How to Start a Business in Dubai
(2025 Step-by-Step Guide)

23.09.2025
Dubai is one of the world’s most business-friendly hubs: fast registration, straightforward taxes, and access to the wider Middle East, Africa, and South Asia. This guide keeps the language simple and the steps practical, so you can map your setup from idea to launch without guesswork.

At a Glance: What You’ll Need

Think of setup as five building blocks. If you can define each one early, the rest of the process moves quickly.

  • Legal form, activity, and trade name

    Your legal form determines who owns the company, who bears liability, and what paperwork you’ll file. Common options:
    • Mainland LLC (most popular for trading/services on-shore).
    • Free Zone company (e.g., FZ-LLC / FZE; great for simplified setup, foreign ownership, and operating inside a specific zone).
    • Branch (of a foreign or UAE company; no separate share capital).
    • Professional entity (for consultants and certain regulated professions).
    Your business activity must be selected from an approved list (it controls your licence type, any approvals, and sometimes office requirements). If in doubt, pick the actual activity that matches your revenue model — not just a broad category.

    Your trade name should:
    • Reflect the activity and include the required legal suffix (e.g., "LLC" or "FZ-LLC").
    • Avoid restricted words (offensive, political, religious).
    • Match the language rules of the authority (English/Arabic transliteration is usually fine).
    • Tip: Reserve 2−3 acceptable name variants in case your first choice is taken.

  • Licence type (commercial, professional, industrial)

    Licences broadly fall into three buckets:
    • Commercial — trading, retail/wholesale, e-commerce, general trading (often needs stricter proof of space/logistics).
    • Professional — services, consulting, tech, media, education, healthcare services (sometimes lighter office requirements).
    • Industrial — manufacturing or assembly (expect facilities, HSE, and additional approvals).
    Choosing the right activity + licence combination affects everything from bank KYC to visa quotas. Don’t "over-licence"; add only the activities you’ll actually use.

  • Office solution (flexi-desk, dedicated office, warehouse)

    Dubai requires a real or virtual presence tied to your licence:
    • Flexi-desk / co-working (common in free zones): the fastest, lowest cost; often includes a small visa quota.
    • Dedicated office (on-shore or in a zone): needed for many customer-facing or regulated activities; supports larger teams and visas.
    • Warehouse/industrial unit: for storage, logistics, or manufacturing; expect fit-out and safety approvals.
    Mainland setups usually require a tenancy contract (Ejari in Dubai). Free zones issue their own office/desk agreements.

  • Visa quota and immigration file

    After licensing, you’ll open your immigration file (often called an establishment card) with the relevant authority. This enables:
    • Investor/partner visas for owners.
    • Employee visas tied to your visa quota (the number of visas you can issue), which depends on your office type/size and the authority’s rules.
    Plan your first-year headcount early; upgrading from a flexi-desk to a bigger space mid-year purely for visas can be more expensive than starting with the right package.

  • Corporate bank account

    Banks in the UAE run thorough KYC/AML checks. To speed things up, prepare:
    • Company licence, MoA/AoA, and establishment card.
    • Lease/Ejari or free-zone office agreement.
    • Passports/visas of shareholders, UBO declarations, and proof of address.
    • A short business plan and initial source-of-funds evidence (contracts, invoices, or pipeline).
    Expect interviews and a review of your expected flows (who you’ll pay and who will pay you). Timelines vary from a couple of weeks to more than a month; start early and keep documents consistent.
Get a free consultation

Mainland vs Free Zone vs Offshore: Which One Fits Your Strategy?

Choosing the right jurisdiction is a strategy call. Start with two questions: who are your customers (UAE on-shore vs. international) and how you deliver value (services, trading, manufacturing, holding). Your answers usually point you to mainland, a specific free zone, or an offshore/holding vehicle.

Mainland (on-shore)

Mainland companies are licenced by Dubai's Department of Economy & Tourism (DET) and can trade directly anywhere in the UAE. You’ll typically maintain an office with an Ejari tenancy and can bid for government or large enterprise contracts more readily.

