Steps to Start Your Company in Dubai the Right Way
Thinking of launching a business in the UAE? Dubai is one of the top spots for entrepreneurs. With its growing economy and investor-friendly environment, company setup in Dubai is both exciting and rewarding—if done correctly.2. Understand the Business Environment
Dubai offers two main options for business formation:
Mainland: Great for local business operations.
Free Zone: Ideal for international trade, offering 100% foreign ownership.
Your decision here affects everything from your license to office location.
3. Choose the Right Business Activity
Before anything else, select your business activity—whether it’s trading, consultancy, e-commerce, or manufacturing. Each activity has licensing and location implications.
4. Pick the Legal Structure
Some popular business structures include:
LLC (Limited Liability Company)
Sole Proprietorship
Free Zone Establishment (FZE)
Civil Company
Each setup has specific documentation, capital, and ownership requirements.
5. Get a Trade Name Approved
Your business name should reflect your activity and must be approved by the Department of Economic Development (DED) or the Free Zone authority. Avoid religious, political, or offensive terms.
6. Apply for Initial Approval
Initial approval is basically a go-ahead from the authorities to proceed. It shows that the UAE government has no objections to your company.
7. Draft and Notarize the MOA
The Memorandum of Association (MOA) outlines ownership distribution and company rules. It must be signed and notarized, particularly for LLCs.
8. Secure a Business Location
You’ll need a lease agreement for your office. Free Zones often offer co-working spaces or flexi-desks, while mainland setups require physical office space.
9. Submit the Final Application
Once your documents are ready, submit them to the DED or Free Zone. Upon approval, you’ll receive your business license—your official permission to operate.
10. Apply for Your Visas
With your license in hand, you can now apply for:
Your own residence visa
Partner or investor visas
Employee visas
This step requires medical testing, Emirates ID registration, and entry permit processing.
11. Open a Corporate Bank Account
Opening a business bank account in the UAE requires your license, passport, and business plan. Some banks also need an office lease and minimum balance deposit.
12. Register for VAT (if needed)
If your business exceeds the annual threshold (AED 375,000), you must register for VAT with the Federal Tax Authority (FTA). Some Free Zones offer tax advantages depending on your business type.
13. Cost Considerations
Expect costs for:
Trade license
Office rent
MOA notarization
Visa and Emirates ID
Initial approvals and deposits
Packages in Free Zones may start as low as AED 12,000 annually.
14. Get Professional Assistance
If you're new to the UAE market, a local company setup consultant in Dubai can save time, reduce risk, and make sure you meet all legal requirements properly.
15. Final Thoughts
Starting a company in Dubai is a smart move for ambitious entrepreneurs. Follow the legal process, plan your structure, and get expert guidance where needed. With the right steps, your Dubai business can be up and running in just a few weeks.
AR Associates is a leading business consultancy specializing in company set-up in Dubai, providing c
