The UAE is one of the top destinations for entrepreneurs looking to start a business. With its strong infrastructure, tax benefits, and thriving digital economy, it's no wonder that thousands of startups and SMEs call the UAE home. However, starting a business in the UAE requires more than just a good idea — you need to understand the legal, financial, and operational requirements to get started the right way.
At ProCommerce, we help entrepreneurs like you navigate the business setup process with ease. Here’s our complete step-by-step guide.
Step 1: Decide Your Business Activity
Before you register a business, you need to clearly define your activities. Are you launching an e-commerce brand? A service agency? A retail outlet? Each activity falls under a specific category and affects your license type.
The Department of Economic Development (DED) and Free Zone authorities each have their own lists of approved business activities. Picking the wrong one can lead to delays or compliance issues.
Step 2: Choose the Right Jurisdiction
There are three main business jurisdictions in the UAE:
- Mainland: Ideal for companies planning to do business within the UAE market directly.
- Free Zone: Offers 100% foreign ownership, tax benefits, and simplified processes.
- Offshore: Best for holding companies or international business without a physical presence in the UAE.
Our consultants help you assess your goals, customer base, and operational needs to select the best option.
Step 3: Reserve Your Trade Name
Once you've finalized your business activity and jurisdiction, the next step is choosing and registering a trade name. Your business name should align with UAE naming guidelines and cannot violate public morals or religious sentiments.
ProCommerce helps you through the name search, reservation, and approval process quickly and efficiently.
Step 4: Obtain Initial Approvals
Depending on your business type, you may need approvals from specific authorities, such as the Municipality, Ministry of Health, or other regulatory bodies.
We ensure that all the necessary documentation is filed and approvals are secured without delay.
Step 5: Prepare Documentation and Submit License Application
Key documents include:
- Passport copies of owners and shareholders
- Memorandum of Association (MOA)
- Lease agreement for office space or flexi-desk (if required)
- Power of Attorney (if applicable)
Our team will prepare and review all documents to ensure compliance and accuracy.
Step 6: Open a Corporate Bank Account
Opening a bank account in the UAE can be complex due to strict compliance and KYC requirements. We guide you through the documentation and introduction process with trusted local and international banks.
Step 7: Register for VAT (If Applicable)
If your business crosses the annual turnover threshold (currently AED 375,000), you are required to register for VAT with the Federal Tax Authority. We assist with registration, documentation, and understanding your tax obligations.
Step 8: Post-License Services
Getting the license is only the beginning. From visa processing to bookkeeping, branding, and marketing — ProCommerce supports your business every step of the way.
Setting up a business in the UAE doesn’t have to be stressful. With the right partner, the process is smooth, strategic, and designed for success. At ProCommerce, we provide you with expert guidance and complete setup solutions tailored to your business goals.
Thinking of launching your business in the UAE?
Book a FREE 10-minute consultation call with our business setup experts and get your questions answered today.