- A copy of the passport.
- A copy of the current UAE residence visa/tourist visa and Emirates ID.
- A No Objection Certificate (NOC) from the current sponsor of your UAE residence visa (if resident) to practice business.
A General Trading License permits the trade of various goods and products, as detailed in the activity classification guidebook, except for those that require external approvals from specialized authorities (e.g., pharmaceuticals, food, etc.).
- Obtain preliminary approval.
- Reserve a trade name.
- Obtain approval from other authorities if the activity requires it.
- Sign the appropriate legal documents (e.g., Memorandum of Association).
- Secure a premise to register the trade license and begin operations.
A Mainland license allows a company to operate anywhere across the UAE and internationally. Mainland companies, licensed by the Department of Economic Development (DED) of the respective Emirate, face fewer restrictions compared to other licensing options.
Free Zones are designated areas in the UAE that offer business incentives, including tax benefits and 100% foreign ownership. Free Zone businesses are exempt from 5% customs duty on imported goods. However, Free Zone companies cannot conduct business directly with the Mainland unless through a local distributor.
Free Zone companies are governed by their respective Free Zone authorities and do not fall under the jurisdiction of the DED. As a result, they cannot engage in direct business in the Mainland unless they take steps such as collaborating with a Mainland distributor or obtaining a Mainland license.
Free Zone companies can do business in the Mainland by:
- Obtaining a Mainland license from the DED.
- Establishing a branch office in the Mainland.
- Partnering with a local distributor who holds a Mainland license.
The main legal forms of companies in the UAE are:
- Sole Proprietorship
- Civil Works Company
- Limited Liability Company (LLC)
- Partnership Company
- Public Shareholding Company
- Private Shareholding Company
- Government Liaison Office
- Representative Office
- Branch of a Local Company
- Branch of a Foreign Company
- Branch of a Free Zone Company
- One-Person Company (LLC)
- Sole Proprietorship: 1 person.
- LLC: Minimum 2, maximum 50 partners.
- Civil Works and Partnership Companies: Composed of 2 or more partners.
- Private Joint-Stock Company: Minimum 3 founders.
- Public Joint-Stock Company: Unlimited number of partners.
- The Instant License is an initiative by the Department of Economic Development, Dubai, which allows UAE residents and visitors to obtain a commercial or professional license for certain activities in just 5 minutes.
The conditions for opening a branch of a Gulf company are similar to those for foreign companies. The Board of Directors’ resolution must be executed in the Gulf country of origin, attested by the UAE Embassy, translated into Arabic, and endorsed by the relevant authorities.
When reserving a business name, ensure it meets the following conditions:
- The name must not contain obscene or offensive words.
- The name must not reference Allah’s name or divine attributes.
- If the name is that of a person, that person must be a partner or owner of the business.
- Family names can only be used if the full name (first and last) is included.
- The name should not include country or government names.
- The business activity should be reflected in the name.
- The name must not include punctuation marks.
If both commercial and professional activities are practiced, a Commercial License should be obtained.
Industrial activities include manufacturing, mining, quarrying, electricity generation, gas, and water production.
Commercial activities include wholesale and retail trade, construction, transportation, stockpiling, communication, financial intermediation, real estate, and leasing.
Professional activities involve mental and physical effort and include sectors like agriculture, fishing, education, health, social work, and community services.
Yes, as long as the activity is included in the trade classification guidebook, except those requiring external approvals from relevant authorities.
Activities from different groups can be combined in the same license if they share a common aspect, such as computer maintenance and computer trade.
External approvals refer to permissions obtained from the relevant authorities that regulate specific activities under their jurisdiction (e.g., health, safety, or environmental regulations).
To open a UAE branch of a foreign company, the following steps are required:
- A Board of Directors’ resolution to open a branch and appoint a director for the UAE branch.
- The resolution must be executed in the country of origin and attested by the UAE Embassy/Consulate.
- The original resolution must be submitted to the UAE authorities, translated into Arabic and endorsed by the relevant government bodies.
- After the documentation is complete, the branch license is issued.
The process is similar to opening a foreign company branch. A Board of Directors’ resolution must be executed and filed with the licensing authority of the relevant Emirate.
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