June 23, 2018: Abu Dhabi Seascape with skyscrapers in the background at evening, UAE

Steps and Procedures for Business Setup in UAE

Everyone is aware that Dubai is one of the most populated and most incredible tourist destinations globally, thus, is highly renowned and praised. We all want to be recognized, and what better place to do so as a businessperson than Dubai – a wonderful tourist attraction. Due to its economic stability on the worldwide market, the UAE company setup attracts a large number of commercial investors.

We’re here to assist you in understanding all the advantages of Dubai business setup that will be yours in the future. This information will also help you avoid any issues that may arise from lack of sufficient knowledge of business setup UAE.

Why Start a Business on the Mainland of Dubai?

A Dubai corporation, TVG Management Consultancy, conducts business throughout the Emirates. Mainland company formation Dubai is ideal for the following reasons:

1. All business activities that are available on mainland can be carried out in any part of the world including all of the Emirates.

2. There is no taxation at all, whether it be corporate or personal.

3. Restrictions on a minimum capital requirement are limited.

4. There is no requirement for annual auditing.

5. Setup is low-priced and simple.

6. Obtaining an affordable office space with flexible rent in any location is permitted and can be easily achieved.

Who is eligible to start a business in the United Arab Emirates?

In the United Arab Emirates, foreign investors are encouraged to form companies anywhere. Company setup Dubai is a relatively simple procedure that almost anyone can do it. In the same way, company registration outside the Emirate of Dubai is easy.

The UAE is striving to deliver greater and better FDI prospects to investors from all around the world, with the recent declaration of 100 percent foreign ownership in selected sectors. The government provides numerous advantages for establishing a business there.

Choose the correct zone for your business

Choosing a business activity is the most crucial phase in any firm, and it should be your first move. However, you should have a fundamental understanding of the cheapest free zone business setup in UAE before starting a business.

The market in the United Arab Emirates is separated into distinct economic zones. The UAE is divided into three zones: Mainland, Free Zone, and Offshore. These economic zones are jurisdictions, with each having its own set of rules and regulations.

Free Zone

Free Zone Authorities have numerous business activities across various industries which can be carried out by entities that are wholly owned by expats. A firm that is established in the UAE’s Free Zone is subject to specific restrictions depending on the activities carried out by that firm. All firms are able to conduct business exclusively within the Free zone’s authority and outside the UAE. Some free zone authorities allow firms with certain type of activities to do business outside the free zone. Real office space is not required; virtual office space would suffice.


A company based in the UAE’s mainland will be permitted to do business anywhere in the country. This means the organization will be able to conduct business both within and outside of the UAE without any restriction. A real office space with a minimum area of 140 square feet is required to obtain a normal license. An instant license can be obtained without renting a physical premise for the first year of operation, however, it’s applicable to certain activities only.


Offshore businesses are legal entities registered in the United Arab Emirates to conduct business outside of the country or jurisdiction. Offshore corporations are permitted to open multi-currency accounts in the UAE and conduct commercial activities internationally. One thing to note is that offshore corporations in the UAE are tax-free.

The legal framework

Choosing a legal structure for your company while starting a business in the UAE is crucial. It defines the tone and framework for dealing with profits and losses, as well as how your assets and resources should be managed. Decide on your firm’s legal form or structure throughout the early stages of preparation. This will assist you in designing a layout for your company.

The following are some of the legal forms or company structures that you can use to register your company in the United Arab Emirates:

1. Limited Liability Corporation (LLC)

2. A branch of a local enterprise

3. Sole proprietorship

4. A branch of a foreign corporation and free zone company

5. Holding corporation

6. Civil company

Guidance to Business Setup in the United Arab Emirates

The business setup procedures vary from one jurisdiction to another. Registering a mainland company requires getting a local service agent, and for some activities, a local sponsor who’d own 51% of the company’s shares.

Deciding on your economic activity is vital, however, we can recommend activities that are suitable to your company based on your business needs.

Once you’re set, you can submit applications, forms and all the documents required to the concerned jurisdiction for approval. The legal documents of the company are then issued upon payment.

Get your visa

1. So that brings us to the last step of the Dubai company establishment process. Many free zones allow you to apply for staff and dependants in addition to your visa – the exact amount depends on whatever free zone you choose to establish your business in.

2. Let’s assume you want to sponsor a spouse, child, maid, or driver for a visa. In that case, you should seek professional assistance to guarantee that, first, it is possible to do so in your selected zone and, second, that both you and anyone you want to sponsor under your own visa fit all of the entrance conditions.

3. Assuming everything checks out, the procedure consists of four straightforward steps: obtaining an entry permit, adjusting your status, passing a medical fitness test, and finally registering for an Emirates ID and stamping your visa.

4. That concludes our discussion. Now you’re ready to start your business in your preferred UAE zone with TVG Management Consultancy – we’ll deliver all the above services.

5. Contact us for more information.

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