Company Formation in Dubai
Forming a company in Dubai is a sequence of decisions and approvals that begins long before any licence is issued: you choose the business activity, the legal form and the trade name, decide whether to set up on the mainland or in a free zone, and then move through initial approval, premises, the memorandum of association and any external approvals until the licence is paid for and collected. This page walks the whole journey in plain terms — what to decide before you start, what happens during registration with the competent authority, and what corporate work comes after the licence is in hand. Requirements, costs and timelines are not fixed; they change with the activity, the legal form and the jurisdiction, so treat this as a map, not a quotation, and confirm the specifics with the authority.
- The activity you choose drives the licence type, the legal form and the approvals you will need
- Mainland (DET) and free zones have different rules, entity types and authorities — this page centres on the mainland
- Up to 100% foreign ownership is available for many activities — but it depends on the activity, not on every business automatically
- MANJAZ helps prepare, coordinate and follow up — the licence itself is issued by the competent authority
- Dubai-based, UAE-wide service
- Arabic & English
- Clear guidance on every document
- Direct request, no middlemen
How you set up a company in Dubai
You set up a company in Dubai by choosing a business activity and a legal form, registering a trade name, obtaining initial approval, securing premises with a registered lease (Ejari), notarising the memorandum of association, clearing any external approvals, and then paying for and collecting the trade licence from the competent authority — the Department of Economy and Tourism (DET) for a mainland company.
That single sentence hides a real sequence, and the order matters. In the UAE the activity is the starting point: it determines which of the licence types applies, which legal form is available, and which approvals you will need. Only once the activity and the form are settled does it make sense to register a trade name, apply for initial approval, and take on premises. Skipping ahead — signing a lease before you know the activity is permitted at that location, for instance — is one of the most common ways a first-time setup stalls.
It also helps to separate three roles from the outset. The competent authority — DET for the Dubai mainland, or the relevant free-zone authority in a free zone — is the body that approves the activity and issues the licence. You, the applicant, make the commercial decisions and provide the documents. A corporate-services provider such as MANJAZ sits between the two: it prepares and organises the paperwork, coordinates the steps, and follows up with the authorities on your behalf. Keeping those roles distinct answers a question people often ask directly.
Can MANJAZ issue the trade licence? No. The licence is issued by the competent authority — DET for mainland Dubai — and MANJAZ provides preparation and process support. MANJAZ does not approve a business activity, does not issue or renew a trade licence, and cannot guarantee any approval. What it can do is make the journey below faster to navigate and less error-prone: correctly matching the activity to a licence type and legal form, preparing a compliant memorandum, arranging notarisation and any legal translation or attestation, and tracking each application through to the licence.
The terms you will meet
- Business activity
- What the company is licensed to do. The UAE offers more than 2,000 activities; the activity you choose determines the licence type, the legal form and any special approvals. A single licence can cover more than one related activity.
- Legal form
- The legal structure of the company — for example a limited liability company, a sole establishment, a civil company or a branch. It depends on the activity and the number and type of owners, and it decides which laws apply.
- Trade name
- The registered name of the business. In Dubai the Department of Economy and Tourism registers the trade name; it must follow the legal-form acronym and must not breach public order or morals. A trade name is not the same as a trademark.
- Initial approval
- A government no-objection that lets you proceed with the setup. It does not, by itself, grant authority to run or practise the activity — that comes only when the licence is issued and any special approvals are in place.
- Ejari (registered lease)
- Every business needs a physical address, and in Dubai the tenancy contract for the premises is registered through Ejari. A registered lease is one of the documents needed to obtain the licence.
- Memorandum of Association (MOA)
- The founding contract of a company that has partners — setting out the partners, their shares, management and objects. For many forms it must be notarised, and where a form requires it, a local service-agent contract is prepared alongside.
- Local service agent
- A UAE national (or UAE-owned entity) engaged for certain civil and professional setups. The agent does not own or share in the profits of the business; the relationship is defined in a duly attested service-agent contract.
