In just the past few years, over 1,500 Dutch companies have found a new home in Dubai, and that number keeps growing. The reason is simple: Dubai offers what every startup needs to expand – access, speed, and opportunity. Dubai’s appeal lies in its perfect mix of opportunity and support. It offers 100% foreign ownership, 0% personal income tax, and quick business setup processes. Plus, it’s strategically located between Europe, Asia, and Africa, which makes it the ideal place for global expansion.
If you’re a Dutch startup founder and are thinking about expanding in Dubai, we will help you understand everything you need to know before expanding to Dubai.
Why Should Dutch Entrepreneurs Expand in Dubai?
Here are some important reasons why more Dutch entrepreneurs are choosing Dubai as their next big move:
1. Business-Friendly Tax Structure
One of Dubai’s biggest draws is its low-tax environment. There’s 0% personal income tax and only 9% corporate tax (with exemptions for free zone companies meeting certain criteria). The UAE–Netherlands Double Taxation Treaty also ensures businesses don’t pay tax twice on the same income.
2. 100% Foreign Ownership
Today, most business activities allow 100% ownership, both in free zones and on the mainland. For Dutch startups, that means complete control, smoother decision-making, and full profit repatriation.
3. Strong UAE–Netherlands Trade Relations
The trade relationship between the UAE and the Netherlands has been thriving, reaching AED 11.5 billion in non-oil trade in 2022. The recent launch of Dubai International Chamber’s office in the Netherlands further strengthens business collaboration, which makes it easier for Dutch entrepreneurs to expand operations and build partnerships in the UAE.
4. Easy Company Setup and Government Support
Dubai’s government has streamlined the setup process through digital portals and one-stop business centres. Most startups can register their company, get a license, and open a bank account in just a few days. The city’s pro-business policies and startup-friendly free zones (like IFZA, DMCC, DIFC, or Dubai Internet City) make expansion smooth and hassle-free.
5. Multicultural Talent and Lifestyle Advantage
With over 200 nationalities living in Dubai, Dutch entrepreneurs can easily build diverse, global teams. Plus, the city offers world-class infrastructure, safety, and a lifestyle that attracts top talent.
Key Sectors with Potential for Dutch Entrepreneurs
Dubai’s economy thrives on innovation and that’s exactly where Dutch startups shine. With shared strengths in technology, sustainability, and logistics, there’s a natural synergy between the Netherlands and Dubai.
Here are a few sectors where Dutch entrepreneurs can truly make an impact:
- Technology and Innovation: Dubai’s vision to become a global tech hub is creating huge demand for expertise in AI, blockchain, and smart city solutions. Dutch tech startups, known for their practical innovation, can easily tap into this fast-growing ecosystem.
- Renewable Energy and Sustainability: With Dubai’s Clean Energy Strategy 2050, there’s strong potential for Dutch companies in solar, wind, and green technology. The UAE’s focus on sustainability aligns perfectly with the Netherlands’ leadership in clean energy solutions.
- AgriTech and Food Security: Dubai’s need for sustainable farming methods opens doors for Dutch innovators in hydroponics, vertical farming, and smart agriculture. It’s a sector where Dutch expertise is already world-renowned.
- Logistics and Trade: As one of the world’s top logistics hubs, Dubai connects Europe, Asia, and Africa. Dutch companies in supply chain management, warehousing, and transport tech can use this network to scale regionally.
- FinTech and Digital Payments: Dubai’s DIFC is leading the fintech movement in the Middle East. Dutch startups with strong fintech experience can offer new solutions in digital banking, payments, and blockchain finance.
- E-commerce and Retail Tech: With a tech-savvy population and high internet penetration, Dubai’s e-commerce market is booming. Dutch startups in online retail, logistics tech, and digital marketing can tap into this expanding digital economy.
Business Setup Options in Dubai for Dutch Entrepreneurs
Before you expand in the UAE, one of the first decisions you’ll make is where and how to set up your business. Dubai offers three main options:
1. Mainland Company Setup
A mainland company allows you to operate anywhere in the UAE, including direct trade within the local market. Dutch entrepreneurs can now enjoy 100% foreign ownership for most business activities.
Key benefits:
- Freedom to operate anywhere in the UAE
- Ability to bid for government contracts
- Unlimited visa quota for employees
- Option to open multiple branches
2. Free Zone Company Setup
A free zone company is ideal for international businesses that want tax benefits and simpler setup processes. Dubai has over 40+ free zones, each catering to specific industries like tech, media, finance, or logistics.
Key benefits:
- 0% import/export duties and 100% profit repatriation
- 0% personal income tax
- Easy company setup and license renewal
- Networking with global startups and investors
3. Offshore Company Setup
An offshore company is mainly used for international trading, holding assets, or protecting intellectual property, without physical operations in the UAE.
Key benefits:
- No requirement for a physical office
- 100% foreign ownership
- Tax-efficient structure for international operations
- Privacy and confidentiality in ownership
Legal and Regulatory Requirements for Dutch Businesses
The UAE has clear and transparent laws that make it easy for foreign investors to establish and operate a business, as long as you meet a few key requirements.
