Dreaming of starting a business in Dubai? You’re not alone – thousands of entrepreneurs from Europe and around the world are setting up shop in this global business hub. Setting up a company here is simpler than most people think, you just need to know the right steps. With a little planning and the right guidance, the whole process can be smooth and stress-free. But to make sure you don’t miss anything important, it helps to have a clear checklist to follow.
That’s why we’ve broken the setup journey into five easy phases – Planning, Legal, Licensing, Visa, and Operations, so you know exactly what to do at each step. Let’s go through it together and make your Dubai business dream a reality.
Essential Checklist for Starting a Business in Dubai
Starting a business in Dubai? Here’s your must-have checklist to make the process smooth and stress-free.
1. Choose the Right Business Activity
Your entire setup depends on this first step. Whether you want to start a trading company, consultancy, café, e-commerce store, or tech startup, your business activity will decide everything from your license type to where you can operate. Dubai has hundreds of approved activities, so make sure you pick the one that matches your business model.
2. Select the Jurisdiction: Mainland, Free Zone, or Offshore
This determines where your business will be legally registered and what laws govern its operation.
| Jurisdiction | Key Feature | Market Access | Ownership |
| Mainland (DET) | Regulated by the Dubai Department of Economy and Tourism (DET). | Full access to the local UAE market and ability to bid on government contracts. | Allows for 100% foreign ownership for most activities (no local sponsor needed) under new reforms. |
| Free Zone | Dedicated economic zones (e.g., DMCC, JAFZA) with their own regulatory bodies. | Limited to operating within the Free Zone or internationally; trading with the Mainland requires a distributor or DET permit. | Traditionally offers 100% foreign ownership and tax benefits. |
| Offshore | Primarily for asset protection and international transactions. | Cannot conduct business within the UAE (no offices or visas). | Offers total foreign ownership and complete tax exemptions. |
3. Decide on the Legal Structure
This defines the legal nature of your company, particularly concerning ownership, liability, and capital requirements. The structure is determined by your chosen activity and jurisdiction.
Common Examples:
- Limited Liability Company (LLC): The most common structure; limits the financial liability of shareholders to their share capital.
- Sole Proprietorship/Establishment: Owned by one person; the owner is personally liable for the company’s debts.
- Civil Company: Typically for professional services where liability is shared among partners.
- Branch/Representative Office: For foreign companies looking to establish a presence without creating a new legal entity.
Why is it essential?
It defines your liability (how much personal risk you take) and your shareholding requirements (who owns the company and in what proportion).
4. Register Your Trade Name
This is the process of choosing and reserving the official name under which your business will operate and be licensed.
Why is it essential?
Legal Requirement: You cannot proceed with the license application until your proposed trade name is approved and officially reserved by the relevant authority.
Compliance with Naming Conventions: The name must adhere to strict UAE public ethics and naming rules. Names must:
- Not contain any offensive language.
- Not contain religious or governmental references.
- Be compatible with your chosen business activity.
- Include the required suffix indicating the legal form (e.g., ‘LLC’, ‘FZE’).
5. Obtain Initial Approval
Initial Approval (also called an Initial Certificate) is a letter from the licensing authority (the Department of Economy and Tourism – DET/DED for Mainland, or the relevant Free Zone Authority) stating that the government has no objection to your company being established.
Why is it essential?
- It confirms the authority has approved your business activity, proposed shareholders, and manager’s details.
- It’s a mandatory prerequisite before drafting legal documents, signing leases, and paying the final license fees.
Crucial Note: This approval does not grant you the right to operate or practice the business activity yet.
Key Documentation (Typically Required):
- Completed application form.
- Passport copies of all shareholders and managers.
- Trade Name Reservation Certificate.
- A brief description of your business activities.
6. Draft and Notarise Legal Documents
Memorandum of Association (MOA):
MOA is generally required for the Limited Liability Companies (LLC), Public Joint Stock Companies (PJSC), and Private Joint Stock Companies. The MOA is the foundational document that outlines the company’s name, objectives, capital, shareholding structure, management rights, and the duties of each partner.
For a Mainland setup, this document typically needs to be signed by all partners/shareholders and notarized at a UAE Public Notary or approved service centre.
Local Service Agent (LSA) Agreement:
LSA is typically required for the Mainland businesses that are 100% foreign-owned professional/civil companies (e.g., consultancies). It appoints a UAE National as a Local Service Agent who facilitates the licensing process. Crucially, the LSA has no stake in the business, ownership, or profit/loss.
