Steps to Set Up a Company in the UAE | Practical Guide

Introduction to Set Up a Company in UAE

To set up a company in UAE is exciting — but it is also a regulated process that involves multiple authorities and legal obligations. This step-by-step guide walks you through the main stages of company formation and the ongoing compliance you need to consider to keep your business running smoothly.

1. Define Your Business Activity and Structure

What you do: Identify your intended business activity (e.g., consultancy, trading, brokerage, real estate services).
Why it matters: Each activity is licensed separately and may require special approvals.

Action point: Review the permitted activity lists of the relevant free zone or mainland authority, and confirm whether your activity is regulated.

💡 Tip: Changing your activity later involves additional procedures and costs. Start with the one you will genuinely pursue.

2. Choose the Right Legal Form

Common structures include:

• LLC (Limited Liability Company)

• Sole Establishment

• Free Zone Establishment/Company

• Civil Company (for professional services)

Key considerations to keep in mind: liability of shareholders, capital requirements, flexibility for expansion, and visa quotas.

3. Reserve a Trade Name

• Apply for trade name reservation with the licensing authority.

• Ensure compliance with naming rules (no restricted terms or offensive words).

• Prepare backup names in case the first choice is not available.

4. Obtain Initial Approval

Authorities provide a no-objection confirmation for your planned business.
Documents usually required:

• Passport copies of shareholders and directors

• Shareholding structure and details

• Short business activity description

5. Draft of Legal Documents

• Memorandum of Association (MoA) or Articles of Association (AoA) for LLCs

• Shareholders’ Agreement if more than one investor is involved

• Powers of Attorney for managers or representatives, usually is included within the foundation documents

⚖️ Practical note: Using only the free zone or mainland’s template documents can be restrictive. Tailoring these from the outset avoids future disputes.

6. Secure a Business Premises

• Lease office space, flexi-desk, or co-working facility (depending on requirements).

• Ensure the lease complies with the licensing authority.

7. Apply for the Trade License

Submit the complete set of documents (MoA, lease, initial approval, shareholder passports, etc.).
Pay the applicable government fees.
Once issued, the trade license confirms your company’s legal existence.

8. Open a Corporate Bank Account

Prepare to submit:

• Trade license and MoA

• Passport copies of shareholders and directors

• Utility bill / proof of address

• Bank KYC forms

Bank account opening is often the most time-consuming stage — plan for an average of 3–12 weeks depending on the bank and activity. Our earlier publication on how to prepare to open a corporate bank account can be of help. 

9. Register for Taxes and Compliance after set up a company in UAE

• Corporate Tax: registration is mandatory with the Federal Tax Authority.

• VAT Registration: required if turnover exceeds AED 375,000 per year.

• ESR & UBO: file Economic Substance and Ultimate Beneficial Owner declarations.

• AML / KYC: if your activity is regulated (real estate, law firms, accounting, auditors), you must implement an AML compliance program.

10. Organize Ongoing Support (Accounting & Legal)

• Monthly bookkeeping and quarterly VAT filings

• Employment contracts and HR policies

• License renewals and compliance with inspections (e.g., free zone audits)

• Drafting contracts, real estate due diligence, dispute prevention

💡 Tip: Bundling accounting, legal, and compliance support keeps costs predictable and ensures all obligations are met.

11. Review and Adjust After the set up of a company in UAE

The first 6–12 months are key to test whether the chosen structure, cost setup, and compliance framework align with your business model. Adjust as needed for efficiency.

Conclusion to Set Up a Company in UAE

Company formation in the UAE involves more than just getting a license — it is about setting up a structure that is legally sound, compliant, and flexible for growth.

We hope this guide provides you with a clear overview of the key steps involved in setting up a company in the UAE, from choosing the right structure to ensuring ongoing compliance. If you would like tailored support for your business, our team is here to assist at every stage.

For more practical content in English, explore our Publications and the Videos by our Partner, Maria Rubert.

Disclaimer: The information on this page is provided for general guidance only and does not constitute legal advice. It offers an initial, practical overview of company formation and compliance requirements in the UAE. Regulations and practices may change, and outcomes depend on the specifics of each case. Please seek tailored legal advice for your business before taking action.

📩 Contact us today to discuss how we can support your new venture.