Starting a business in the UAE is a great idea. The country has a strong economy, modern buildings, and many business opportunities. But before you start, you need to know the legal steps. JAKS provides business valuation services all over the UAE. We make it easy for you to know how much your business is worth, so you can plan better and grow confidently.

Legal Requirements for Business Setup in UAE

Let’s read about some of the UAE business setup requirements.

1. Decide What Your Business Will Do

First, you must choose what kind of work your business will do. This could be:

• Selling products
• Offering services
• Making things (manufacturing)

Your choice will determine what license you need and what rules you must follow. To pick the right business type, check with the Department of Economic Development (DED) or the free zone office.

2. Pick a Place to Start Your Business

There are three main choices in the UAE:

• Mainland: You can do business inside and outside the UAE.
• Free Zone: You can own the full business, but usually only work in that zone or outside the country.
• Offshore: For international work only—not allowed to do business inside the UAE.

Each choice has different rules. Choose the one that fits your plan.

3. Choose the Business Type

You need to pick a legal structure. This means how your business is set up. Some common types are:

• Sole Owner – One person owns the business.
• LLC (Limited Liability Company) – A popular choice for small businesses.
• Civil Company – For professionals like doctors or lawyers.
• Branch Office – This is for foreign companies opening in the UAE.

Your business type will affect how you pay tax and share money.

4. Get Your Business Name Approved

Your business needs a name. It must follow these rules:

• Match your business activity
• Not be offensive
• Be different from other business names
• Include the type (like “LLC”)

You can apply for name approval through DED or the free zone office.

5. Apply for a Business License

Every business needs a license to work legally. The type of license depends on your work:

• Commercial License – For trading or selling
• Professional License – For services like IT or education
• Industrial License – For making things

The license comes from DED or your free zone office. You might also need other government approvals.

6. Get a Local Sponsor or Agent

You might need a local sponsor or service agent if you choose to set up on the mainland. Depending on the activity, some businesses can now be 100% foreign-owned. Check the latest rules before you start.

7. Rent an Office Space

You must show that your business has a real address to get your license. This can be:

• A normal office
• A shared desk in a free zone

You must sign a rental agreement (Ejari) before getting your license.

8. Submit Papers and Pay Fees

Now, you must:

• Fill out the business forms
• Give passport copies and other documents
• Submit your trade name approval
• Show your office rental agreement
• Pay license and registration fees

Sometimes, you also need to give a business plan.

9. Open a Business Bank Account

After your business is registered, open a business bank account. The bank will ask for:

• Your license
• Owner’s documents
• Company details

Every bank has different rules.

10. Apply for Visas

You can apply for visas for yourself and your workers. The number of visas depends on your business and office size. After getting the visa, you will also get an Emirates ID and residency permit.

Starting a business in the UAE offers many good opportunities, but you must follow the rules. First, know what kind of business you want. Then, choose the right place, get the needed license, and submit all papers.

It’s smart to get help from a business setup expert. They know the rules and can save you time and trouble. The UAE is a great place to grow your business. With the right steps, your business can do very well. At JAKS, we provide business valuation services the right way. Our experts help you understand your company’s true value so that you can make smart decisions for growth, investment, or sale. With accurate and reliable valuations, you can move forward with confidence. Call us at +971 503372712 or email [email protected]—we’re ready to help!