How to Set Up a Business in the UAE: A Step-by-Step Guide for International Entrepreneurs
The United Arab Emirates has become a global business magnet, attracting investors, entrepreneurs, and corporations from across the world. With its tax advantages, world-class infrastructure, and strategic location between Europe, Asia, and Africa, setting up a company in the UAE has never been more appealing.
Whether you’re a startup founder or an established business owner, here’s a step-by-step guide to launching your business in the UAE.
Step 1: Choose Your Business Activity
The first step is defining your core business activity. The UAE allows a wide range of business types, from e-commerce and consulting to logistics, manufacturing, and tech startups. Your choice will determine the type of license you’ll need.
Tip: Prodigy Group helps you identify the most profitable and compliant business activities based on your goals.
Step 2: Select the Right Jurisdiction
You can register your business in one of three jurisdictions:
Mainland: Offers full access to the UAE market and allows business anywhere in the country.
Free Zone: 100% foreign ownership, no customs duty, and ideal for trading internationally.
Offshore: Best for holding companies, international trade, and asset protection.
Need help choosing? Our consultants at Prodigy Group will guide you toward the best option based on your business model and expansion goals.
Step 3: Choose a Company Structure
Popular company types include:
Limited Liability Company (LLC)
Sole Proprietorship
Branch of a Foreign Company
Free Zone Company (FZC or FZE)
Each structure has its own rules for ownership, liability, and taxes.
Step 4: Register the Trade Name
Your business name must be unique and comply with UAE naming regulations. It should not include any offensive or religious references.
We handle trade name approvals and ensure your name is legally protected.
Step 5: Apply for a Business License
Your license depends on your business activity:
Commercial License for trading activities
Professional License for consultancy or services
Industrial License for manufacturing
At Prodigy Group, we process all license applications efficiently and transparently.
Step 6: Find an Office Space
A physical or virtual office address is mandatory for company registration.
Choose from premium business centers in Dubai and other emirates
Virtual office options available for startups and remote entrepreneurs
Prodigy Group offers plug-and-play office spaces with flexible leasing terms.
Step 7: Obtain Approvals and Visas
Depending on your business type, you may need external approvals from specific government departments.
You’ll also need:
UAE residence visa
Emirates ID
Corporate bank account setup
Prodigy Group simplifies this process by coordinating with relevant authorities.
Step 8: Open a Corporate Bank Account
After licensing and visa approvals, we help you choose the right banking partner and handle the paperwork to open your business account.
