In the United Arab Emirates, Dubai is considered to be the largest business city. As a dynamic and attractive location
for business, investors from abroad are now welcome to own 100 percent of their mainland businesses in Dubai. By
transforming its business environment, Dubai has become a global, central hub for business, attracting global investors
and entrepreneurs.
Looking to start a business in Dubai? Professional help can make starting a business in Dubai simple. We offer business
setup services related to Mainland in Dubai right from the very basics to Licensing, License renewal and a lot more.
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Establishing a conventional business in various emirates of the UAE by the conventional means requires a series of
procedures and approvals from the Department of Economic Development and the other concerned authorities for official
registration of the entity.
Steps in establishing a business in the UAE
There are several steps involved in establishing a business in the UAE, including:
- Identifying the nature of the activity
- The nature of the economic activity defines the legal form of the company and the type of license
required.
- There are six types of licenses, namely industrial license, commercial license, crafts license, tourism
license, agricultural license, and professional license.
- A license may include more than one business activity.
- There are more than 2,000 various economic activities to select from in the list of businesses in the
UAE.
- Identifying the legal form
The legal form mainly depends on the business requirements and identifies the laws and regulations to be
complied with. One of the following legal forms may be selected in the State:
- Partnership, limited partnership, limited liability company, public joint stock company, private joint
stock company, branch of a foreign company.
The legal form must be consistent with the economic activity.
- Reservation and registration of the trade name
The trade name is the name which distinguishes a license from other licenses to avoid confusion for the
customer. The trade name must be related to the type of license or anything indicating the same.
- Application for initial approval
Initial approval means that the UAE Government does not have any objection to establishing the entity in the
State and indicates that the next step for obtaining the commercial license could be taken. However, it does not
constitute authorization to operate or to begin the practice of the business immediately. Foreign investors must
obtain the approval of the General Directorate of Residency and Foreigners Affairs (GDRFA) before obtaining the
initial approval.
- Memorandum of association
Depending on the legal form of the company, a memorandum of association may be required to be prepared and
signed. A memorandum of association shall be made if the company takes any of the following legal forms:
- Partnership
- Limited partnership
- Limited liability company
- Private joint stock company
- Public joint stock company
- Selection of the location or address of the commercial activity
All companies in the UAE must have an actual address for the economic activity. The commercial building and
location must meet the requirements of the Department of Economic Development in each Emirate and the
regulations of zoning by the municipality or the competent authority.
- Obtaining the additional government approvals
In certain cases, the activities require obtaining special approvals for licensing from (federal or local)
government authorities regulating such activities.
- Registration with the Chamber of Commerce
Membership of the Chamber of Commerce of the relevant Emirate might be required before proceeding with carrying
on the economic activity.
How many types of Trade License are available in UAE
There are six types of licenses
- Industrial license
- Commercial license
- Crafts license
- Tourism license
- Agricultural license
- Professional license
What are the main options for business setup in UAE?
In the UAE, you have three options for setting up your business
- UAE Mainland
- UAE Free Zone
- UAE Offshore
What is the maximum limit for trade license that can be owned?
There is no limit for number of trade license that UAE nationals and expats can own.
Can I select any trade name for my business?
Yes, you can select but it should be according to the terms mentioned below.
- The trade name must be followed by abbreviation of the legal form (i.e. the legal form of the company), for
example (LLC).
- The trade name must not include improper words and must not violate the public sense.
- The trade name must be consistent with the economic activity performed.
- The trade name must not include the names of Almighty Allah, the names of government authorities, or the
names or logos of third parties.
- The trade name must be available and not registered by another company.
- The trade name is approved by the Department of Economic Development and the trademark is approved by the
Ministry of Economy.
What happens if I don’t renew my trade license?
Failing to renew your trade license can lead to the penalties. According to DED laws, a company that conducts its
business without a valid business license will face a fine of AED 5000 and an additional AED 250 if the license is
not renewed before it is expired.
How often does a trade license need to be renewed?
Trade license is valid for one year and every year it should be renew to continue your activities in UAE.