Setting up a business in Dubai requires meeting specific legal requirements from the beginning. Missing any requirement delays your setup or creates compliance problems later. Therefore, understanding what you must provide and complete ensures a smooth establishment.
According to the UAE Ministry of Economy and Tourism (MOET) and Dubai Department of Economy and Tourism (DET), several legal steps are mandatory for business setup in Dubai. These requirements protect both businesses and consumers while maintaining regulatory standards.
1: Choose Your Business Activities
Before anything else, identify exactly what your business will do. The UAE offers over 2,000 business activity options across six main license categories. Your chosen activities determine everything about your setup process, including the type of Dubai trade license you will need to apply for.
The Six License Categories:
- Commercial: Trading and selling products
- Professional: Consulting and services
- Industrial: Manufacturing and production
- Tourism: Hotels, travel, and hospitality
- Agricultural: Farming and related activities
- Crafts: Traditional crafts and specialized work
Select activities that match your actual business plans. Additionally, verify whether your activities need special approvals before licensing begins. For example, healthcare requires Dubai Health Authority clearance. Similarly, food businesses need Dubai Municipality approval.
2: Select a Legal Structure
Federal Decree-Law No. 32 of 2021 on Commercial Companies, amended in 2025, requires choosing an official business structure. Different structures have different legal implications and requirements.
Available Legal Structures:
- Limited Liability Company (LLC): Most popular for small and medium businesses
- Sole Proprietorship: For individual entrepreneurs in specific activities
- Branch of Foreign Company: For international businesses expanding to the UAE
- Civil Company: For professional partnerships
- Public or Private Joint Stock: For larger enterprises
The Ministry of Economy and Tourism confirmed that LLCs have no minimum capital requirement. This means you can establish an LLC without depositing large amounts initially.
3: Verify Ownership Eligibility
According to the Dubai Department of Economy, 100% foreign ownership is now available for most business activities. Specifically, over 1,000 activities in Dubai permit full foreign ownership without Emirati partners.
However, some activities still have restrictions. Therefore, verify ownership rules for your specific business activities before proceeding. Also, understand that requirements differ between mainland and free zone jurisdictions.
4: Secure Physical Office Space
Business setup in the UAE requires a registered physical office space. According to the Department of Economy, you must provide a valid lease agreement registered through Ejari.
Your office must match your business type and activity. Commercial businesses need commercial-zoned space. Similarly, industrial activities require industrial locations. Your office must also meet minimum size requirements for your license category.
5: Prepare Mandatory Documents
The Dubai Department of Economy lists specific documents required for all mainland setups. Here are the required documents:
- Valid passports for all shareholders and managers (minimum six months’ validity)
- Current Emirates IDs or residence visas
- Passport-sized photographs
- Detailed business plan explaining operations and market approach
- Memorandum of Association (MOA) outlining the company structure
- Registered office lease with Ejari certificate
- No Objection Certificate (NOC) from current sponsor if applicable
6: Obtain Activity-Specific Approvals
Restricted and regulated activities need approvals from specific authorities before licensing proceeds. These approvals verify you meet industry standards and safety requirements.
Here are the common regulatory approvals:
- Healthcare services: Dubai Health Authority clearance
- Educational institutions: Knowledge and Human Development Authority permission
- Food businesses: Dubai Municipality health and safety approval
- Financial services: Central Bank or Securities Authority licensing
- Legal services: Dubai Legal Affairs Department registration
7: Register Your Trade Name
Your business name must be unique and follow UAE naming conventions. Additionally, it must not conflict with existing registered names or trademarks. Submit your preferred name through the application portal. The system checks availability instantly. However, prepare backup options in case your first choice is taken.
8: Draft Memorandum of Association (MOA)
The MOA is a legal document outlining your company’s structure, ownership, and governance. It must be drafted according to the UAE Commercial Companies Law standards.
MOA Contents:
- Company name and legal structure
- Registered office address
- Business activities and objectives
- Share capital and distribution among partners
- Management structure and responsibilities
- Partner rights and obligations
- Profit and loss sharing arrangements
The MOA requires notarization and becomes part of your official company records. Additionally, amendments to the MOA require following specific legal procedures.
9: Complete Initial Approval Process
Submit your complete application through official channels. According to the Ministry of Economy and Tourism, simple cases can be processed through the Basher platform in as little as 15 minutes for eligible businesses.
However, complex structures or regulated activities take longer. Therefore, plan realistic timelines based on your specific situation rather than best-case scenarios.
10: Pay All The Required Fees
License fees vary based on business activity, legal structure, and jurisdiction. Additionally, different approvals and registrations each have separate fees. Budget comprehensively for all costs, including license fees, office rental, registration charges, and regulatory approval fees.
Ensure Legal Compliance with Expert Help
Setting up a business in Dubai is more than just completing forms. It is about making sure your company follows all legal requirements and operates smoothly from day one. With professional support, you can focus on growing your business while knowing every legal step is taken care of.
Whether you are setting up a business in Dubai for the first time, expanding, or upgrading your trade license, expert guidance ensures your company complies with all regulations.
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