UAE: How to set up a mainland company; trade name, licence, govt approvals explained

The UAE is known to be a land of opportunities for those looking for job opportunities as well as setting up their own businesses.

There are many laws set in place to ensure businesses are set up in a legal way and entrepreneurs get the support they need while establishing their companies.

The process has been further simplified through online platforms offered by UAE economic authorities. Each emirate has their own respective platform that residents can look into to meet the specific requirements of their city.

Entrepreneurs in the country are also eligible for a 10-year Golden Visa, given that they meet certain requirements.

The main authority in the UAE responsible for handling such concerns is the Ministry of Economy. The country offers passionate businesspersons a chance to establish their organisation in either mainland or free zones.

A mainland company has no restrictions when it comes to its commercial activities and is free to operate anywhere in the UAE. Depending on the type of activity, a local sponsor or partner may be required in these businesses.

From identifying your business to registering it, here is a simple guide to setting up your business in the mainland in the UAE.

Those looking to set up their business online within just 15 minutes, Basher is a unified platform comprising of local and federal government authorities from different emirates who are in charge of licensing.

The process can also be done through the Department of Economic Development in the respective emirate. Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah and Umm Al Quwain each have their own Department of Economic Development online portal. Those looking to set up a business in Fujairah can do it through the Fujairah Municipality.

Here are the steps one needs to follow to establish their company in the UAE.

Those interested will have to firstly get an economic licence based on the company's activities. Although the UAE offers more than 2,000 economic activities, the main six types of economic licences are as follows:

The legal structure of a company determines what regulations the company has to follow while setting up and also throughout the course if its life. These are the legal forms of business in the UAE:

A trade name is crucial for a company since it is the label that is used to represent the organisation to the world.

This name should not be similar to the name of any other registered company and can be applied through the desired emirate's DED or in person.

After registering for a trade licence, owners have to apply for an initial approval. Once they get this approval, it is a green light from the UAE Government to proceed with the next steps to establish the business. Only after getting this approval can people move towards getting a licence from the respective authority.

It is important to know that this 'no objection' does not allow the investor to start running the business.

Depending on the type of business, a Memorandum of Association (MOA) or a Local Service Agent agreement (LSA) need to be acquired.

For companies that may be a civil company, limited liability company, public shareholding company, or private shareholding company, a MOA is required.

For sole proprietorship, a LSA is needed.

All companies in the UAE that are not e-commerce businesses need to have a physical address.

Those setting up their businesses in Dubai must have their space registered with the Dubai Land Department’s Ejari portal.

The Department of Economic Development specifies requirements that these locations must fulfil and adhere by. Depending on the emirate, business owners may also have to keep in mind the regulations of local municipalities and other authorities.

Depending on the type of business and activity, owners may have to get approval from other authorities in the country.

To proceed to get a licence, business owners need to submit some important documents. These are:

After paying the required fees and submitting the entire application, customers will be able to receive their licence.

This business licence can be collected from service centres of the economic department or through their website.

After getting the licence, business owners will have to register their company with the Chamber of Commerce and Industry to finally run their business practices.

All emirates (Abu Dhabi, Dubai, Sharjah, Ajman, RAK, UAQ, Fujairah) have their own Chamber of Commerce and Industry that fall under the Federation of UAE Chambers of Commerce and Industry.