Forming a UAE company is a multi-step process involving name reservation, licensing, visa applications, and banking. Here is a complete step-by-step guide covering free zone and mainland options.
Phase 1: Pre-Formation Decisions
Step 1: Choose your business structure. Free Zone vs. Mainland. If you need to sell directly to UAE government contracts or to UAE retail customers in physical locations: consider mainland. If you need 100% foreign ownership, simple setup, and primarily B2B or online operations: free zone. Step 2: Choose your specific free zone or mainland authority. Match based on activity, budget, and location (see our Free Zone Comparison tool). Step 3: Shortlist 2–3 activity descriptions that match your business model from the free zone’s approved activity list.
Phase 2: Initial Application
Step 4: Reserve your company name. Search the free zone’s name availability tool and submit your preferred company name. Name reservation fee: AED 100–500. Step 5: Submit initial application. Complete the free zone’s application form online (most free zones now have digital portals). Submit: founder’s passport copy, proposed activities, share structure (if FZCO/LLC), and company name. Step 6: Pay initial fees and receive initial approval. Initial approval is typically issued within 1–5 working days. This approves your application to proceed — it is not the final licence.
Phase 3: Documentation and Incorporation
Step 7: Prepare the Memorandum of Association (MOA). The free zone authority provides a standard MOA template. Complete with: company name, registered address (within the free zone), share capital amount, shareholder names and percentages, and approved activities. Step 8: Notarise if required. Some free zones require MOA notarisation at a UAE Notary Public. Others accept an electronic signature. Confirm with your free zone. Step 9: Receive Trade Licence. The trade licence is the final incorporated document — it confirms your UAE company is legally registered.
Phase 4: Visa and Banking
Step 10: Apply for investor/partner visas. Submit visa applications for all company owners and employees using the trade licence as the sponsor document. Step 11: Open UAE business bank account. Book appointments with 2–3 banks simultaneously — bank approval is not guaranteed. Step 12: Obtain additional approvals (if applicable). Regulated activities (healthcare, financial services, food) require secondary approvals from DHA, DFSA, CBUAE, or MOCCAE before trading.