Business setup

Setting up a business in the United Arab Emirates (UAE) can be an exciting venture, offering numerous opportunities in a dynamic and thriving market. To ensure a smooth and successful business setup process, it is essential to understand the required document and legal procedures involved. 

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Navigating the business setup process in the UAE involves fulfilling various legal and regulatory requirements. Proper document is key to ensuring a seamless and compliant setup DAR AL AHLAM Document Clearing Services Help to all the document procedure to set up a business.

Business Setup

  • Business Plan
    A comprehensive business plan outlining your company’s objectives, operational strategies, target market, financial projections, and growth plans is vital. This document will serve as a roadmap for your business and will be required for investor presentations and government approvals.
  •  Trade Name Reservation
    Select a unique trade name for your business and submit an application for trade name reservation to the Department of Economic Development (DED) in the relevant emirate. Ensure the name adheres to UAE naming conventions and is not already registered by another entity.
  • Shareholders’ Agreement
    If your business involves multiple shareholders, it’s advisable to create a Shareholders’ Agreement. This agreement outlines the rights, responsibilities, and shareholding percentages of each partner, providing clarity on decision-making processes and dispute resolution.
  • Banking and Financial Documentation
    Open a bank account in the UAE to facilitate business transactions. Provide the bank with required document such as the trade license, MOA, passport copies, and residence visas.
  • Location Approval 
    Depending on your business activity, you may require approvals from other government departments or free zone authorities. Ensure compliance with all regulatory requirements before commencing operations
  • Memorandum of Association (MOA)
    For partnerships and LLCs, drafting a Memorandum of Association detailing the company’s ownership structure, capital distribution, and business activities is essential. This document must be notarized and submitted to the DED during the company registration process.
  • Local Sponsorship Agreement 
    For mainland businesses, having a local sponsor (UAE national) is mandatory. A local sponsorship agreement must be signed, specifying the terms and conditions of the arrangement. Though the sponsor is not involved in day-to-day operations, they hold 51% ownership of the company.
  • Commercial License Application
    Obtaining a commercial license is essential to conduct business activities legally in the UAE. Submit the necessary documents, including the trade name reservation certificate, MOA, tenancy contract, and other relevant paperwork to the DED for license approval.
  • Visa and Labor Approvals
    If you plan to hire employees, you’ll need to apply for work visas and labor approvals from the Ministry of Human Resources and Emiratisation (MOHRE). Each visa application will require specific documents like passports, educational certificates, and employment contracts.