Corporate Advisory & Support | License types

Dubai Business Essentials You Need to Know

13th January 2025

When considering incorporating your company in a tax-friendly environment with access to international markets and a central global location, Dubai is an exceptional choice.

To get started, you’ll need to obtain a trade licence and a visa for yourself. This essential combination forms the foundation for launching your business.

Why is a Trade Licence Important?

A trade licence specifies the business activities you are authorised to conduct, based on the services you provide or the goods you trade. Whether you’re establishing a consultancy firm, retail shop, restaurant, or e-commerce platform, every business requires the proper documentation to operate both nationally and internationally.

Your business objectives and related activities are crucial when selecting the right jurisdiction for incorporation. The primary decision lies between setting up in the Mainland or within one of the Free Zones. Each jurisdiction has its own rules and regulations aligned with local law.

The Power of a Corporate Bank Account

A business cannot function effectively without a corporate bank account to manage its finances. To open a corporate bank account in the UAE, at least one shareholder must hold a UAE residency visa. Ideally, this individual should play an active role in the company and is part of the management team with full signatory rights.

Obtaining UAE Residency

UAE residency can be obtained through various pathways, with one of the most common routes being an employment visa. Typically valid for two years, this visa includes a national ID known as the Emirates ID (EID). The EID is essential for everyday activities such as opening private and corporate bank accounts, obtaining UAE mobile numbers, signing lease agreements, and more. Upon expiration, the visa and associated documents must be renewed.

Other pathways to UAE residency include:

  • Family Sponsorship: Offered by a family member holding an active UAE residency visa.
  • Self-Sponsorship: Available to company owners or property investors.

The validity of a residency visa varies depending on the category under which it is issued.

For more details on residency visas and their requirements, read our detailed blog.

If you’re looking for tailored guidance on starting your business in Dubai, contact Shalini today.


Shalini Karansingh is a Relationship Manager at Luxe Incorporations.
[email protected]
+971 54 266 5960

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