Setting up a company in the UAE can be straightforward when the groundwork is done first. Most delays come from unclear activities, incomplete shareholder documents or decisions that have to be revisited halfway through. A little preparation upfront makes the process smoother and helps you compare options properly.
This guide covers what to think through and gather before you apply for a licence.
1. Define what your business will do
Licensing authorities issue licences for specific activities. A vague description such as “consulting” or “trading” is rarely enough.
Prepare a short written description that covers:
- The products or services you will offer
- Whether you will trade physical goods, provide services, or both
- Who your customers are and where they are located
- Any activities you may add within the next one to two years
Some activities need approval from an external regulator, and a small number are restricted for foreign ownership on the mainland. Knowing your activities clearly lets you check this early.
2. Decide on the structure and jurisdiction
You will need to choose between a mainland licence and a free zone licence, and then a specific emirate or free zone. Each has different rules on market access, office requirements and visa allocation.
Our article on comparing mainland and free zone options sets out the main factors. Think too about the legal form, such as a limited liability company or a branch of an existing foreign company.
3. Gather shareholder and manager information
Authorities and banks will want to know who owns and controls the company. Typical items include:
- Passport copies for all shareholders, directors and managers
- Proof of residential address
- UAE visa or Emirates ID copies, where applicable
- Contact details and a short professional background
- For corporate shareholders: certificate of incorporation, constitutional documents, register of shareholders and a board resolution approving the investment
Documents issued outside the UAE may need to be notarised and legalised or attested before they are accepted. This can take time, so start early.
4. Plan the ownership and decision-making
Agree among the founders, in writing, on points such as:
- Shareholding percentages
- Who will be appointed as manager or director
- Who can sign on behalf of the company and operate the bank account
- What happens if a shareholder wants to exit
Some of this will go into the company’s constitutional documents. A separate shareholders’ agreement may also be sensible, and you may wish to take legal advice on it.
5. Think about premises and visas
Many licences require some form of registered premises. Options range from flexible desks to dedicated offices and warehouses, depending on the jurisdiction.
Ask yourself:
- How many residence visas will you need in the first two years?
- Will customers or suppliers visit your premises?
- Do you need storage or operational space?
Visa capacity is often linked to the type and size of premises, so this choice affects your hiring plans.
6. Build a realistic budget
Founders often focus on the initial licence cost. A more useful budget includes both one-off and recurring items.
| Budget area | Examples to plan for |
|---|---|
| Set-up | Licence and registration fees, document attestation, initial approvals |
| Premises | Lease or facility fees, deposits, fit-out if needed |
| People | Visa processing, medical tests, Emirates ID, health insurance |
| Operations | Banking, accounting software, insurance |
| Compliance | Bookkeeping, VAT and Corporate Tax filings, any audit requirement |
| Renewal | Annual licence and lease renewals |
Actual amounts depend heavily on the jurisdiction, activity and package. Ask for itemised quotations so you can compare like for like.
7. Prepare for the bank account application
Opening a corporate bank account is a separate process from licensing. Banks carry out their own due diligence and make independent decisions. It helps to have ready:
- A clear business plan or company profile
- Expected transaction types, volumes and countries involved
- Source of funds and source of wealth information for shareholders
- Evidence of business substance, such as contracts, invoices or a website
Our guide to corporate bank account documents explains this in more detail. No adviser can guarantee approval, but good preparation helps the bank understand your business.
8. Understand your tax registrations
Tax obligations start earlier than many founders expect.
- Corporate Tax: UAE companies, including free zone companies, are generally required to register for Corporate Tax within the timeframes set by the Federal Tax Authority.
- VAT: registration is mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to exceed that amount within the next 30 days. Voluntary registration is available above AED 187,500.
Setting up bookkeeping from day one makes both obligations easier to manage. See our pages on UAE Corporate Tax, UAE VAT and bookkeeping and accounting.
Pre-application checklist
- Activity description written and checked against permitted activities
- Mainland or free zone decision made, with a preferred emirate or zone
- Shareholder and manager documents collected, attested where needed
- Ownership, management and signatory roles agreed
- Premises and visa needs estimated
- Budget covering set-up and the first year of running costs
- Bank account preparation pack started
- Plan in place for bookkeeping, VAT and Corporate Tax registration
How we can help
Scaleon supports founders through UAE company formation, from comparing options to coordinating documents and post-licence compliance. You can read more about how our process works or get in touch to discuss your plans.