When to choose it
  • You sell to UAE residents or on-shore businesses (retail, clinics, restaurants, local B2B services).
  • You need physical presence (showroom, warehouse serving the local market) or frequent on-site work.
  • You plan to scale headcount quickly and want flexible visa quotas tied to office size.
  • You expect to work with government entities or regulated sectors that prefer/require mainland licensing.
Ownership & local-market access
  • For most activities, 100% foreign ownership is available; a small number of strategic activities may still have special rules.
  • You can invoice UAE mainland customers directly without a distributor.
Expect standard obligations: office lease (Ejari), VAT where applicable, and corporate tax compliance.

Free Zone

Free zones offer 100% foreign ownership, streamlined setup, and sector focus (e.g., tech, media, logistics, finance). They work best when your revenues are export-oriented or service clients outside the UAE mainland.

When to choose it
  • You run cross-border services (software, consulting, media, trading that ships internationally).
  • You value fast setup with flexi-desk options and bundled visa quotas.
  • Your industry benefits from a specialized zone (e.g., near a port/airport, or a media/tech cluster).
  • You’re testing the market and want lower initial overhead before committing to larger offices.
Selling to the UAE market from a free zone
Free zone entities don’t sell on-shore directly. To reach mainland customers, use one of these routes:
  • Appoint a local distributor/agent who invoices on-shore customers and imports your goods (for trading).
  • Set up a mainland branch or LLC alongside your free zone company for on-shore contracts.
  • In some cases, obtain additional permits/arrangements with DET to enable limited on-shore activity (varies by zone and activity).
Operationally, plan for VAT, consumer law, delivery/returns, and after-sales support if you serve UAE end customers.

Offshore (Holding/Structuring)

"Offshore" (e.g., RAK ICC, JAFZA Offshore) is primarily a holding or SPV vehicle. It’s not designed for operating in the UAE market.

Typical use cases & limitations
  • Use cases: hold shares in operating companies, own IP, consolidate international assets, or facilitate cross-border deals.
  • Limitations: typically no visas, no physical office lease, and no direct trading in the UAE. Banking can be more demanding.
If you need to hire staff, lease space, or invoice UAE customers, choose mainland or a free zone instead.

Step-by-Step Setup (Mainland)

Mainland licensing runs through Dubai’s Department of Economy & Tourism (DET). The flow below covers the essentials; regulated activities (healthcare, education, financial services, etc.) add external approvals but follow the same backbone.

Confirm activities & licence category with DET

Define your primary revenue activity first — everything else (licence type, approvals, office needs, banking KYC) hangs on this.
  • Pick activities from the DET list that match what you’ll actually sell (avoid "catch-all" padding).
  • Map to a licence category: commercial, professional, or industrial.
  • Check special approvals (e.g., DHA/KHDA/MoCCAE) and any ownership/capital quirks for your activity.
  • Decide shareholding (LLC with multiple owners vs. single-owner structures; branch if extending an existing company).
Documents to prep: passport copies, UAE visas/Emirates IDs if any, UBOs, proof of address, brief business plan.

Name reservation & initial approval
Secure your trading name and DET’s green light to proceed.
  • Trade name rules: include legal form (e.g., "LLC"), avoid restricted words, keep a couple of alternates ready.
  • Initial Approval (pre-licence OK): submit owners' IDs, chosen activities, and basic company details.
  • If you're already in the UAE on a sponsored visa, the authority may ask for a NOC from your current sponsor.

Drafting MoA/AoA and notarization
Your company constitution formalizes ownership and scope.
  • For LLCs: prepare a Memorandum of Association (MoA) (DET e-MoA templates are common).
  • For branches: file parent documents (Board Resolution, PoA, Certificate of Incumbency/Good Standing), legalized as required.
  • Notarize documents via approved e-notary/notary public. Keep shareholder passports and signatories available.

Lease agreement & Ejari registration
Mainland companies typically need a physical address tied to the licence.
  • Choose office type: serviced office or standard lease aligned to your activity and headcount plans.
  • Sign the tenancy contract and register Ejari (Dubai's lease registry).
  • Note: office size and category can influence visa quotas; plan space with your 12-month hiring in mind.