Before setup: the decisions to make first
- The business activity (or activities) you intend to carry out — as precisely as possible, because it drives everything after it
- The legal form that fits the activity and your ownership structure (single owner, partners, a branch of an existing company)
- The jurisdiction: mainland (DET) versus a free zone — they have different rules, entity types and premises requirements
- Whether your activity qualifies for full foreign ownership, or whether a local service agent applies to your form
- A shortlist of compliant trade names that follow the legal-form acronym and do not breach public order
- The founders' identity documents and, for corporate founders, the parent company's corporate documents
- Whether any of your documents are in a language other than Arabic, or issued abroad — these may need legal translation or attestation
The six licence types
| Licence type | Typically for |
|---|---|
| Commercial | Trading activities — buying and selling of goods |
| Professional | Professions and services relying on intellectual or specialist skill |
| Industrial | Manufacturing and industrial production activities |
| Tourism | Travel, tourism and related hospitality activities |
| Agricultural | Farming and agricultural activities (a niche category) |
| Crafts / occupational | Skilled trades and craft-based occupations (a niche category) |
Legal forms available for a company
The officially named legal forms for a UAE company include the limited liability company (LLC), the sole establishment, the civil company, the partnership and the limited partnership, the public joint stock company (PJSC) and the private joint stock company (PrJSC), and the branch of a foreign or UAE company. They are not interchangeable. Each form suits a different combination of activity, number of owners and liability, and each brings its own documentation. The limited liability company is a common choice for many commercial and industrial activities with one or more owners; a sole establishment suits a single owner; a civil company is typical for certain professional practices; and a branch extends an existing company rather than creating a new legal person.
Two points prevent expensive mistakes. First, the form follows the activity, not the other way round: settle what the business will do before fixing its structure, because some activities are only available under particular forms. Second, mainland forms and free-zone forms are different worlds. Free zones have their own entity types — the free-zone establishment (FZE), the free-zone company (FZCO) and the branch — governed by each zone's own authority, and they should not be mixed up with the mainland forms described here. This page treats the mainland; the mainland-versus-free-zone comparison below sets out how the two differ.
Mainland and free zone: two different routes
Mainland (this page's focus)
- Licensed by the Department of Economy and Tourism (DET), the local Dubai authority
- Legal forms include LLC, sole establishment, civil company, partnership and branch
- Foreign ownership up to 100% for many activities under Federal Decree-Law 26 of 2020 — but it depends on the activity
- A physical address with a registered Ejari lease is required
- Generally allows dealing across the wider UAE market, subject to the activity
Free zone (an alternative)
- Licensed by that free zone's own authority, not by DET
- Its own entity types — FZE, FZCO and branch — with their own rules
- Ownership, premises and activity rules are set by the individual zone
- Premises are usually taken within the zone (office, flexi-desk or facility)
- Do not merge free-zone rules with mainland rules — confirm with the specific zone
100% foreign ownership — read this carefully
This is the point most often misunderstood, so it is worth stating precisely. Federal Decree-Law No. 26 of 2020, which amended Federal Law No. 2 of 2015 on Commercial Companies, permits up to 100% foreign ownership across most economic sectors and across legal forms — a significant reform from the earlier position. It is not, however, a blanket entitlement for every business. Activities of strategic impact are excluded, and whether a given activity qualifies depends on the activity itself as classified by the authorities. The official sources state the strategic-impact exception but do not publish a single fixed list, so the honest answer is that eligibility is activity-specific and must be confirmed against the DET activity classification for your case.
Two further nuances matter. First, even where full ownership is available, some professional and civil setups still involve a local service agent — a UAE national or UAE-owned entity engaged under an attested service-agent contract who does not own or profit from the business. Second, the reform applies to the mainland; free zones already had their own ownership arrangements. Do not assume that because full ownership is possible for one activity it is automatic for yours; confirm your specific activity and legal form before you rely on it.
Have a question about your case?
During setup: the mainland journey, step by step (it varies)
Determine the business activity
Choose from the 2,000-plus activities the one (or ones) that describe your business. This is the foundation: it fixes the licence type, the available legal form and any special approvals to come.
Select the legal form
Decide the structure — LLC, sole establishment, civil company, branch and so on — based on the activity and the number and type of owners. The form determines which laws and documents apply.
Register the trade name
Reserve and register the trade name with DET; it must follow the legal-form acronym and not breach public order. The trade name is registered by DET, while trademarks are registered by the Ministry of Economy & Tourism.
Apply for initial approval
Obtain the government no-objection that lets you proceed. Remember: initial approval does not by itself grant authority to run the activity — it is a green light to continue, not the licence.
Secure premises and register the lease (Ejari)
Take a physical address suitable for the activity and register the tenancy contract through Ejari. A registered lease is required to move to the licence stage.
Notarise the memorandum of association
For forms with partners, prepare and notarise the MOA. Where the form requires it — civil establishments and companies fully owned by non-GCC nationals in certain cases — a duly attested local service-agent contract is prepared alongside.
Obtain external approvals where required
Some activities need clearance from other government entities before the licence issues. Whether this step applies, and to whom, depends entirely on the activity.
