The process to reserve a trade name and obtain a business licence (often called a trade licence or commercial licence) in the UAE varies slightly by emirate, as each has its own Department of Economic Development (DED) or equivalent authority (e.g., Department of Economy and Tourism – DET in Dubai, Abu Dhabi DED). The UAE encourages 100% foreign ownership in most mainland activities, and many steps occur online via portals like Invest in Dubai, TAMM (Abu Dhabi), or emirate-specific apps.
This guide focuses primarily on Dubai (the most common setup location) but notes variations for other emirates. Always verify the latest details on official government portals, as procedures streamline digitally.
Step 1: Choose Your Business Activity and Legal Structure
Identify your economic activity first—this determines your licence type (e.g., commercial for trading, professional for services, industrial for manufacturing). Select up to 10 related activities to maximize flexibility.
Decide on your company structure, such as:
- Limited Liability Company (LLC) — popular for mainland setups with 100% foreign ownership.
- Sole establishment.
- Other forms like PJSC.
Use official tools (e.g., Invest in Dubai’s business setup recommendation) to match activities to structures and licences.
Step 2: Reserve Your Trade Name
Reserve a unique trade name early—it distinguishes your business and becomes official once approved.
Follow these steps (Dubai example via Invest in Dubai portal):
- Visit the official portal (e.g., app.invest.dubai.ae for Dubai) and log in with UAE Pass or create a verified account.
- Search for name availability to confirm your preferred name is free.
- Submit your trade name application. Ensure it:
- Reflects your business activity.
- Includes the legal form abbreviation (e.g., LLC).
- Avoids offensive, religious, or restricted words, government references, or similarities to existing names/brands.
- Pay the fee (around AED 620 in Dubai, varies by emirate).
- Receive approval—often within minutes to days. The reservation typically lasts 6 months.
In other emirates, apply via the local DED website/app (e.g., TAMM in Abu Dhabi) or Ministry of Economy portals for guidance.
Tip: Reserve before full setup to secure your brand.
Step 3: Obtain Initial Approval (If Required)
Some emirates require initial approval from the DED after name reservation. Submit basic documents (passport copies, business outline) to confirm no objections to your setup. This step unlocks further processes like leasing space.
Step 4: Prepare Required Documents and Approvals
Gather essentials:
- Passport copies (and visas/residency if applicable).
- Trade name certificate.
- Memorandum of Association (MoA) — notarized for LLCs.
- Lease agreement/Ejari (for office/warehouse if needed; some activities allow flexi-desk or home-based).
- Additional approvals from relevant authorities (e.g., for regulated sectors like health or finance).
For instant or simplified licences (e.g., eTrader for home-based in Dubai), requirements reduce significantly.
Step 5: Apply for the Trade Licence
Submit your full application online via the emirate’s portal (e.g., Invest in Dubai for fast issuance):
- Upload documents.
- Select licence type and activities.
- Pay fees (vary widely: starting from AED 10,000–30,000+ annually, depending on activities, location, and visa quotas; includes knowledge/innovation fees, chamber membership).
- Receive your trade licence—often digitally in minutes for eligible setups, or within days/weeks otherwise.
Post-licence steps include:
- Opening a corporate bank account.
- Applying for establishment card and employee visas (if hiring).
- Registering for VAT if turnover exceeds thresholds.
Why Partner with Experts Like Prema Consulting?
Navigating UAE regulations, choosing the right jurisdiction (mainland vs. free zone), and ensuring compliance saves time and avoids rejections. Prema Consulting specializes in seamless business setups across the UAE—contact us for personalized guidance, from name reservation to full licensing and beyond.
Start your UAE business journey today with confidence.
