Planning to start a company in the Emirates? Our UAE Business Setup Checklist 2025 walks you through every step—from choosing the right license to opening a bank account—so you can launch with confidence.
1. Choose the Right Jurisdiction
Mainland: Operate anywhere in the UAE, bid for government contracts, easier expansion, but requires approvals from authorities.
Free Zone: 100% foreign ownership, tax benefits, simplified setup, but restrictions on direct trade in the mainland market.
Offshore: Ideal for holding companies, tax planning, asset protection, but cannot do direct business within UAE.
👉 Tip 2025: With new reforms, most free zones now allow mainland trading through distributors. Always compare costs and benefits.
2. Select a Legal Structure
Common types:
Sole Establishment (single owner)
Limited Liability Company (LLC)
Civil Company
Branch of Foreign Company
Free Zone Company (FZC/FZE)
👉 Tip 2025: For investors, LLCs and FZEs remain the most popular due to liability protection and ownership flexibility.
3. Decide on Business Activity
Check the approved list of over 2,000+ activities by UAE’s Department of Economic Development (DED) and Free Zones.
Categories include: Commercial, Industrial, Professional, E-commerce, Service, Agriculture, etc.
👉 Tip 2025: Align your activity with future scalability (e.g., e-commerce with logistics license).
4. Reserve a Trade Name
Must be unique, not offensive, and follow UAE naming rules.
Certain words (like “Global,” “International”) may need extra approval.
👉 Tip 2025: Do an early name check to avoid delays—AI-based systems in DED now provide faster approvals.
5. Obtain Initial Approval
Shows that the UAE government has no objection to starting your business.
Required before moving to legal documentation and licensing.
6. Draft the MOA & LSA (if applicable)
Memorandum of Association (MOA): Required for LLCs.
Local Service Agent (LSA) Agreement: Needed for professional licenses with 100% foreign ownership.
👉 Update 2025: Local Emirati partnership is no longer mandatory for most sectors, but check for strategic industries.
7. Choose Your Office Space
Options:
Physical office (mandatory for mainland companies)
Flexi-desk or virtual office (common in free zones)
👉 Tip 2025: Co-working spaces are increasingly accepted in free zones—cost-effective for startups.
8. Apply for Trade License
Types:
Commercial License: For trading & general commerce
Industrial License: For manufacturing & production
Professional License: For service providers, consultants
Tourism License: For travel, hospitality, events
👉 Tip 2025: Most free zones now offer dual licenses (free zone + mainland activities).
9. Register with Relevant Authorities
Chamber of Commerce registration (mainland & freezone)
Ministry of Economy (if required)
Free Zone authority for zone-specific compliance
10. Open a Corporate Bank Account
Required to separate personal & business finances.
Banks may require: license copy, MOA, business plan, shareholder details, passport & visa copies.
👉 Tip 2025: Some free zones now partner with banks for fast-track account opening.
11. Apply for Visas
Investor/Partner visa
Employee visas
Dependent visas (for family)
👉 Update 2025: Green Visa & Golden Visa programs allow longer residency for investors & skilled professionals.
12. Register for Taxes
Corporate Tax (9% on profits above AED 375,000)
VAT (5% standard rate if turnover exceeds AED 375,000)
👉 Tip 2025: Free zones offer 0% corporate tax if qualifying conditions are met.
13. Compliance & Renewals
Annual license renewal
Immigration & labor card updates
Annual financial audit (mandatory in most free zones)
AML/CFT compliance if in financial or real estate sectors
14. Explore Government Incentives
UAE Vision 2031 initiatives support SMEs & tech startups
Special programs for green energy, AI, fintech, and digital businesses
Free mentoring & networking via incubators and accelerators
📌 Quick Investor Tips for 2025
Budget smartly: License packages start from AED 4,000+, but real costs depend on visas, office space, and activity. You can also check Makateb’s packages thru this: Exclusive Packages
Stay compliant: Non-compliance with tax & AML rules leads to heavy fines.
Plan scalability: Choose a jurisdiction that supports easy expansion across GCC.
Banking challenges: Be ready with detailed documentation for account opening.
