Company Formation in the UAE, Step by Step

The standard process

• Choose the business activity. The activity decides the licence type and any extra approvals.
• Select the legal form, such as a limited liability company; it must match the activity.
• Apply for the trade licence type: commercial, professional or industrial.
• Register the trade name.
• Get the initial approval: the government’s no-objection to the business. Foreign investors first need the approval of the General Directorate of Residency and Foreigners’ Affairs.
• Sign the memorandum of association (for an LLC and joint stock companies) or, for some forms, a local service agent agreement.
• Choose the business location and sign the lease; in Dubai the lease is attested by the Real Estate Regulatory Agency (RERA).
• Get any other approvals the activity needs, for example from the Ministry of Economy for auditing or a branch of a foreign company.
• Submit the documents and pay the fees, then collect the licence.

Source: UAE Government Portal: Steps to start a business on the mainland¹

After the licence

• Keep a beneficial owner register and file it with the registrar.
• Register for corporate tax, and for VAT once the threshold is reached.

Source: UAE Ministry of Economy and Tourism: Cabinet Decision No. 109 of 2023 on beneficial owner procedures; Federal Tax Authority: Corporate Tax Registration^2,3

Most companies then open a corporate bank account and apply for residence visas for owners and staff; the bank and the licensing authority will ask for the licence, the memorandum and the beneficial owner details.