How to start a business in the UAE: the steps in order

To start a business in the UAE you choose an activity and a jurisdiction (the mainland, licensed by the emirate’s economic authority, or a free zone, licensed by its own authority), pick a legal form, reserve a trade name, get initial approval, secure premises and collect the licence. After that come the establishment card, visas, a bank account and corporate tax registration within three months of incorporation.

Key takeaways

• Mainland businesses are licensed by the emirate's economic authority, such as the Department of Economy and Tourism in Dubai and the Department of Economic Development in Abu Dhabi; free zone businesses by their free zone authority.
• There are more than 2,000 business activities to choose from, and the activity decides the licence type, the legal form and any extra approvals.
• Foreign investors can own 100% of most mainland companies; activities of strategic impact are the exception.
• A new company must apply for corporate tax registration within three months of incorporation, and registration is free.
• VAT registration becomes mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to in the next 30 days.

On this page 15 sections

The steps at a glance

In broad terms the same ten steps apply on the mainland and in a free zone. What changes is who issues each document.

1. Choose the business activity.
2. Choose the mainland or a free zone.
3. Choose the legal form.
4. Reserve a trade name and get initial approval.
5. Sign the memorandum of association.
6. Find premises.
7. Collect the licence.
8. Get the establishment card and visas.
9. Open a business bank account.
10. Register for tax and record the beneficial owners.

On the mainland the licensing body is the emirate’s economic department, such as the Department of Economy and Tourism (DET) in Dubai or the Abu Dhabi Department of Economic Development (ADDED); for Fujairah, u.ae lists Fujairah Municipality as the local economic authority. In a free zone it is the free zone authority. The order can overlap: Invest in Dubai, DET’s business set-up portal, says a trade name can be reserved before initial approval, and the online licences in step 7 bundle several steps into one application.

1. Choose the business activity

The activity is the starting point for the rest of the application, including whether another regulator has to approve the business.

Business activities to choose from

More than 2,000 business activities

There are more than 2,000 business activities to choose from in the UAE, and one business can hold more than one activity; the activity is the basis for choosing the legal form and the type of licence.

The UAE government portal, u.ae, citing the Ministry of Economy and Tourism, lists six licence types: industrial, commercial, professional, tourism, agricultural and crafts. Dubai and Abu Dhabi add their own, such as Dubai’s eTrader and instant licences and Abu Dhabi’s freelancer licence. Trade licence types compares them.

Some activities also need a sector regulator’s approval. The examples on u.ae include the Telecommunications and Digital Government Regulatory Authority (TDRA) for telecoms, the Central Bank for banks, exchange houses and insurers, and the Ministry of Human Resources and Emiratisation (MOHRE) for recruitment and manpower supply. For activities in legal affairs, security, and financial securities and commodities, that approval comes before initial approval.

2. Choose the mainland or a free zone

A mainland company is licensed by the emirate’s economic department and, as Invest in Dubai puts it, can trade with individuals and businesses across the UAE as well as internationally. A free zone company is licensed by its zone’s authority and trades freely inside the zone and abroad. To sell in the UAE mainland it must work through a licensed mainland distributor or set up a mainland branch or company; direct mainland sales generally need mainland licences or approvals.

Ownership is open in both.

Foreign ownership of mainland companies

Up to 100% foreign ownership

Since Federal Decree-Law No. 26 of 2020 took effect in early 2021, foreign investors may own 100% of mainland (onshore) companies, without a majority Emirati shareholder or local agent, except for activities of strategic impact, for which the Cabinet sets licensing conditions that may restrict foreign ownership.

The activities u.ae lists as not fully open to foreign owners include security, defence and military activities, telecommunications, banking, exchange, financing, insurance and bank note and coin production, commercial agencies, and fishing and natural pearl catching. In free zones, u.ae says companies can be fully owned by foreign investors. How the two jurisdictions compare is set out in mainland or free zone.

3. Choose the legal form

The legal form decides which laws apply and how far the owners are liable, and it must match the activity.

Company forms in the Commercial Companies Law

5 company forms

A commercial company in the UAE must take one of five legal forms: general (joint liability) partnership, limited partnership, limited liability company (LLC), public joint stock company (PJSC) or private joint stock company (PrJSC); a company that takes no listed form is void.

