How to set up a business in UAE mainland: A step-by-step guide
How to Set Up a Business in UAE Mainland: A Step-by-Step Guide
The UAE has become a business hub, attracting entrepreneurs from all over the world. If you're looking to start a business in the UAE mainland, you must be at least 18 years old, as per the Commercial Transactions Law of 2023. Here’s a comprehensive guide on the steps to follow, including necessary approvals and required documents.
1. Identify Licence Type
First, determine the type of economic activity your business will undertake. The UAE offers six main types of economic licenses:
- Occupational
- Tourism
- Industrial
- Commercial
- Agricultural
- Professional
2. Decide the Legal Structure
Choose an appropriate legal structure for your business, as this will dictate the applicable laws and regulations. The available legal forms in the UAE include:
- Sole establishment
- Civil company
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company
- Branch of a GCC company
- Branch of a local company
- Holding company
- Representative office of a foreign company
3. Register Trade Name
Your business name must be unique and comply with specific guidelines. It should not resemble any existing company and must include an abbreviation of the company's legal structure (e.g., LLC, PJSC). Avoid offensive words and ensure compatibility with your business nature. Apply for the trade name through your emirate's Department of Economic Development, either online or in person.
4. Obtain Initial Approval and Agreements
Secure initial approval from the UAE Government, which is a 'no objection' certificate. This allows you to proceed with other steps but does not permit you to start business operations. After receiving this approval, you must draft a Memorandum of Association (MOA) for entities like civil companies, LLCs, public shareholding companies, and private shareholding companies. For sole proprietorships, a Local Service Agent Agreement (LSA) is required. Additional approvals from other government authorities may be necessary depending on your business activity.
5. Choose a Location
Every business in the UAE must have a physical address. Ensure your chosen location complies with the regulations of the concerned emirate's Department of Economic Development and local municipalities. In Dubai, register your tenancy contract for office or warehouse space through the Dubai Land Department's Ejari portal.
6. Submit Documents and Pay Fees
To obtain your business license, submit the following documents:
- Initial approval receipt
- Copies of all previously submitted documents
- Attested lease contract copy
- MOA, if required
- Additional government entity approvals, if necessary
Pay the required fees and collect your business license from service centers or through the appropriate website.
7. Register with Chamber of Commerce and Industry
Lastly, register your business with the Chamber of Commerce and Industry in the same emirate where your company is established. This registration is mandatory.
By following these steps, you can successfully set up a business in the UAE mainland. Note that the process for establishing a business in a UAE free zone differs from the mainland procedure.
By: Sahiba Suri
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