Starting a Business - dda
Starting a Business
Business Set-up Options
When you decide to start a business in Dubai, you have two options; either to set up your business on the 'mainland' or in a free zone. It's important to make an informed choice regarding company jurisdiction, and to understand what "mainland" and "free zone" mean.
Free zones are designated areas within Dubai, with benefits including custom duties and tax exemptions. Each zone has its own rules, regulations, and regulatory authorities. Read more
Mainland means all areas of Dubai outside the free zones. the Dubai Department of Economy & Tourism (DET) manages registration and licensing of mainland companies. Read more
arrow_outward
Mainland Businesses
Steps to start your business on the mainland
Choose your license
Choose your legal form
Check foreign ownership eligibility
Check if you need additional approvals
Gather your essential documents
Start your company registration process
1- Licenses
Every mainland company requires a license to operate. You can choose from five main license types.
Industrial License
This is applicable to all kinds of manufacturing, production, packaging, segregation or collection, including the manufacturing of food, textiles, paper, petroleum products, and equipment and appliances.
Commercial License
This license is for you if your business revolves around buying and selling of most goods and services, including import and export, logistics, physical products, software, construction, and real estate.
Professional License
This type of license is for individuals who offer professional services based on their intellectual or artistic abilities.
E-Trader License
If you’re a home-based individual or entrepreneur who sells products and services via social media or other online platforms, this license is for you.
Dual License
Dual licensing allows companies operating in specific free zones to extend their presence to the mainland without the hassle of leasing additional office space or partnering with a local shareholder. This is currently available in collaboration with five free zones. Read more
2- Legal Form
Choose a legal form that aligns with your intended business activities.
General Partnership
This involves two or more partners who are jointly and separately liable for the company’s obligations using their personal funds.
Limited Partnership
A company formed of one or more general partners who have joint and separate liability, or one or more limited partners who have limited liability proportional to their capital shares.
Limited Liability Company
A business entity in which partners' liability is limited to their capital share. A Limited Liability Company can be established and owned by a UAE national or any other individual or company, regardless of nationality, and can have multiple partners, up to 50.
Private Joint Stock Company
A company of this type has up to 200 shareholders with an equal division of capital into nominal value shares. It can be established and owned by one legal person (company), and its shares cannot be publicly offered.
Public Joint Stock Company
A company with capital divided into equal negotiable shares, where the founders subscribe to a portion of such shares, while the remainder is offered to the public through a public offering.
Civil Company
This is a company owned by two or more partners practicing a professional activity such as tailors, beauty salons, consultancy, or training, etc.
Sole Proprietorship
A business owned by one person, who is personally liable for all financial obligations and liabilities incurred by the business.
For more information on all legal forms, download Al Wajeez guide.
3- Foreign Ownership Eligibility
Most business activities do allow for 100% foreign ownership, but there are certain strategic sectors and activities where it is not permitted. In these cases, if you want to set up a business performing one or more of these activities, you will need to work with an Emirati partner. See restricted activities
4- Additional Approvals
Some activities or company types require approvals from other government departments or agencies.
Before you begin setting up your company, you should make sure your proposed activities do not require any specific approvals. or if they do, ensure you will be able to obtain these approvals, and comply with any conditions they require.
arrow_outward
5- Essential Documents Required
Initial approval for new businesses requires the following documents:
Copy of the licensee’s passport or Emirates ID
Copy of the applicant’s residence permit/visa
The company’s articles of association (not applicable for a one-person LLC)
A feasibility study of the project (for PSCs and PJSCs)
Branches of foreign or free zone companies require:
A copy of the parent company’s license
Branches of companies in other emirates require:
The parent company’s board resolution to open a branch in Dubai
A letter of authorization from the managing director
A copy of the parent company’s commercial registration certificate
A copy of the parent company’s memorandum of association (MoA)
All foreign documents must be attested by the UAE Embassy and Ministry of Foreign Affairs in the country of origin, and counter attested with the Ministry of Foreign Affairs in the UAE. The documents also need to be legally translated in Arabic and attested by the Ministry of Justice in the UAE.
6- Register your company
After finishing all the above procedures, you have 3 steps to obtain a business license in Dubai involves three key steps.
Initial approval
The Dubai Department of Economy & Tourism reviews your trade license application and documents and gives initial approval for your business to be established in the jurisdiction. Initial approval allows you to proceed with the next step, such as securing business premises. Find out more about applying for initial approval.
Reserve your trade name
You must now register your trade name, business activity and company structure; you can also reserve your trade name before the initial approval is granted. Dubai has specific rules to follow for selected a trade name. Find out more about requesting your trade name.
Collect your business license
After submitting your initiative approval receipt, MoA and additional approvals (if any), you will receive your business license.
arrow_outward
Related Online Services
arrow_outward
arrow_outward
arrow_outward
Free Zone Companies
Dubai's free zones offer multiple opportunities for businesses, providing dedicated support for specific industries, tax-free profits, and 100% foreign ownership.
Steps for setting up a free zone company
Choose your free zone
Choose your free zone company structure
Get a brief about set-up costs
Start the free zone company set-up process
1- Choose a Free Zone
Dubai has more than 20 free zones, catering to specific industries and offering dedicated support.
Choosing a free zone depends on what your business goals are, as well as the practical needs of your company. Many of Dubai's free zones allow standard trading enterprises across a range of sectors, but some are focused on just a few specialist areas.
2- Choose your free zone company legal form
Free zones in Dubai offer several legal forms to choose from, with specific options within each zone.
The most common free zone legal forms include:
Free Zone Establishment (FZE):
A legal entity incorporated/registered by a single shareholder, who can either be an individual or a corporate entity.
Free Zone Company (FZCO):
A legal entity incorporated/registered with a minimum of two shareholders, who can be either individuals or corporate entities.
Public Limited Liability Company (PJSC):
A corporate entity with multiple shareholders that can offer its shares to the public for trading on the stock exchange.
Private Limited Liability Company (LLC):
A corporate entity with limited liability, formed by a minimum of two and a maximum of 50 shareholders, not open to public subscription or trading of shares.
Branch of a Local or International Company:
An extension of an existing local or international company, allowing it to conduct business in Dubai while remaining legally dependent on its parent company.
For detailed information on company structure in a particular free zone, please see that zone's website, or contact their support team.
3- Set-up costs
Costs can vary depending on your requirements, including office space and visa numbers.
arrow_outward
4- Start the free zone company set-up process
Setting up a freezone company can mostly be done online, and free zones make the process of setting up a company as smooth as possible. Each free zone has a different registration process, so check your chosen zone's specific requirements and timelines before starting.
Was this content helpful