A limited liability company (LLC) has between 2 and 50 partners, each liable only up to their share of the capital, and one person, an individual or a company, can also form and own an LLC alone. Sole establishments and branches are licensed as well, although the law does not count them as company forms, and Invest in Dubai lists the civil company and the sole proprietorship among the structures open in Dubai. Free zones register their own entity types, such as the free zone establishment (FZE) and the free zone company (FZ Co), and u.ae notes that not every free zone registers every type. Company legal forms compares them.

4. Reserve a trade name and get initial approval

The trade name is registered with the emirate’s economic department, on its website or app. It must end with the abbreviation of the legal form, such as LLC or EST, and fit the activity. It must not have been registered before, and it cannot contain the name of a religion or a governing authority. A trade name is not a trademark: the Ministry of Economy and Tourism registers trademarks separately.

Initial approval means the government has no objection to the business being set up, and it lets the founder move on to the next steps. It is not permission to trade. Foreign investors need the approval of the General Directorate of Residency and Foreigners’ Affairs (GDRFA) before they can get it.

5. Sign the memorandum of association

The memorandum of association (MoA) is the company’s founding document. u.ae lists it for limited partnerships, LLCs and both types of joint stock company. In Dubai, DET issues the MoA for LLCs, one-person companies and civil companies, and a notary for the other legal forms. More generally, u.ae says UAE law firms, courts and notaries prepare and attest MoAs and agreements.

Depending on the legal form and the owners, a business needs a signed MoA or a local service agent agreement. ADDED says the choice depends on the legal form and ownership, and Invest in Dubai asks for a service agent contract only where the business type requires one. The duty for branches of foreign companies to appoint a UAE national service agent was removed by Federal Decree-Law No. 26 of 2020.

6. Find premises

Every business in the UAE needs a physical address that meets the economic department’s requirements and the municipality’s land planning rules. On the mainland that means an office or warehouse lease. Some emirates require the lease to be attested, and in Dubai it must be registered with Ejari.

Not every licence needs an office. Dubai’s instant licence can include a virtual site for the first year, and in Abu Dhabi the freelancer licence lets citizens and foreigners work remotely in specific fields without office premises. Free zones offer their own facilities, and u.ae points to a Dubai comparison tool that shows which free zones offer facilities such as warehousing and plots of land.

7. Collect the licence

The licence is collected from the economic department, at a service centre or on its website, once the earlier steps are complete. The file includes the initial approval receipt and the documents already submitted, the lease (attested by the Real Estate Regulatory Agency in Dubai), the attested MoA, any other approvals and, where one is required, the attested service agent contract.

Time to pay the licence fee

30 days from the payment voucher

After the steps for a mainland licence are complete, the trade licence fee must be paid within 30 days of receiving the payment voucher; if it is not paid within that period, the application is cancelled.

The fee depends on the licence type and the activities; trade licence cost sets out what the authorities publish. The full procedure for each emirate is in mainland company setup, and for free zones in free zone company setup.

Online routes

On the mainland, three official channels let a founder apply without visiting a service centre. Basher, a UAE government platform, is connected with the federal and local bodies that issue commercial licences, and u.ae says it lets investors establish a business in 15 minutes. Dubai has an instant licence, and ADDED offers one online in Abu Dhabi, where the lease and the memorandum of association follow after the licence is issued.

Dubai instant licence

Issued in 5 minutes; virtual site for the first year

Dubai's instant licence is issued within five minutes for a group of activities that do not require external approvals and can include a Memorandum of Association, a virtual site for the first year, Dubai Chamber membership for commercial activities, a GDRFA establishment card and, for LLCs, single-owner LLCs, sole establishments and civil companies, a MOHRE establishment card with the option to employ three people; a normal licence needs an MoA and a site lease contract.

Abu Dhabi instant licence

Lease and MoA due within 30 days of issue

Through the TAMM 'Issue Economic Licence - Instant Licence' service, an applicant can get an instant Abu Dhabi economic licence without first providing documents such as the lease contract or the Memorandum of Association; the lease contract and the Memorandum of Association are required within 30 days from the date of issuance.

Free zone licences

In a free zone, the application covering steps 3 to 7 goes to the free zone authority.

