Dubai for UK Entrepreneurs: Remote Work Visa vs Free Zone Company
Junayd Moughal | 13.05.2025 22:36
Choosing Between Dubai's Remote Work Visa and Free Zone for UK Entrepreneurs
UK entrepreneurs weighing a move to Dubai often find themselves torn between two main options: the Remote Work Visa (Virtual Working Programme) and setting up a Free Zone company with an associated investor visa. Both offer UAE residency, Emirates ID, and access to housing, telecom, and banking. But they differ drastically in flexibility, cost, and long-term potential. The Remote Work Visa is ideal for entrepreneurs who want to live in Dubai while continuing to operate a UK-based business with no UAE clients or presence. It’s simpler, cheaper, and does not require forming a company in the UAE. However, it also comes with strict limitations: no right to do business in the UAE, no corporate bank account, and no ability to invoice locally. On the other hand, a Free Zone license gives you full commercial rights — including the ability to issue invoices in dirhams, register for VAT, open a business bank account, hire staff, and sponsor dependents. It's better suited to those planning to grow in the UAE, operate regionally, or formalise a physical presence. Choosing between the two depends on your goals: relocation-only vs commercial expansion.
Key Takeaways
• A Free Zone company offers far more commercial flexibility than the Remote Work Visa.
• Opening a business bank account is only possible with a Free Zone license.
• Remote Work Visa holders can't legally engage in local business activities.
• Free Zone licenses allow for greater long-term potential in the UAE market.
Interested in moving your business to Dubai?
Choosing Between Dubai's Remote Work Visa and Free Zone for UK Entrepreneurs
What solo UK founders often get wrong about moving to Dubai
A UK agency founder moved to Dubai under the Remote Work Visa to test the lifestyle. She paid herself from her UK Ltd and lived in JVC. Six months later, she set up a Meydan Free Zone license to serve UAE clients and open a Wio business account — upgrading her residency to an investor visa. The Remote Work Visa does not allow business activity in the UAE. You cannot sell locally, rent offices, or employ staff. Free Zone entities are fully commercial and can apply for VAT, contracts, and government tenders. Remote Work Visa holders can only open personal accounts. Free Zone license holders are eligible for business banking — critical for invoicing UAE clients, integrating payment gateways, and managing local payroll.
Here’s what actually happens when you set up
Most Free Zones and the Remote Work Visa programme allow for digital submission and contract signing. However, you must visit Dubai for medical tests, Emirates ID, and in-person banking. Remote Work Visa: 10–14 days from application to visa. Free Zone company: 2–4 weeks depending on jurisdiction, visa quota, and number of shareholders. Add time for bank account setup and approvals. Corporate licenses are issued by Free Zones; visas by UAE Immigration. Visa requirement: Remote Work Visa does not require or permit business setup. Free Zone license holders must set up a business entity to obtain their visa, and are legally recognised as investors or business owners.
Common traps that delay or block your setup
Rejections for Remote Work Visa usually come from unclear income documentation or invalid insurance. Free Zone applications may be delayed if license activity is mismatched, banking fails, or visa quotas are misused. This not only costs financially but can derail relocation plans, leading to significant stress and disappointment. Foundational errors like poor documentation or choosing the wrong license activity can mean starting the application process again from scratch.
The detail most people only learn after they’ve moved
Remote Work Visa holders are limited to personal banking solutions like Liv. or Emirates Islamic, while Free Zone companies can access a broader set of corporate banking services through Wio, Mashreq Neo Biz, or ADCB, which is crucial for seamless business operations. Many entrepreneurs are surprised to find that the right banking partner can dramatically affect their ability to do business smoothly in the UAE.
How to choose the setup that matches your situation
Remote Work Visa: AED 2,300–3,500 + AED 1,100–1,400 for Emirates ID. Free Zone license: AED 10,000–25,000+ depending on zone, activity, and office setup. Additional costs for visas, insurance, and VAT if applicable. Remote Work Visa: AED 3,000–4,000/year. Free Zone: AED 8,000–20,000/year for license renewal; plus AED 3,000–4,500 per visa renewal. Add audit/VAT filing fees if registered for tax. Both options provide visa-linked residency. However, only Free Zone license holders gain investor or shareholder status in the UAE, which enables further flexibility (e.g. opening multiple visas, trade registration).
Final Takeaways for UK Entrepreneurs
For UK entrepreneurs, understanding the key differences between Dubai's Remote Work Visa and Free Zone company setup is vital. Your choice depends on your long-term business goals, the need for local operations, and your commitment to the region. If flexibility, commercial rights, and the potential for growth in the UAE market are important, a Free Zone company is the better option. For those focused on maintaining a UK-based business while living abroad, the Remote Work Visa provides a simpler, less costly path. Remember, the right decision balances immediate needs with future aspirations. This article is not financial advice. Book a call if you'd like a tailored consultation.
Interested in moving your business to Dubai?
