Entrepreneurship in the United Arab Emirates is always regarded as a good opportunity, but dealing with tough licensing requirements might be unmanageable.

The UAE is an oasis for innovation and business, providing many grounds that do not lack opportunities, but to succeed, one needs to know the relevant legal rules. We’ll outline the key steps that will help you navigate through these rather complicated licensing rules of the UAE with ease.

Step 1: Determine Your Business Activity

Before even making a license application, your business activity needs to be well defined. There are different licensing categories in the UAE; they include commercial, industrial, and professional licenses. Each category has its own set of requirements and regulations, so getting to know your type of business will be the first step towards ensuring compliance.

Step 2: Choose a Free Zone or Mainland

You will then decide whether to register your business in a free zone or on the mainland. Free zones offer 100% foreign ownership, tax free, and facilitative procedures, but some business activities cannot be undertaken directly in the UAE market. The companies registered on the mainland are easily allowed to do trade in the entire UAE, but normally, they are required to have a local partner for carrying out such business.

Step 3: Register Your Trade Name

Once you’ve determined your business activity and location, the next step is to register your trade name. The name must comply with UAE naming conventions and be approved by the Department of Economic Development (DED) or the relevant free zone authority. This process ensures that your business name is unique and not already in use.

Step 4: Obtain Initial Approval

After you have secured your trade name, you then get the preliminary approval from the DED or that relevant free zone authority. The preliminary approval is proof that your business activity conforms to the local regulations. You are asked to present to them a business plan, photocopies of your passport, among other documentation.

Step 5: Prepare Your Legal Documents

Prepare the necessary legal documents for your business setup in the UAE. This typically includes your Memorandum of Association (MoA), Articles of Association, and any additional documents required by the authority. If you’re setting up in a free zone, each zone may have specific documentation requirements, so be sure to check in advance.

Step 6: Finalize Your Office Space

Complete Office Space. Having an office is important for licensing, in the sense that if you select a free zone or a mainland, then your office must comply with the rules applicable at that area. You may also need to prove your office address when you apply for licensing.

Step 7: Submit Your Application

Make sure all documents are ready, then submit your application for a business license. The time it takes to process can change, but it usually takes a few weeks. Check that all documents are correct and complete to prevent delays.

How Arnifi Can Help

At Arnifi, we realize it may be tough to get the correct licenses in the UAE. Let our team of seasoned professionals make it a smooth one. We’re a trusted corporate solutions firm: giving you tailored advice to guide you through business setup in the UAE -from determining your business activity to receiving the application. We at Arnifi are proud to deliver lasting value for our clients with the help of experienced business owners. Let Arnifi help you build a successful business in the lively UAE market. Get in touch with us today to begin.

Also Read: Ultimate Guide to Free Zone License