Start a Dubai company from Sri Lanka by forming a free-zone or mainland entity (AED 15,000–25,000 all-in for year one), file electronically via POA, open a corporate bank account (often the real friction), and comply with Sri Lankan resident worldwide-income tax on repatriated profits. The Department of Economy and Tourism (DET) and Dubai Financial Authority (DFA) regulate formation; MOHRE issues residency visas. Most activities allow 100% foreign ownership, setup completes in 3–7 working days, and you need not travel to Dubai.
Can You Start a Dubai Business from Sri Lanka?
Yes, fully. You can incorporate a business setup in Dubai remotely via power of attorney (POA) and e-signed documents. The Department of Economy and Tourism (DET) and Dubai Financial Authority (DFA) process registrations electronically; home-country attestation is standard. Most activities (trading, consultancy, freelance services, e-commerce) permit 100% foreign ownership. Sri Lankan residents need not hold a UAE residence visa to own a company—but opening a corporate bank account often requires either a UAE-resident signatory, a local Power of Attorney holder, or in-person KYC, which is the practical step that may force travel or a POA arrangement.
DBS arranges full POA setups for Sri Lankan nationals—WhatsApp us for a zero-cost feasibility check.
What Does It Cost in AED and LKR?
| Item | AED Range | LKR Estimate* | Notes |
|---|---|---|---|
| Free-Zone Licence (e.g. Meydan, IFZA) | AED 12,500–12,900 | LKR 690,000–715,000 | 1 visa included (Meydan) or 0 visa (IFZA); renewable annually |
| Mainland Licence (DET, no visa) | AED 4,888–5,750 | LKR 270,000–318,000 | Ajman/SHAMS, cheapest; Dubai mainland ~AED 18,200+ |
| Mainland Licence + 1 Investor Visa | AED 26,355–32,000 | LKR 1,460,000–1,770,000 | Includes MOHRE visa sponsorship, medical, Emirates ID |
| Investor/Partner Visa (2-year, if separate) | AED 6,000–9,000 | LKR 332,000–498,000 | Medical, Emirates ID, MOHRE processing ~2 weeks |
| Flexi-Desk / Virtual Office (co-working) | AED 800–2,500/mo | LKR 44,000–138,000/mo | Optional; some free zones include; use for visa tier-up |
| Corporate Insurance (initial, estimated) | AED 400–1,200 | LKR 22,000–66,000 | E&O, general liability; depends on activity |
| Bank Account Setup + Minimum Balance Hold | AED 0–10,000 deposit | LKR 0–553,000 | Wio free; Mashreq NeoBiz ~AED 10k; FAB/DIB ~AED 25–50k |
| * LKR estimates at ~55.3–55.5 LKR/AED (indicative, January 2026). Convert at today’s rate for current figures. | |||
Realistic Year-1 All-In (no visa): AED 15,000–22,000 (free-zone licence + bank minimum).
With one investor visa: AED 25,000–35,000.
Annual renewal: AED 7,000–20,000 (licence only, or +visa/medical).
Get a bespoke cost breakdown in LKR: email inquiry@dubaibusinessservices.com or WhatsApp +971 54 332 2846.
Step-by-Step 7-Day Formation Timeline
| Day | Action | Owner Role |
|---|---|---|
| 1 | Brief DBS, finalise name + activity, prepare POA docs | Email scope, confirm free-zone choice |
| 2 | Sri Lankan attestation of POA at notary + embassy (if required) | Obtain at home; courier or upload e-signed |
| 3 | DET application filed + Trade Name approval | DBS submits; you wait for approval |
| 4 | Trade Licence issued by DET; bank pre-approval letter sent | Share any bank KYC questions with us |
| 5–6 | Corporate bank account KYC (may require POA holder in-person or teleconference) | Prepare UBO docs, source-of-funds letter from SL accountant |
| 7 | Bank account activated; company ready to trade | Receive card + online access |
Visa sponsorship (if included) adds 1–2 weeks parallel to banking.
