What are the key legal requirements for starting a business in Dubai?
Learn the essential legal requirements for starting a business in Dubai, including registration, contracts, and compliance with UAE laws.
Starting a business in Dubai requires more than just paperwork; businesses must meet several legal requirements to operate legally and avoid penalties.
Business Registration and Licensing
Every business in Dubai must be registered with the relevant authorities, such as the Department of Economic Development (DED) for mainland companies or a freezone authority. Obtaining a business license is mandatory, and it must align with your company’s chosen activities.
Memorandum of Association (MOA)
Businesses with multiple shareholders must draft and sign an MOA, which outlines the roles, responsibilities, and ownership structure. This document also details profit-sharing arrangements and must be notarized by an authorized public notary.
Local Sponsorship (if applicable)
In some mainland sectors, businesses must have a local sponsor or agent who holds a 51% ownership share or provides external services. However, many sectors now allow 100% foreign ownership, especially for professional service companies.
Compliance with UAE Labor Law
Businesses must comply with UAE labor laws, which regulate employee contracts, working conditions, leave policies, and termination procedures. Companies are required to issue written contracts to employees within 30 days of hiring.
Meeting these legal requirements ensures your business operates smoothly and remains compliant with UAE regulations.