Final licence issuance
Submit your file for the trade licence once the groundwork is in place.
  • Provide MoA/branch docs, Initial Approval, Ejari, and any external approvals.
  • Pay government fees; receive the Trade licence (and company register extract if applicable).
  • Apply for corporate tax and VAT registrations when thresholds/conditions are met.

Establishment card & visa processing
Activate immigration and labor access, then issue visas.
  • Obtain Establishment Card with the immigration authority and register your entity with MOHRE (for labor).
  • Open quota for investor/partner and employee visas (quota size depends on office/authority rules).
  • For each visa: entry permit → medical & biometrics → Emirates ID → visa stamping; arrange health insurance and enroll in WPS once you hire.
  • Align bank onboarding in parallel (licence, MoA, Ejari, UBOs, source-of-funds, and a simple operating plan ready).

Step-by-Step Setup (Free Zone)

Free zones streamline company formation with packaged licences, simplified immigration, and sector-focused ecosystems. The trade-off: direct sales to the UAE mainland require extra structuring (distributor, branch, or a separate mainland entity).

Choose the right zone & licence package

Match the zone to your activity, customers, and banking needs. Look at:
  • Activity fit & approvals: Make sure your exact activities are allowed; check for any third-party approvals.
  • Package contents: What’s included (licence, number of activities, establishment card, initial visa quota, P.O. box, portal access)?
  • Office model & visa cap: Flexi-desk packages usually include fewer visas; larger dedicated offices/warehouses support higher quotas.
  • Banking reputation & KYC comfort: Some zones are more familiar to banks; ask which documents banks routinely request for your activity.
  • Logistics/location: If you ship goods, proximity to air/sea ports and customs processes matters.
Tip: Start with the actual activity you’ll monetize in year one; you can add activities later, but changing the core scope mid-year can slow banking and renewals.

Application, KYC & due diligence
Prepare clean, consistent files to avoid back-and-forth:
  • Individuals: passport & photo, proof of address, CV/LinkedIn, source-of-funds, UBO declaration, business plan (brief is fine).
  • Corporate shareholders: certificate of incorporation, MoA/AoA, good standing/incumbency, board resolution & PoA — attested/legalised as required.
  • Screening & questionnaires: Expect AML/KYC checks and simple compliance forms.
Once approved, you’ll receive an invoice for the setup package and can proceed to office contracting.

Office/flexi-desk contract
Sign the workspace agreement required by the zone (this is not Ejari; zones register space internally).
  • Flexi-desk/co-working: lowest cost; comes with limited visas and shared facilities.
  • Dedicated office/warehouse: needed for larger teams, trading/storage, or regulated activities; may trigger HSE or fit-out approvals.
Keep the contract term aligned with your licence renewal date to simplify admin and banking updates.

Licence & establishment card
After payment and document clearance, the authority issues your Trade licence. Next:
  • Obtain the zone’s Establishment Card (immigration file) and portal access.
  • Register for corporate tax and VAT as required (e.g., when passing thresholds or by activity).
  • Collect official letters/certificates often requested by banks (licence copy, specimen-signature letter, share register).

Visa quota and issuances
Open your quota and start visas in this sequence: entry permit → medical & biometrics → Emirates ID → visa stamping.

  • Investor/partner visas first, then employees; the quota size depends on your office package and zone rules.
  • Plan for health insurance and, once hiring, enroll in WPS payroll.
  • Need more visas mid-year? Upgrade space rather than pause hiring — capacity is tied to office type.
Parallel task: keep bank onboarding moving with your final licence, office contract, UBO forms, and a concise operating plan.

Banking in the UAE

UAE banks are conservative and process-driven. If your documents are clean and your story (who you are, what you sell, to whom, and how money moves) is consistent, opening an account is doable — even for new companies.