Banking for Remote Owners: The Real Friction Point
Formation is fully digital, but Dubai free zone company formation accounts and mainland bank accounts are where non-resident Sri Lankans face scrutiny. Most Emirati banks require:
- UBO Declaration: Clean beneficial-ownership statement; tax residency certificate from Sri Lanka (TRC) or non-resident affidavit.
- Source of Funds: Bank statements (SL), investment letter from parent company, trade/professional references.
- Signatory KYC: If you (non-resident) are sole director, banks often want a UAE-resident POA holder or a video-call KYC; some accept remote notarised POA + attestation.
- Minimum Balance: Wio Bank AED 0; Mashreq NeoBiz ~AED 10k; FAB, DIB, Mashreq mainstream ~AED 25–50k.
Timeline: 1 week to 3 months depending on bank backlog and KYC completeness. Approve documents in advance: Trade Licence, POA, UBO affidavit, SL tax residency certificate, and 3 months of recent SL bank statements showing fund origin.
DBS pre-vets banking docs to speed approval—ask us to review your package.
Tax & Compliance for Sri Lankan Business Owners
In the UAE: Dubai businesses file annual tax returns with the Department of Finance (tax.gov.ae / u.ae from 2026). Corporate Tax: 0% on taxable profit ≤ AED 375,000; 9% above. Free-zone companies get 0% on Qualifying Income under the Qualified Free Zone Persons (QFZP) framework (non-qualifying income taxed at 9% from AED 1). Small Business Relief: 0% for entities with revenue ≤ AED 3M in periods ending on/before 31 December 2026. VAT: 5% (register at AED 375,000+ annual turnover).
Back in Sri Lanka: As a Sri Lankan resident, you are taxed on worldwide income (including Dubai-sourced profit) under the Inland Revenue Act. Verify compliance with the Inland Revenue Department (IRD). Key points: remittances to SL are monitored (Central Bank forex rules); retain UAE tax returns and payment proofs to support filing back home. Consult a SL tax advisor on timing of repatriation and FEMA compliance. No double-tax agreement specifically addresses corporates, so offset UAE tax paid against SL liability.
Personal Income: 0% in the UAE (no personal income tax). You may be liable for SL tax on your director’s salary if remitted home.
DBS coordinates with SL CPAs on tax filing—contact us for referrals.
Residence Visas: Investor, Golden & Green Options
Investor/Partner Visa (2-year, renewable): Requires ≥AED 250,000 paid capital or ≥AED 500,000 partner share in a free-zone entity, or ≥AED 500,000 mainland investment. Cost: ~AED 6,000–9,000 all-in (sponsorship, medical, Emirates ID). No mandatory company; personal investment visa also available. Fast-track via company ownership.
Golden Visa (10-year): AED 2M property purchase/mortgage, AED 2M deposit in a bank, or AED 2M shareholding in a UAE company. Government fees: ~AED 4,695–10,140 (variable by type). From February 2026, mortgaged and off-plan property now qualify (50%-upfront rule removed). Requires High Net Worth status or category eligibility; not a standard startup path but viable if capital is available.
Green Visa (5-year): For skilled professionals (salary ≥AED 15,000/mo) or freelancers (income ≥AED 360,000/yr) or investors (share ≥AED 1M). Simpler than Golden; useful for consultants and service providers.
Family Sponsorship: Parent sponsorship from AED 4,000/mo salary; parents need AED 20,000/mo. Requires UAE employment or company ownership.
No AED 100,000 ‘lifetime’ Golden Visa exists (ICP denial, July 2025). Verify latest eligibility at MOHRE or via DBS.
What Free Zone or Mainland Location?
Cheapest Licence-Only (No Visa): SHAMS (Ajman) or Ajman Free Zone: ~AED 4,888–5,750/year. Trade outside the zone (full UAE market access). No visa; minimal physical presence required.
