11 Steps to Open a Company in Dubai UAE

Thinking of opening your company in Dubai? You’re not alone. Every day, we speak with entrepreneurs from the UK, USA, Europe, and beyond who are ready to bring their business idea to life in one of the world’s fastest-growing markets. And here's the good news - you don’t even need to be in Dubai to begin. You can start your company registration process from anywhere in the world.

But let’s be honest. Starting a business in a new country comes with questions.

Where do I begin? Mainland or Free Zone? What’s the cost? How long does it take? As business consultants in Dubai, we get these questions all the time. So we created this simple, no-fluff guide to walk you through the exact steps of how to open a company in Dubai - without the confusion.

Let’s start with the most important decision.

Step 1: Choose Your Jurisdiction – Mainland or Free Zone?

Before anything else, you must choose where to register your company: Mainland or Free Zone. And no - you can’t be in both. It’s one or the other.

Mainland

A Mainland company gives you the freedom to do business anywhere in the UAE. You can work with local clients, government contracts, open physical locations, and scale without restrictions. This is ideal for retail, restaurants, service businesses, and anything that involves selling within the local UAE market.

Free Zone

Free Zone companies are perfect for those who want 100% ownership, faster setup, and lower costs. They’re ideal for international trade, digital services, consulting, or e-commerce where you don’t need to deal directly with the UAE public market.

‍

Not sure which one fits your business best? That’s where COFTT comes in. We’ll help you choose the right jurisdiction based on your goals, activity, and future expansion plans.

‍

Step 2: Decide on the Legal Structure

Once you’ve chosen your jurisdiction, the next step is deciding your legal structure - how your company will be formed legally.

Here are the most common types in Dubai:

LLC (Limited Liability Company) – Best for general business, suitable for most activities.

Sole Proprietorship – Perfect for freelancers and individual consultants.

Civil Company – Designed for professional services like doctors, engineers, or lawyers.

Branch Office – For existing companies expanding into the UAE market.

If you’re setting up in a Free Zone and want an LLC structure, it will be registered as a FZ-LLC (Free Zone Limited Liability Company). Choosing the right legal structure is important - it affects ownership, taxes, and liability. If you're unsure, we’ll help you decide.

Step 3: Select Your Business Activity

Next, you need to define what your business will actually do. This is called your business activity.

It could be anything from digital marketing, logistics, real estate brokerage, management consultancy, or even selling coffee. Your business activity must match what's allowed under your license - and it must be approved by the relevant authority.

Here’s the catch: You can’t just pick any activity under any jurisdiction.

Some activities are only allowed in Free Zones, while others must be registered in the Mainland. That’s why getting this right is key - and why most people come to us before they make a move.

Step 4: Choose Your Trade Name

Now that you’ve chosen your jurisdiction, legal structure, and business activity - it’s time to name your company.

Your trade name is the official name under which your company will operate. It should reflect your business activity and follow UAE naming guidelines.

Here’s how the process works:

You must submit 3 name options for approval. The authorities will check for availability. If your first choice is available, you’ll get it. If not, they’ll move to the second or third option

Important Note: If your trade name is in any language other than Arabic (for example, English), there is an extra fee of AED 2,000 (~$600) for foreign language approval.

So, if you're planning to use an English brand name, make sure to include that in your setup cost planning.

Step 5: Apply for Initial Approval

The initial approval is a document from the authority saying: “We’ve reviewed your basic application - and you’re good to go.”

But don’t get too excited just yet.

This is not a business license, and it does not mean you can start operating. It simply means there are no objections to your trade name and activity, and you’re cleared to move forward in the process.

In some cases, if your business activity requires extra permissions (like food, health, or real estate), the municipality or external authority will request your initial approval letter to begin their own review.

Step 6: Apply for External Approvals (if required)

In some cases, your business activity might require external approvals from government departments before you can move forward with licensing.

