Step 1: Define Your Business Activity
The first step to starting a business in Dubai is to clearly define your business activities. Dubai authorities require you to select from a comprehensive list of permitted activities, as this will determine the type of business licence you need and which authorities you’ll deal with. Conduct market research to ensure your chosen activity is viable and aligns with UAE regulations. For some specialised sectors, additional approvals from industry regulators may be required.

Step 2: Choose Your Jurisdiction (Mainland, Free Zone, or Offshore)
Next, decide where you want to set up your business: mainland, free zone, or offshore. Each jurisdiction has its own rules, benefits, and limitations. Mainland companies allow you to trade anywhere in the UAE, while free zone companies offer benefits like 100% foreign ownership and tax exemptions but may restrict local trade. Offshore setups are generally used for international business and asset holding, not for conducting business within the UAE.

Step 3: Select a Legal Structure and Trade Name
Choose the most suitable legal structure for your company, such as a Limited Liability Company (LLC), sole establishment, civil company, or branch of a foreign company. Your choice will affect ownership, liability, and compliance requirements. At this stage, reserve a unique trade name that follows UAE naming conventions and reflects your business activity. The Department of Economic Development (DED) or the respective free zone authority will need to approve your trade name.

Step 4: Obtain Initial Approvals and Prepare Documentation
Apply for initial approval from the DED, the free zone authority, or the Ministry of Economy, depending on your jurisdiction. Prepare all required documents, including passport copies, a Memorandum of Association (MoA), a tenancy contract (Ejari), a business plan, and any sector-specific permits. Ensure all documents are accurate and complete to avoid delays. For some activities, external approvals from regulatory bodies or Dubai Municipality may be needed.

Step 5: Secure Office Space (Physical or Virtual)
You must have a legal address for your business. Depending on your activity and jurisdiction, this could be a physical office, retail space, or a virtual office (especially common in free zones). Sign a lease agreement and register it through Ejari if you’re in the mainland. The office space requirement is mandatory for licence issuance and visa processing.

Step 6: Finalise Registration, Obtain Trade Licence, and Open Bank Account
Submit your complete application and supporting documents to the DED or free zone authority, pay the registration and licence fees, and receive your trade licence. Once you have your licence, you can open a corporate bank account in Dubai. After this, you can apply for visas for yourself and your employees, register for VAT if required, and begin business operations.