Starting a business online

The UAE Government introduced the Bashr service to start a business. Bashr is an integrated eService, which enables investors to establish their businesses in the UAE within 15 minutes through a unified online platform. This platform is connected with federal and local government entities, which provide commercial licence services. Read more about Bashr.

 

Abu Dhabi Business Centre provides investors with an instant licence service to start their businesses online and get the commercial licence without need to visit the service centre. Apply for an instant licence in Abu Dhabi.

 

Dubai Economy along with other Dubai government entities launched the Dubai Virtual Commercial City programme (VCC) which will enable entrepreneurs and freelancers across the world to start a virtual company in the UAE even if they do not live in the UAE. Read more about the Dubai Virtual Commercial City programme (VCC).

 

Related links

 

• Invest in Abu Dhabi
• Invest in Dubai.

Starting a business regularly

Starting a business in ordinary ways involves a series of steps, including:

1. Identifying a business activity
2. Selecting an appropriate legal form
3. Registering the trade name
4. Applying for an initial approval
5. Drafting a Memorandum of Association and local service agent agreement
6. Select a business location
7. Get additional government approvals
8. Submit documents and pay fees

 

Identify business activity

Business activity is the basis for selecting the legal form and type of licence, whether commercial, industrial or professional, etc. There are six types of licences. They are: industrial, commercial, professional, tourism, agricultural and occupational.

 

Notes:

• An investment/business can have more than one business activity.
• There are more than 2,000 business activities to choose from in the UAE.

Select the legal form

The legal form depends mainly on the business requirements. Moreover, the legal form is basis for identifying applicable laws and regulations. In the UAE, an investor can select one of these legal forms:

• General partnership
• Limited partnership
• Limited liability company (LLC)
• Public joint stock company (PJSC)
• Private joint stock company (PrJSC)
• Civil company
• Local company branch
• GCC company branch
• Foreign company branch
• Free zone company branch
• Sole establishment
• Holding companies.

 

Note: the legal form of the business must match the business activity.

 

To learn more about the requirements of each business activity and legal form, check the following pages:

• Dubai economy: start your business in Dubai
• Sharjah Investment and Development Authority: process and requirements
• Ajman Department of Economic Development: issue business licence
• RAK Department of Economic Development – issuing licences
• Fujairah Government - doing business in Fujairah.

Register the trade name

A trade name distinguishes one business from another. It also reflects the nature and the form of the business. An investor can apply for the trade name through the economic department in each emirate, through its website or mobile application.

 

Provisions for selecting the trade name:

The trade name must:

• be followed by the business structure acronym (legal form of the company) such as: LLC, EST, PJSC, PrJSC
• not violate the public morals or the public order of the country
• be compatible with the required type of activity and the legal status of the company or business entity
• not contain names of any religion, or governing authority, nor names or logos of any external bodies
• not have been previously registered.

During the application process, you will be issued a payment voucher or a transaction number, which you will need to use as a reference when you pay.

Notes

• The local department of economic development registers the trade name, while Ministry of Economy registers the trademark.
• Trade name certificates are renewable.

 

Related links

• Business name availability- Ministry of Economy
• Request to book a trade name- Department of Economy & Tourism - Dubai
• Trade names search - TAMM -Abu Dhabi
• Inquire about trade name availability- Economic Development Department-Sharjah.

Initial approval

An initial approval means that the UAE Government has no objection for the business to be established in the country. It also allows the investor to proceed with the next steps in setting up a business. It does not, however, grant the authority to run or practice the business activity.

 

Foreign investors must obtain the approval of the General Directorate of Residency and Foreigners’ Affairs before getting the initial approval.

 

Some activities require additional approvals from government entities related to that particular business before applying for the initial approval. These include activities related to legal affairs, security affairs and financial securities and commodities.

MOA and LSA

Depending on the legal form of a business, a completed and signed Memorandum of association (MoA) or a local service agent agreement (LSA) of the business is required. The memorandum of association is required for the following business legal forms:

• Limited partnership
• Limited liability company (LLC)
• Public joint stock company (PJSC)
• Private joint stock company (PrJSC).

 

Notes:

• UAE-based law firms, courts and notary public prepare and attest MoAs and agreements.
• Businesses owned completely by non-GCC residents require a local service agent from the UAE. Appointing the local service agent will be under an agreement attested by the notary public or the court.

 

Select a business location

All businesses in the UAE must have a physical address to operate. The business premises and location must comply with the requirements defined by the respective emirate’s Department of Economic Development, as well as the land planning regulations of the local municipalities.

 

Office and warehouse rental agreement must be provided. Some emirates require the agreements to be attested. In Dubai, the agreement must be registered with Ejari.

 

Get additional government approvals

In some cases, additional approvals from government entities governing certain business activities are required. The following are examples of such activities sorted by ministry:

Ministry of Interior

Ministry of Interior issues approvals for activities related to general transport - driving schools, fire equipment, alarm and safety systems, used-car dealers, used auto-parts, car rental.

 

Ministry of Justice

Legal activities and legal consultancy

 

Local municipal department

Architectural and engineering affairs

 

Telecommunications and Digital Government Regulatory Authority (TDRA)

Telecommunication activities

 

Executive Council

Travel and tourism, general services, charter trading, ship and maritime agencies, car clubs, charter air transport and foreign company branches

 

Ministry of Economy

Insurance activities and insurance consultancy

 

Local health departments

Health-related activities

 

Supreme Petroleum Council

Onshore and offshore gas and oil-field services and onshore and offshore oil drilling operations

 

Collect the business licence

After completing the above steps, investor can collect the business licence from service centres of the economic departments or through their websites.

 

Documents required for getting a licence for all legal forms

The following documents are required for getting a licence for all legal forms:

• Initial approval receipt and all the previously-submitted documents
• Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in Dubai
• Duly attested memorandum of association (for all types of companies)
• Approvals from other government entities concerned, as may be required
• Duly attested service agent contract (for civil establishments and companies that are 100% owned by non-GCC nationals), the UAE involving a local service agent.

 

Notes

• You have to pay for your trade licence within 30 days of receiving the payment voucher.
• In the event of non-payment in a specific period, the application will be cancelled.

 

Websites of local economic authorities:

• Abu Dhabi – Department of Economic Development
• Dubai – Dubai Economy
• Sharjah – Economic Development Department
• Ajman – Department of Economic Development
• Umm Al Quwain – Department of Economic Development
• Ras Al Khaimah – Department of Economic Development
• Fujairah – Fujairah Municipality

 

References:

• Starting and managing business - Abu Dhabi government portal
• Start your business in Dubai - Dubai Economy
• Doing business in Fujairah - Fujairah Government

• Process and requirements to start a business – Sharjah Investment and Development Authority