United Arab Emirates

Starting a Business in

United Arab Emirates

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Limited Liability Company
  • City: Dubai

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No. Procedure Time to Complete Associated Costs
1 Submit the company registration application and the proposed company name to the Department of Economic Development (DED)

To register a company, the founder must first obtain preliminary approvals from the Licensing Section of the Dubai Department of Economic Development (DED) on the business activities, trade name, and identity of partners.
1 day AED 100 fee for the initial approval
2 Notarize the company’s Memorandum of Association in DED

The applicant notarizes the AOA at DED that provides a standard Memorandum of Association (AOA). Notarization takes no more than 1 day. A common practice is for the entrepreneur’s lawyer to get a preliminary approval from the notary beforehand so that the client can arrive at a specified time and have the documents notarized immediately. The maximum notary fee is AED 10,000.
1 day 0.25% of the capital (for 3 copies of the Memorandum of Association), AED 5 for each page of the additional copy
3 File company documents with the Department for Economic Development (DED) and obtain trade license and the Dubai Chamber of Commerce and Industry (DCCI) membership

To obtain the Trade License and Commercial Registration Certificate, the LLC must submit the following original documents to the Commercial Registry at the DED Trade License and Commercial Registration Department.
- The prescribed application form, signed by the company manager(s) or their legal representative(s).
- The memorandum of association (an original and a copy).
- A letter issued by the DED, attesting to the company name approval.
- The original letter of company approval, issued by the DED Committee of Limited Liability Companies.
- passport copy of each partner.

If Commercial Registry officials deem the documentation to be in order, the company name will be entered into the Commercial Register. Within 3 days of the date the company is entered in the Commercial Register, the documents will be released at no charge to the company representative in a sealed envelope. afterward, the DED forwards the following documents to the Federal Ministry of Economy to arrange for publication:
- Notarized memorandum of association (copy).
- The application for entry of the company name in the Commercial Register (copy).
- Extract of the entry of the company name in the Commercial Register.

Publication takes several months. However, this time frame is not important because the authorities will accept a copy of the Ministry's receipt of publication fee payment. After the publication, the Ministry of Economy issues its approval letter.

Before the newly formed company can begin operations, it must apply to the DED for a trade license. After the notary public at the Commercial Registry notarizes the memorandum of association, a license application form is completed in Arabic, signed by the authorized company signatory and filed with the DED in duplicate. The DED files one copy and forwards the other to the UAE Federal Ministry of Economy .
The trade license application must be filed with the applicable fee and the following documents:
- The prescribed form for setting out the proposed company name in Arabic and English.
- The original lease for the company’s office premises.
- The prescribed form for obtaining the Dubai Municipality Building Department’s clearance on the suitability of the office premises.

All business activities fall into three categories of licenses: (1) commercial licenses, covering all kinds of trading activity; (2) professional licenses, covering professions, services, craftsmen, and artisans; and (3) industrial licenses, establishing industrial or manufacturing activity.

Upon the conclusion of this procedure, the DED issues the original Trade License and Commercial Registration certificates. Upon presentation of the receipts showing payment of the Ministry publication fee and the Chamber of Commerce membership fee, the DED will issue the original trade license and certificate of commercial registration for the limited liability company and the DCCI membership.

 6 days 5 % of the value of the lease agreement + AED 1,000-3,000 waste fees + AED 480 for company registration + AED 500 fees for signboard approval + AED 1,200 for Chamber of Commerce membership registration
4 Make a name board

Once the company receives clearance on the use of the office premises, it must prepare a name board in English and Arabic. The office premises will then be inspected by the fire and civil defense authorities and by the DED Licensing Department.
2 days AED 1,000
5 Apply for establishment card at the Ministry of Labor

Either the owner in person or the authorized representative of the company can go in person to apply for the "Establishment Card" at the Ministry of Labour. Provided the trade license and the fees are paid, the "Establishment Card" can be issued the same day.
1 day AED 2000
6 Register native workers with the Ministry of Labor

According to Ministerial decree No 1215/2005, native workers should be registered with Ministry of labor.
The documents required to bring along at the time of this registration are:
- 3 copies of employment contract
- A copy of employers passport
- A copy of the trading license
- A paper confirming that the worker is a UAE citizen.
1 day no charge
7 Register native workers with the General Authority for Pension and Social Security

Registration requires submitting the native workers’ updated salary certificates or labor contracts.
1 day (simultaneous with previous procedure) no charge
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