Free zone licence

Licence within 14 working days of approval

To start a free zone business, the investor chooses the sector and the free zone, the legal entity type and a trade name, then applies online through the free zone authority's website, in most cases providing basic company information and uploading documents; after review and approval, the licence is issued within 14 working days.

u.ae lists free zones across the emirates, including DMCC, Jebel Ali Free Zone and Dubai Airport Free Zone in Dubai, and KEZAD, Masdar City and twofour54 in Abu Dhabi. Some sectors answer to another regulator as well, for example media businesses to the National Media Authority.

8. Establishment card and visas

The establishment card records the company with the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), which describes it as the card that reflects the establishment’s registered data. In Dubai, GDRFA Dubai issues establishment cards to private sector and free zone businesses, and the instant licence can include a GDRFA establishment card and, for some legal forms, a MOHRE establishment card with the option to employ three people. ICP renews the card only if the company holds a valid trade licence and has paid any fines due, so a lapsed licence also holds up the card (trade licence renewal).

Owners and partners can also base their own residence on the business. ICP’s green residence is a five-year renewable residence without a sponsor, and its category for investors and business partners asks for proof of investment in a UAE business and the required licences. ICP’s guide names no minimum amount for that category, but GDRFA Dubai sets one for investors and partners in Dubai.

Green visa for investors and partners in Dubai

Paid share of at least AED 1,000,000; up to 5 years

For a green visa as an investor or partner in Dubai, GDRFA Dubai requires the company to be a public or private joint stock company, a limited liability company, a simple limited partnership or a general partnership, and the investor's or partner's paid share on incorporation or contribution to be at least AED 1,000,000 or its equivalent; the green residence permit lets an investor or partner in a commercial project live in the UAE for up to five years without a sponsor or employer and is renewable on the same terms.

The golden residency, valid for ten years, has a category for entrepreneurs.

Golden residency for entrepreneurs

AED 1,000,000 annual revenue; AED 7,000,000 in ventures sold

ICP lists these Golden Residency conditions for entrepreneurs: owning or being a partner in a UAE-registered entrepreneurial venture classified as a small or medium-sized enterprise (SME), operating in an approved field, with annual revenues of at least AED 1,000,000; approval of the venture idea by an accredited business incubator, the Ministry of Economy, the Authority or a relevant local authority; being the founder or one of the founders of one or more ventures previously sold for a total value of at least AED 7,000,000; and health insurance for the entrepreneur and family at the time of application.

Investor and green visas and golden visa requirements set out the conditions and documents.

9. Open a business bank account

The company account is opened with a UAE bank, and the documents it asks for are the bank’s own. The Central Bank of the UAE requires banks to disclose their minimum documentary requirements clearly, and its regulation for SME customers sets a time limit for opening low-risk accounts.

Account opening for a low-risk SME

3 business days (delay up to 2 weeks)

Under the CBUAE SME Customer Protection Regulation (Circular 2/2026, effective 13 September 2026), which applies to banks and finance companies licensed by the Central Bank, a bank must open a low-risk SME customer's account within 3 business days of receiving a complete application; if other valid reasons delay it, the delay may not exceed 2 weeks and the bank must explain it, and it may open the account with limited transactions meanwhile.

The usual documents are listed in opening a business bank account. Each bank sets its own conditions when the owners or signatories live abroad, covered in business accounts for non-resident owners.

10. Register for tax and record your owners

Three registrations follow the licence: corporate tax for every company, VAT once taxable supplies and imports pass the threshold, and the register of beneficial owners.

Corporate tax

A company incorporated in the UAE, a free zone company included, has a fixed deadline to apply to the Federal Tax Authority (FTA).

Corporate tax registration deadline

3 months from incorporation

A resident juridical person incorporated, established or recognised in the UAE on or after 1 March 2024, including a Free Zone Person, must apply for Corporate Tax registration within three months of the date of incorporation, establishment or recognition.

Registration is made on EmaraTax, the FTA’s online portal, and it is free. The FTA’s estimated time to complete an application is 20 business days from the date it receives the complete application. The steps and documents are in corporate tax registration, and the rates in corporate tax rate.

VAT

VAT registration depends on the value of taxable supplies and imports, not on incorporation.

Mandatory VAT registration threshold

AED 375,000

A business must register for VAT if the value of its taxable supplies and imports exceeded AED 375,000 over the previous 12 months, or is expected to exceed AED 375,000 in the next 30 days.

A business below that level may register voluntarily once its taxable supplies and imports, or its taxable expenses, pass AED 187,500 on the same two tests.