Required documents (UBO, source of funds, business plan)

Prepare a single, consistent KYC pack:
  • Company: trade licence, MoA/AoA, share register/UBO declaration, establishment card, specimen-signature letter (if issued), tax registrations (corporate tax/VAT, if applicable).
  • Office: Ejari (mainland) or free-zone office/flexi-desk agreement.
  • Owners & signatories: passports, visas/Emirates IDs (if any), proof of residential address, CV/LinkedIn.
  • UBO & control: clear ownership chart to the ultimate beneficial owners (typically ≥25%).
  • Source of funds / wealth: recent personal or corporate bank statements, sale contracts, payroll slips, or other evidence showing where startup capital comes from.
  • Business plan (1−2 pages): what you sell, target markets, expected monthly volumes (incoming/outgoing), top 3 client and supplier countries, and compliance notes (no sanctioned counterparties, etc.).
  • Commercial proof (if available): website, draft contracts/LOIs, invoices/POs, marketing deck.
If shareholders are foreign companies, add attested incorporation docs, board resolution, and POA for the UAE signatory.

Account-opening timelines & common hurdles

  • Timelines: pre-screening → RM interview → KYC review → approval and activation. Expect 2−6+ weeks depending on your profile, completeness, and bank workload.
  • Minimum balances & fees: vary by bank/product; make sure your working capital covers them.
Typical hurdles (and fixes):
  • Inconsistent story (licence ≠ website ≠ plan) → Align activity, site copy, and invoices with the licenced scope.
  • Thin substance (only flexi-desk, no real ops) → Show credible pipeline, signed contracts, or early revenues; upgrade office if headcount grows.
  • High-risk profiles (cash-intensive, crypto, sanctioned routes) → Provide enhanced documentation or choose banks comfortable with your sector.
  • Messy UBO chains → Supply a simple org chart and attested docs up to the UBO level.
  • Slow responses → Designate one coordinator, reply to bank queries within 24−48h, and keep versions controlled (no conflicting PDFs).
Pro tip: schedule in-person signatory visits early; many banks require wet signatures or branch ID checks.

Multi-currency options and interim solutions

  • Currencies & rails: Most corporate accounts support AED, USD, EUR, GBP with IBAN/SWIFT. AED is pegged to USD, so USD flows are common.
  • Payments: enable local salary payroll (WPS), corporate cards, FX, and international transfers once the account is live.
  • Merchant acquiring: if you take online payments, arrange a payment gateway once your bank KYC is complete.
Interim options while you wait:
  • Use a reputable e-money institution or your existing foreign entity’s account to collect early invoices (ensure contracts and tax treatment are correct).
  • Invoice smaller pilots via escrow/marketplace platforms where acceptable to your clients.
  • Keep immaculate records so funds can be traced when you later migrate flows to your UAE account.
Avoid running business payments through personal accounts — it creates compliance red flags and slows bank approval later.

Taxes & Ongoing Compliance

Dubai’s regime is straightforward but rules are specific. Build these items into your first-year plan so banking, hiring, and renewals run smoothly.

  • Corporate Tax (9%)

    The UAE levies 0% corporate tax on taxable income up to AED 375,000, and 9% on the excess (different rules apply to very large multinationals under OECD Pillar Two). The law applies to financial years starting on/after 1 June 2023.

    AED 375,000 threshold overview
    Practically, if your company’s taxable profit is AED 600,000, the first AED 375,000 is taxed at 0% and the remaining AED 225,000 at 9%. Small businesses should still register and file on time to avoid penalties.

    Qualifying Free Zone Person (high-level)
    Free-zone entities that meet all conditions can keep 0% on qualifying income (and 9% on other income). Core conditions include: being established in a free zone, maintaining adequate substance, having audited financials, complying with transfer pricing, and staying within the de-minimis cap for non-qualifying revenue (≤ 5% of total revenue or AED 5m, whichever is lower). Check whether your activities fall under the official Qualifying/Excluded lists before relying on the regime.

  • VAT (5%)

    VAT is 5% on most supplies. Mandatory registration kicks in at AED 375,000 of taxable supplies in a 12-month window; voluntary registration is available from AED 187,500. Filing periods are set by the FTA (commonly quarterly; some taxpayers file monthly).

    Registration thresholds & filing cadence
    Register if you crossed AED 375,000 in the past 12 months or expect to in the next 30 days. Non-resident businesses making taxable supplies in the UAE must also register. Keep returns and payments on the FTA schedule assigned to you.

