Legal Procedure for Business Setup in the UAE

Legal Procedure for Business Setup in the UAE

What comes to your mind when you think about the Middle East? Dubai and its huge infrastructure. UAE is not only popular for its holiday destination. It’s also one of the fastest-growing business hubs in the world.

Business setup in the UAE has brought in lots of profit for companies all over the world. 7 out of 10 companies in the world are planning to set up their business branches in the UAE because of its fastest-growing economy.

But before you plan to set up your business, you have to understand the rules and regulations of the UAE. Unlike the rest of the world, the Middle East has unique and strict rules.

Here are some legal procedures that you should undergo before setting up your business.

1. Identify the Nature of Your Business

You may say every company knows the nature of its business. You are right, but in UAE, your business determines the type of license you will be getting.

Business set up in the UAE might look easy, but one mistake can take you years to complete the process. When you apply for the license, you will have to specify the exact nature of your business.

The nature of your business determines the fees you will pay for setup and the flexibility you will get to run your business.

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2. Registration of Business Trade Name

Once you have identified the exact nature of your business, it’s time for registration. When you select the trade name, make sure it reflects your business identity and make sure it makes no offense to the country law.

Also, make sure the name does not match any other business trade name (local or international). It should be unique and should connect to your business nature.

3. Approval from the Department of Economic Development (DED)

DED is a powerful government branch that deals with business setup in the UAE. They may cancel your proposal if they find any fault in your application or trade name.

After registering the trade name you will have to get approval from DED to proceed with your business setup. Make sure you complete the process before 3 months from the time of getting approval. The approval certificate expires after 3 months.

4. Applying for Business License

Once you get all the approval and necessary certificate from the DED. You can apply for a business license. Every business setup in the UAE should submit the documents in a translated Arabic version. A legal translator should translate the document and attested by the ministry of justice.


A business set up in the UAE is a long process. You have to undergo lots of legal requirements. The process is easy as long as you follow the laws. But if you make a mistake, the process could take forever.

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