Are you worried that administrative formalities will turn your plans to move to Dubai into an obstacle course? Obtaining residency in the United Arab Emirates is the strategic solution to secure your status while benefiting from a favorable tax environment for your business. This practical guide reveals the legal structures to favor and the essential steps to convert your investment into a long-term visa, ensuring the success of your new life in the Emirates.
Choosing the right business structure: your first strategic decision
Free zone company: the gateway to international business
A free zone company is a special economic zone designed to facilitate international trade. It is the ideal structure if your business focuses on export or global consulting. Setting up a company there is also remarkably straightforward.
You benefit from 100% foreign ownership and full repatriation of your capital. The tax system is extremely attractive for optimizing your income. Above all, it is the ideal way for investors to obtain a residence visa.
Be careful, there is one pitfall that must be avoided at all costs. You will not be able to trade directly on the local Emirati market without going through a distributor. This is a strict legal requirement that must not be overlooked.
This is why consultants and traders overwhelmingly favor this option. Setting up a company in a free zone remains the standard for international business.
Mainland company: conquering the local Emirati market
Mainland is the legal entity registered with the Department of Economic Development. It allows youto operate freely and without any geographical restrictions throughout the territory. This is the key to reaching local customers.
Forget the old rumors about having to have a local majority partner. Today, foreigners can own 100% of the capital in most sectors. This recent legislative change is a game changer for entrepreneurs.
This structure becomes essential if you open a restaurant or a physical store. You will not be able to provide services directly to local businesses otherwise. It is the only way to truly be on the ground.
The special case of holding companies
A holding company is not intended to carry out traditional commercial operations. Its purpose is to hold assets such as company shares or real estate. It is a powerful wealth management tool.
However, many people are unaware that it is also an effective strategy for obtaining a residence visa in the Emirates. Depending on the amount invested, it can even give you access to the prestigious 10-year Golden Visa.
Beyond the visa, you secure your assets while optimizing your tax situation. Consider creating a holding company in Dubai to structure your assets for the long term.
The different residence visas available through the company
After choosing the structure of your company, the next step is to understand which residence visa is right for your project. Not all options are equal and depend on your investor profile. Clemenceaugroup, a company that helps entrepreneurs set up their businesses in Dubai, often reminds them of a harsh reality: starting a business is a potential route, but it does not guarantee automatic residency. It is essential that you comply with all regulations and consult local experts to avoid unpleasant surprises.
The investor visa: the traditional route for entrepreneurs
The investor visa, often referred to as a partner visa, is the standard visa obtained after setting up a company in a Freezone or Mainland. It is the usual entry point for most founders.
It is generally valid for two or three years and can be renewed as long as your business is operating. Please note that this residence permit is directly linked to the validity of the company's license.
One major advantage sets this option apart: the possibility of sponsoring your family. Your spouse and children can obtain their own residence visas under your direct responsibility.
- Step 1: Incorporate the company and obtain a business license.
- Step 2: Apply for an Establishment Card (business establishment card).
- Step 3: Apply for an Entry Permit for the investor.
- Step 4: Medical examination and biometric procedure for the Emirates ID.
- Step 5: Affixing the visa to the passport.
The golden visa: for ambitious investors and entrepreneurs
The Golden Visa is a game changer, offering long-term residency for 5 or 10 years, designed to attract talent and capital. It is a privileged status that offers rare stability.
For entrepreneurs, the eligibility requirements are strict: you must own a business with a capital of at least AED 500,000. The other option is to be approved by a business incubator accredited in the UAE.
There is another route to the 10-year Golden Visa: a public investment of at least AED 2 million. This can include real estate, a strategy often used to secure the Golden Visa.
The main advantage is clear: you enjoy the security of long-term residency without needing a sponsor.
New visas: green visas and other options
The Green Visa is a new type of five-year visa that allows the holder to sponsor themselves. This represents a break from the traditional sponsorship system.
It remains accessible to investors or partners in a company, provided they can prove they have made a significant investment. The authorities require solid financial evidence to validate this special status.
These new visas demonstrate the Emirates' firm commitment to offering greater flexibility and stability to foreign talent.
+ more than 500 companies
Already our customers
The concrete process: from business creation to residence visa
Now that you know the options, let's take a practical look at how the process works. Setting up your company and obtaining residency is a well-defined process, but every step counts.
Key steps to setting up your company
Let's be clear: it all starts with setting up the company. The visa is not a given; it is the direct consequence of this first step. No structure, no residence.
Let's get started with the formalities. Choose your business activity, reserve the company name, and prepare the articles of association—the famous Memorandum of Association. This is the legal foundation of your project, so don't neglect it.
Next comes the submission of the application for a business license. This document formalizes your legal existence in the eyes of the authorities and remains an absolute prerequisite. Consult our comprehensive guide to starting a business in Dubai to master this phase.
From commercial license to Emirates ID
Is your license validated? Perfect. The immigration process can now begin. The top priority is to apply for the Establishment Card. This is what allows the company to sponsor visas.
You then apply for an Entry Permit. This legally authorizes you to remain in the country to complete the procedure. You must undergo a mandatory medical examination and have your biometric data recorded at an approved center.
The process is complete once you receive your Emirates ID and your visa is stamped in your passport. This card is your key to everything: renting an apartment, opening a bank account, or signing up for a phone plan. To learn more, read Everything you need to know about the Emirates ID.
Essential documents and expected processing times
The preparation of documents determines the speed of your case. An incomplete file will cause the entire process to grind to a halt.
- Copy of valid passport.
