Steps to start a business on the mainland

Establishing a business online

You can establish your business online through the Basher platform. Bashr is an integrated digital service, which enables investors to establish their businesses in the UAE in 15 minutes. The platform is connected with federal and local government entities, which provide commercial licence services.

Department of Economic Development-Abu Dhabi provides investors with an instant licence service to start business online and get the commercial licence without need to visit the service centre.

Related links:

Starting a business through conventional ways

Starting a business through the conventional way involves a series of steps, which include:

identifying a business activity
selecting an appropriate legal form
registering the trade name
applying for an initial approval
drafting a Memorandum of Association and local service agent agreement
selecting a location to conduct business
getting additional government approvals
submitting documents and pay fees.

Identifying a business activity

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

Notes:

An investment/business can have more than one business activity.
There are more than 2,000 business activities to choose from in the UAE.

Selecting the legal form

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

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.

Note: the legal form of the business must match the business activity.

To learn more about the requirements of each business activity and legal form, check the following pages:

Business set-up services – Invest in Dubai
FAQs relating to registration and licensing - Economic Development Department, Sharjah
Issue trade licence - Department of Economic Development, Ajman
Business-related digital services - RAK Department of Economic Development
Doing business in Fujairah - Fujairah Government portal.

Registering 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.

Provisions for selecting the trade name:

The trade name must:

be followed by the business structure acronym (legal form of the company) such as: LLC, EST, PJSC, PrJSC
not violate the public morals or the public order of the country
be compatible with the required type of activity and the legal status of the company or business entity
not contain names of any religion, or governing authority, nor names or logos of any external bodies
not have been previously registered.

During the application process, you will be issued a payment voucher or a transaction number, which you will need to use as a reference when you pay.

Notes

The local department of economic development registers the trade name, while Ministry of Economy registers the trademark.
Trade name certificates are renewable.

Search for a trade name and verify business licences.

Getting the 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.

Signing the 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 partnership
Limited liability company (LLC)
Public joint stock company (PJSC)
Private joint stock company (PrJSC).

Notes:

UAE-based law firms, courts and notary public prepare and attest MoAs and agreements.
Businesses owned completely by non-GCC residents require a local service agent from the UAE. Appointing the local service agent will be under an agreement attested by the notary public or the court.

Selecting a business location

All businesses in the UAE must have a physical address to operate. The business premises and location must comply with the requirements defined by the respective emirate’s Department of Economic Development, as well as the land planning regulations of the local municipalities.

Office and warehouse rental agreement must be provided. Some emirates require the agreements to be attested. In Dubai, the agreement must be registered with Ejari.

Getting additional government approvals

In some cases, additional approvals from government entities governing certain business activities are required. The following are examples of such activities sorted by ministry:

Ministry of Interior - for approvals related to general transport, driving schools, fire equipment, alarm and safety systems, used-car dealers, used auto-parts, car rental.

Ministry of Justice - for legal activities and legal consultancy

Local municipal departments - for architectural and engineering businesses

Telecommunications and Digital Government Regulatory Authority (TDRA) - for telecommunication activities

Executive Council - for travel and tourism, general services, charter trading, ship and maritime agencies, car clubs, charter air transport and foreign company branches

Ministry of Economy - for insurance activities and consultancy services

Local health departments - for health-related activities

Supreme Petroleum Council - for onshore and offshore gas and oil-field services, and onshore and offshore oil drilling operations.

Collecting the business licence

After completing the above steps, investor can collect the business licence from service centres of the economic departments or through their websites.

Documents required for getting a licence for all legal forms

The following documents are required for getting a licence for all legal forms:

Initial approval receipt and all the documents submitted previously
Copy of the lease contract duly attested by Real Estate Regulatory Agency (RERA) in Dubai
Duly attested Memorandum of Association (for all types of companies)
Approvals from other government entities concerned, as may be required
Duly attested service agent contract (for civil establishments and companies that are 100 per cent owned by non-GCC nationals).