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Business Setup

Steps to start a business in UAE.

An investor can start own business on the UAE mainland. Starting a business in ordinary ways requires a series of steps, procedures and approvals from the Economic Department and other government entities. This page states such steps and the investor’s journey to start a business in the UAE mainland.

Starting a business regularly

Starting a business in ordinary ways involves a series of steps, including:

  • 1 Identifying a business activity
  • 2 Selecting an appropriate legal form
  • 3 Registering the trade name
  • 4 Applying for an initial approval
  • 5 Drafting a Memorandum of Association and local service agent agreement
  • 6 Select a business location
  • 7 Get additional government approvals
  • 8 Submit documents and pay fees

Identify business activity

Business activity is the basis for selecting the legal form and type of license, whether commercial, industrial or professional, etc. There are different types of licenses. They are: industrial, commercial, professional, tourism, agricultural and occupational.

Select the legal form

The legal form depends mainly on the business requirements. Moreover, the legal form is basis for identifying applicable laws and regulations. In the UAE, an investor can select one of these legal forms:

  • Limited liability company (LLC)
  • Sole Proprietorship L.L.C.
  • 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

Register the trade name

A trade name distinguishes one business from another. It also reflects the nature and the form of the business. An investor can apply for the trade name through the economic department in each emirate, through its website or mobile application.

Initial approval

An initial approval means that the UAE Government has no objection for the business to be established in the country. It also allows the investor to proceed with the next steps in setting up a business. It does not, however, grant the authority to run or practice the business activity.

Foreign investors must obtain the approval of the General Directorate of Residency and Foreigners’ Affairs before getting the initial approval.

Some activities require additional approvals from government entities related to that particular business before applying for the initial approval. These include activities related to legal affairs, security affairs and financial securities and commodities.

MOA and LSA

Depending on the legal form of a business, a completed and signed Memorandum of association (MoA) or a local service agent agreement (LSA) of the business is required. The memorandum of association is required for the following business legal forms:

  • Limited liability company (LLC)
  • Sole Proprietorship L.L.C.
  • Public joint stock company (PJSC)
  • Private joint stock company (PrJSC)