Dubai continues to be a sought-after global destination for investors, entrepreneurs, and other business professionals. It offers Australians a simplified way to either expand their existing business portfolio or start something new through low taxes, superb access to global markets, and full foreign ownership opportunities. Dubai could be the right choice for you if you are looking to decrease your operational costs, connect with a global client base, or launch a business in an adaptive regulatory environment. In this guide we will walk you through the steps to start a business in Dubai from Australia. We will cover everything you need to know, from considering your visa options and registering your business to finding a suitable location and opening a business bank account.
Why Australians are choosing to start a business in Dubai
Australians are choosing to start their business in Dubai for a variety of reasons that include the following:
Rising operational costs in Australia
Many small and medium-sized businesses in Australia (and in particularly larger cities) are feeling the pressure of the rising costs of rent, labour, and utilities. By comparison, Dubai is known for its business-friendly utility costs, cost-effective free zones, and various tax-smart policies that include 0% personal income tax.
Intense local market competition
Although the Australian market is considered to be advanced, it is very saturated across many sectors. This makes it very hard for new businesses to gain a competitive advantage or expand rapidly. In Dubai, business owners have access to a fast-growing, multifaceted market with access to hundreds of nationalities and a consumer base that is eager to embrace groundbreaking products and services. Due to this, Australians generally see Dubai as a more responsive and welcoming environment in which to launch and scale their businesses.
Regulatory and compliance challenges
In Australia, businesses are often faced with a lot of red tape, rigid compliance requirements and long-winded application processes. In Dubai, on the other hand, business setup procedures are typically very streamlined.
Labor and talent shortages
Australia is experiencing a shortage in skilled labor across various industries including construction, healthcare and tech, often resulting in limited opportunities for growth. Dubai is a magnet for talent, providing a global workforce alongside an immigration system that is supportive of skilled workers. Australians who open businesses in Dubai benefit from this easy-to-access talent pool.
Limited access to global finance
Australian business owners are often faced with challenges relating to raising capital and expanding their financial networks. Dubai serves as a powerful financial gateway that links East and West and provides access to venture capital organisations, international banks, and sovereign investment funds.
Geographical isolation from major markets
Due to its geographical location, Australian businesses often have to contend with logistical challenges when trying to operate internationally. Thanks to its strategic location and a world-class logistics infrastructure that includes two renowned international airports, Dubai has a lot of potential for worldwide trade, distribution, and expansion.
Strict environmental and climate-related regulations
While Australia’s strict environmental regulations are important, it can make operations more complex and expensive. Dubai’s regulatory environments are a lot more flexible, allowing businesses to innovate sustainably without being burdened by strict regulations.
Advantages of setting up a business in Dubai for Australians
There are nine key advantages Australians can benefit from when setting up a business in Dubai:
1. Ease of doing business and quick setup
Dubai has an uncomplicated, cost-effective approach to starting a business, offering Australians cheaper licensing fees and simple admin requirements. The entire process is streamlined further by free zones that provide tax exemptions and speedy registration to businesses.
2. Attractive tax incentives and exemptions
One of the most attractive prospects of starting a business in Dubai, is its tax policies. Unlike Australia, which imposes considerable personal and corporate taxes, Dubai offers zero taxes in most sectors.
3. Full foreign ownership possibilities
Advanced laws have been implemented by the UAE government to attract international investments. Registering a business in Dubai from Australia is uncomplicated. Attractive options such as 100% foreign ownership eradicate the need for local sponsorship in several sectors.
4. Strategic global location for trade
Dubai is perfectly positioned between Europe, Asia, and Africa to function as an international trade hub. Australian business owners can gain unmatched access to global markets when starting a business in Dubai.
5. Advanced infrastructure and facilities
Australian business owners are attracted to Dubai’s superior infrastructure with regard to speedy connectivity, work-ready, modern premises, and top-notch transportation.
6. Full repatriation of profits
As a business owner, you can transfer your earnings, dividends, and initial investment back to Australia without any restrictions.
7. Access to a skilled and diverse workforce
Due to the influx of global talent in Dubai, it is easy for businesses to recruit highly-skilled professionals.
8. Business-friendly government support
Dubai has earned the reputation of being one of the most business-friendly destinations in the world. It sports a variety of pro-business policies, such as digital government portals and easy access to funding initiatives that Australian business owners can benefit from.
9. High quality of life for entrepreneurs and families
Australians that start a business in Dubai can look forward to enjoying a high standard of living that includes luxury accommodation, quality healthcare, and superior education.
Visa options for Australians starting a business in Dubai
There are various visas available for Australians depending on how your business is set up, your initial investment, and who will be going to Dubai with you.
Investor Visa: The most common visa type. It provides a three-year residency. After investing a predetermined amount into a local business, family members can be sponsored.
Employment Visa: You can apply for a company-sponsored employment visa that will allow uou to legally work and live in Dubai when starting a business under a free zone or mainland structure.
Freelancer Visa: These one-year visas are well-suited to Australians who plan to offer independent services. Makes it possible to operate as a solo professional.
Dependent Visa: If you are in possession of a valid UAE residency visa, you can apply to sponsor immediate family members. Minimum income requirements need to be met.
Property Owner Visa: Renewable residency visa available to Australians who own Dubai property to the value of AED 750,000 or more.
Step-by-Step process for Australians to register a business in Dubai
Starting a business in Dubai from Australia is easier than expected. Here’s a step-by-step guide for Australians to start a business in Dubai.