Choose the Right Business Activity and License:
Every company in Dubai must operate under a specific business license, issued based on its activity. There are three main categories: Commercial, Professional, and Industrial. Dutch entrepreneurs should clearly define their business activity (like consultancy, trading, or tech services) before applying for a license.
Register the Business and Trade Name:
Your company’s trade name must be approved by the Department of Economy and Tourism (DET) or the respective Free Zone Authority. The name should align with the UAE’s naming guidelines, meaning it should not contain any offensive words or religious references.
Prepare and Submit Required Documents:
Typical documents include:
- Passport copies of shareholders and directors
- Proof of residence or entry stamp
- Memorandum of Association (MoA) or Articles of Incorporation
- Business plan (for some free zones)
- Approval from relevant authorities (if required for specific activities)
All documents must be attested and notarised, especially if they’re issued outside the UAE.
Obtain Visas and Residency Permits:
Once your company is registered, you can apply for investor or partner visas for yourself and your employees. The process is handled through the General Directorate of Residency and Foreigners Affairs (GDRFA) or the relevant free zone.
Open a Corporate Bank Account:
UAE banks require a valid business license and shareholder information to open an account. Dutch entrepreneurs should choose banks that support international transactions and have strong digital banking services for ease of business.
Comply with Tax and Financial Regulations:
Businesses in Dubai are required to register for VAT (5%) if their taxable turnover exceeds AED 375,000 per year. Companies also need to comply with the new Corporate Tax (9%) regulations where applicable. Keeping accurate financial records and meeting reporting deadlines is key to compliance.
Maintain Annual Renewals and Audits:
Licenses, visas, and leases must be renewed annually. Many free zones and mainland authorities also require annual financial audits to ensure transparency.
How to Expand Your Dutch Startup to Dubai?
Expanding your Dutch business into Dubai involves a few key stages, from research to registration. Here’s a clear look at what you’ll need to do at each step.
1. Conduct Market Research
Understand Dubai’s market demand, local competition, and target audience. Identify how your product or service fits into the UAE landscape and what unique value it brings.
2. Choose the Right Jurisdiction
Dubai offers three main business jurisdictions – Mainland, Free Zone, and Offshore. Each has its own benefits:
- Mainland gives you access to the UAE market and allows you to work with government entities.
- Free Zones offer 100% foreign ownership and tax incentives.
- Offshore structures are ideal for international operations and asset protection.
3. Select a Business Activity and Legal Structure
Every license type is linked to specific business activities. Choose one that best matches your services or products. You’ll also need to pick a legal structure, such as a Limited Liability Company (LLC), branch office, or free zone establishment, that suits your ownership and operational needs.
4. Register Your Trade Name
Choose a business name that complies with Dubai’s naming regulations and get it approved by the Department of Economy and Tourism (DET) or the respective free zone authority.
5. Apply for the Trade License
The trade license is your legal permission to operate. Submit all the required documents, such as passport copies, business plan, and NOC (if applicable), to the relevant authority. The type of license – commercial, professional, or industrial– depends on your chosen activity.
6. Secure an Office Space
Having a registered office address is mandatory. Depending on your setup, you can opt for:
- A physical office in the Mainland, or
- A flexi-desk or shared workspace in a Free Zone.
- This also helps in visa allocation and meeting local regulations.
7. Open a Corporate Bank Account
Once your business license is issued, open a UAE corporate bank account to handle your company’s financial transactions. Banks may request documents like your business plan, trade license, and shareholder details.
8. Apply for Visas and Residency Permits
As a business owner, you can apply for an investor visa. You can also sponsor visas for your employees and dependents. The process includes entry permits, medical tests, and Emirates ID registration.
How Much Does It Cost to Expand in Dubai?
The cost of expanding your Dutch startup to Dubai depends on where and how you set up – Mainland, Free Zone, or Offshore. Each option has different requirements, benefits, and costs.
Mainland setup: Usually costs between AED 25,000 and AED 60,000+ in the first year. This includes trade license, government approvals, and office space. Mainland companies can operate across the UAE and work with local clients.
Free Zone setup: A popular choice for startups, free zone licenses start from around AED 10,000 and can go up to AED 35,000+, depending on the zone, activity, and number of visas. Free zones offer 100% foreign ownership, zero tax benefits, and simpler setup procedures.
Offshore setup: The most affordable option, costing around AED 10,000 to AED 25,000. However, offshore companies can’t trade directly within the UAE, but are great for holding companies or international operations.
Other expenses include visa processing, office rent (if needed), and annual renewals. You’ll also need to budget for compliance costs like accounting, VAT registration, and bank account setup.
Why Wait? Bring Your Dutch Startup to Dubai Today
More and more Dutch entrepreneurs are finding their next big break in Dubai. From easy setup options to a booming startup culture, the city offers everything you need to grow your business faster and bigger. If you’re ready to take the next step, Shuraa UK can help make your Dubai expansion simple and stress-free. From licensing and PRO services to tax and compliance support, our experts guide you through every stage.
We’ve helped thousands of international entrepreneurs, including many from Europe, set up smoothly and confidently in the UAE. Talk to Shuraa’s experts today to explore the best setup option for your Dutch startup and start your Dubai journey the right way.
