UAE Business Setup

Take the first step towards financial clarity, strategic capital planning, and business success. Whether you’re starting a business, raising investment, or safeguarding your wealth, our advisors are here to guide you.

The United Arab Emirates (UAE) has firmly established itself as one of the world’s most attractive destinations for business formation. With its strategic geographic location, advanced infrastructure, liberal economic policies, and a pro-investment regulatory environment, the UAE offers immense potential for both startups and multinational corporations.

This guide provides a comprehensive overview of how to set up a business in the UAE, covering the types of companies you can form, licensing options, legal requirements, and post-setup considerations.

Why Set Up a Business in the UAE?

Strategic Global Positioning

Direct access to markets across the Middle East, Africa, Europe, and Asia.

Business-Friendly Environment

Quick company registration, minimal bureaucracy, and clear legal processes.

Tax Efficiency

Competitive corporate tax rates and full exemption for many small businesses and specific sectors.

Robust Infrastructure

State-of-the-art logistics, communications, and real estate facilities.

Access to Global Talent

Liberal immigration policies and access to a large expatriate workforce.

Mainland (Onshore)

Can operate anywhere in the UAE and internationally.

Subject to UAE commercial law and licensing requirements by the Department of Economic Development (DED).

Allows partnerships with local or full foreign ownership depending on the activity.

Free Zone

Operates within a specific economic zone.

Allows 100% foreign ownership

Offers customs duty exemptions, 100% repatriation of profits, and streamlined visa services.

Restricted from direct trade in the UAE mainland unless through a local distributor

Offshore

Formed primarily for international business or asset protection.

Cannot conduct business within the UAE but can hold shares in UAE companies and own real estate in designated zones.

Ideal for wealth structuring, estate planning, and holding companies.

Step 1

Define Your Business Activity

Identify your primary and secondary activities to determine licensing requirements and jurisdiction options.

Step 2

Choose a Jurisdiction

Decide whether you need a mainland, free zone, or offshore structure based on your operational goals.

Step 3

Choose a Company Name

Ensure it complies with the UAE’s naming regulations and reflects your business activity appropriately.

Step 4

Apply for Initial Approval

Submit required documentation including shareholder passport copies and an application form to the licensing authority.

Step 5

Prepare Legal Documents

Draft and notarize key documents such as the Memorandum of Association (MOA), Local Service Agent Agreement (if required), and tenancy contract.

Step 6

Lease Office Space

Secure office space or a flexi-desk in a free zone or mainland area as per legal requirements.

Step 7

Submit Final Application and Pay Fees

Complete the documentation process and pay government fees for issuance of your trade license.

Step 8

Open a Corporate Bank Account

Choose a local or international bank operating in the UAE and submit required KYC and business documents.

Step 9

Apply for Visas

Submit applications for investor, partner, employee, or dependent visas based on your license and facility size.

Common Business Structures in the UAE

Sole Establishment

Owned by one individual; ideal for small service businesses.

Limited Liability Company (LLC)

Most common structure; flexible for a wide range of activities.

Civil Company

Used mainly by professionals such as consultants, doctors, and engineers.

Branch of a Foreign Company

Extension of the parent company; same legal identity.

Representative Office

Can promote a foreign business but not engage in commercial trading.

Free Zone Company (FZCO or FZE)

Incorporated under the rules of the free zone authority.

Licensing Categories

Commercial License

For buying and selling goods, including import/export and retail activities

Professional License

For individuals or companies providing professional or consultancy services.

Industrial License

For manufacturing, processing, or industrial operations.

Tourism License

For travel agencies, tour operators, and tourism consultants.

E-Commerce License

For online businesses and digital platforms.

Financial Advisor Consulting Package!

Bank account approval timelines can range from 7 to 30 days depending on the risk category of the business.

Trade license copy

Shareholder passports and visas

Office lease agreement

Business plan

Corporate Tax

Companies with earnings below the exemption threshold are not taxed.
Those above the threshold are taxed at a modest corporate rate.
Certain free zones offer ongoing exemptions under qualifying conditions.

VAT (Value Added Tax)

A 5% VAT is applicable to most goods and services.
Mandatory registration for companies with taxable supplies over a specified threshold.

Ultimate Beneficial Owner (UBO) Declaration

Required for transparency in ownership and control.
Must be submitted at the time of incorporation and updated periodically.

Economic Substance Regulations (ESR)

Applies to businesses in sectors like banking, insurance, IP, and finance.
Entities must demonstrate adequate local presence and operational substance.

Anti-Money Laundering (AML) & Know Your Customer (KYC)

Mandatory for regulated businesses to implement AML and KYC protocols.
Includes reporting suspicious transactions and maintaining internal compliance policies.

Virtual Office

Offered by many free zones; suitable for license registration and minimal operations.

Flexi-Desk

Shared desk in a co-working environment; often qualifies for visa quotas.

Executive Office

Fully furnished private offices; required for mainland and some free zones for multiple visas.

Warehouses Industrial Units

For industrial or storage needs; requires separate approvals and fit-out permissions

Post-License Services & Government Relations

Visa Quota Increase

Labour Card and Establishment Card Registration

Employee Onboarding and Contracts

Renewal and Amendment Services

Tax Registration and Return Filing

Customs Code Registration (for import/export)

Customer Growth

Company Development

Business Transformation

Residency and Visa Options for Business Owners

Investor Visa

Long-term visa for shareholders or partners in UAE-based entities.

Golden Visa

Employment Visa: Available for staff working in UAE-licensed companies.

Employment Visa

Available for staff working in UAE-licensed companies

Dependent Visas

For spouse, children, and household staff under the sponsor’s name.