For example:

If you’re setting up a cloud kitchen, you’ll need approval from Dubai Municipality’s Food Safety Department. For a real estate brokerage, you’ll need a certificate from RERA. Not all businesses need this step - but if yours does, it comes right after initial approval.

Step 7: Finalize Your Office Space

This is where things get practical.

Every business in Dubai needs a registered address. You have two main options:

a. Physical Office Space

Ideal if you’re setting up a retail business, trading company, or a business that needs a walk-in location.
The cost varies depending on location, size, and building—from AED 15,000 to AED 50,000+ per year.

b. Virtual Office Space

Perfect for consultants, online businesses, and service providers. You can start with a virtual office address for as low as AED 6,000 per year, depending on the business center and location.

‍

Need help finding the right office space? COFTT partners with top-rated business centers across Dubai to get you the best rates - and fast approvals.

‍

Step 8. Market Fee

If you’re setting up in the Mainland, you’ll be required to pay a market fee, which is 5% of your office’s annual rent.

This fee is collected by the local municipality and is mandatory before your trade license is issued.

For example, if your office rent is AED 40,000 per year, your market fee will be AED 2,000. If you’re using a virtual office (usually in Free Zones), this fee doesn’t apply.

Step 9: Draft and Sign the MOA (Memorandum of Association)

The MOA is one of the most important legal documents in the process. It defines:

a, Who owns the company
b. What percentage each partner holds
c. What activities the company is licensed to do
d. Roles, rights, and responsibilities of each party

Once the MOA is drafted, it must be signed by all partners - either at the notary public or directly with the registration authority, depending on the jurisdiction.

‍

Don’t worry - COFTT will draft the MOA and guide you through every step, ensuring full legal compliance.

‍

Step 10: Submit Final Documents & Get Your License

This is it - the big moment. Once your trade name, MOA, office space, and initial approval are all in place, you submit everything to the relevant authority and apply for your business license.

If everything is in order, you’ll receive your company license in about 7 to 10 working days.

Congratulations - your company is officially registered in Dubai!

Step 11: Apply for Your Visa

Once your company license is issued, you can now apply for your UAE residency visa as the business owner.

This allows you to:

a. Stay in the UAE legally
b. Sponsor your family
c. Open personal and corporate bank accounts
d. You can also apply for visas for your employees, depending on your license type and office space size.

Post-Registration Formalities

Now that your company is live, there are a couple of important steps left:

Register for Corporate Tax

Yes, it’s mandatory. Every new business must register for corporate tax within 3 months of license issuance - even if you're not crossing the AED 375,000 profit threshold yet.

COFTT can help you with the full process so you stay compliant from day one.

Open a Corporate Bank Account

Once your license is ready, you’ll need a business bank account to receive payments, pay suppliers, and manage operations.

Opening a bank account in Dubai can be tricky - but we’ll match you with the right bank based on your activity and structure, and guide you through every requirement.

What’s the Cost to Open a Company in Dubai?

Let’s talk numbers. The total cost depends on the license type, jurisdiction, and additional services you choose.

Here’s a general idea:

Free Zone license: starts from AED 5,800
Mainland LLC license: starts from AED 10,000

But remember - that’s just the license fee. You’ll also need to account for: Foreign trade name fee: AED 2,000 (if applicable), initial approval fee, virtual or physical office space and external approvals (if required)

At COFTT, we provide full, transparent cost breakdowns before you begin - so there are no surprises later.

Ready to Launch Your Business in Dubai?

Opening a company in Dubai doesn’t need to be confusing. With the right support, it’s clear, fast, and surprisingly affordable.

At COFTT, we help entrepreneurs from all over the world register their companies in Dubai the right way - from Free Zones to Mainland, from solo founders to full teams. We handle the paperwork, approvals, coordination, and even post-registration services like tax and banking.

‍

So if you’re ready to open your company in Dubai, let’s do it the smart way - together. Get in touch with COFTT today and let’s bring your business idea to life. Contact us today, email us at info@coftt.com