How to Obtain Necessary Approvals and Permits for Your Dubai Business

Dubai continues to be one of the most attractive destinations in the world for entrepreneurs, thanks to its tax advantages, strategic location, and modern infrastructure. However, before launching operations, securing the right approvals and permits is critical for a successful company registration in Dubai.

Whether you're opening a small trading business or launching a tech startup, understanding the approval process will ensure you remain compliant with UAE regulations. This guide walks you through each stage of obtaining the necessary licenses, permits, and regulatory clearances when setting up a company in Dubai.

1. Understanding the Licensing Framework

In Dubai, businesses operate under one of three main jurisdictions:

• Mainland (Dubai Economy and Tourism - DET)

• Free Zone (various authorities)

• Offshore (mainly for international business purposes)

Each jurisdiction has its own requirements for company registration in Dubai UAE, and the type of business activity you choose will determine the specific approvals needed.

2. Choose the Right Legal Structure and Activity

Before applying for permits, you must decide:

• Legal form (e.g., LLC, sole establishment, branch office)

• Business activity (commercial, professional, industrial, etc.)

Your selected business activity must align with the approved list maintained by the respective authority—whether it’s DET for mainland businesses or the relevant Free Zone authority.

Tip: For niche activities or highly regulated sectors (like healthcare, education, or finance), you may need special external approvals from relevant government departments.

3. Reserve a Trade Name

The next step is reserving a trade name that complies with UAE naming regulations. The name must:

• Reflect the nature of your business

• Avoid religious or political references

• Not duplicate existing registered names

• Include the legal form (e.g., LLC)

You can apply for name reservation online via:

• Dubai Economy and Tourism (DET) for mainland businesses

• Relevant Free Zone portals for Free Zone companies

4. Initial Approval from Licensing Authority

After reserving your name, you must apply for initial approval from the licensing authority. This approval indicates that the UAE government has no objection to you setting up a company in Dubai and allows you to proceed with the remaining steps.

Documents Typically Required:

• Passport copies of all shareholders

• Proposed business plan or activity description

• Trade name reservation certificate

• Initial application form

Note: Initial approval does not allow you to start business operations—it simply permits you to proceed with document notarization, tenancy contracts, and other steps.

Also Read: Required Documents for Dubai Mainland Company Formation

5. Get External Approvals (If Required)

Depending on your business activity, you might need approval from specific government or regulatory bodies, such as:

Tip: It's important to consult a business setup advisor if your activity falls under these regulated sectors to ensure correct documentation and processes are followed.

6. Secure a Business Address and Tenancy Contract

Every business in Dubai must have a physical address. For mainland businesses, this means leasing office space that complies with government zoning laws. You’ll also need a Ejari certificate, which is a tenancy contract registered with the Real Estate Regulatory Agency (RERA).

Free Zones usually offer flexible office solutions such as flexi-desks or shared workspaces, which can be suitable for startups or small businesses.

7. Draft the Memorandum of Association (MOA)

For most legal structures—especially LLCs—you must draft and notarize a Memorandum of Association (MOA) that outlines ownership percentages, business roles, and capital contributions.

• For mainland businesses, the MOA must be attested by the Dubai Notary Public.

• In Free Zones, the authority may provide a pre-approved format for MOA that needs to be signed in front of an officer.

Also Read: Process of Free Zone Company Registration in Dubai

8. Final License Issuance

After completing all prior steps, you can submit your final application for license issuance. This will include:

• Approved MOA

• Tenancy contract and Ejari

• External approvals (if required)

• Shareholder documents

• Payment of license and government fees

Once your application is approved and fees are paid, your trade license will be issued, officially completing your business registration in Dubai UAE.

9. Post-License Requirements

Even after obtaining your business license, there are a few important tasks to complete:

Corporate Bank Account

Once your company is officially licensed, you can open a business bank account in the UAE. Required documents typically include:

• Trade license

• MOA

• Passport copies of shareholders

• Shareholder residency status

VAT Registration

If your taxable turnover exceeds AED 375,000, you must register for VAT with the Federal Tax Authority (FTA).

Employee Visas and Labor Cards

To hire staff, you’ll need to:

• Register with the Ministry of Human Resources and Emiratisation (MOHRE)

• Apply for establishment card and employee visas

10. Common Mistakes to Avoid

• Choosing the wrong jurisdiction: This could limit your operations or require costly restructuring.

• Ignoring external approvals: Missing required government approvals can delay or nullify your license.

• Using personal residences as offices: Not allowed under UAE commercial laws.

• Skipping the Ejari process: Can result in license rejection.

• Mismatched activity selection: Activities must align with licensing requirements.

Conclusion

Securing the right permits and approvals is a vital step in the journey of setting up a company in Dubai. While the process may seem complex, it’s highly manageable with proper guidance and attention to detail.

Whether you’re an international investor or a local entrepreneur, understanding each phase—from trade name reservation to external approvals and license issuance—will ensure a smooth and compliant company registration in Dubai.

Engaging with a reputable business setup consultant can also save time, reduce risk, and ensure your documents meet all legal standards. With the right approach, your business registration in Dubai UAE can be the first step to long-term success in one of the world’s most dynamic markets.

Also Read: Different Types of Audits in Dubai

Frequently Asked Questions (FAQs)

1. How long does it take to get a business license in Dubai?

It usually takes 5 to 10 working days for mainland licenses, depending on the business activity and external approvals. Free zone setups can be quicker, often issued within 3 to 5 days.

2. Do I need a local sponsor to set up a company in Dubai?

For mainland companies, certain activities may still require a UAE national sponsor or service agent. However, many business categories now allow 100% foreign ownership. Free zone companies do not require a local partner.

3. What is the cost of business registration in Dubai UAE?

Costs vary based on jurisdiction, business activity, and office requirements. A standard license in a Free Zone might start at AED 12,000–15,000, while mainland licenses with office rent can exceed AED 25,000 or more annually.