If you had asked a foreign entrepreneur a few years ago about setting up business in the UAE, you’d likely hear the same frustration: “You need a local sponsor, and they own 51%.” That rule stopped many from moving forward. It meant giving up control of your own company, even if you were the one investing all the time, money, and effort.
But here’s the good news: that chapter is closing. Fast forward to 2025, and the situation looks very different. The UAE has rolled out a series of forward-thinking reforms that finally put foreign investors in full control. No more silent partners. No more local sponsorship (for most activities, at least).
So, is it truly possible to set up a business in the UAE without a local sponsor? Absolutely. And if you’re thinking about taking that step, this is the guide that’ll walk you through what’s changed and why now might be the perfect time to start.
What Does “Without a Local Sponsor” Actually Mean?
Let’s break it down the way it was. Back then, if you were a foreign investor dreaming of launching a mainland company in the UAE, full ownership simply wasn’t allowed. You had to team up with an Emirati; either an individual or a company, and they’d officially hold the majority stake, even if they weren’t involved in day-to-day operations.
Sure, you had the option to go with a free zone setup, which gave you 100% ownership. But that came with some limits, mostly on where you could do business within the UAE.
Fast forward to today, when we say “without a local sponsor,” we’re talking about real independence. Full foreign ownership. No required local shareholder. No silent partner sitting in the background. Just you, your business, and total control; exactly the way it should be.
The Legal Shift That Changed Everything
The turning point came in 2021 when the UAE amended its Commercial Companies Law, allowing 100% foreign ownership in selected sectors. Since then, the scope of eligible activities has grown significantly.
Now, in 2025, a wide range of commercial, industrial, and professional activities fall under this regulation. Whether you’re planning to launch a tech startup, open a consultancy, or start an ecommerce store, you may no longer need a local sponsor at all. The reforms have also made the rules more consistent across the Emirates. So, whether you’re setting up in Dubai, Abu Dhabi, or Sharjah, you’ll face fewer hurdles and find more opportunities.
Business Setup Options Without a Local Sponsor in 2025
1. Free Zones
If you’re looking for full ownership and quick licensing, free zones are still a top choice.
Why choose a Free Zone?
- 100% foreign ownership
- No local sponsor or partner required
- Tax benefits and simplified processes
- Ideal for consulting, tech, e-commerce, and freelancing
Limitations?
Free zones restrict you from directly trading within the UAE mainland without appointing a distributor or opening a branch.
2. Mainland with 100% Foreign Ownership
Yes, you can now start a company in the UAE without local partner involvement, even in the mainland.
What you need to know:
- Applies to a wide range of commercial and professional activities
- Must fall under the approved list by the Department of Economic Development (DED)
- Offers unrestricted access to the UAE’s entire market
This setup is ideal for retail stores, tech startups, marketing agencies, and similar businesses.
Steps to Set Up a Mainland Business Without a Sponsor
The process is simpler than ever. Here’s what it looks like in 2025:
2. Select a Company Structure
Ensure your business falls under the DED’s approved list for full foreign ownership. ThinkBiz can help you verify eligibility.
2. Select a Company Structure
The most common option is a Limited Liability Company (LLC), offering flexibility and full market access.
3. Register Your Trade Name
Pick a name for your business and register it with the relevant authorities.
4. Get Initial Approval
This confirms your business is legally permitted to operate under UAE regulations.
5. Lease an Office
Mainland companies must have a physical office space. Flexi-desk options are available for startups.
6. Draft Legal Documents
This includes your Memorandum of Association (MOA) and other corporate documents. These must be notarized.
7. Apply for a License
Submit documents and receive your trade license from the DED.
8. Open a Corporate Bank Account
Choose from leading banks in the UAE and start managing your business transactions.
9. Apply for Visas
Secure UAE investor visas and apply for any employee visas you need.
Is This the Right Choice for You? Let’s Weigh It Out
There’s a lot to love about setting up without a local sponsor. You get full control, total profit retention, and no need for complicated partner agreements. It’s the ultimate entrepreneurial freedom.
However, this path can come with higher costs in some jurisdictions, and navigating the setup process solo can be challenging. That’s where expert guidance can make all the difference.
Setting up a business without a local sponsor in the UAE is not just a possibility in 2025; it’s becoming the new normal. Thanks to government reforms, foreign entrepreneurs now have greater freedom, control, and access than ever before.
But navigating the legal side and choosing the right structure can still be tricky. That’s where professional support makes all the difference.For personalized advice and end-to-end assistance, ThinkBiz is here to help you turn your business idea into reality.