How to Start a Business in UAE: Company Name & Trade License Guide for 2025

Introduction

Setting up a business in the UAE continues to attract entrepreneurs worldwide due to its tax benefits, global connectivity, and stable economy. But before launching operations, two major steps are necessary: company name registration and obtaining a trade license. This guide explains each step in simple terms, ensuring clarity even for first-time business owners or expats.

Why Registering a Company Name Matters

Your company name is the officially accepted identity used for legal and regulatory purposes in the UAE. In the UAE, registering the name is mandatory before you proceed with licensing and other formalities.

Regulatory authorities such as the Department of Economic Development (DED) or Free Zone bodies validate that your proposed company name:

  • Must respect cultural and religious values.
  • Isn’t identical or similar to existing businesses
  • Isn’t associated with global organizations unless authorized

·         Clearly describes the business purpose

Once your chosen name fits all criteria, you’re ready to reserve it officially.


 

Step-by-Step: Registering a Company Name in UAE

Step 1: Define Your Business Activity

The type of business you run—like trading, consultancy, manufacturing, or freelancing—determines what kind of name and license you need.

Step 2: Pick the Right Legal Structure

Popular structures in the UAE include:

  • Sole Proprietorship
  • Limited Liability Company (LLC)
  • Free Zone Establishment (FZE)
  • Civil Company
  • Branch of Foreign Company

Your choice affects ownership rights, visa eligibility, and taxation.

Step 3: Submit Name Options

Submit two to three company name options through the official portal or with the help of a consultant like IrhaBiz. raises the chances of your application receiving timely approval.

Step 4: Get the Name Reservation Certificate

If the name aligns with the regulations and is not taken, you will receive a Name Reservation Certificate valid for up to 60 days.

Understanding the UAE Trade License

The trade license serves as legal proof that your business can operate within the UAE. Without it, you can’t legally trade, rent office space, or even open a corporate bank account.

Types of Trade Licenses in UAE

License Type

Suitable For

Commercial License

Buying and selling goods

Professional License

Service-based industries like marketing or IT

Industrial License

Manufacturing and industrial activities

Tourism License

Travel agencies, tour operators, and hotels

 

Complete Process to Secure a UAE Trade License

1. Decide: Mainland or Free Zone

Mainland company registration with the DED permits business operations across the entire UAE. Free Zone companies get benefits like full foreign ownership and tax exemptions but are limited in business scope within the mainland unless partnered.

2. Confirm Business Activity and Trade Name

Stick with your approved name and ensure the selected activity matches the license type.

3. Gather Required Documents

Documents typically include:

  • Passports of owners/partners
  • Name Reservation Certificate
  • Initial Approval from authority
  • MOA or Local Service Agent agreement
  • Lease agreement or virtual office proof
  • Emirates ID (if available)

4. Get Initial Approval

This “No Objection” clearance from the authority means you’re good to proceed with the license process.

5. Sign MOA/LSA Agreements

  • MOA is required for LLCs to define partner roles and shares.
  • LSA is for professional licenses where a UAE national acts as your agent without holding equity.

6. Secure a Business Address

You’ll need a commercial lease or virtual office. Most Free Zones offer affordable co-working and flexi-desk options.

7. Pay Trade License Fees

Your license expense depends on the type of activity, the office space, and the number of visas required. You’ll also pay government and registration fees.

8. Receive Your License

Once documents are approved and payment is made, you’ll receive your official Trade License—typically within a week.

 

Typical Costs for Name Registration & Trade License

Element

Approximate Cost Range

Name Reservation

AED 600 – AED 1,000

Trade License

AED 8,000 – AED 30,000+

MOA Drafting & Notarization

AED 1,500 – AED 3,000

Office Rental or Remote Workstation Plan

AED 5,000–15,000 each year

Visa and Emirates ID Fees

AED 3,000 – AED 5,000 per person

Note: Fees can change depending on your selected location, Free Zone authority, and the nature of business support services.

Why Choose IrhaBiz for Business Setup in UAE?

Irha Businessmen Services (IrhaBiz) simplifies your journey to business success in the UAE by handling:

  • Company name reservation and registration
  • Legal document drafting and submission
  • MOA or LSA agreements
  • Trade license applications
  • Office space and virtual desk arrangements
  • Visa processing and PRO services

Working with IrhaBiz means less paperwork, faster processing, and expert support at every step.

FAQs – Company Name Registration & Trade License in UAE

Q1: Can you open a business in the UAE while living abroad?

Yes. Especially in Free Zones, you can complete the registration remotely. However, you’ll need to visit later for visa stamping and bank account setup.

Q2: How long does it take to get a trade license in UAE?

On average, it takes 3–7 business days after submitting all required documents and payments.

Q3: Can I add multiple business activities under one license?

Yes, as long as the activities are related and fall under the same license category.

Q4: Is 100% foreign ownership allowed in UAE?

Yes, especially in Free Zones and under certain mainland activities, 100% foreign ownership is permitted.

Q5: Can IrhaBiz help with e-commerce business setup?

Absolutely! IrhaBiz specializes in online business registrations, including for e-commerce, digital services, and remote consultants.

 Conclusion

Registering a company name and obtaining a trade license in the UAE may seem complex, but the process becomes smooth with the right guidance. By understanding the steps and complying with UAE regulations, you can establish your dream business quickly and legally.

IrhaBiz is here to make your business setup journey easier. Whether you’re starting small or planning a large operation, our expert team ensures a stress-free experience from name registration to final licensing.

✅ Need Expert Help with Company Formation in UAE?

Book your free session with IrhaBiz today and take the first step toward building your dream business!

 

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