Over the past few years, business in UAE has grown rapidly, transforming UAE into a global business hub that attracts international investors across countries and sectors like trade, tourism, healthcare, and technology. You will find numerous businesses and startups blooming in UAE, from tourism, technology, trading, and healthcare to manufacturing top-notch products.
While setting up a business from scratch can be complex, the UAE offers a simplified business setup process designed to help entrepreneurs launch quickly and easily. If you have been planning for a business setup in the UAE and you don’t know how to begin it, then this guide is for you.
In a Hurry to Know?
Here’s a quick summary of how to set up your business in the UAE:
- Choose your business activity & name
- Decide Mainland or Free Zone
- Pick a legal structure (LLC, FZE, etc.)
- Register your trade name
- Get initial government approval (NOC)
- Secure office space & Ejari
- Apply for the correct license
- Submit all required documents
- Pay fees & receive your license
- Register with the Chamber of Commerce
Need help setting up quickly? Bestax Chartered Accountants can walk you through every step.
Why Start a Business in the UAE?
The UAE offers one of the most business-friendly environments in the world, zero personal income tax, easy VAT registration for eligible businesses, 100% complete foreign ownership in Free Zones, and worldclass business infrastructure. Whether you are launching a new startup or want to expand globally, the UAE gives you fast and easy access to international markets, minimal bureaucracy, and a supportive regulatory framework designed for entrepreneurs.
How to Set Up a Business in UAE Easily – Step-by-Step Guide
Here is a step-by-step guide to setting up a business in the UAE
1: Define the nature of your Business Activity
Start by selecting your business activity based on your target market and industry. Dubai offers a wide range of permitted activities ensure you match your plan with the correct license type. It’s recommended to select and reserve your business name early to avoid delays during the license application stage.
2: Choose Between Mainland or Free Zone
Decide whether to register your business in the Mainland or a Free Zone. Each has its own regulations, benefits, and limitations depending on your business model.
Free Zone Business Setup
Best for companies that want full ownership and plan to operate primarily online or B2B within the Free Zone. However, physical presence outside the Free Zone or direct B2C trade in the UAE mainland is restricted.
Mainland Business Setup
Offers greater flexibility for doing business across the UAE and internationally. Suitable for businesses needing local market access and physical storefronts or offices.
3: Legal Structure
The legal structure affects your liability, ownership, and compliance obligations.
- Free Zone Limited Liability Company (FZ LLC)
- Free Zone Company (FZ Co.)
- Free Zone Establishment (FZE)
If your UAE business setup is in the mainland, then you can select legal structures from 9 given options.
- Sole Establishment
- Branch of a GCC company
- Civil company
- Branch of a local company
- Limited liability company
- Public joint stock company
- Private joint stock company
- Holding company
- Representative office of a foreign company
4: Register your Trade Name
This step involves choosing a Trade Name for your easy business setup in Dubai. When selecting your trade name, be sure to follow these official naming guidelines:
- The trade name must contain an abbreviation stating the suffix for the legal structure of a company such as, an LLC.
- It must not contain any inappropriate words that may offend the general public.
- Your trade name must be in line with your chosen business or economic activity.
- It must not be registered as a name of any other business.
- Make sure that the trade name must not be the name of government bodies, rulers, or logos and names of government authorities.
- The trade name and trademarks must be approved by the concerned authorities such as the Ministry of
- Economy and Department of Economic Development.
- These certificates are also subject to renewal
5: Initial Approval for the Business Setup in Dubai
Apply for initial government approval to receive a no-objection certificate (NOC). This green light allows you to proceed with business formation and licensing.
LSA or MOA Creation
For limited liability, public shareholding, civil or private shareholding company, a Memorandum of Association (MOA) is required. On the other hand, Sole proprietorship requires a Legal service agent agreement (LSA).
6: Business Location and Office Space Selection
At this stage, you’ll need to secure office space by either renting a commercial unit, purchasing property, or using a business center solution, depending on your business needs and team size. Moreover, make sure that the office has all the services and facilities such as; Telecommunications, labor accommodation, meeting rooms, printing facilities, and internet connection.
Your office must comply with the requirements set by the Department of Economic Development (DED) and relevant municipal authorities. Once finalized, register your tenancy contract via the Ejari portal of the Dubai Land Department.
7: Business License
Choose your business license, as per your business activity. Dubai company formation services offer 6 economic licenses for business activities.
- Commercial License
- Professional License
- Tourism License
- Agriculture License
- Occupational License
- Industrial License
8: Documents Submission
Submit the following documents to proceed with your final business registration and licensing.
- Copies of previous documents with receipt of initial approval.
- Attested copy of lease contract
- Memorandum of Association
- Approval received from other government entities
9: Pay Fees and Collect your License
After completion of the approval process and fee submission, you can receive a license from the economic department’s service center or online through the website.
10: Registration from the Chamber of Commerce Industry
Once licensed, your business must be registered with the Chamber of Commerce & Industry in the same emirate where your office is located.
Make sure that your business or company is registered in the same emirate where the office is located physically. Your company must be registered under any one of the following Chamber of Commerce Industry.
- Federation of UAE Chambers of Commerce & Industry
- Abu Dhabi Chamber of Commerce and Industry
- Dubai Chamber of Commerce and Industry
- Sharjah Chamber of Commerce and Industry
- Ajman Chamber of Commerce and Industry
- RAK Chamber of Commerce & Industry
- UAQ Chamber of Commerce and Industry
- Fujairah Chamber of Commerce and Industry
Once registered and licensed, businesses must also ensure compliance with VAT laws in the UAE. If your business meets the VAT threshold, you are required to register for VAT.
Business Setup in UAE FAQs
What is a Memorandum of Association (MoA)?
An MoA is a legal document outlining a company’s structure, objectives, and operational guidelines, essential for company registration.
Can a non-resident start a business in the UAE?
Non-residents can establish businesses in the UAE and manage them remotely
Is a physical office required?
• Mainland: Yes, a physical office is mandatory.
• Free Zone: Options include flexi-desks or shared offices, depending on the zone.
What types of business licenses are available?
• Commercial: Trading and retail activities.
• Professional: Services like consulting and IT.
• Industrial: Manufacturing and production.
• Tourism: Travel and hospitality services.
Can a foreigner start a business in the UAE?
Foreigners can establish businesses in the UAE. Free Zones allow 100% foreign ownership, while Mainland companies may require a local sponsor depending on the business activity.
