6 Steps to registering a company in Dubai

Dubai has emerged as a global business hub with a well-structured legal framework, strategic location and investor-friendly policies. Entrepreneurs and corporations in Dubai benefit from efficient company registration processes, tax advantages and access to international markets.

If you are looking to start a company in Dubai, understanding the steps to registering your business is crucial.

Here is a structured approach to setting up a business in Dubai:

1. Step one: Choose your business activity

The first step in company registration in Dubai is selecting a business activity. Dubai offers over 2,000 approved activities, divided into six main licence categories:

• Commercial licence – For trading, retail and e-commerce businesses.
• Industrial licence – For manufacturing and production-based activities.
• Professional licence – For consultancy, legal and service-based businesses.
• Tourism licence – For travel agencies, tour operators and hospitality services.
• Agricultural licence – For farming and agribusiness-related ventures.
• Occupational licence – For independent professionals, including artisans and craftsmen.

Selecting the correct business activity determines the legal and regulatory requirements for licensing and compliance. Some sectors, such as healthcare, finance and education, require additional approvals from industry-specific authorities.

2. Step two: Choosing the right set-up

Dubai offers multiple business structures to suit different ownership models and operational needs.

The most common structures include:

• Limited Liability Company (LLC) – A flexible and widely used structure with shared ownership.
• Sole Establishment – Best suited for solo entrepreneurs and freelancers.
• Public Joint Stock Company (PJSC) – Suitable for businesses planning to go public.
• Private Joint Stock Company (PrJSC) – A closed joint-stock entity with private shareholders.
• Branch of a Foreign or Local Company – Allows businesses to expand into Dubai.
• Holding Company – Used for managing multiple subsidiaries and assets.
• Free Zone Company – Provides 100% foreign ownership with tax incentives.
• Each legal structure has specific requirements concerning ownership, liability and regulatory obligations.

3. Step three: Choosing a business name

Registering a trade name is a mandatory step in business set-up. The name must comply with Dubai’s naming conventions and must:

• Be unique and not previously registered.
• End with the appropriate business structure acronym (LLC, PJSC, etc.).
• Avoid references to religious, political or government entities.
• Align with UAE’s public morals and regulations.

The trade name must be approved by the Department of Economy and Tourism (DET) or the relevant free zone authority. Upon approval, a payment voucher or transaction number is issued for further processing.

4. Step four: Make your application

Once the business name is approved, the company must apply for initial approval from the authorities. This approval confirms that the government has no objections to the establishment of the business. However, it does not grant permission to start operations.

Required documents for initial approval include:

• Business registration form
• Passport copies of shareholders and partners
• Trade name reservation certificate
• Business activity details

Certain activities require additional government approvals before proceeding. These may include sectors related to finance, healthcare and security.

Once initial approval is granted, businesses must draft the Memorandum of Association (MoA) for LLCs. This documents must be notarised before submission.

5. Step five: Apply for visas

Entrepreneurs and employees must obtain residency visas to live and work in Dubai. The number of visas permitted depends on the size of the office space and the business activity.

The visa process involves:

• Entry permit issuance
• Medical fitness test
• Emirates ID registration
• Residence visa stamping

Business owners can also apply for visas for their dependents, including family members and domestic staff.

6. Step six: Open a corporate bank account

Opening a corporate bank account is essential for business transactions. Dubai has a strong banking sector, with local and international banks offering corporate services.

The process involves:

• Selecting a bank based on business requirements.
• Submitting required documents, including the trade licence and MoA.
• Completing KYC (Know Your Customer) procedures.

After completing all the above steps, the business can collect its trade licence. The following documents must be submitted:

• Initial approval receipt and all previously submitted documents.
• Lease agreement attested by the relevant real estate authority.
• Additional government approvals (if required).

Businesses must pay the prescribed licence fees within 30 days of receiving the payment voucher. Failure to do so may result in the cancellation of the application.

Ready to set up your business in the UAE?

Starting your business in the UAE, including Dubai, is a straightforward process when done with the right guidance. Whether you are looking to establish a mainland, free zone or offshore company in Dubai, at GoBusiness, we simplify the entire process, from business registration to securing the right licence.

Visit gobusiness.ae to know more about us.