  • Economic Substance (historical)

    The UAE removed ESR filing requirements for financial years ending after 31 December 2022. If your UAE entity carried out a Relevant Activity in 2019−2022, keep your historical ESR files ready for potential audits. Going forward, focus on corporate tax, transfer pricing, UBO and general substance aligned with your licensed activities.

  • UBO reporting, AML/KYC, and record-keeping

    Most UAE companies must keep a Register of Ultimate Beneficial Owners and submit/update details per Cabinet Resolution No. 109 of 2023. For AML, maintain CDD and transaction records for at least 5 years (longer in some financial free zones). Keep ownership charts, KYC files, and policies tidy — banks and authorities will ask.

  • Payroll & WPS essentials

    Private-sector employers pay salaries through the Wage Protection System (WPS) on time to avoid fines or restrictions. Register your entity with MOHRE and align payroll cut-offs to the WPS cycle before your first hire. 

Hiring & Visas

Getting visas in the UAE is procedural but predictable. Build a simple timeline, keep documents consistent, and align headcount to your office/visa quota.

Investor/partner visas

Residency tied to company ownership/directorship. Typical flow: entry permit → status change (if in-country) → medical exam → biometrics → Emirates ID → visa stamping.

What to prepare:
  • Company pack: trade licence, MoA/AoA or board resolution (for directors), establishment card.
  • Personal pack: passport, photos, (if applicable) existing UAE visa/cancellation, proof of address, health insurance.
  • Substance: office lease (Ejari or zone agreement) and a simple business plan can help during questions.
  • Good to know: validity and eligibility vary by authority and category; keep your licence/establishment card active to avoid visa disruptions.

Employee visas, quotas & medicals

Employees are sponsored by the company after you open a labor/immigration file.
Process highlights:
  • Quota check: your office type/size and activity determine how many visas you can issue.
  • Offer & contract: register the role with MOHRE/zone portal; issue an electronic contract.
  • Permits & medicals: Then follow the standard visa sequence (see Hiring & Visas)
  • Payroll: enroll in WPS and pay salaries on time to avoid fines or blocks.
  • Changes & exits: keep a clean trail for NOC, amendments (title/salary), and cancellations when staff depart.
  • Tip: batch applications by role to simplify document reuse (job descriptions, qualification attestations, insurance).

Family sponsorship basics

Once the sponsor’s residence visa is issued (investor or employee), family members can follow.

Requirements at a glance:
  • Eligibility: spouse, children (age limits vary), and in some cases parents (extra conditions apply).
  • Docs: attested marriage and birth certificates, passports/photos, Emirates ID application, medicals (for adults), health insurance.
  • Housing & income: proof of accommodation (Ejari/zone lease) and minimum income per current rules.
  • Sequence: Then follow the standard visa sequence (see Hiring & Visas)
  • Keep originals and attested copies ready; mismatched spellings or dates are the most common cause of delays.

Costs & Timelines

Costs swing based on jurisdiction, activity, and office choice. Treat the figures below as ballpark and confirm with the authority’s latest schedule or calculator before you commit.

Typical government fees and ranges

  • Free zones (lean packages): entry bundles typically start around AED 6,800−13,000 for zero-visa or one-visa packages (e.g., SPC, IFZA). Add visas, and totals move into the AED 14,000−19,000 range for 1−3 visas, before any add-ons.
  • DMCC (premium free zone): expect higher base fees — official schedule lists AED 1,035 (application), AED 9,020 (registration), AED 2,020 (AoA), and an annual licence fee ~AED 20,285 (activity-dependent). Office is extra.
  • Mainland (DET Dubai): fees vary by activity and approvals; as a reference point, DET cites AED 1,070 (licence + knowledge/innovation) + AED 300 (Dubai Chamber) for a standard issuance step — use the city’s cost calculator to model your full stack.
  • Visa components (per person, indicative): establishment card, entry/work permit, medical, Emirates ID, and stamping commonly total ~AED 5,000−7,000 depending on zone and speed; sample SPC breakdowns show typical line items (establishment card ~AED 640, entry/visa ~AED 2,200, e-channel ~AED 2,280, medical/ID ~AED 695 combined).
  • Renewals: many zones renew near 80−90% of year-one licence pricing (excludes visas/office).

