- Typical timeline
- 2–6 weeks
- Budget from
- AED 6,950
- Must you live here?
- No
- Ownership
- Up to 100%
Step 1: Define your business activity
Every UAE licence lists the specific activities your company may carry out, chosen from the authority's official list. Your activity decides which jurisdictions you can use, whether you need special approvals, and part of your cost. Be precise: "IT consultancy" and "software trading" are different activities with different rules.
Step 2: Choose free zone, mainland or offshore
This is the biggest decision, and it follows from where your customers are and whether you need residency:
- Free zone: international, online and service businesses. Fast, affordable and 100% owned.
- Mainland: businesses selling to UAE customers, opening shops or restaurants, or bidding for government work.
- Offshore: holding assets, property or IP, with no visas or local trading.
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Step 3: Pick a company name and legal structure
Trade names must follow UAE rules: no offensive or religious terms, no names of well-known brands you don't own, and an abbreviation that matches the legal form (for example "LLC" or "FZ-LLC"). Your structure, such as an LLC, a sole establishment or a branch of a foreign company, depends on the jurisdiction and how many owners you have.
Step 4: Apply for your trade licence
With your activity, name and shareholders confirmed, the application goes to the licensing authority with your documents. Most free zones allow e-signatures, so you can complete this from abroad. Once approved and paid, you receive your trade licence and establishment card, which lets the company sponsor visas.
- Passport copies and photos of all shareholders and managers
- Visa or entry stamp, if you're already in the UAE
- Proof of address
- For corporate shareholders: attested company documents
Step 5: Get your residence visa and Emirates ID
Through your company you can apply for an investor or partner visa. The process is an entry permit (or a status change if you're already in the UAE), a medical fitness test, Emirates ID biometrics, and then visa stamping. It usually takes 1–3 weeks. Once you're a resident, you can sponsor your family and open a personal bank account.
Step 6: Open a corporate bank account
UAE banks run thorough due diligence on new companies. Expect to provide your licence, MOA, passport and visa copies, proof of address, a short business plan, and evidence of where your funds come from. Approval can take from a few days to several weeks. A complete, consistent file is the single best way to avoid delays.
Step 7: Register for tax and stay compliant
Every UAE company must register for corporate tax, and must register for VAT once taxable supplies pass AED 375,000 a year. After that, keep proper books, renew your licence and visas on time, and file your returns. Our tax guide for new companies explains the basics.
Common mistakes to avoid
- Choosing the cheapest free zone without checking it allows your activity and visa needs.
- Picking a free zone when most of your customers are in the UAE.
- Underestimating bank account requirements. Prepare the file before you apply.
- Forgetting corporate tax registration because "no tax is due".
- Not budgeting for licence and visa renewals in year two.
This guide is general information, not legal or tax advice. Requirements change, so we confirm current rules for your activity before you apply.
