The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
Starting a business in the UAE is no longer limited to partnering with a local Emirati sponsor. Thanks to evolving government policies, especially after the introduction of the 100% foreign ownership law, both UAE residents and foreign investors can now launch their own ventures without needing a local partner.
Whether you're already living in the Emirates or planning to move from abroad, this guide will walk you through everything you need to know to start a business without a local sponsor in the UAE.
Is it Possible to Start a Business Without a Local Sponsor?
Yes, absolutely.
As of June 2021, the UAE allows 100% foreign ownership of mainland businesses in over 1,000+ activities, meaning you no longer need an Emirati national to hold 51% of your company shares.
Additionally, free zones have always allowed full foreign ownership, offering a simple and fast track for international entrepreneurs.
Mainland vs Free Zone: Best Options Without a Local Sponsor
Let’s explore your two main options:
1. Mainland Company Formation (With 100% Ownership)
In the past, mainland companies required a local sponsor. Today, that’s changed. Foreigners can own 100% of companies in sectors such as:
- IT and digital services
- Consultancy (management, marketing, tech)
- E-commerce
- Trading (certain goods, check activity list)
- Manufacturing and industrial
However, some strategic sectors (like oil, defense, or national security) still require local partnerships.
2. Free Zone Company Formation
Free zones are dedicated business areas offering 100% foreign ownership, zero corporate tax (in most cases), and simplified processes. Top free zones include:
- Dubai Multi Commodities Centre (DMCC)
- Abu Dhabi Global Market (ADGM)
- Sharjah Media City (Shams)
- Fujairah Free Zone
- Ras Al Khaimah Economic Zone (RAKEZ)
Each free zone caters to specific business types and comes with its own rules, costs, and benefits.