Pay and collect the licence
Once requirements are met, pay for the trade licence within 30 days of receiving the payment voucher, then collect it. The overall duration and cost depend on the activity, form and approvals, so no fixed figure is given here.
Documents usually needed to obtain the licence
- The initial-approval receipt confirming you may proceed
- A copy of the lease contract, registered through Ejari in Dubai
- A duly attested memorandum of association (for forms that have one)
- Approvals from other government entities, where the activity requires them
- A duly attested local service-agent contract for civil establishments and, where applicable, companies fully owned by non-GCC nationals
- The founders' identity documents; for a corporate founder, its corporate documents and resolutions
- Legal Arabic translations of any non-Arabic documents, and attestation of any foreign-issued corporate documents
Not sure which activity, legal form or jurisdiction fits your plan? MANJAZ can help you map the requirements and prepare the paperwork before you approach the authority.
Start your requestAfter setup: the corporate life of the company
Formation is the beginning, not the end. Once the licence is issued, a company generates and maintains a body of corporate documents: the memorandum and any articles of association, board and shareholder resolutions, powers of attorney, service-agent agreements, declarations and authorisation letters. These are living documents. As the business grows or changes, they are amended — and in the UAE many of those amendments are notarised, because a change that affects the MOA generally needs a notarised MOA amendment and, where partners change, supporting resolutions.
Two ongoing themes deserve attention from the day you form. First, licence amendments and company changes — adding or changing an activity, changing the trade name, transferring shares, adding or removing a partner, changing the manager or the legal form — are handled after formation by DET, and the exact requirements differ by the type of change; they are not all the same steps or the same documents. Second, documents cross language and border. Any document not in Arabic generally needs legal translation for official use, and any foreign corporate document used in the UAE generally needs attestation, because the UAE is not a party to the Hague Apostille Convention. These are the natural touchpoints where a corporate-services provider keeps a company compliant over time.
How this looks in practice
A single founder wants to offer a professional service on the Dubai mainland.
What is usually neededConfirm the professional activity and the right legal form (often a civil company or sole establishment), check whether a local service agent applies, register a compliant trade name, and move through initial approval, Ejari and the licence with DET.
Overseas partners want to open a trading company and ask whether they can own it fully.
What is usually neededCheck the specific activity against the DET classification: full foreign ownership is available for many activities under Federal Decree-Law 26 of 2020, but it is activity-specific and strategic-impact activities are excluded — confirm before assuming it applies.
A foreign company wants a presence in Dubai without creating a new legal person.
What is usually neededA branch of the foreign company may fit. Its parent corporate documents — certificate of incorporation, board resolution, power of attorney — will typically need attestation and legal Arabic translation before they can be used.
A newly licensed company now needs to add a business activity it did not include at formation.
What is usually neededThat is a licence amendment handled after formation by DET, with its own requirements; adding an activity can trigger a notarised MOA amendment and possibly external approvals depending on the activity.
The authority, the applicant and MANJAZ
| Task | The competent authority | MANJAZ (support) |
|---|---|---|
| Approving the activity | DET decides and approves | Helps match activity to licence type and form |
| Issuing the trade licence | Issued by DET — not by MANJAZ | Prepares and submits, then follows up |
| The memorandum of association | Notarised before the Notary Public | Drafts and organises it for notarisation |
| Translation and attestation of documents | Requirements set by the receiving authority | Provides legal translation and coordinates attestation |
| Guaranteeing approval | No one can — it rests on meeting requirements | Never guarantees; improves the file's readiness |
Common mistakes to avoid
The mistakeAssuming 100% foreign ownership is automatic for every business.
The fixFull ownership is available for many activities under Federal Decree-Law 26 of 2020, but it depends on the activity and excludes strategic-impact activities — confirm your specific activity first.
The mistakeTreating initial approval as permission to start trading.
The fixInitial approval is only a no-objection to proceed; authority to run the activity comes with the issued licence and any special approvals.
The mistakeMixing mainland and free-zone rules together.
The fixThey have different authorities, entity types and requirements. Decide the jurisdiction first and apply that jurisdiction's rules only.
The mistakeSigning a lease before confirming the activity is allowed at that location.
The fixSettle the activity and initial approval first; then take premises suitable for it and register the lease through Ejari.
The mistakeConfusing the trade name with a trademark.
The fixDET registers the trade name for licensing; the Ministry of Economy & Tourism registers trademarks for brand protection — they are separate registrations.
The mistakeLeaving foreign or non-Arabic documents unprepared until the last step.
