1. Determine the Business Activity

The first step is to decide on the type of business activity you wish to engage in. The DED provides a list of permissible business activities, which helps in choosing the right category for your company. Business activities range from trading, manufacturing, and professional services to industrial and consultancy services.

2. Choose a Legal Structure

Selecting the right legal structure is crucial as it determines the legal framework for your business operations. Common legal structures for mainland companies include:

• Sole Proprietorship: Best for single entrepreneurs running a small business.
• Limited Liability Company (LLC): Ideal for businesses with multiple shareholders.
• Civil Company: Suitable for professionals such as doctors, lawyers, and consultants.
• Branch of a Foreign Company: Allows foreign businesses to operate in the UAE without full-fledged incorporation.
• Public and Private Joint Stock Companies: Suitable for large-scale businesses looking for investment and public trading opportunities.

3. Register the Trade Name

Choosing a unique and compliant trade name is necessary for obtaining approval from the DED. The name should reflect the nature of the business and adhere to the UAE’s naming guidelines, avoiding any offensive or restricted terms.

4. Obtain Initial Approvals

Before proceeding with the licensing process, certain initial approvals from relevant authorities are required. These approvals confirm that your business complies with UAE regulations and can operate legally.

5. Draft and Notarize the Memorandum of Association (MOA)

For companies like LLCs, drafting and notarizing the MOA is mandatory. This document outlines the ownership structure, roles, and responsibilities of shareholders, ensuring clarity and legal compliance.

6. Secure Office Space

A physical office space is required for mainland businesses. The office must be leased in compliance with the Ejari system, which is the Dubai Land Department’s rental registration system. Having a physical office space also determines the number of visas a company can obtain.

7. Apply for a Business License

The DED issues different types of business licenses based on the nature of the business activity, including:

• Commercial License: For trading businesses.
• Industrial License: For manufacturing and production-based businesses.
• Professional License: For consultancy and service-based businesses.
• Tourism License: For businesses in the travel and tourism sector.

8. Register with Relevant Authorities

Depending on the nature of the business, additional approvals may be required from regulatory bodies such as:

• Ministry of Economy
• Dubai Municipality
• Dubai Health Authority (DHA)
• Dubai Chamber of Commerce

9. Obtain Visas and Labor Cards

After company registration, businesses can apply for employment visas, residence visas, and labor cards for their employees through the Ministry of Human Resources and Emiratisation (MOHRE). A mainland company can also sponsor dependents of its employees.

10. Open a Corporate Bank Account

To facilitate business transactions, a corporate bank account is essential. Banks in the UAE have varying requirements, so it’s advisable to choose one that suits your business needs. Factors to consider include minimum balance requirements, transaction fees, and international transfer capabilities.