 6,500 AED, making it a popular option for startups, freelancers, and e-commerce businesses.
- Mainland Setup: For businesses needing full access to the UAE market, setup starts from 9,500 AED, depending on the activity and structure.
- Additional Costs: Other expenses may include visa quotas, office space or virtual address, and government approvals (if your activity requires special permits).
At SH Typing Center, we offer clear, all-inclusive packages with no hidden fees—making the setup process affordable, transparent, and stress-free.
Benefits of Registering Without a Local Sponsor
Setting up a company in Dubai without a local sponsor offers several key advantages that empower foreign investors:
- 100% Ownership & Control: You maintain full authority over all business decisions, operations, and finances without sharing equity.
- Retain All Profits: With no local shareholder, you keep 100% of the profits, maximizing returns from your investment.
- Streamlined Decision-Making: You won’t need to consult or get approval from a sponsor, making operations more flexible and efficient.
- No Local Partner Dependency: You’re not tied to a UAE national, reducing risk and simplifying legal and administrative processes.
This setup provides peace of mind for entrepreneurs who want full independence while building their business in the UAE.
Why Choose SH Typing Center for Company Formation
When it comes to setting up your business in Dubai without a local sponsor, SH Typing Center offers the experience and support you need to get started smoothly and confidently:
- Expert Guidance: Our team provides clear, step-by-step assistance for both Free Zone and Mainland company setups, helping you choose the right option based on your goals and activity.
- VAT Consultancy Services: We also offer professional VAT registration, return filing, and compliance support, ensuring your new business meets all FTA requirements.
- Transparent Pricing: We offer all-inclusive packages with no hidden fees, so you know exactly what you’re paying for from the start.
- Convenient Location: Visit us easily at our office in Al Barsha, Dubai, close to key business and government centers.
- Multilingual Support: Our friendly staff speak multiple languages, making the process comfortable and accessible for everyone.
- Free Consultation: Get expert advice at no cost before you commit—our goal is to make your business setup as easy and stress-free as possible.
Let SH Typing Center be your trusted partner in turning your Dubai business idea into reality.
Frequently Asked Questions (FAQs)
Which Free Zones allow 100% foreign ownership?
All Free Zones in the UAE allow full foreign ownership. Popular ones in Dubai include IFZA, DMCC, DIFC, Dubai South, and Dubai Media City, among others.
Is a local sponsor still required for any activities?
Yes, some strategic sectors—such as oil and gas, defense, and certain government-linked services—may still require a local partner or agent under UAE law.
Can I convert my existing business to full ownership?
In many cases, yes. Existing Mainland businesses may apply to amend their license and remove the local sponsor if the business activity is eligible for 100% ownership under the new laws.
How long does the setup process take?
Company setup typically takes 3 to 7 working days, depending on the business activity, approvals needed, and whether it’s a Free Zone or Mainland registration.
Start Your Business in Dubai—No Local Sponsor Needed
Thanks to recent changes in UAE law, 100% foreign ownership is now a reality for many businesses in Dubai—whether you choose a Free Zone or a qualifying Mainland activity. This means more control, more flexibility, and the full profits of your company in your hands.
To make the right choice for your business setup, expert guidance is key. At SH Typing Center, we help you navigate the legal process smoothly, from selecting the best business structure to completing all paperwork—without the confusion or delays.
Let’s make your business dream in Dubai a reality—without a local sponsor!
