Starting a business in the United Arab Emirates (UAE) is an exciting opportunity. With its strong economy, world-class infrastructure, and tax-friendly laws, the UAE has become a hotspot for entrepreneurs and investors from all around the world. But how exactly do you register a company here? What are the steps? Is it difficult or expensive?
In this blog, we’ll guide you through the full process of registering a company in the UAE in a simple, step-by-step way. Whether you're planning to start a small business or a big company, this guide will give you all the key information you need to get started.
Before we get into the registration process, let’s quickly look at why the UAE is such a popular place to do business:
Whether you’re a freelancer, an e-commerce startup, or a global brand, UAE offers a business-friendly environment for all.
The first step in setting up a company is deciding where to set it up. In the UAE, there are three main types of business jurisdictions:
Choose the one that fits your business goals.
Let’s break down the full process into easy steps:
Step 1: Choose Your Business Activity
First, decide what kind of business you want to start. The UAE government provides a long list of approved business activities, from consulting and trading to media and manufacturing.
Your business license will be based on this activity. You can choose more than one activity in many cases, especially in Free Zones.
Step 2: Select a Jurisdiction
As we discussed earlier, choose between Mainland, Free Zone, or Offshore. This decision will impact:
If you want to sell products or services inside the UAE, Mainland is best. If you're more focused on export, online services, or international clients, Free Zone may be ideal.
Step 3: Choose a Company Name
Pick a company name that follows the UAE’s naming rules:
Once you decide on a name, reserve it with the relevant authority (like DED for mainland, or a Free Zone authority).
Step 4: Apply for Initial Approval
Submit your business activity, company name, and passport copies to get initial approval from the government. This is a green light that says your business idea is allowed.
This step is usually fast and can often be done online.
Step 5: Prepare Legal Documents
You’ll need to prepare and sign legal documents, such as:
In Free Zones, paperwork is usually simpler, and many offer pre-approved templates.
Step 6: Lease an Office or Workspace
Every company in the UAE must have a physical address. This can be:
Get your tenancy contract and Ejari (for Mainland) or equivalent for Free Zone companies.
Step 7: Get Your Business License
Once documents are ready and your office is set, submit everything to the relevant authority and pay the fees.
You’ll receive your business license — this is your official permission to start operating in the UAE.
License types include:
Step 8: Open a Corporate Bank Account
After getting your license, you can open a business bank account in the UAE. Requirements vary, but you’ll usually need:
Popular banks include Emirates NBD, ADCB, Mashreq, and international banks like HSBC and Citibank.
Costs can vary widely depending on your business type, location, and setup.
Here’s a general breakdown:
|
Type |
Approximate Cost (AED) |
|
Free Zone License |
12,000 – 25,000/year |
|
Mainland License |
15,000 – 30,000/year |
|
Office Rent |
8,000 – 50,000/year |
|
Bank Account Setup |
0 – 5,000 (varies) |
|
Visa (per person) |
3,000 – 7,000 |
Many Free Zones offer packages for startups, including license, visa, and Flexi-desk.
Timeframe for Company Setup
If all your documents are ready, the full process can take:
Offshore setups can sometimes be done in 2–3 days.
Final Thoughts
Starting a business in the UAE is a smart move, whether you’re a solo entrepreneur or running a growing team. The process might seem complex at first, but with the right guidance, it’s actually quite smooth.
You can register your company on your own or work with a business setup consultant to speed things up and avoid errors. Either way, UAE welcomes businesses from all over the world — and yours could be next.
FAQs – Registering a Company in UAE
Q1: Can a foreigner own 100% of a company in the UAE?
Yes! In most Free Zones and in many Mainland activities, foreigners can own 100% of the company.
Q2: Do I need a local sponsor for Mainland business?
Not anymore for most activities. The UAE removed the local sponsor requirement for many business types in 2021.
Q3: Do I need to be in the UAE to register my company?
Not necessarily. Many Free Zones allow remote registration. However, some banks or Mainland processes may need your physical presence at some point.
Q4: How long does it take to register a company?
It usually takes 3–10 days for Free Zones and up to 2 weeks for Mainland setups.
Q5: Can I apply for residency through my company?
Yes, once your company is registered, you can apply for investor or partner visas, which give you UAE residency.
Q6: Do I need an office to register my company?
Yes, even if it's just a Flexi-desk in a Free Zone. All companies must have a registered office address.
Q7: What is the cheapest way to register a company in the UAE?
The most cost-effective way is to choose a Free Zone that offers startup packages with Flexi-desks and visa options.
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