New Business Setup in Dubai - UAE

The first step to start a new business in Dubai is to decide what type of business activity you want to conduct and what legal structure you want to adopt for your company. There are more than 2,000 business activities to choose from in Dubai, ranging from industrial, commercial, professional, tourism, agricultural, to occupational. You can also have more than one business activity under the same license.

The legal structure of your company determines the applicable laws and regulations, as well as the ownership rights and liabilities of the shareholders or partners. There are several legal forms available in Dubai, such as:

• General partnership
• Limited partnership
• Limited liability company (LLC)
• Public joint stock company (PJSC)
• Private joint stock company (PrJSC)
• Civil company
• Local company branch
• GCC company branch
• Foreign company branch
• Free zone company branch
• Sole establishment
• Holding companies

The legal form of your company must match your business activity and your ownership preferences. For example, if you want to have 100% ownership of your company without a local partner or sponsor, you may opt for a free zone company branch or a civil company (for certain professional activities). However, if you want to trade with the local market or take on government contracts, you may need to set up a mainland company with a local partner or sponsor who holds at least 51% of the shares.

The subsequent step involves selecting a unique and meaningful name for your company, one that reflects your business activity while adhering to naming rules and regulations in Dubai. It’s essential to steer clear of names that are offensive, misleading, identical, or similar to existing trademarks or entities. Additionally, avoid names containing religious or political references.

You also need to register your company name with the relevant authority depending on your legal form and location. For example, if you are setting up a mainland company, you need to register your name with Dubai Economy through their online portal. If you are setting up a free zone company, you need to register your name with the respective free zone authority.

You can check the availability of your desired name online before registering it. You may also need to pay a fee for reserving or registering your name.

A trade license is a mandatory document that authorizes you to conduct your business activity in Dubai. The type of license you need depends on your business activity. There are four main types of licenses:

• Commercial license: for trading activities such as buying, selling, importing, exporting, etc.
• Industrial license: for manufacturing activities such as producing, processing, assembling, etc.
• Professional license: for service-oriented activities such as consulting, designing, teaching, etc.
• Tourism license: for tourism-related activities such as travel agency, hotel, restaurant, etc.

To acquire a trade license, it’s necessary to submit an application along with the required documents and fees to the relevant authority. Specifically, for mainland companies, this authority is typically Dubai Economy or one of its branches. Moreover, for free zone companies, this is usually the respective free zone authority.

• Application form
• Passport copies of the shareholders or partners
• Company name reservation certificate
• Initial approval certificate
• Memorandum of association (MOA) and local service agent agreement (if applicable)
• Proof of share capital (if applicable)
• No objection certificate (NOC) from your current employer (if applicable)
• Approval from other government entities (if applicable)

The fees for obtaining a trade license vary depending on your business activity, legal form, location, and other factors. You can use online calculators or consult with experts to estimate the cost of your license.