The fixNon-Arabic documents usually need legal translation and foreign corporate documents usually need attestation; prepare these early so they do not delay the licence.
The activity you choose is the single decision that shapes everything after it — the licence type, the legal form, the ownership position and the approvals.
Questions and answers
You choose a business activity and a legal form, register a trade name, obtain initial approval, secure premises with a registered Ejari lease, notarise the memorandum of association, clear any external approvals, then pay for and collect the licence from DET for a mainland company. The order matters, and requirements vary by activity and legal form, so confirm the specifics for your case.
Often, but not always. Federal Decree-Law No. 26 of 2020 allows up to 100% foreign ownership across most sectors and legal forms on the mainland, except for activities of strategic impact. Whether your business qualifies depends on the specific activity as classified by the authorities, and some professional or civil setups still involve a local service agent — so confirm against the DET activity classification before assuming full ownership applies.
For a mainland licence the officially listed documents include the initial-approval receipt, a copy of the Ejari-registered lease, a duly attested memorandum of association, approvals from other government entities where the activity requires them, and a duly attested local service-agent contract for civil establishments and, where applicable, companies fully owned by non-GCC nationals. Requirements vary by activity and legal form, and non-Arabic or foreign documents may need legal translation or attestation.
There is no single fixed cost or timeline. Both depend on the activity, the legal form, the jurisdiction and any external approvals, and official sources do not publish one figure that fits every case. One official timing point is fixed, however: the trade licence must be paid within 30 days of receiving the payment voucher. For anything else, treat quoted totals with caution and confirm the specifics with the authority.
They are different jurisdictions with different authorities and rules. A mainland company is licensed by DET and uses forms such as the LLC, sole establishment, civil company and branch. A free-zone company is licensed by that zone's own authority and uses its own entity types (FZE, FZCO, branch), with ownership, premises and activity rules set by the zone. This page focuses on the mainland; do not merge the two sets of rules.
It depends on the document, its language and its origin. A document not in Arabic generally needs legal translation into Arabic for official use, and a foreign corporate document used in the UAE generally needs attestation, because the UAE is not a party to the Hague Apostille Convention. Not every document needs both — a locally issued Arabic document may need neither. Confirm what your specific transaction requires.
Yes. After a licence is issued, DET handles amendments such as changing the trade name, adding or changing an activity, changing the legal form or manager, and changing partners or ownership. Changes that affect the memorandum of association generally require a notarised MOA amendment, and requirements differ by the type of change — they are not all the same steps. Our licence-amendments and company-changes pages go into detail.
No. The licence is issued, and the activity approved, by the competent authority — DET for mainland Dubai. MANJAZ is a corporate-services and document-support provider, not a government department and not the licence issuer. It helps prepare, coordinate and follow up your requirements with the authorities, prepares and organises documents, and arranges legal translation and attestation — but it does not approve activities, issue licences, or guarantee any approval.
Where MANJAZ adds practical value
Most of the difficulty in forming a company is in getting the early decisions and the paperwork right, and that is where MANJAZ works. We help you translate a business idea into a licensable activity, match it to the correct licence type and legal form, and choose between mainland and free zone with a clear view of what each involves. We prepare and organise the documents — the trade-name options, the memorandum of association for notarisation, and any service-agent contract your form requires — and we arrange legal translation and coordinate attestation where documents cross language or border.
It is just as important to be clear about the line we do not cross. MANJAZ does not approve activities, does not issue or renew trade licences, and never guarantees an approval or an outcome — those belong to the competent authority. What we offer is preparation, coordination and follow-up: a clean, complete file submitted correctly, and each application tracked through to the licence. Keeping that boundary explicit protects you, because the strongest position in any government transaction is a well-prepared file that meets the authority's requirements the first time.
Official sources
- UAE Government Portal (u.ae) — Business hub
- UAE Government Portal (u.ae) — Steps to start a business on the mainland
- Ministry of Economy & Tourism — Establishing a business in the UAE
- Ministry of Economy & Tourism — Full ownership in all economic sectors (Federal Decree-Law 26 of 2020)
- Dubai Department of Economy and Tourism (DET) — Licences & permits / business licensing
This content is for general awareness and is based on the official sources available at the time of the last update. Company-formation and corporate-service requirements, fees, approvals and steps differ by the business activity, the legal form and the jurisdiction, and are set and updated by the competent authorities. It is not legal or financial advice. MANJAZ is a corporate-services provider that helps prepare, coordinate and follow up requirements with the relevant authorities — it is not the Department of Economy and Tourism or any government body, it does not issue trade licences, it cannot approve a business activity, and it does not guarantee any approval.
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