Office options (costs & trade-offs)

  • Flexi-desk / co-working (free zones): lowest upfront cost; often bundled with the licence; limited visa quota; fine for early services/SaaS.
  • Dedicated office (mainland or free zone): higher rent and fit-out, but larger visa capacity and better banking optics for client-facing ops.
  • Warehouse/industrial: required for storage, logistics, or manufacturing; budget for HSE/fit-out approvals.
  • Note: in zones like DMCC, visa capacity is tied to office size/type — plan headcount before you sign a lease.

First-year budget and renewal expectations

Lean free-zone services/SaaS (0–1 visa):
Licence package AED ~7k–15k + 1 investor visa AED ~5k–7k + minimal office (flexi-desk included) → AED ~12k–22k year one; renewal mostly the licence.

Growing free-zone team (2–3 visas):
Licence AED ~13k–19k + 2–3 visas AED ~10k–18k + upgraded office if needed → AED ~25k–40k.

Mainland trading/services:
DET fees (model via calculator) + Ejari/lease + visas; small offices start modestly, but space for team growth and external approvals (if regulated) raise totals. Use the Invest in Dubai calculator to map your exact activity and location.
  • Timeline cues: free-zone licensing can be fast once KYC clears; mainland varies by approvals; banking commonly outlasts licensing (2−6+ weeks). Start bank pre-screening early and keep documents perfectly consistent.

Operating Legally in the Local Market

Import/export & customs codes

  • Customs registration. Obtain your Customs Client Code with the relevant emirate customs (e.g., Dubai Customs via the Dubai Trade portal). This registration ties your trade licence to import/export activity.
  • Declarations & systems. Use the emirate’s e-clearance system (e.g., Mirsal 2 in Dubai) or work through a licenced customs broker. You’ll file import/export declarations with supporting documents: commercial invoice, packing list, bill of lading/air waybill, certificate of origin, and any required permits.
  • HS classification & duties. Classify goods under the correct HS code. Most standard imports attract around 5% customs duty; excise goods (tobacco, sugary drinks, energy drinks, vape products, etc.) carry higher excise rates. Preferential rates may apply under trade agreements.
  • Regulated items & permits. Certain categories need pre-approvals (examples: food/agri — MOCCAE; pharmaceuticals/medical — MOHAP; telecom equipment — TRA; industrial conformity — MoIAT/ECAS/EQM; security/surveillance — SIRA). Build permit timelines into your lead times.
  • Free zone → mainland. Moving goods from a free zone into the UAE mainland counts as an import into the mainland and triggers the usual customs duty and VAT treatment. Transfers within or between designated zones can have special VAT handling — confirm the exact route before shipping.
  • VAT readiness. If you’re trading goods locally, make sure your TRN (VAT registration) is in place when thresholds apply, and that your invoices, returns, and records match customs data.
  • Renewals. Keep your customs code, licence, and leases current — banks and customs both check validity.

Distribution partners & local agents (for free-zone sellers)

  • Why you need one. A free-zone entity cannot sell directly to mainland customers. To reach the local market, either:
  1. Appoint a mainland distributor/agent who imports and invoices customers on-shore, or
  2. Set up a mainland branch or LLC (alongside your free-zone entity) to contract on-shore directly.
  • Agency vs distribution. A registered commercial agency (filed with the Ministry of Economy) can grant strong protections and exclusivity to the agent — great for commitment, but harder to terminate. A standard distribution agreement (unregistered) offers more flexibility but less statutory protection for the distributor. Choose deliberately.
  • Contract must-haves. Define territory and channels (retail, marketplace, B2B), price lists & discount rights, marketing obligations, inventory ownership & returns, service levels, warranty handling, and termination/exit terms.
  • Tax & invoicing flow. The distributor/agent invoices mainland customers and handles VAT and customs; the free-zone seller invoices the distributor (typically out of zone). Keep paperwork tight so bank KYC and audits can trace the money and goods.
  • Customer protection & Arabic. Ensure returns/warranty policies meet UAE consumer protection rules, and that end-customer documentation is clear (Arabic support is often expected in consumer contexts).
  • Scale plan. If local demand grows, many companies add a mainland entity for key accounts while keeping the free-zone entity for regional exports and warehousing.

