The UAE is one of the easiest places in the region to start a company, but the choices you make in the first few weeks shape your costs, your visas and where you can trade for years. This guide walks through the decisions in the order you'll face them.
1. Decide what the business will do
Write down exactly what you'll sell or provide, and to whom. Your licence activities come from this list, and changing them later means amending the licence. Think two to three years ahead, not just about your first client.
2. Choose mainland or free zone
| Mainland | Free zone | |
|---|---|---|
| Where you can trade | Anywhere in the UAE, including government contracts | Inside the free zone and internationally; mainland sales usually need a distributor or extra permit |
| Ownership | 100% foreign ownership for many activities | 100% foreign ownership |
| Licensed by | The emirate's economic department | The free zone authority |
| Office | Physical office usually required | Flexi-desk options in many zones |
If most of your customers are UAE businesses or government entities, mainland is often the better fit. If you trade internationally or need a low-cost start, a free zone may suit you better.
3. Pick the emirate and the zone
Dubai has the most free zones, while Sharjah, Ajman and Ras Al Khaimah often cost less to set up and run. Sharjah alone has several free zones, including SPC Free Zone, Sharjah Media City (Shams), SAIF Zone and Hamriyah, each suited to different activities.
4. Choose the licence type
Most businesses need a commercial, professional or industrial licence. See our guide to UAE trade licence types for how they differ.
5. Apply and get the licence
The usual sequence is trade name reservation, initial approval, document submission and licence issue. Free zone licences are often issued within one to two weeks once documents are complete; mainland setups usually take two to four weeks, depending on approvals.
6. After the licence
- Visas for owners and staff, within your licence's visa quota
- Corporate bank account, which often takes longest, so start early
- Corporate tax registration, required for every taxable company, including free zone companies
- VAT registration once taxable supplies pass AED 375,000 a year
7. Get operational
A new company also needs a website, email and the basic office setup. Doing it in the first month means you can start selling as soon as the licence and bank account are ready.
Next step: our business setup consultancy handles licensing and registrations, including business setup in Sharjah, and our website design team gets you online from day one.
General information, not legal or tax advice. Rules change; we check current requirements for every setup.