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What are the main differences between Dubai's Remote Work Visa and Free Zone licenses for UK entrepreneurs?
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The Remote Work Visa allows UK entrepreneurs to live in Dubai while operating their UK-based business, without the ability to engage in local business activities or open a corporate bank account. Free Zone licenses offer complete commercial rights in the UAE, including local invoicing, VAT registration, business banking, and the ability to sponsor dependents.
Can Remote Work Visa holders engage in business activities in the UAE?
No, Remote Work Visa holders are strictly prohibited from engaging in any local business activities within the UAE, including selling directly to UAE clients, renting offices, or employing staff.
What benefits does setting up a Free Zone company offer UK entrepreneurs in Dubai?
A Free Zone company setup offers UK entrepreneurs full commercial rights in the UAE, such as issuing invoices, VAT registration, opening a business bank account, hiring staff, and sponsoring dependents, thereby facilitating growth and regional operation.
How long does it take to obtain a Remote Work Visa or set up a Free Zone company in Dubai?
Obtaining a Remote Work Visa typically takes 10–14 days from application to visa issuance, while setting up a Free Zone company can take 2–4 weeks, depending on the jurisdiction, visa quota, and number of shareholders, with additional time for bank account setup.
What are the initial and ongoing costs of the Remote Work Visa and Free Zone license for UK entrepreneurs?
The Remote Work Visa costs around AED 2,300–3,500 plus AED 1,100–1,400 for the Emirates ID initially, with a yearly renewal cost of AED 3,000–4,000. Free Zone licenses cost approximately AED 10,000–25,000+ initially, with AED 8,000–20,000/year for license renewal plus additional costs for visa renewals, insurance, and potentially VAT and audit fees.
Interested in moving your business to Dubai?
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"articleBody": "What solo UK founders often get wrong about moving to DubaiA UK agency founder moved to Dubai under the Remote Work Visa to test the lifestyle. She paid herself from her UK Ltd and lived in JVC. Six months later, she set up a Meydan Free Zone license to serve UAE clients and open a Wio business account — upgrading her residency to an investor visa. The Remote Work Visa does not allow business activity in the UAE. You cannot sell locally, rent offices, or employ staff. Free Zone entities are fully commercial and can apply for VAT, contracts, and government tenders. Remote Work Visa holders can only open personal accounts. Free Zone license holders are eligible for business banking — critical for invoicing UAE clients, integrating payment gateways, and managing local payroll.Here’s what actually happens when you set upMost Free Zones and the Remote Work Visa programme allow for digital submission and contract signing. However, you must visit Dubai for medical tests, Emirates ID, and in-person banking. Remote Work Visa: 10–14 days from application to visa. Free Zone company: 2–4 weeks depending on jurisdiction, visa quota, and number of shareholders. Add time for bank account setup and approvals. Corporate licenses are issued by Free Zones; visas by UAE Immigration. Visa requirement: Remote Work Visa does not require or permit business setup. Free Zone license holders must set up a business entity to obtain their visa, and are legally recognised as investors or business owners.Common traps that delay or block your setupRejections for Remote Work Visa usually come from unclear income documentation or invalid insurance. Free Zone applications may be delayed if license activity is mismatched, banking fails, or visa quotas are misused. This not only costs financially but can derail relocation plans, leading to significant stress and disappointment. Foundational errors like poor documentation or choosing the wrong license activity can mean starting the application process again from scratch.The detail most people only learn after they’ve movedRemote Work Visa holders are limited to personal banking solutions like Liv. or Emirates Islamic, while Free Zone companies can access a broader set of corporate banking services through Wio, Mashreq Neo Biz, or ADCB, which is crucial for seamless business operations. Many entrepreneurs are surprised to find that the right banking partner can dramatically affect their ability to do business smoothly in the UAE.How to choose the setup that matches your situationRemote Work Visa: AED 2,300–3,500 + AED 1,100–1,400 for Emirates ID. Free Zone license: AED 10,000–25,000+ depending on zone, activity, and office setup. Additional costs for visas, insurance, and VAT if applicable. Remote Work Visa: AED 3,000–4,000/year. Free Zone: AED 8,000–20,000/year for license renewal; plus AED 3,000–4,500 per visa renewal. Add audit/VAT filing fees if registered for tax. Both options provide visa-linked residency. However, only Free Zone license holders gain investor or shareholder status in the UAE, which enables further flexibility (e.g. opening multiple visas, trade registration).Final Takeaways for UK EntrepreneursFor UK entrepreneurs, understanding the key differences between Dubai's Remote Work Visa and Free Zone company setup is vital. Your choice depends on your long-term business goals, the need for local operations, and your commitment to the region. If flexibility, commercial rights, and the potential for growth in the UAE market are important, a Free Zone company is the better option. For those focused on maintaining a UK-based business while living abroad, the Remote Work Visa provides a simpler, less costly path. Remember, the right decision balances immediate needs with future aspirations. This article is not financial advice. Book a call if you'd like a tailored consultation."
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