Business Setup
How to start a business in UAE?
The United Arab Emirates (UAE) is a popular destination for business setup due to its strategic location, favorable business environment and interesting tax incentives. There are two types of company formations in the UAE: mainland and free zone.
Mainland Business Setup Process in UAE:
The mainland setup process involves getting a license from the Department of Economic Development in the respective emirate. The process slightly change in each emirate, but generally involves the following steps:
Determine the busines activity – The first step is to determine the business activity and ensure that it is allowed in the UAE. Certain activities may require additional approvals or permits from other government entities.
Choose a legal structure – Choose a legal structure for the company such as Sole proprietorship, LLC, or Partnership.A foreign company can also set up a branch office or representative office in the UAE.
Reserve a trade name – Reserve a trade name for the company and obtain initial approval from DED.
Prepare legal documents – Prepare the legal documents including the Memorandum of Association and Articles of Association, and notarize it.
Obtain approvals: Obtain approvals from the relevant government authorities.
Obtain a license: Obtain a commercial license from the DED.
Register for tax: Register for tax with the Federal Tax Authority.
Required Documents for Mainland Business Setup in UAE:
Passport copies of shareholders and managers
Emirates ID copies of shareholders and managers
No objection certificate (NOC) from current sponsor, if applicable
Memorandum of Association and Articles of Association
Initial approval from DED
Trade name reservation certificate
Free Zone Business Setup Process in UAE:
Free zones are designated areas within the UAE that offer special tax incentives, 100% foreign ownership, and streamlined business setup procedures.
The business setup process in free zones is generally as follows:
Choose a freezone: Choose a freezone that is appropriate for the business activity.
Choose a legal structure: Choose a legal structure for the company, such as a Free Zone Establishment (FZE), Free Zone Company (FZCO), or Branch.
Reserve a trade name: Reserve a trade name for the company.
Prepare legal documents: Prepare the legal documents, including the Memorandum of Association and Articles of Association.
Obtain approvals: Obtain approvals from the relevant free zone authority.
Obtain a license: Obtain a license from the free zone authority.
Register for tax: Register for tax with the Federal Tax Authority.
Required Documents for Free Zone Business Setup in UAE:
Passport copies of shareholders and managers
Emirates ID copies of shareholders and managers
No objection certificate (NOC) from current sponsor, if applicable
Memorandum of Association and Articles of Association
Initial approval from the free zone authority
Trade name reservation certificate