Key Legal Requirements for New Business Setup in Dubai
Setting up a business in Dubai is a thrilling experience , but we must get the legal things correct right from the start. Whether you are an established entrepreneur or merely dipping your toe in the water , understanding the important legal requirements can either make or break your experience.
At Bizvise, we're dedicated to making the business setup in Dubai process easy, hassle-free, and successful. As a top business setup company in Dubai, we've assisted hundreds of entrepreneurs through the regulations, navigated the red tape and started confidently.
Here in this blog, we'll guide you through the most important legal requirements for a new business setup in Dubai explained simply and easily.
Before we move on to the legal aspect, let's discuss why many people are eager to establish a business in Dubai.
Dubai is an international center of trade, tourism, innovation, and investment. It has a robust economy, top-notch infrastructure and it's tax-friendly as well. Whether you're going to establish a tech company, retail store or consultancy firm, there's enormous potential here.
But naturally, all that potential has legal processes you can't avoid. So let's get started.
1. Select the Appropriate Business ActivityFirst of all, you must have some idea of what business you wish to start.
All business setup in Dubai must be accompanied by properly defined activities, and these should have been endorsed by the Department of Economic Development (DED) or the appropriate Free Zone authority.
UAE has thousands of pre-established business activities ranging from trading and manufacturing to services and consulting. Getting it right is important because your activity of choice decides:
The license you'll require
Which authorities will sanction your setup
Any special permits or qualifications needed
We assist you at Bizvise in determining the correct business activities to suit your plan and prevent future licensing complications.
2. Choose Mainland, Free Zone, or OffshoreOne of the most important decisions in your Dubai business setup is where to set up. Dubai has three main options:
MainlandGoverned by DED
Complete UAE market and government contract access
Can operate everywhere in the UAE and worldwide
Free ZonePerfect for 100% foreign ownership
Restricted to business within the Free Zone or overseas
Every Free Zone has its own rules and authority
OffshoreIdeal for asset protection, international business or holding companies
No office is needed physically
Can't conduct business directly in the UAE market
Each one has its advantages and disadvantages. It all depends on your business model, ownership structure and growth objectives. That's why Bizvise provides customized consultations to assist you in selecting the most suitable option for your new business setup in Dubai.
3. Legal Structure and Company NameAfter that, you'll have to choose a legal structure for your company. Dubai provides several legal structures, including:
Sole Proprietorship
Limited Liability Company (LLC)
Civil Company
Branch Office
Free Zone Company (FZC or FZE)
The majority of small and medium enterprises opt for LLCs because of the flexibility and protection they provide. But the ideal structure varies with your business, partners and geographical location.
You will also have to select a trade name. It should be distinctive, non-offensive and adhere to UAE's naming rules with no religious, political, or indecent words.
Bizvise assists you in acquiring the ideal name and appropriate structure so your Dubai business set up is a success.
4. Obtain Initial ApprovalPrior to registering your business, you will be required to obtain an initial approval certificate from the DED or Free Zone. The certificate indicates the UAE government is not opposed to you conducting your business.
It's not a license yet but the go-ahead to proceed with other steps.
Tip: You will need passport copies of all directors and shareholders, a business plan (in some areas) and other paperwork. We assist you in preparing and filing everything correctly at Bizvise.
5. Prepare the MOA and LSA Agreement (if applicable)For most businesses, particularly LLCs, you'll require a Memorandum of Association (MOA) that details the ownership share, functions, and responsibilities of all partners.
If you're establishing in the mainland and are a foreign investor, you might require a Local Service Agent (LSA) or a sponsor local although recent amendments now provide for 100% foreign ownership in most sectors.
We know this can sound complex. But with Bizvise, our legal team will draft and notarize all required agreements so your business setup in Dubai is fully compliant.
6. Choose a Business LocationEvery company in Dubai must have a physical address. You’ll need to provide a tenancy contract (Ejari for mainland companies) to get your trade license.
Options include:
Office spaces
Flexi-desks
Warehouses
Retail stores
Free Zones often have workspace options as part of their packages. Bizvise collaborates with prominent business centers and Free Zones to provide flexible, affordable space for your Dubai business setup.
7. Get Trade LicenseNow is the time for the big leap obtaining your trade license.
The type of license varies based on your activity:
Commercial license – For trading activities
Industrial license – For manufacturing or production
Professional license – For professionals, consultancy or services
Tourism license – For tourism and travel-related industries
You'll present your documents (MOA, tenancy agreement, passport copies, initial approval, etc.) to the concerned authority. With Bizvise, we handle the paperwork and reminders so that you can concentrate on business planning for launching.
8. Register for VAT (if applicable)If your business turnover is more than AED 375,000 per year, you will need to register for Value Added Tax (VAT).
Even if you're under the threshold, you can still register voluntarily. It can enhance your business reputation and assist with supplier relationships.
Bizvise offers VAT registration services and regular accounting services to ensure your business is compliant.
9. Open a Corporate Bank AccountYou'll require a business bank account to do business lawfully in Dubai. Banks have rigorous compliance verification, though, and getting an account isn't always straightforward.
You'll require:
Trade license
MOA
Shareholder documents
Business plan
Proof of office address
Requirements vary for different banks. Bizvise assists in picking the correct bank and deals with the process start-to-finish for ease of use.
10. Obtain Approvals from Other Authorities (if necessary)Certain businesses require further approvals from other UAE government entities. For instance:
Food & Beverage: Dubai Municipality
Education: KHDA
Health: DHA
Media: National Media Council
You might need one or more of these depending on your activity. We'll sort this out for you and obtain the correct permissions as part of your Dubai business setup process.
11. Hire Employees and Apply for VisasAfter your business is licensed, you can proceed with applying for your residence visa and recruiting staff. You will need to register your company with:
Ministry of Human Resources and Emiratisation (MOHRE)
General Directorate of Residency and Foreigners Affairs (GDRFA)
Bizvise also offers visa services for owners, dependents, and employees within our business setup in Dubai packages.
Final Thoughts: Simplify Your Business Setup in Dubai with Bizvise
There's no question Dubai is one of the greatest places on earth to start a business. But as with any successful city, it comes with its rules, regulations and legal obstacles. That's where Bizvise, your reliable business setup company in Dubai, steps in.
From selecting the appropriate license to obtaining government sanction and opening your corporate bank account, we walk you through each step. We know the local legislation, the process and pressure involved in starting business.
So, if you are ready for your new business setup in Dubai, contact Bizvise. We'll take care of the legal bit so you can focus on developing the business of your dreams.