Common Pitfalls & How to Avoid Them

Picking the wrong activity/zone for your revenue model

Problem: Activity codes that don’t match what you actually sell, or a zone that doesn’t fit how you deliver value (e.g., free zone but you need direct mainland sales). This leads to add-on approvals, re-licensing, or an extra mainland entity later — costly and slow.

  • How to avoid:

    • Start with the revenue model (who pays you, where goods/services are delivered) → pick activity codes that mirror it.
    • Validate special approvals early (healthcare, education, financial, media, food).
    • If you’ll sell on-shore, plan mainland (or a mainland branch alongside your free zone).
    • Sense-check with banking: choose jurisdictions/activities banks are comfortable with for your sector.

Incomplete KYC → banking delays

Problem: Banks reject or stall when your story is inconsistent (licence ≠ website ≠ invoices), UBO chains are unclear, or source-of-funds is weak.

  • How to avoid:

    • Build a one-file KYC pack: licence, MoA/AoA, UBO chart, office lease, tax regs, owners’ IDs, proof of address, 1–2 page business plan, sample contracts/LOIs.
    • Keep names, addresses, and activities identical across all documents and your website.
    • Prepare source-of-funds/wealth (bank statements, sale contracts, payslips).
    • Schedule signatory presence for wet-ink/branch ID checks; answer bank queries within 24–48h with version-controlled PDFs.

Missing corporate tax/VAT/UBO obligations

Problem: Late or missing corporate tax/VAT registrations or filings, a neglected UBO register, and ignoring historical ESR records can trigger penalties and slow bank reviews.

  • How to avoid:

    • Keep a compliance calendar for corporate tax and VAT; issue compliant invoices and, if you trade goods, reconcile with customs data.
    • Maintain an up-to-date UBO register and retain KYC files for at least 5 years.
    • If you operated in 2019−2022 with a Relevant Activity, retain ESR notifications/reports and substance evidence for potential audits.
    • Ensure your operating "substance" (people, premises, spend) matches your licensed activities — this also supports banking and tax positions.

Underestimating office/lease requirements

Problem: Choosing too small a space or the wrong category, then discovering your visa quota is insufficient, or that you need Ejari/fit-out approvals to operate or bank.

  • How to avoid:

    • Forecast 12−18 months of headcount; pick an office package that supports your visa quota.
    • Align lease term with licence renewal to avoid out-of-sync paperwork.
    • Confirm building/zone use classification (retail, office, warehouse) and any HSE/SIRA/sector approvals before signing.
    • If scaling fast, choose an easily upgradable office option rather than frequent mid-year moves.
Ask your question to an expert
Write to WhatsApp

One-Page Checklist (Print-Ready)

