How to start a business in Dubai: the steps in order

Starting a business in Dubai follows a fixed order. You settle three decisions first: what your business will do, whether it sits on the mainland or in a free zone, and its legal form. Only then do you reserve a name, get approvals, sign company documents, register premises and collect the licence. Visas, the bank account and tax registration come after the licence, not before.

Many delays come from doing steps out of order: signing a lease before you know your activity is approved, or applying to banks before anyone in the company has an Emirates ID. This guide follows the mainland process run by Dubai's Department of Economy and Tourism (DET) and notes where a free zone differs. It is general information, not legal or tax advice.

Three decisions to make before you apply

1. Your business activity. Every licence lists specific activities taken from an official list of more than 2,000. The activity decides your licence type (commercial, professional or industrial), whether another authority must approve you, and which legal forms are open to you. Our guide to choosing business activities shows how to pick them.

2. Mainland or free zone. A mainland company can trade anywhere in the UAE. A free zone company is licensed by its free zone authority and generally needs a distributor, a mainland branch or extra licences to sell directly to mainland customers. If you are unsure, read free zone vs mainland before going further.

3. Your legal form. On the mainland, most foreign founders use a limited liability company (LLC), which can be fully foreign-owned for most activities and can have a single owner. Sole establishments and civil companies suit some professionals but leave the owners personally liable. Our guide to choosing a legal form in Dubai compares them.

Say you plan a two-partner marketing agency with clients in Dubai. Local clients point you to the mainland, two partners who want limited liability point you to an LLC, and an advertising activity tells you to check early whether the federal media regulator must approve you. That last check will shape your timeline more than anything else on this list.

The mainland steps, in order

DET issues mainland licences. You can apply through the Invest in Dubai portal or at a service centre.

1. Reserve a trade name. The name must include your legal form, such as LLC, must fit your activity and must not repeat a registered name. It cannot contain religious names or the names of government bodies.
2. Get initial approval. This confirms the government has no objection to the business. It does not let you trade yet. If any partner is a foreign national, GDRFA Dubai, the immigration authority, must approve them first.
3. Get any external approvals. Regulated activities need sign-off from another authority. Legal, security and securities activities need it before you apply for initial approval; others can run alongside.
4. Sign the memorandum of association (MOA). Companies such as LLCs sign an MOA, prepared and attested by a notary, court or law firm, or completed electronically where DET allows it. A sole establishment has no MOA. If it, or a civil company, is wholly owned by non-GCC nationals, it appoints a local service agent through a notarised agreement.
5. Secure premises and register the lease on Ejari. Your premises must meet DET and municipal rules, and the tenancy contract must be registered on Ejari, Dubai's tenancy registration system. The instant licence, for activities with no outside approval, comes with a virtual address for the first year instead.
6. Pay the fees and collect the licence. Pay within 30 days of receiving the payment voucher, or the application is cancelled.
7. Register with Dubai Chamber. Mainland companies join the Dubai Chamber of Commerce, with an annual fee that depends on legal form and activity.

How a free zone setup differs

In a free zone you deal with one authority. You choose the zone and a legal entity, reserve a name and apply through the free zone's own portal. The authority issues the licence and normally handles your immigration file and visas, so steps 2 to 7 above become the free zone's own process, usually with fewer moving parts. If you are weighing two of the best-known Dubai zones, our DMCC vs IFZA comparison sets them side by side.

Two things do not change. You still choose activities, this time from the free zone's list, and the bank account and tax registrations still come after the licence. Flexi-desk packages make the premises step easy, but the desk you pick usually caps how many visas you can get, so choose it with your hiring plans in mind.

If you live in India, there is one more step before money leaves the country: India's overseas investment rules apply to your stake in the Dubai company. Our guide to setting up a Dubai company from India explains them.

After the licence: immigration file, visas and the bank

The licence lets you trade. It does not yet let you sponsor anyone.

• Establishment card. This is your company's file with the immigration authority, and you need it before any residence visa. In Dubai, GDRFA issues it and states a completion time of 48 hours for a complete application.
• MOHRE registration (mainland). To hire staff, a mainland company also opens a file with the Ministry of Human Resources and Emiratisation (MOHRE). MOHRE sets how many workers you can employ, based on factors such as your legal status, premises and business needs.
• Residence visas. Each person goes through an entry permit or change of status, a medical fitness test and Emirates ID biometrics. In Dubai, employers must provide health insurance for employees and sponsors must insure their dependants. Owners usually take residence through the company as investors or partners.
• Bank account. Banks check your activity, ownership and source of funds in detail, and many prefer a signatory with an Emirates ID. Our guide to opening a corporate bank account covers what they ask for.

Tax registrations with deadlines

Both tax registrations happen on EmaraTax, the Federal Tax Authority (FTA) platform, and both are free.

• Corporate tax. Every UAE company, including free zone companies, must apply to register within three months of incorporation, even if it expects no profit. Late registration carries an AED 10,000 administrative penalty, as of October 2026.
• VAT. Registration becomes mandatory once your taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to within the next 30 days. You must apply within 30 days of becoming liable. You can register voluntarily from AED 187,500.

The three-month corporate tax clock starts at incorporation, not when you send your first invoice. Our UAE corporate tax guide explains the rates, the free zone conditions and Small Business Relief.

Where setups usually stall

• Leasing too early. Signing a lease before your activity and any outside approval are confirmed. If the approving body wants different premises, you are tied to a lease you cannot use.
• Vague activities. Choosing broad activities "to be safe" invites questions from banks and approval bodies. Choose what you will actually do.
• Unprepared foreign documents. Company shareholders need their corporate documents attested for use in the UAE and often translated into Arabic. Start this on day one, because it is frequently the slowest part.
• Banking before residency. Approaching banks before any signatory holds an Emirates ID narrows your options.
• Forgetting the tax deadline. The corporate tax registration window is easy to miss while you are busy with visas and banking.

How long does it take?

The licence itself can be quick once everything is in place; the instant licence route takes minutes. The real timeline depends on what surrounds the licence: outside approvals, attesting foreign documents, finding premises, visa processing and the bank's review. For a simple service business, plan in weeks rather than days, and allow considerably longer if your activity is regulated.

If you want help putting these steps in order for your plans, our business setup team can map the route and handle the filings. For a first budget, try our setup cost estimator.

Sources

• UAE Government portal: steps to start a business on the mainland
• UAE Government portal: recruiting on the mainland
• GDRFA Dubai: establishment card for private sector and free zone companies
• Federal Tax Authority: corporate tax registration
• Federal Tax Authority: VAT registration
• UAE Government portal: getting health insurance