To start a business in the UAE, begin by creating a comprehensive business plan. This will help you understand your company’s requirements and guide you in choosing the ideal location (e.g., Freezone or Mainland, Abu Dhabi or Dubai) and the best business structure. Key questions to consider include:

• • Will your company trade goods or provide services?
• • Is your activity or product regulated by a government authority?
• • Who is your target market and where are your clients based?
• • Where will you be located?
• • Do you wish to deal with government or semi-government organizations?
• • How many staff will you need?
• • What is your timeline?
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Depending on your business activity, you will need one of the following licenses: Professional, Commercial, or Industrial. The type of license will determine the suitable entity, which could be a Limited Liability Company (LLC), Foreign/Local Branch, Sole Establishment, or Civil Partnership.

The UAE consists of seven emirates: Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Fujairah, Ajman, and Umm Al Quwain. To decide the best emirate for your business, consider:

• Where are your clients based?

• Are you dealing with private or government entities?

• Where do you want to live?

• What are the rental costs?

Your business activities and prospective clients will influence which Department of Economic Development (DED) license you need. For example, obtaining ADNOC/SPC approval requires an Abu Dhabi Mainland trade license.

• Mainland Company: Licensed by the Department of Economic Development (DED), a mainland company can conduct business in the local market and outside the UAE without restrictions.

• Free Zone Company: Incorporated within a designated jurisdiction, a Free Zone company can only conduct business within the same Free Zone or outside the UAE. To trade with the UAE mainland, they must use a mainland distributor or agent and pay a 5% import duty on local invoices.