Use this as a concise, end-to-end tracker. Print it and tick items as you go.
Strategy & Scope
  • Define customer geography (UAE mainland vs export) and delivery model (services / trading / manufacturing).
  • Choose jurisdiction: mainland / free zone / offshore (holding).
  • Select precise activity codes; list any external approvals needed.
  • Draft a simple 12-month headcount plan (drives office/visa needs).
Company Formation
  • Shortlist 2−3 trade names (with legal suffix).
  • Get Initial Approval from DET or your free-zone authority.
  • Prepare MoA/AoA or branch board resolutions; arrange notarization/legalisation.
  • Sign office/flexi-desk/warehouse agreement (Ejari for mainland; zone contract for FZ).
Licensing & Immigration
  • Submit final file; obtain Trade licence.
  • Open Establishment Card (immigration file) and register with MOHRE (if hiring).
  • Set visa quota aligned to office size/package.
Banking Readiness (KYC Pack)
  • Licence, MoA/AoA, share/UBO register, establishment card
  • Office lease/Ejari or free-zone agreement.
  • Owners' passports/IDs, proof of address, UBO chart.
  • Source of funds/wealth (bank statements, contracts).
  • 1−2 page business plan (flows, counterparties, countries).
  • Schedule signatory branch visit/interview.
Tax & Compliance
  • Corporate Tax registration and accounting policy.
  • VAT registration (if thresholds apply) and invoice templates.
  • ESR (historical 2019−2022): confirm if applicable and retain files; ongoing corporate tax/TP/UBO in place.
  • UBO register created and maintained.
  • Record-keeping policy (AML/KYC, 5-year retention).
Visas & Payroll
  • Investor/partner visa (s) issued.
  • Employee visas (entry → medical → biometrics → Emirates ID → stamping).
  • Health insurance for residents.
  • WPS payroll set up and tested.
Trading & Operations
  • Customs Client Code (if importing/exporting) + HS classification.
  • Contracts, T&Cs, and returns/warranty flow aligned to UAE rules.
  • Website and marketing copy match licenced activities.
  • Compliance calendar (renewals, filings, tax/VAT deadlines).
Go-Live Review
  • Bank account active (multi-currency as needed).
  • First invoices issued and reconciled to contracts/VAT.
  • Internal checklist signed off by founder/ops lead.

Optional: Work with a Setup Partner

How AccEagleEye helps with document preparation, authority filings, and banking introductions

A reputable formation partner can compress timelines and reduce rework by mapping your revenue model to the right jurisdiction and activity codes, preparing clean application files (MoA/AoA, UBO charts, attestations), coordinating notarisation/legalisation, and sequencing licensing, immigration, and bank onboarding so nothing blocks your launch. Typical deliverables include a compliance calendar (corporate tax, VAT, UBO, transfer pricing), and—if applicable—organising historical ESR files (2019−2022), visa quota planning tied to office capacity, customs registration (if trading goods), and a banking-ready KYC pack with a simple operating plan. If you already have partial documents, they’ll gap-check and align every detail (names, addresses, activities) to avoid KYC contradictions.

FAQ

Can I own 100% of a mainland company?

Yes — for most activities 100% foreign ownership is available on the Dubai mainland. A limited set of strategic or regulated activities can still have special conditions or extra approvals. Always match your actual revenue activity to the official list before you assume the rule applies to you.

Do I need a physical office, or is a flexi-desk enough?

  • Mainland: plan on a lease with Ejari; visa quotas and many bank KYC checks expect it. (There are limited "light" options in some cases, but you’ll still need proper space for visas/banking.)
  • Free zones: a flexi-desk/co-working is often acceptable for early services/SaaS and comes with a small visa quota. Customer-facing, regulated, or larger teams usually need a dedicated office (and more visas).

How long does setup take?

Licensing can be quick once documents are clean and any external approvals are cleared. In practice, bank onboarding tends to outlast licensing because of KYC/AML reviews. Your timeline depends on activity type, office choice, and how complete/consistent your file is.

Can non-residents open a UAE bank account?

It’s possible, but expect more scrutiny. Banks typically require in-person signatory verification, a credible business plan/pipeline, and clear UBO/source-of-funds evidence. Having UAE residency and an office agreement generally improves approval odds. Until the account is live, some teams use interim e-money/foreign accounts (with clean documentation) to collect early invoices.

What changes after I hire my first employee?

You’ll register and run payroll via WPS, provide health insurance, issue MoHRE/zone contracts, and manage visas (entry permit → medical → biometrics → Emirates ID → stamping). Start tracking leave, overtime, and end-of-service (gratuity), keep compliant personnel files, and align office size with your visa quota as the team grows.
Fill out the form to sign up
for a consultation with an expert

Get a free consultation on business support in the UAE

By submitting your application, you agree to the privacy policy and consent to the processing of your personal data

Contact Us

Dubai
info@acceagleeye.com
Oh My Desk, Al Fattan Downtown, 32d St Al Satwa
Dubai, UAE
+971 52 552 9700
Privacy Policy
Services
Company