Free-Zone Bundle (Licence + 1 Visa): Meydan Free Zone (~AED 12,500) or IFZA (~AED 12,900). Visa included with Meydan; IFZA 0-visa model saves cost if you don’t need sponsorship. Both offer e-commerce, trading, consulting licences; regional tax benefits under QFZP if qualifying.
Mainland Dubai (DET): ~AED 18,200 (no visa) to AED 26,355+ (with investor visa). Full market access; higher prestige; 9% corporate tax on profit >AED 375k, or 0% under Small Business Relief (≤AED 3M revenue).
Choose based on: need for visa sponsorship, activity type (e-commerce favours free zones), and tax planning.
Frequently asked questions
How much (in rupee) does it cost to open a Dubai company from Sri Lanka?
Year-one all-in: AED 15,000–25,000 (approximately LKR 830,000–1,380,000 at current rates). This covers free-zone or budget mainland licence (~AED 12,500–18,200), bank-account minimum-balance hold (~AED 0–10,000), insurance (~AED 400–1,200), and admin. Add investor visa (AED 6,000–9,000 / LKR 332,000–498,000) if needed. Annual renewal runs AED 7,000–20,000. DBS quotes exact AED/LKR figures after your briefing.
Can Sri Lankans own 100% of a Dubai company?
Yes. Most activities—trading, consultancy, freelance services, e-commerce, professional services—permit 100% foreign ownership. A Sri Lankan national can be sole owner and director via POA (no UAE residency required to own; visa is optional). Some restricted sectors (airlines, media, real estate development) have nationality or UAE-citizen ownership rules. Verify your specific activity with DBS before filing.
Do I need to travel to Dubai to register a company?
No. Formation is fully remote: e-signed POA, home-country notarisation, and digital document upload to DET suffice. However, opening a corporate bank account often requires either a UAE-resident signatory/POA holder or in-person video KYC, which may push travel or require a local agent. DBS arranges both scenarios; discuss your preference before filing.
How do Sri Lankans open a UAE business bank account from abroad?
Prepare: Trade Licence, e-signed POA, UBO affidavit, SL tax-residency certificate, and 3 months of recent bank statements from Sri Lanka showing fund origin. Submit via bank portal or DBS liaison. Banks (FAB, DIB, Mashreq, Wio) conduct remote KYC; some want a 15-min video call. Hold minimum balance (Wio AED 0; Mashreq NeoBiz ~AED 10k; FAB/DIB ~AED 25–50k). Approval takes 1 week to 3 months. Clean UBO and source-of-funds docs decide speed.
Do I pay tax back home on my Dubai company income?
Yes. As a Sri Lankan resident, worldwide income (including Dubai business profit) is taxable under the Inland Revenue Act. Remit funds to SL and file with the Inland Revenue Department (IRD). UAE corporate tax paid (0% up to AED 375k profit, 9% above) may offset SL liability; consult a SL CPA. No formal double-tax treaty for corporates, so retain UAE returns. Personal director salary remitted is also SL-taxable.
Is Dubai ‘tax-free’ for company income?
No, not since 2023. Corporate Tax: 0% on taxable profit ≤AED 375,000 (Small Business Relief to 31 Dec 2026 if revenue ≤AED 3M); 9% above. Free-zone Qualifying Income under QFZP rules: 0% (breach = 9% for ~5 years). Personal income is 0% (genuinely tax-free). Advertise real tax position; Dubai is UAE’s business hub, not a pure tax shelter anymore.
What is the realistic timeline to have a company trading with a bank account?
Formation: 3–7 working days (DET approval + Trade Licence). Investor visa (if added): +1–2 weeks parallel. Bank account: 1 week to 3 months depending on KYC thoroughness and bank queue. Realistic total end-to-end: 2–4 weeks for a non-visa company with a fast bank. DBS fast-tracks both; non-resident KYC is the variable.
Get expert help in 20 minutes
Talk to DBS on WhatsApp +971 54 332 2846 or email inquiry@dubaibusinessservices.com for a free, fully itemised cost breakdown in your own currency — and a straight answer on banking and tax.
