- Step 1 - Start with choosing your business activity
- Step 2 - Determine Your Company’s Legal Structure
- Step 3 - Select a Favorable Location in UAE
- Step 4 - Decide a Business Name & Trademark
- Step 5 - Initiate the Process of Business Approval
- Step 6 - Choose an Office Space
- Step 7 - Open a Corporate Bank Account
- Step 8 - Choose an Office Location to Begin Business Activity In Dubai
Step 1 - Start with choosing your business activity
Choosing your business activity will help you identify what kind of license you need to apply for. Dubai has different types of licenses for different business activities, so it’s important to know which one you need to avoid any delays or complications in the setup process.
On the other hand, it will help you determine what kind of legal structure is best for your business. Depending on the nature of your business, you may need to register as a sole proprietorship, partnership, or even a corporation.
It’s important to know that Mainland and Freezone offer a wide range of business activities.
In the Mainland, you can conduct almost any kind of business activity as long as you comply with the legal requirements and regulations set by the Dubai Department of Economic Development.
This includes activities such as retail, trading, consulting, and manufacturing, among others. You can learn more about the list of business activities in the Mainland by visiting the official website.
In Freezone, the range of business activities is a bit more specific and focused on industries such as media, technology, logistics, and healthcare.
However, Freezone offers more relaxed regulations and allows for 100% foreign ownership, making it an attractive option for entrepreneurs looking to start a business without a local partner or sponsor.
The list of business activities varies from free zone to free zone. Find out more about these activities below:
Step 2 - Determine Your Company’s Legal Structure
When setting up a company in Dubai or UAE, the legal structure is determined by the nature and needs of the business. This structure outlines the laws and regulations that the company must comply with, depending on its type and activities.
Choosing the right legal structure is important as it can have significant implications on the company’s operations, taxation, and liability.
There are 3 legal forms of businesses in the UAE free zone
- Free Zone Limited Liability Company (FZ LLC)
- Free Zone Company (FZ Co.)
- Free Zone Establishment (FZE)
Step 3 - Select a Favorable Location in UAE
When it comes to setting up a business in Dubai, there are some key differences between Mainland and Freezone that you should be aware of.
Firstly, in Mainland, you will need to have a local sponsor or partner who will hold 51% of the shares in your company. This is a legal requirement, meaning you must share some control over your business with your local partner.
However, this arrangement can be beneficial in terms of navigating local regulations and gaining access to the local market.
In contrast, Freezone allows for 100% foreign ownership, meaning you can fully control your business without needing a local partner or sponsor.
This can be a major advantage for entrepreneurs who want more flexibility and control over their businesses.
UAE offers many advantages to business owners, including a zero-tax framework and streamlined processes for starting a business.
We have covered a detailed guide for choosing between Mainland and Freezone depending on your business requirements.
Step 4 - Decide a Business Name & Trademark
Choosing a business name and registering a trademark is crucial in setting up a business in Dubai. Your business name is not only the first thing people will see and remember about your company but also an important legal identifier.
Before choosing a name, you should conduct thorough research to ensure that it is available and not already registered by someone else.
Choosing a compelling business name, logo, and slogan that conveys your mission, vision, and niche is crucial for your brand’s identity.
You can search for some ideas using online tools to help you generate a business name and verify the same at the MOE website to check its availability.
Step 5 - Initiate the Process of Business Approval
The process of setting up a business in Dubai can be complex and time-consuming, especially if you’re not familiar with the local laws and regulations. That’s why seeking professional guidance and support from a reliable business setup company is always a good idea.
When starting a business in Dubai, you must fulfill certain legal obligations as per the UAE’s legal framework. These include obtaining and submitting the necessary documents for setting up a business in Dubai.
The prior collected details, such as the business activity, location, business name, and others, will be used to file an application on the UAE’s Department of Economic Development (DED) website.
If you are starting a business in partnership, then you will be required to submit passport copies of all the partners in the business.
Note: To set up a company in Mainland Dubai, specific capital requirements must be fulfilled, which must be documented in a Memorandum of Association.
Obtain Initial Approval
Before obtaining a trade license in Dubai, you must get initial approval for everything discussed above. You can use a service DED’s website to start the initial approval process to determine the company’s legal structure, economic activities, and license partners.
This service can be obtained either before or after reserving a trading name. It helps the customer understand the requirements and legalities involved in setting up the business and ensures that everything complies with the regulations.
Documents commonly required for initial approval:
- Completed application form
- Business plan
- Copy of existing trade license/registration certificate (if applicable)
- Passport copies of the company’s shareholders and appointed manager
- Registry Identification Code Form (RIC) for appointed manager (original and notarized)
- Specimen signatures of the company’s shareholders and appointed manager
- Title deeds (if applicable)
- A brief letter clarifying the investment idea and the investor’s plan (Letter of Intent)
- 2 years of audited financial reports or certificate of reference from a bank (as required)
Documents commonly required for freelancers/professionals
- Application for registration
- Curriculum vitae or profile
- Reference letter from a bank
- Registry Identification Form (RIC) for Director (original and notarized document)
Create LSA or Memorandum of Association
As the next course of action, you must create a Memorandum of Association (if the legal form of the company is a civil company, limited liability company, public shareholding company, or private shareholding company) or local service agent agreement (LSA) for a sole proprietorship.
MOA or LSA is an important legal corporate document that needs to be drafted with utmost care and accuracy.
You are ready to apply for a trade license in Dubai at this stage. But if your business falls under certain business activities, you may need additional documents and approvals from the government.


After getting initial approval and an MOA/LSA, you can begin to file your application for the business license on the official website of the Ministry of Economy – UAE: https://www.moec.gov.ae/en/register-license
Note: You must submit all the documents collected above and pay the fees to obtain the license.
The license is available both offline at the service centers of the economic department or on their website.
Begin Application for Trade License
After getting initial approval and an MOA/LSA, you can begin to file your application for the business license on the official website of the Ministry of Economy – UAE: https://www.moec.gov.ae/en/register-license
Note: You must submit all the documents collected above and pay the fees to obtain the license.
The license is available both offline at the service centers of the economic department and on their website.
Step 6 - Choose an Office Space
When choosing an office space for your business in Dubai, it is essential to consider factors such as location, size, and cost.
UAE offers a variety of office spaces catering to small and large businesses needs. You can choose from various options, including virtual offices, shared workspaces, and fully furnished private offices.
A coworking space may suit you if you want a cost-effective option. This option allows you to have a prestigious address without the cost of physical office space. Shared workspaces are also popular for startups and small businesses, offering a collaborative environment and cost-effective solutions.
For larger businesses, fully furnished private offices are available in different sizes and can be customized to meet your needs. When choosing an office space, it is essential to consider the location and proximity to transportation and amenities to ensure convenience for you and your employees.
Step 7 - Open a Corporate Bank Account
Opening a corporate bank account in the UAE is mandatory to set up a business. You’ll need to provide proof of physical presence for all business partners during document submission.
Offshore businesses must verify their documents from the relevant Emirates Consulate and the UAE’s Foreign Affairs Ministry.
Below are the documents required for opening a bank account in Dubai, UAE:
- Complete Business Profile
- Last 6 months’ bank statement
- Resume of the account holder and other stakeholders involved
- Proof of physical existence
- Valid Passport or Emirates ID
- Trade License
- Company’s regulatory document
- Directors Resolution
Step 8 - Choose an Office Location to Begin Business Activity In Dubai
UAE offers a variety of office spaces that are ideal for small and medium-sized businesses, as well as larger enterprises. These office spaces are available according to the specific legislative directions of each location and can provide an excellent outlet for your business operations in the region.