How to Start a Business in Dubai Without a Local Sponsor (2025 Update)

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Introduction

For years, foreign entrepreneurs in Dubai’s mainland needed a local Emirati sponsor holding 51% of the company’s shares. However, with the landmark UAE Commercial Companies Law amendments, this is no longer required for most business activities.

In 2025, you can now own 100% of your mainland company without a local partner, keeping full control of your profits and decision-making. This guide explains how to start a business in Dubai without a sponsor, the eligible activities, costs, and a complete setup process.

What Changed in the Law?

In June 2021, the UAE allowed full foreign ownership of companies for most commercial and industrial activities. In 2025, the rule continues with even more activities added to the list, giving investors greater flexibility.

Eligible Business Activities for 100% Ownership (2025)

While most activities are now open to full foreign ownership, some strategic sectors (like oil & gas, insurance, and security) still require a local partner.

Popular activities eligible for full ownership:

  • General trading
  • E-commerce
  • IT services
  • Management consulting
  • Real estate brokerage
  • Manufacturing
  • Logistics and freight services

Tip: Always check with the Department of Economy & Tourism (DET) to confirm your specific activity.

Benefits of Starting Without a Local Sponsor

  • Full control over your business — no profit sharing.
  • Simplified decision-making without needing sponsor approval.
  • Greater long-term security for investors.
  • Easier expansion and amendments to business structure.

Step-by-Step Process: Starting a 100% Owned Mainland Company in Dubai (2025)

Step 1: Choose Your Business Activity

  • Must be on the DET-approved list for 100% foreign ownership.

Step 2: Select Legal Structure

  • Most common: Limited Liability Company (LLC) or Sole Proprietorship (for professionals).

Step 3: Reserve a Trade Name

  • Follow UAE naming rules (no religious terms, must reflect activity).

Step 4: Apply for Initial Approval

  • Submit passport copies, visa copy (if resident), and application form to DET.

Step 5: Draft the Memorandum of Association (MOA)

  • No need to include a local sponsor; you’ll be listed as the sole shareholder.

Step 6: Lease an Office Space

  • Mandatory Ejari-registered lease for mainland companies.

Step 7: Submit Final Application & Pay Fees

  • Fees depend on activity, office size, and visa quota.

Step 8: Receive Your Trade License

  • Typically issued within 5–10 working days.

Step 9: Apply for Visas & Bank Account

  • Investor visas, employee visas, and corporate banking.

Costs of Setting Up Without a Sponsor in 2025

ExpenseEstimated Cost (AED)
Trade license (mainland)12,000 – 20,000+
Office lease (Ejari)15,000+ annually
Visa (per person)3,500 – 5,000
MOA drafting & notary1,500 – 2,500

Tip: Brightlink can help you optimize costs by choosing the right office size and activity combination.

Common Myths About Sponsor-Free Companies

Myth 1: You need a free zone to avoid a local sponsor.

  • Truth: You can own 100% of a mainland company in most activities now.

Myth 2: Sponsor-free companies are more expensive.

  • Truth: Costs are similar, and you save on profit-sharing.

Myth 3: Banking is harder without a sponsor.

  • Truth: It’s the same process; what matters is proper documentation.

2025 Updates You Should Know

  • More than 1,000+ activities now eligible for 100% foreign ownership.
  • DET has simplified online applications for sponsor-free licenses.
  • Renewals can now be processed entirely online.

FAQs

1. Can any business be 100% foreign-owned?
No, some strategic sectors still require a local partner.

2. Do I need a UAE resident to be a company director?
No, directors can be non-residents.

3. Can I switch from a sponsor-based company to full ownership?
Yes, through a share transfer process.

4. How long does it take to set up without a sponsor?
5–10 working days if all documents are ready.

5. Can I have multiple activities under one sponsor-free license?
Yes, if they are related and approved by DET.

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