Time to apply once registration is mandatory

30 days

A person required to register for VAT must file the registration application with the FTA within 30 days of becoming required to register; if it does not, the FTA registers it from the date it first became liable and the business owes VAT on all supplies made before registering.

Worked example

A new trading company crosses the VAT thresholds

The sales figures and dates are illustrations. A company starts trading in January 2027 and invoices taxable supplies of AED 40,000 on the last day of each month, with no imports and lower taxable expenses. It has traded for less than 12 months, so its 12-month total is everything it has sold so far, and the supplies due in any 30 days come nowhere near either threshold.

1. End of April 2027, after four invoices: 4 × AED 40,000 = AED 160,000. That is below AED 187,500, so voluntary registration is not yet open.
2. End of May 2027, after five invoices: 5 × AED 40,000 = AED 200,000. That is above AED 187,500, so it may apply voluntarily.
3. End of September 2027, after nine invoices: 9 × AED 40,000 = AED 360,000. Still below AED 375,000, so registration is not yet mandatory.
4. 31 October 2027, the tenth invoice: 10 × AED 40,000 = AED 400,000, which is AED 25,000 over AED 375,000. Registration becomes mandatory that day, and the 30 days to apply start.

Mandatory VAT registration from 31 October 2027, at AED 400,000 of taxable supplies.

The application itself is covered in VAT registration.

Beneficial owner register

A company must also record its beneficial owners: the people who own or control 25% or more of its capital or voting rights, directly or through a chain of ownership, or who control it in other ways, such as by appointing or dismissing most of its directors. The rule covers companies in commercial free zones as well as on the mainland.

Beneficial owner register

60 days to create and file; 15 days to update

A company must create a register of its beneficial owners within 60 days of its incorporation (or of the decision's issue for existing companies), update it within 15 days of learning of any change, and file the beneficial owner and partners/shareholders registers with the registrar within 60 days of licensing and registration.

Cabinet Decision No. 109 of 2023 defines the registrar as the authority that supervises the trade names register.

Worked example

The first deadlines for a company formed on 16 November 2026

The dates are illustrations. The company is incorporated and licensed on the same day.

1. Beneficial owner register: created and filed with the registrar within 60 days. 16 November 2026 plus 60 days is 15 January 2027.
2. Corporate tax registration: within three months of incorporation, a period that runs to mid-February 2027.
3. The beneficial owner filing therefore falls due about a month before the corporate tax application.

First deadline: 15 January 2027, for the beneficial owner filing.

Starting a business from abroad

Founders based abroad go through the same steps, with some of the paperwork done before arrival or in the home country. Nationality matters in a few places: Dubai asks non-GCC nationals for a residence visa or entry permit, foreign investors need GDRFA approval before initial approval, and whether a local service agent agreement is needed can depend on ownership.

Applying before you move

For Dubai, Invest in Dubai says the applicant must hold a valid tourist or visit visa before applying for a licence. The application includes a copy of the licence holder’s passport if not resident in the UAE, or Emirates ID if resident, and the company’s articles of association, which a one-person LLC does not need. Abu Dhabi’s virtual licence is an economic licence for individuals living outside the UAE who want to start a business in Abu Dhabi. Free zone authorities take licence applications on their websites, and Basher works online for the mainland.

Documents from your home country

When the UAE business is a branch of a company based abroad or in a UAE free zone, Dubai asks for a copy of the parent company’s licence. The parent’s documents must be attested in the home country by the UAE embassy and the Ministry of Foreign Affairs, counter-attested by the UAE Ministry of Foreign Affairs, and legally translated into Arabic, with the translation attested by the UAE Ministry of Justice. u.ae lists the Ministry of Economy, now the Ministry of Economy and Tourism, among the bodies that approve a branch of a foreign company, and a public or private joint stock company in Dubai also needs a feasibility study of the project.

Home-based and online businesses

Small businesses run from home or online have their own licences. Dubai’s eTrader licence is a sole establishment licence for home-based businesses in Dubai that already hold a trade name, applied for on the Invest in Dubai portal. In Abu Dhabi, ADDED describes the Abu Dhabi Trader licence as issued electronically to UAE citizens and residents for specific commercial activities, and its freelancer licence as covering remote work in specific fields without office premises. These sit alongside the standard licences in trade licence types, and the other company setup guides take each step further.