7. Secure a Business Location
Every business in Dubai must have a registered commercial address. The requirements differ significantly by jurisdiction:
| Feature | Mainland (DET/DED) | Free Zone (e.g., IFZA, DMCC, TECOM) |
| Requirement | A physical office or retail space that is registered with the Ejari system. The size often depends on the number of employee visas you plan to apply for. | Flexible options ranging from a Flexi-Desk (a shared workstation) or a Virtual Office to a fully dedicated office space. |
| Purpose | To prove your company has a compliant operational base to trade within the UAE. | To fulfill the regulatory requirement of a registered address within the Free Zone jurisdiction. |
8. Apply for Final Trade License
Once you have the Initial Approval, the notarised legal documents, and a registered lease agreement, you can submit the final application to the licensing authority.
Deliverables
- Trade License: The official certificate that legally authorises your company to operate and specifies the approved business activities.
- Commercial Register Certificate (if applicable).
- Chamber of Commerce and Industry registration.
- Official company stamp.
9. Register for Tax Compliance
Corporate Tax:
- Effective from June 2023, the UAE introduced a 9% Corporate Tax on taxable profits exceeding AED 375,000.
- Your company must be registered with the Federal Tax Authority (FTA) and receive a Tax Registration Number (TRN).
Value Added Tax (VAT):
- The standard VAT rate is 5%.
- Mandatory Registration: If your company’s taxable supplies and imports exceed AED 375,000 over the last 12 months or are expected to exceed this threshold in the next 30 days.
10. Apply for Visas and Labour Cards
After securing your license, you can begin the immigration process:
- Immigration Establishment Card: Your company must register with the General Directorate of Residency and Foreigners Affairs (GDRFA) to get an establishment card.
- Entry Permit (E-Visa): This is the initial approval to enter the UAE for the purpose of residing and working.
- Status Adjustment: Once inside the UAE, you will undergo a mandatory Medical Fitness Test and apply for your Emirates ID.
- Visa Stamping: The final step is getting the Residency Visa stamped in your passport.
This process enables you, the investor, and your future employees to legally reside and work in the UAE.
11. Open a Corporate Bank Account
This is a critical operational step. UAE banks have strict compliance procedures.
Key Requirements:
- Original Trade License and company incorporation documents (MOA, Certificate of Incorporation).
- Passport and residence visa copies for all shareholders/signatories.
- A formal Board Resolution authorising the account opening and specifying the account signatories.
- A detailed Business Plan or proof of a business transaction/source of funds may be required.
12. Establish WPS Compliance
The Wage Protection System (WPS) is a mandatory electronic salary transfer system overseen by the Central Bank of the UAE and the Ministry of Human Resources and Emiratisation (MoHRE).
Business owners need to register with WPS and ensure all employee salaries are processed electronically and on time through the system. Non-compliance leads to severe penalties and can prevent you from issuing new visas or renewing your trade license.
13. Final Checks: Post-Setup Essentials
These steps focus on operational readiness, compliance, and risk management after your Trade License is secured.
- Company Stamp: Mandatory. Create the official company stamp; required for contracts, bank forms, and government paperwork.
- Branding & Digital Presence: Launch your professional website, finalise branding, and set up official business emails and communication systems.
- Employment Contracts: Prepare official, UAE Labour Law-compliant employment contracts (in English and Arabic) and required offer letters before hiring.
- Bank Account Activation: Ensure your corporate bank account is fully activated and meets any minimum balance requirements to start transacting.
- Mandatory Insurance: Procure DHA-approved Health Insurance for every visa you sponsor. Obtain Workmen’s Compensation and/or Liability insurance for risk mitigation.
- Intellectual Property (IP): Register your Trademark with the Ministry of Economy if your brand name or logo is unique and needs protection.
- Appoint a PRO (Public Relations Officer): Hire or contract a professional PRO to manage all ongoing government relations (visa processing, license renewal, MoHRE paperwork).
How Shuraa UK Can Help
Starting a business in Dubai doesn’t have to be complicated. With the right help, it can actually be quick and surprisingly simple. The city is full of opportunities, and when you have someone to guide you through the process, setting up becomes much smoother.
At Shuraa UK, we make the whole journey simple and stress-free. From getting your license and opening a bank account to handling visas and compliance, we’ll guide you through every step. Our team offers personalised support for foreign investors and startups, making sure everything fits your goals perfectly.
So, why wait? Reach out to Shuraa UK today, and let’s get your Dubai business up and running – quickly, smoothly, and without the usual headaches.