Choose the right jurisdiction (Mainland, Free Zone, Offshore)
Mainland: You can trade freely across the UAE, open a physical office anywhere in the country, and secure government contracts. 100% foreign ownership is offered by selected sectors.
Free Zone: A good choice for industry-specific global businesses. Benefits include 100% ownership, various tax incentives, and an easy business setup. If you want to trade locally, you need a distributor or mainland branch.
Offshore: Allows you to operate internationally from Australia. 100% ownership is available, but no direct trade within the UAE is allowed.
Factors such as market access, business goals, ownership setup, and compliance costs need to be considered when choosing a jurisdiction.
Select the most suitable location
When choosing your business location, make sure it aligns well with your target market, infrastructure requirements, and industry. While Dubai Media City may be the right location for a media-based business, Dubai Silicon Oasis is better suited to tech companies. Also consider things like licensing requirements, logistics, the potential for growth and expansion, and easy market access.
Decide on a business structure and name
Start by deciding how you want to set up your business, for example, an LLC or FZE. Once you have decided on the business structure, choose a name for your business. Make sure that it is in line with Dubai’s Department of Economic Development (DED) guidelines. Make sure it doesn’t contain any religious or offensive terms or abbreviations.
Submit incorporation documents and approvals
Once you have finalised the structure and name of your new business, you need to submit the necessary documentation. This includes copies of your passport, proof of business name approval, and general business details. Whether you need an Articles of Association (AOA) or Memorandum of Association (MOA) will be determined by the business structure. If approved, you will be issued with a certificate that will allow you to proceed with your business setup.
Apply for your business license
You need to apply for your business license once initial approval is granted. The type of license you apply for, will depend on the nature of your business. Your business license will be issued if approved after you have submitted all outstanding documentation.
Open a corporate bank account
Choose a bank that can cater to your needs as an Australian with a business in Dubai. To open an account for your business, you will need to provide copies of your passport and visa, business license, proof of business activities, and, in some instances, a business plan.
Obtain your visa and residency permits
After you have received your business license, you need to apply for your visa and residency permits. As a business owner, you will generally be sponsored by your own company. The application process involves a medical fitness test, Emirates ID registration, and visa stamping in your passport.
How to open a business bank account in Dubai
Let’s look at what you will need to open a bank account for your business in Dubai.
Required documents
You will need the following documents:
- Mainland/Free Zone Companies: Valid trade license
- MOA/AOA/Certificate of Incorporation
- Shareholder resolution (if applicable)
- Resolution authorising account opening
- UAE ID copies/passports/visas of all shareholders/signatories
- Proof of an office address in Dubai
- 6-12 months bank statements (personal or that of parent company)
- Proof that business is active (contracts, invoices, etc.)
- Business plan/business profile
Key considerations when choosing a bank
There are many great banks in Dubai to choose from. This includes Emirates NBD, ADCB (Abu Dhabi Commercial Bank), Mashreq Bank, HSBC, RAKBANK, and FAB (First Abu Dhabi Bank). Always weigh up your options before choosing who to bank with.
Here are a few things worth considering:
- Banking fees
- Internet and mobile banking features
- Available credit facilities
- Customer service
There are more than one type of bank account you can apply for: current accounts for daily transactions, savings accounts to earn interest, and corporate accounts for high-volume businesses.
Essential documents required to start a business
There are many different documents you will need to have on hand when starting a business in Dubai.
Proof of identity and address: You can confirm these with your UAE visa or entry stamp and a copy of either your rental agreement or a utility bill.
Business plan and activity description: Make sure you have access to a detailed business plan that contains all the necessary information, ranging from your objectives and competitor analysis to a marketing plan and financial projections.
Shareholder and director details: Only applicable when relevant. Includes the names, copies of passports, shareholder resolutions, and copies of Emirates IDs.
Initial approvals from relevant authorities: Prioritize obtaining approval for your business name, securing your business license, and getting any other external approvals that you might require.
Frequently Asked Questions
Can I fully own my business in Dubai as an Australian?
Yes, you can. When establishing a business in a designated free zone you will have complete control without needing a sponsor. Mainland Dubai also offers 100% foreign ownership options, although some industries may require a local majority shareholder.
How long does the setup process take?
Getting your business set up can take from as little as a few days to several weeks. It all depends on the jurisdiction of your business, what type of business you are starting, and how quickly documentation can be produced and verified.
Can I run my Australian business remotely from Dubai?
Yes, it is possible to run your business in Australia while in Dubai. It is very important, however, to ensure that your business always adheres to Australian rules and regulations.
Are there tax obligations in both countries?
Your tax residency status will determine whether you, as an Australian, has tax obligations in Australia. Australia taxes its residents on global income, whereas non-residents are only taxed on income earned within the country. Dubai, on the other hand, imposes no personal income tax, but businesses generating over AED 375,000 may be subject to a corporate tax.
Do I need to be physically present to incorporate?
No, you don’t have to live in Dubai to start a business there. You can either set up your business in a free zone or enlist the services of a business setup consultant that offers remote incorporation services.
Partner with Set Hub to Launch Your Business in Dubai
There are many reasons why Australians should consider starting a business in Dubai when considering international expansion. With extensive experience, Set Hub ensures a smooth journey all the way from registering your business and applying for visas to opening a bank account and staying compliant. Let us handle the details of your business setup in Dubai , so that you can focus on growing your business.
