Choose Your Business Activity

Before anything else, you need to define exactly what your business will do. In the UAE, every company is licensed for specific activities — and you can only legally conduct the activities listed on your license. This sounds simple, but it has significant implications for which license type you need, which free zone is most appropriate, and how much your license will cost.

If you are a consultant, marketing agency, or IT service provider, a Professional license is your route. If you are trading products, a Commercial license applies. If you plan to manufacture, that is an Industrial license. The UAE has hundreds of defined business activity codes — your setup agent or the DED website can help you identify the right ones for your business model.

Choose carefully. Adding activities later requires a license amendment that costs AED 2,000–8,000 and takes additional time.

Choose Your Company Structure & Jurisdiction

Once you know your activity, you need to decide on your legal structure and jurisdiction. For most foreign investors, the choice is between a Free Zone Establishment (FZE) — a single-owner free zone entity — or a Limited Liability Company (LLC) on the mainland.

If you go the free zone route, you also need to choose which free zone. Dubai has over 30. The right one depends on your industry: DMCC for commodities and trading, Dubai Internet City for tech, IFZA for general SMEs, DIFC for financial services, and so on. Each has different costs, visa quotas, and reputational weight with banks and clients.

For a breakdown of the major free zones and how to choose between them, see our guide: Dubai Free Zones 2025: Which One Is Right for You?

Reserve Your Company Name

Your company name must comply with UAE naming rules: no offensive or religious terms, no names that are already registered, and — for mainland companies — it must not include any reference to a country, government body, or well-known organization without special permission. Your name can be in English, Arabic, or both.

Name reservation is done through the DED portal (for mainland) or through your chosen free zone authority. It typically costs AED 300–620 and takes 1–3 business days. Once reserved, you have a limited window — usually 30–60 days — to complete your application before the reservation expires.

Apply for Initial Approval

Initial approval is the government's preliminary green light that your proposed business activity is permitted under UAE law and that your application will be considered. It is not the license itself — think of it as a conditional approval that allows you to proceed with the remaining steps.

For mainland companies, initial approval is obtained from the DED. For free zone companies, it is handled by the free zone authority. Some activities require additional approvals from other bodies — for example, healthcare activities need DHA approval, financial activities may need SCA clearance, and food-related businesses need Dubai Municipality sign-off. These secondary approvals run in parallel and may add time and cost to your process.

Prepare & Notarize Your Legal Documents

At this stage, you need to prepare your Memorandum of Association (MOA) — the foundational legal document that defines your company's ownership structure, business activities, share capital, and the rights and responsibilities of shareholders. For an LLC, this document must be drafted by a licensed legal professional and notarized at a UAE notary public.

Free zone companies typically use standardized MOA templates provided by the free zone authority, which simplifies the process. Mainland LLCs require a more tailored MOA, especially if there are multiple shareholders or complex ownership arrangements.

If your personal documents — passport copies, educational certificates, proof of address — need to be attested or legally translated, this step is also when you handle that. See our detailed breakdown of what attestation involves and how much it costs.

Secure Your Office Space

For mainland companies, a physical office lease is a legal prerequisite for obtaining your trade license. You cannot get the license without a signed, Ejari-registered tenancy contract. For free zone companies, you can typically choose between a virtual office, flexi desk, or physical office depending on your visa quota needs and budget.

Once you sign your lease, register it through Ejari (for mainland) or the free zone's equivalent system. This registration costs AED 220–400 and is required before your license application can be completed.

Your office choice directly determines how many visas you can obtain. Plan this carefully — upgrading to a larger office later to increase your visa quota is possible but costs money.

Submit Your License Application & Pay Fees

With your initial approval, MOA, and office lease in hand, you can now submit your full trade license application. For mainland companies, this goes through the DED portal. For free zone companies, it is submitted to the free zone authority directly — or through a registered setup agent.

At this point, you pay the trade license fee, registration fee, and any activity-specific fees. This is typically the largest single payment in the setup process. Processing time varies: free zone licenses are often issued within 3–7 business days; mainland licenses typically take 5–15 business days, or longer if secondary approvals from other bodies are required.

Obtain Your Establishment Card

The Establishment Card (also called the Company Immigration Card or Labour Card) is an official document that links your company to the UAE immigration and labour systems. Without it, you cannot sponsor employee visas or apply for your own investor residence visa.

It is obtained from the Ministry of Human Resources (MOHRE) for mainland companies, or from the free zone authority for free zone companies. It costs AED 1,000–1,800 and must be renewed annually. This step is often overlooked by first-time business owners — do not skip it.

Apply for Your Investor Residence Visa

With your trade license and establishment card in hand, you can now apply for your UAE investor residence visa. This is your legal right to live in the UAE as a company owner. The process involves an entry permit (or status change if you are already in the country), a medical fitness test, Emirates ID biometrics, and visa stamping in your passport.

For a complete cost breakdown of the investor visa process, see our dedicated guide: UAE Golden Visa 2025: Complete Guide. The standard investor visa is a 2–3 year renewable residence permit.

Open Your Corporate Bank Account

With your trade license and residence visa active, you can now apply for a corporate bank account. This is often the most time-consuming step of the entire process — UAE banks conduct thorough KYC and compliance checks, and approval can take anywhere from 2 to 8 weeks depending on the bank and your business profile.

Prepare your documentation carefully: trade license, MOA, passport copies, Emirates ID, proof of address, business plan, and source of funds documentation. Incomplete applications are the most common reason for delays and rejections.

For a detailed breakdown of banking costs and which banks work best for new foreign-owned businesses, see our guide: How to Open a Bank Account in Dubai.

Register for Corporate Tax (If Required)

Since June 2023, all UAE businesses are required to register with the Federal Tax Authority (FTA) for corporate tax purposes — even if your profits fall below the AED 375,000 taxable threshold. Registration is free and can be done online through the FTA portal, but it must be completed within a specified window after your license is issued.

If your annual taxable revenue exceeds AED 375,000, you will also need to register for VAT. For a complete explanation of UAE tax obligations, read our guide to the UAE Tax System 2025.