Setting up a company in the United Arab Emirates (UAE) is an attractive option for many entrepreneurs thanks to its strategic location, tax benefits, and business-friendly environment. Whether you’re targeting local, regional, or global markets, the UAE offers several pathways for starting a business.
Here’s a comprehensive, step-by-step guide to launching your company in the UAE:
Step 1: Decide on the Type of Business Jurisdiction
The UAE has three main business jurisdictions:
- Mainland – Allows you to trade across the UAE without restrictions.
- Free Zone – Offers 100% foreign ownership and tax benefits but limits trade within UAE mainland unless through an agent.
- Offshore – Best for international business; no physical presence in the UAE.
✅ Choose based on your business model, trading plans, and target markets.
Step 2: Choose the Legal Structure
Some of the most common legal structures include:
- LLC (Limited Liability Company) – Most common for mainland.
- Sole Proprietorship
- Branch Office
- Free Zone Company (FZC or FZE)
- Civil Company (for professionals like doctors, lawyers, etc.)
✅ Structure affects ownership rights, liability, and visa eligibility.
Step 3: Choose a Business Activity
Your business must be registered under one or more approved business activities listed by the Department of Economic Development (DED) or Free Zone Authority.
✅ Make sure your activity is aligned with your business model to avoid restrictions.
Step 4: Reserve Your Trade Name
Your trade name must:
- Reflect your business nature
- Not violate public morals or religion
- Be unique and not previously registered
✅ Apply online via the DED or relevant Free Zone portal.
Step 5: Apply for Initial Approval
This is a pre-approval certificate that states the government has no objection to your proposed business. It’s required before preparing legal documents.
Documents usually needed:
- Passport copies
- Trade name reservation
- Business plan (in some free zones)
✅ Processing time: 2–5 working days.
Step 6: Prepare a Memorandum of Association (MOA) or Local Service Agent Agreement
- MOA is required for LLCs and outlines ownership, responsibilities, and operational procedures.
- If you’re a sole proprietor in mainland, you may need a Local Service Agent (a UAE national) who doesn’t own shares but acts as a representative.
✅ This step typically requires notarization and legal review.
Step 7: Choose Office Space
Depending on the jurisdiction:
- Mainland: Must lease a physical office
- Free Zone: Options include flexi-desk, virtual office, or full premises
- Offshore: No office required
✅ Real estate contracts must be submitted for license issuance.
Step 8: Get Your Business License
Apply for your trade license, which is based on the activity:
- Commercial
- Professional
- Industrial
- Tourism
✅ Licensing authority: DED (Mainland) or specific Free Zone authority.
Step 9: Register with the Chamber of Commerce
All companies must register with their respective emirate’s Chamber of Commerce to legally operate.
Step 10: Apply for Establishment Card and Visas
You’ll need:
- Establishment Card (for hiring employees)
- Investor Visa (if you’re relocating to the UAE)
- Employee Visas (after MOHRE registration for mainland)
✅ Medical tests, Emirates ID, and visa stamping are part of the process.
Step 11: Open a Corporate Bank Account
Requirements:
- Trade license
- MOA
- Passport copies
- Utility bill (sometimes)
- Business plan (sometimes)
✅ Popular banks include Emirates NBD, Mashreq, FAB, and international banks like HSBC.
Step 12: Comply with Ongoing Requirements
- Bookkeeping & Auditing
- VAT Registration (if annual turnover exceeds AED 375,000)
- Renewal of License and Visas
- Ultimate Beneficial Owner (UBO) Reporting
Conclusion:
The UAE provides a structured and efficient framework to set up your company, whether you’re a solopreneur or a global enterprise. Choosing the right jurisdiction and setup partner can make the process smooth, fast, and compliant.
