How To Start A Company In Dubai (2023)?

Start A Company In Dubai

Dubai is one of the most popular destinations for entrepreneurs looking to start a business. The city has a thriving economy, a business-friendly environment, and a strategic location that makes it an ideal place to launch a company. If you’re considering starting a business in Dubai, there are several things you need to know before you get started.

Starting a company in Dubai, one of the most prosperous and business-friendly cities in the world can be a daunting task with a booming economy and favorable business climate.

Dubai is a popular destination for entrepreneurs looking to start a new venture. However, navigating the legal and administrative procedures can be a challenge for those who are new to the business scene in Dubai.

1: Determine The Type Of Business

The first step to starting a company in Dubai is to determine the type of business you want to start. Dubai offers a range of business activities that entrepreneurs can choose from, including trading, manufacturing, and professional services.

Before you decide on the type of business, you need to research the market demand, competition, and potential growth prospects. You can seek advice from business consultants, market research firms, or industry associations to help you make an informed decision.

Before starting a business in Dubai, you need to decide on your business activity and legal structure. Dubai offers a wide range of business activities, from professional services to manufacturing, trading, and tourism.

Some of the popular business activities in Dubai include trading, consultancy, e-commerce, and hospitality. The legal structure of your business will depend on the nature of your business activity and your own preferences.

Once you have decided on your business activity and legal structure, you need to register your business with the Department of Economic Development (DED) in Dubai. The DED is the government agency responsible for issuing business licenses in Dubai.

2: Choose A Business Entity

Depending on your business activity, you may need to obtain additional approvals and permits from various government authorities in Dubai. For example

Once you’ve decided on the type of business, the next step is to choose a business entity. Dubai offers several types of business entities, including a Limited Liability Company (LLC), a Free Zone Company, and a Branch Office.

Each type of business entity has its own advantages and disadvantages, and you need to choose the one that best suits your business needs. For instance, an LLC is ideal for businesses that want to operate in the local market, while a Free Zone Company is suitable for businesses that want to operate internationally. You can seek professional help on how to start a company in dubai free zones.

Dubai offers several legal structures for businesses, including:

Limited Liability Company (LLC):

This is the most common legal structure for businesses in Dubai. An LLC requires at least two shareholders and the liability of each shareholder is limited to their share in the company. This is a good option for small and medium-sized businesses.

Free Zone Company:

A free zone company is a legal entity that is incorporated in a specific free zone in Dubai. This structure offers 100% foreign ownership, no corporate tax, and other benefits, but it also comes with some restrictions, such as limitations on business activities outside the free zone.

Branch Of A Foreign Company:

A foreign company can establish a branch in Dubai, which allows them to conduct business activities in the UAE without incorporating a new legal entity. However, a branch is considered a part of the foreign company and is subject to the same laws and regulations as the parent company.

Sole Proprietorship:

A sole proprietorship is a business owned and operated by one person. This structure is suitable for small businesses or individuals who want to operate as a freelancer.

3: Submit The Necessary Documents

To register your business with the DED, you need to submit the following documents:

Memorandum of Association (MOA): The MOA is a legal document that outlines the ownership structure of your business, the business activities, and the distribution of profits and losses among the shareholders.

Local Service Agent Agreement: If you are a foreign investor, you need to appoint a local service agent (LSA) to represent your company in Dubai. The LSA should be a UAE national or a company owned by UAE nationals. The LSA does not have any ownership or management rights in your company but acts as a liaison between your company and the government authorities.

Trade License Application: Once you have submitted the above documents, you need to apply for a trade license from the DED. The trade license allows you to conduct business activities in Dubai and is issued after the approval of all the documents and payment of the fees.

4: Choose A Business Name And Get It Approved

Choosing a business name is an important step in starting a company in Dubai. The name should be unique and relevant to the business activity. Once you’ve chosen a name, you need to get it approved by the Department of Economic Development (DED).

The DED has strict guidelines for business names, and the name must meet certain criteria, such as being in Arabic or English and not being offensive or misleading.

You need to choose a unique name for your business and reserve it with the DED. The name should reflect the nature of your business activity and must comply with the DED’s naming guidelines.

5: Rent An Office Space

All business entities in Dubai are required to have a physical office space. The office space can be rented or leased, and it must comply with the Dubai Municipality regulations.

The size of the office space depends on the type of business activity and the number of employees. For instance, a trading company requires a larger office space compared to a consulting firm which generally requires little space.

Rent a space that fits your needs and demands completely and makes your business profitable.

6: Seek Professional Help

Consider seeking professional advice from a lawyer or a business consultant who can guide you through the entire process and ensure compliance with local laws. If you do not know how to start a company in Dubai, you can contact professionals to properly guide you.


Starting a business in Dubai can be a long process. But with the proper planning and execution, the business start-ups can be in a rewarding venture, and you’ll only profit from it. So get started on your plan to start your company in Dubai and earn a very good living.


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