How to start a business in Dubai, step by step

The short answer: eight steps from idea to license

Setting up on the Dubai mainland follows a set sequence, which the UAE government portal, u.ae, lays out in the order below. Free zones follow similar logic, but each zone runs its own application and issues its own license.

Each step depends on the one before, so changing your activity midway can unpick the legal form, the trade name and even the premises. Get the activity and the jurisdiction right first.

• Identify the business activity you will carry out
• Select the legal form that fits that activity and your shareholders
• Reserve a trade name
• Get initial approval
• Sign the memorandum of association (MOA), where your legal form needs one
• Secure a business address and, in Dubai, register the lease with Ejari
• Obtain any additional approvals your activity requires
• Collect your trade license

Step 1: choose your business activity

Your activity is the formal description of what your company is allowed to do. It decides which license you hold, which legal forms are open to you and whether another government body must approve you first. Choose activities that match how you will actually earn revenue, because working outside them can cause problems at renewal, with your bank and during inspections.

Planning several activities? Some combinations sit comfortably on one license, while others need separate approvals or a separate company. We check your list before anything is filed.

At federal level, the UAE recognises six license types. Most new owners fall under commercial or professional, but it helps to know the full list:

• Commercial: trading goods and general services
• Professional: skills-based services such as consultancy
• Industrial: manufacturing and processing
• Tourism: travel and hospitality
• Agricultural: farming and related work
• Crafts: skilled trades and artisan work

Step 2: decide between the mainland and a free zone

A mainland company is licensed by DET and can trade directly with customers across Dubai. A free zone company is licensed by the authority of the zone it is based in. The UAE has 40+ free zones, many of them focused on particular industries, and each sets its own rules, packages and office options.

If most of your customers are in Dubai, the mainland is usually simpler. If you trade mainly abroad or with other free zone companies, a free zone may suit you better. Our guide to mainland, free zone and offshore structures compares them in depth.

The biggest practical difference is where you can do business. Under Dubai Executive Council Resolution No. 11 of 2025, a free zone establishment can only operate on the Dubai mainland with DET authorisation. There are three routes: a licensed branch outside the free zone, a licensed branch operating from the free zone, or a temporary permit for specific activities.

• Branch licenses under either branch route are issued for one year and renewed
• A temporary permit lasts no more than six months and covers listed activities only
• The free zone authority must approve first, and some activities also need sign-off from the government body that oversees them

Step 3: choose a legal form and check the ownership rules

The legal form sets who owns the company, how liability works and which documents you sign. Common choices include a sole establishment, a limited liability company (LLC) and a branch of an existing company. Which ones are open to you depends on your activity and your shareholders.

Since 1 June 2021, foreign investors can own 100% of a mainland company for most activities, and Dubai has opened more than 1,000 commercial and industrial activities to full foreign ownership. Activities with a strategic impact are excluded, and the UAE Cabinet decides which activities fall into that group.

In practice, most founders no longer need a local shareholder. The u.ae steps also mention a local service agent agreement alongside the MOA for some legal forms, so check whether it applies to your activity before you draft any documents.

Step 4: reserve your trade name and get initial approval

Your trade name identifies the business and should reflect what it does and its legal form. DET reviews every proposed name, so have a few options ready. Names that copy an existing business, use the name of a government body or include offensive or religious wording are commonly refused.

Initial approval is the government's confirmation that it has no objection to your business being set up in the country. It is not permission to trade. It lets you move on to the MOA and premises, so keep the remaining steps moving.

A corporate shareholder's documents may need attestation and legal translation into Arabic at this stage, so start early.

Step 5: sign the MOA and secure your premises

Depending on your legal form, you sign an MOA that records the shareholders, capital, management and how decisions are made. We type and prepare the draft for your review. For complex shareholder arrangements, take advice from a licensed lawyer before you sign; Global Sky PRO does not give legal advice.

Every UAE business needs a physical address. In Dubai, the tenancy contract must be registered with Ejari, the emirate's system for registering leases. The premises have to suit your activity, and their size can affect how many residence visas the company can apply for later, so check both points before you commit to a lease.

Step 6: get any extra approvals and collect your license

Some activities need approval from another government body before the license is issued, for example in health, education, food or financial services. These approvals have their own requirements and often take the longest. If yours needs one, we tell you at the start.

Once every approval is in place and the fees are paid, DET issues your trade license. Fees are set by the authorities and paid at cost. We confirm each amount before you pay and list it separately from our service fee.

The license is the start, not the finish. Before you can hire staff or sponsor residence visas, the company usually needs to register with the immigration and labour authorities, including the Ministry of Human Resources and Emiratisation (MOHRE). Opening a corporate bank account also takes planning, because banks run their own checks on owners and activities.

After the license: corporate tax and VAT

Corporate tax applies to businesses operating under a UAE license, including free zone companies. It is charged at 0% on taxable income up to AED 375,000 and at 9% on taxable income above that. Free zone tax incentives apply only to businesses that meet the conditions and do not operate on the mainland, so a free zone company with mainland activity should review its position.

Value added tax (VAT) is charged at 5%. Registration with the Federal Tax Authority (FTA) is mandatory once your taxable supplies and imports exceed AED 375,000, and you can register voluntarily once they, or your taxable expenses, exceed AED 187,500. Corporate tax registration is a separate process with its own deadline, and missing either registration can lead to penalties.

Common reasons for delays, and how to avoid them

Most delays come from a handful of avoidable issues, listed below.

Global Sky PRO prepares, types, translates, submits and follows up on each application; DET, the free zone authorities and other government bodies make every decision. Visit us at Fahidi Heights in Bur Dubai, or message us on WhatsApp to talk through your plans.

• An activity description that does not match what the business will actually do
• A trade name that is too close to an existing one or breaks naming rules
• Foreign documents that are not attested or not legally translated into Arabic
• Premises that do not suit the activity, or a lease that is not registered with Ejari
• Shareholder details that differ between passports, the MOA and other documents