Step-by-Step Guide to Company Formation in Dubai

1. Choose Your Business Activity

The first step is to clearly define the nature of your business, as this will determine the relevant licenses and registrations required. Dubai offers a wide range of business activities that fall under commercial, professional, and industrial licenses.

2. Select the Appropriate Legal Form

Depending on your business type, location, and chosen activities, you’ll need to decide on the most suitable legal form as per the DED’s regulations. This could be a sole proprietorship, a limited liability company (LLC), a branch office, or a free zone entity.

3. Choose a Business Name

When naming your business, it's important to adhere to the UAE's naming conventions. Avoid names that contain offensive language, references to religious or political groups, or existing trade name trademarks.

4. Apply for a Business License

The type of business license you apply for will depend on your primary business activity. You can apply for a commercial, professional, or industrial license. This process involves submitting several documents, such as your business plan, passport copies of the shareholders, and a No Objection Certificate (NOC) from your local sponsor, if required.

5. Complete the Registration Process

After receiving your business license, you will need to register your company with the Dubai Chamber of Commerce and Industry and the UAE Federal Tax Authority, especially if you are liable for VAT.

6. Open a Corporate Bank Account

Once your paperwork is approved, you’ll need to open a corporate bank account. Dubai is home to numerous local and international banks that offer a variety of services tailored to business needs.

7. Process Visas

Finally, if you’re planning to hire staff from abroad, you will need to process visas for your employees, which involves obtaining labor cards and fulfilling other legal formalities.