- Recent passport photos in the required format.
- Business plan (sometimes required, particularly for certain visas or free zones).
- Company documents (license, articles of association, etc.).
In terms of timing, once the company is active, the visa usually takes between 7 and 15 business days. This obviously assumes that the application is in order, with no administrative errors or unexpected public holidays.
Keep in mind that these deadlines are only estimates. The administration may vary its pace. Anticipation remains your best asset for avoiding stress.
Beyond the visa: the implications of residency in the UAE
Obtaining a visa is just the beginning. To truly benefit from your new life in the Emirates, you need to understand what this entails on a daily basis, particularly in terms of tax and family matters.
Residence visa vs. tax residence: a fundamental distinction
Many entrepreneurs fall into the trap of thinking that having a residence visa is enough to automatically be considered a tax resident in the UAE. This is a mistake that can be costly. Never confuse the right to reside with your tax obligations.
The distinction is significant. A visa is simply your administrative authorization to enter and live in the country. Tax residence, on the other hand, is a de facto situation that proves where your actual home is located. It cannot be decreed; it must be demonstrated to the authorities.
In order for the tax authorities to consider you an Emirati resident, you must prove that the center of your vital interests is here. In practical terms, this often means spending more than 183 days a year in the country in order to obtain a Certificate of Tax Residence.
Family reunification: bringing your loved ones to join you
One of the major advantages of setting up your company here is the immediate ability to sponsor your family. You don't leave alone; your status as an investor or employee of your own company covers your loved ones.
Generally, you can sponsor your spouse and children without any major difficulties. Current rules allow you to sponsor sons up to the age of 25 and daughters without any age limit, as long as they are not married. Please note that income thresholds, often around AED 4,000, apply.
Each family member will obtain their own visa, the validity of which remains directly linked to the validity of the primary sponsor's visa.
Practical obligations: health insurance and visa maintenance
Your visa comes with a number of responsibilities that you must not ignore. The top priority is to take out valid health insurance for yourself and your dependents.
In Dubai and Abu Dhabi, this coverage is strictly mandatory. The authorities will systematically block any visa issuance or renewal if you do not present compliant insurance. It is a non-negotiable prerequisite that can result in fines if forgotten.
Another important point to bear in mind to avoid having your visa canceled is that you must enter the UAE at least once every 180 days. This is the golden rule for maintaining your active status, as is having good Health insurance in Dubai.
Avoid pitfalls and maximize your chances of success
The classic mistake: believing that residency is automatic
Many people imagine that opening a business is a sure-fire way to obtain a visa. This is not true. Starting a business is a necessary technical requirement, but it is not sufficient to obtain residency.
Don't be naive, this visa is never "guaranteed" by default. Your application must be formally approved by the immigration authorities, who check that the file is fully compliant. A criminal record, for example, will result in immediate refusal.
In short, it is a potential pathway, not an automatic right. Absolute rigor is required to succeed.
Choosing the activity and location: decisions not to be taken lightly
I warn you: choosing an activity or area solely for its low price is a dangerous strategy. It's a short-term view that often ends up costing you dearly.
The activity declared on your license must correspond exactly to what you actually do on a daily basis. Any discrepancy may result in heavy financial penalties and seriously complicate the future renewal of your license and visa.
Similarly, the choice of free zone is not insignificant. Some are specialized and much better perceived by banks and partners. Read The 7 mistakes to avoid when setting up a company in the Emirates to avoid the worst.
The importance of support from local experts
Let's emphasize one point: trying to do everything yourself to save money is often a bad idea. Regulations change quickly, and there are far too many local subtleties to ignore without risk.
Call on experts in company formation in Dubai, such as Clemenceau Group, ensures that the process is secure from start to finish. This allows you to avoid costly mistakes and save valuable time for your launch.
It is a real investment in peace of mind and the practical effectiveness of your expatriation project.
Obtaining residency through business creation offers unique stability and an exceptional tax environment in the Emirates. More than just a formality, it is a real strategic choice for your future. With careful preparation and the right partners, this opportunity becomes a decisive springboard for your international development.
Frequently asked questions :
What are the requirements for obtaining residency in Dubai through business creation?
To become a resident through this route, the first requirement is to legally establish a company, either in a free zone or on the mainland, and obtain a valid business license. You must be a shareholder in the company. Depending on the type of visa you are applying for (standard investor visa or Golden Visa), specific investment thresholds may apply, but simply setting up a structure is usually sufficient for a 2- or 3-year renewable visa.
How do you actually obtain your resident card (Emirates ID)?
Once your company is registered and the license has been issued, you must apply for an Entry Permit to begin the immigration process. The procedure then requires you to undergo a mandatory medical examination (blood test and chest X-ray) and to register your biometric data. Once the visa has been stamped in your passport, your Emirates ID card will be printed and issued within a few days.
How to obtain tax residency status in the United Arab Emirates?
Be careful not to confuse a residence visa with tax residency. The visa gives you the right to live in the Emirates, but to be considered a tax resident and obtain a certificate, you must prove that the center of your vital interests is in the country. In practical terms, this usually means spending more than 183 days a year in the country or providing proof of permanent accommodation and significant economic interests there.
Is it possible to live in Dubai without being an employee, simply as an investor?
Yes, it is entirely possible. When you set up your business, you will obtain an "Investor" or "Partner" visa. This status allows you to reside legally in the Emirates without needing an employment contract with a third-party company. You are self-employed. Please note, however, that to keep this visa active, you must enter the UAE at least once every 180 days (unless you have a Golden Visa).
