5 min read

Most Frequently Asked Questions About Setting up a Business in the UAE! 

faq business registration

Setting up a business can be very challenging if you are unfamiliar with certain things. This is why it is important that you have all the answers to some frequently asked questions about setting up a business in the UAE. Below, we have accumulated some of these questions that our clients ask us while we are working on their company registration. 

So, before you start your business journey in Dubai, UAE, have a look at these questions and we bet most of your questions will be answered – 

What are the different types of UAE companies that I can start?

There are three categories of companies that can be started in the UAE – mainland businesses, free zone businesses, and offshore businesses. The major difference between the three types of business is that registering mainland business in UAE needs the assistance of a local agent like Paci Advisory and the license is provided by the Department of Economic Department in Dubai whereas, in a free zone, you can operate only within a limited geographical region and the license for this is provided by the respective free zone authority.

When it comes to foreign ownership of your business, both business categories offer 100% foreign ownership. On the other hand, offshore business in the UAE allows you to safeguard your wealth & assets, but the only condition is that you can only trade outside the UAE. The certificate for incorporation in offshore business is provided to the company and not a trade license. 

With the company registration team at Paci, you can easily register your business without any hassle. 

How can I start an LLC company in the UAE?

When it comes to starting an LLC company in Dubai – Mainland or anywhere in UAE, it is essential to reserve a trading name along with obtaining the preliminary approvals. That’s not it, you will also need an MoU (memorandum of association) of the company & submit the lease contract along with other documents to the Department of Economic Development.

Along with all this, you will need to partner with a UAE national & there is a possibility that you might need additional certifications from authorities and rented office space. At Paci Advisory, we will handle it all for you and you will not have to lift even a finger to register your LLC company in the UAE. 

What is a free zone business? 

Free zones are areas designated for international businesses that require 100% foreign ownership. The companies registered in each of the free zones can trade only within the same free zone and nowhere else in the UAE. 

company registration uae


What are the benefits of setting up a business in Mainland UAE?

This is another very common question that we come across. As a mainland UAE company, you are eligible to do business with any country & trade freely. Along with this, you get access to affordable rental office space because, unlike free-zone businesses, you are not limited geographically who are supposed to operate in a specific free zone they are registered in. 

What are the different types of UAE business licenses or trade licenses in Dubai?

There are around four types of business licenses or trade licenses in the UAE. 

  • Commercial license – issued to a company engaged in any sort of trading activity.
  • Industrial license – issued to a company engaged in any kind of manufacturing or industrial activity 
  • Professional license – issued to service providers, professionals, and craftsmen. 
  • Tourism license – issued to the travel, tourism and general hospitality companies in the UAE. 

How long does it take to start a business in the UAE?

Another very common question that clients ask when it comes to starting a business in the UAE is – how long it takes to start the business. With Paci Advisory, mainland company registration often takes 72 hours whereas free zone business registration takes around 3-10 days. 

Do I have to live in Dubai to open a business there?

No, since 100% foreign ownership is now made possible by Free zones and for onshore UAE-based businesses. 

Do I need to have a rental office in Dubai to run a business there?

Yes, it is essential to have a physical address in the country to run a business. It is important to qualify for a license. 

Do I need to get a residence visa after I register the business? 

It depends on whether it’s an LLC or a Free Zone license. The person who has the authority to sign on behalf of the country is required to have a residence visa and needs to be in Dubai every 6 months or the license will be revoked. 

These are some very commonly asked questions when it comes to company registration in the UAE. Right from understanding the different types of businesses there, and how you can register them, to knowing how long it takes to register a company in the UAE, we have answered almost all the major questions that most of our clients ask. In case you have any other questions, you can simply contact us and we will assist you through everything. 

Subscribe to receive exclusive offers and news

Get the best, coolest, and latest in the financial world, delivered to your inbox each week.

Related articles

Basics of Bookkeeping for Small Business

Did you know that the profitability of small businesses might rise by as much as 20% due to good bookkeeping? It involves more than just...

5 Steps for Corporate Tax Registration UAE

Are you trying to find an easy way around the UAE corporate tax registration landscape? Find out how easy it is to register for taxes...

Best Accounting Services in Dubai

In Dubai’s fast-paced business world, many entrepreneurs face a big question: How do you pick the right accounting services for your...

8 Benefits of Accounting Software for Enterprises

In the dynamic landscape of today’s business world, growing enterprises are continually seeking ways to streamline their operations...

8 Benefits of Using Cloud Accounting For Remote Team

Are you tired of waiting for your team to coordinate on spreadsheets, especially when everyone works from different places? Or maybe...

The Ultimate Guide to Accounting Software For CFO Teams

Ever wondered why some companies hit financial roadblocks even when they have brilliant CFOs steering the ship? The answer often lies in the...
Related articles
How To Choose Accounting Services In Dubai?

Best Accounting Services in Dubai

In Dubai’s fast-paced business world, many entrepreneurs face a big question: How do you pick the right accounting services for your...