Introduction:
You can start a business in the UAE, you are a visitor.
A visit visa is permitted by (free zones and mainland authorities allow it). In any case, you cannot draw a payment from banks or do trade or legal work in the UAE on a visit visa. To work for, be appointed as on-ground staff, or an official signatory, you must have a residence visa (investor/partner or employment), the right trade license, and an Emirates ID. Thus, treat the visit visa as a setup window, not an operating status.
One of the main concerns when starting your personal business in Dubai is to pick the right type of business structure. You usually have choices: free zone and mainland. Each has its own strengths and weaknesses, through the right choice depending on your business deed performed by your company, planned trading partners, ownership structure, and other issues.
What a tourist or visit visa prohibits you from doing
These steps are conducted by a new business in order to secure residence or further regulatory approvals:
- In many circumstances, sign as manager without an Emirates ID (banking, telecoms, and utilities will require it)
- Be registered under the local payroll/WPS system or receive salary through UAE banks.
- Sponsor employees or dependents (a valid establishment card and a residence visa are prerequisites).
Comprehensive ID and medical biometrics. - So, make use of your visiting area for setup. To conduct business lawfully, you should also get a partner or investor visa.
- Manage day-to-day activities on the ground, such as sales, service delivery, or shop management.
What a tourist or visit visa allows you to do
In fact, you can finish the majority of pre-operational tasks
Completing the incorporation paperwork, which includes registering the business with the relevant free zone authorities or mainland DET/DED, reserving a trading name, and receiving initial permission.
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- MOA/AOA preparation and electronic signing, including notary support if necessary
- Flexi-desk or office (Ejari for mainland) leases
- The issue of trade licenses (for various operations)
- Apply for a bank account (some banks allow non-resident signatories, although they enforce stringent security)
- Sign service agreements and designate agents with PRO partners like InvestBiz
- Participate in supplier consultations, meetings, and scouting (without engaging in commercial work)
However, there is a hard line: until you have a residency visa and fulfill licensing requirements, you cannot engage in paid employment, onshore commercial transactions, or hands-on operations.
Free Zone vs Mainland while visiting on visit visa
| Free Zone | Mainland |
| A business structure set up in a specified Zone, offering full overseas equity and limited in its operations to that zone only | A UAE govt. certified Company authorized to give services across the UAE and worldwide. |
Free Zone Company:
Free zones are economic region where goods and services can be traded, generally with preferential tax and custom rates. Dubai has nearly thirty free zones where you can enjoy hundred percent overseas equity, hundred percent commercial tax relief, hundred percent repatriation and project financing.
- One of the main benefits of setting up in Dubai’s free zones is hundred percent full possession of your business. There is no condition for a local partner or service agent to start a business.
- Live as a free zone company, mainland business set-ups are not allowed. If your business concentrations in the UAE market, you must register a mainland company with a local partner.
- Every free zone offers a multiple office space options, ranging from virtual desks to flexi-desks and fully serviced offices.
- The visa quota varies across free zones & is generally linked to the size of the leased office space, in Dubai free zones, companies are typically allowed between 3 to 6 visas.
At DMCC, visa eligibility is determined by the chosen office type:
- Flexi-Desk: up to 3 visas
- Serviced office: 4-5 visas depending on office size
- Physical office: 1 visa per 9 square meters
- The cost of establishing & operating business in Dubai’s free zones can vary widely. Below is a breakdown of the four main fee associated with setting up and running a business with Dubai:
- Company Registration Fee: (Starts at AED 9,000)
- License Fee: ( AED 10,000 to AED 50,000 per year)
- Office Fee: ( AED 15,000 to AED 20,000)
- Share Capital: ( AED 1,000 to as much as AED 1,000,000)
Mainland Company
Mainland companies, also known as onshore companies, can operate both locally and internationally. To set up a Mainland LLC, you must secure a license from the Department of Economic Development (DED) of the relevant Emirate.
- Effecting December 1, 2020, the UAE introduced a law allowing 100% foreign ownership of mainland companies, making them more attractive to international investors.
- Mainland companies can conduct business throughout the UAE and are also allowed to operate within any free zone, this structure is ideal for companies aiming to operate locally or secure govt. contracts.
- Main land companies must have at least 200 square feet of office space, as virtual offices are not permitted.
- Mainland companies do not face visa restrictions, and the number of residency visas available depends on the size of the leased office or business facility. Generally, the larger the office space, the more visas your company can obtain, typically calculated at one visa per 80 square feet.
- When setting up a Mainland company, business owners can expect the following initial costs:
- License Fee: The DED provides various license options. The standard trade or service license is generally 5% of the office rent. This does not apply to General Trading, instant, Merchant, or Launch license.
- Initial Approval from DED
- Dubai Chamber of Commerce Registration
- Trade Name Approval
- Office Rent
- Attestation of Memorandum of Association (MOA)
- Drafting of Contract and Court Agreement Attestation
- Registration with the Ministry of Economy
- Trade License Fee
- Local Sponsorship Fees (LIAE): varies depending on the nature of the business
How InvestBiz de- risks your business setup journey
- Activity Planning: We choose the fastest compliant route, whether it’s a Mainland Instant License or a Free Zone e- License.
- Parallel processing: Trade name, MOA, and office lease are handled simultaneously.
- Visa Coordination: Your entry permit is ready as soon as the license is activated, with medical and Emirates ID pre booked.
- Banking Preparation: Complete KYC, source of funds documentation, website content, and draft invoices prepared to satisfy the Relationship Manager.
- Compliance Roadmap: VAT obligations, Corporate Tax briefing, UBO/ESR checklist, and a full bookkeeping setup from day one.
InvestBiz for business setup in UAE
A tourist visa allows you to begin your UAE company setup reserve a trade name, secure initial approval, issue your license, and start bank onboarding, operational activities, including selling, hiring, or drawing a salary, can only commence once you switch to an investor or partner residence visa, complete your Emirates ID, and comply with sector regulations. Think of the tourist visa as the preparation stage, with InvestBiz PRO services enabling your move info full, compliant business operations.
FAQ’s
- Can a business be formed in the UAE during a stay on a tourist visa?
Yes. Most free zones and the Dubai mainland permit company setup and licensing on a tourist visa.
- Am I allowed to work or conduct sales while on a tourist visa?
No. you cannot work or run a business on a tourist visa. A residence visa and proper trade license are necessary.
- Do banks require Emirates ID to set up a business account?
In most cases, Yes. Some banks can begin the application for non-residence, but full account activation usually requires an Emirates ID.
- How quickly can I switch to an investor or partner visa?
Immediately after the license is issued. We arrange the establishment card, submit the entry permit, and complete the medical test and Emirates ID process.
- Am I permitted to onboard employees before securing my own visa?
No. Employees can only be sponsored after obtaining your residence visa and establishment card.
- Am I allowed to invoice clients from the start?
Additionally, you may start issuing invoices after obtaining the license, but handling salaries and performing on-site tasks generally requires an active bank account and residency.
- Is one liable for corporate tax or VAT while operating on a tourist visa?
Yes-generally, corporate tax obligations are based on business operations and income, not on personal visa status.
- Which documents do I need to arrange during my visit?
Required documents include passports, address proof, business activity list, ownership structure, lease plan, and a bank KYC kit (website, profile, and agreements)
- Which process is faster, establishing in the mainland or in a free zone?
A free zone e-license is generally the fastest for many activities, though mainland instant license allow same-day setup for qualifying activities.
- What is the most reliable method overall?
Also establish the company during your visit, then promptly switch to a partner/investor visa. Once done, start legal operations, register for VAT/corporate Tax, and activate the bank account.
