Starting a business in the UAE: A step-by-step guide

The UAE has become a thriving hub for global entrepreneurs, attracting businesses from all corners of the world. For those looking to establish their ventures in this dynamic market, the process is streamlined but requires careful adherence to local regulations.

Here’s a comprehensive guide on how to set up a business in the UAE mainland, as per the Ministry of Economy.

Age and Legal Requirements

To start a business in the UAE, you must be at least 18 years old, according to the Commercial Transactions Law of 2023. This ensures that all business owners meet the legal age requirement to engage in commercial activities.

Applying for a Business License

Applications can be made online via the unified Basher platform or through the economic department websites of the respective emirates. Alternatively, you can apply in person at government service centres, Tasheel offices, legal services offices, OnTime offices for government services, or customer happiness centres at the Department of Economic Development (DED) in your emirate.

Steps to Establish Your Business

1. Identify the License Type: Determine the type of economic activity your business will engage in and select the appropriate license. The UAE offers six main types of licenses: Occupational, Tourism, Industrial, Commercial, Agricultural, and Professional.
2. Decide the Legal Structure: Choose a legal structure that fits your business needs. Options include Sole Establishment, Civil Company, Limited Liability Company (LLC), Public Joint Stock Company, Private Joint Stock Company, Branch of a GCC Company, Branch of a Local Company, Holding Company, and Representative Office of a Foreign Company.
3. Register a Trade Name: Your trade name must be unique and comply with specific conditions, such as including an abbreviation of the company’s legal structure and avoiding offensive or government-related names. Applications for trade names can be submitted online or in person at the DED.
4. Initial Approval and Agreements: Obtain initial approval from the UAE Government, which is a ‘no objection’ certificate. This allows you to proceed with the necessary steps but does not permit business operations. Depending on your business type, you will need a Memorandum of Association (MOA) or a Local Service Agent Agreement (LSA).
5. Choose a Location: Secure a physical address for your business. This must comply with DED regulations and local municipality policies. In Dubai, tenancy contracts must be registered via the Dubai Land Department’s Ejari portal.
6. Submit Documents and Pay Fees: To obtain your business license, submit all required documents, including the initial approval receipt, copies of previously submitted documents, attested lease contract, MOA (if required), and any other necessary government approvals. Pay the applicable fees and collect your license from service centres or online.
7. Register with the Chamber of Commerce and Industry: Finally, register your business with the Chamber of Commerce and Industry in the same emirate as your company. This registration is essential for the official commencement of your business operations.

Setting up a business in the UAE mainland involves several steps, from identifying your license type to securing initial government approvals and registering your trade name. By following these steps and ensuring compliance with all regulations, entrepreneurs can successfully launch their businesses in one of the world’s most vibrant markets. For those interested in free zone businesses, a different process is required.