How to open a company in UAE? Step by step guide.
- January 25, 2024
- Posted by: Admin
- Category: Business

Starting a company in the UAE involves several steps, each crucial for ensuring compliance with local regulations and setting up your business for success. Here’s a step-by-step guide to help you navigate the process:
1. Choose Your Business Jurisdiction
The UAE offers three main jurisdictions for business setup: Mainland, Free Zone, and Offshore. Each has its own benefits and regulations:
Mainland: Allows you to trade within the UAE market and internationally.
Free Zone: Offers tax benefits and full foreign ownership but restricts trading within the UAE market.
Offshore: Ideal for international business activities without a physical presence in the UAE.
2. Select a Business Activity
Identify the type of business activity you want to engage in. This will determine the type of license you need and the legal structure of your company. The UAE has over 2,000 business activities to choose from1.
3. Choose a Legal Structure
Decide on the legal structure of your business. Common options include:
Limited Liability Company (LLC)
Sole Establishment
Branch of a Foreign Company
Free Zone Company
4. Register Your Trade Name
Choose a unique trade name for your business and register it with the Department of Economic Development (DED) or the relevant Free Zone Authority. Ensure the name complies with UAE naming regulations1.
5. Apply for Initial Approval
Submit an application for initial approval from the DED or Free Zone Authority. This step confirms that the UAE government has no objections to you starting a business.
6. Draft a Memorandum of Association (MOA)
For LLCs and other legal structures, you will need to draft a Memorandum of Association (MOA) outlining the ownership and management structure of your company. This document must be notarized.
7. Secure a Business Location
Choose a physical location for your business. This could be an office, warehouse, or retail space, depending on your business activity. Free Zones often offer flexible office solutions.
8. Obtain Additional Approvals
Depending on your business activity, you may need additional approvals from relevant government authorities. For example, certain industries require special permits or licenses.
9. Submit Documents and Pay Fees
Submit all required documents, including the MOA, trade name registration, and initial approval, to the DED or Free Zone Authority. Pay the necessary fees to obtain your business license1.
10. Open a Corporate Bank Account
Once you have your business license, open a corporate bank account in the UAE. This is essential for managing your business finances and transactions2.
11. Apply for Visas
Apply for visas for yourself, your partners, and your employees. The number of visas you can apply for depends on the size of your office and the nature of your business.
12. Set Up Your Business
With all the legalities in place, you can now set up your business operations. This includes hiring staff, setting up your office, and launching your business activities.
By following these steps, you can successfully establish your company in the UAE. If you need further assistance, consider consulting with a business setup advisor to ensure a smooth process.
- Growth through innovation/creativity:
Rather than be constrained by ideas for new products, services and new markets coming from just a few people, a Thinking Corporation can tap into the employees. - Increased profits:
The corporation will experience an increase in profits due to savings in operating costs as well as sales from new products, services and ventures.
- Higher business values:
The link between profits and business value means that the moment a corporation creates a new sustainable level of profit, the business value is adjusted accordingly. - Lower staff turnover:
This, combined with the culture that must exist for innovation and creativity to flourish, means that new employees will be attracted to the organization.
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