What are the first legal steps to reserve a trade name
Reserving a trade name is the mandatory first step to establish a company in Dubai under Federal Law and Dubai Executive Council Resolution No. 13 of 2024.
The article explains the initial legal procedure for reserving a trade name when forming a company in Dubai, including submitting the application via the unified digital portal, required documents such as shareholders' passport copies and a brief activity description, the 60-day reservation period with a one-time renewal option, the governing legal framework (Federal Decree-Law No. 32 of 2021 on Commercial Companies and Dubai Executive Council Resolution No. 13 of 2024), and the fees and expected time to receive the electronic reservation certificate.
Reviewed by Mohamed Noureldin, Founder, Managing Partner & Senior Legal Consultant
Establishing a company in Dubai in 2025 requires following the Federal Decree-Law No. 32 of 2021 on Commercial Companies and Dubai's Executive Council Resolution No. 13 of 2024 on the unified digital window, which together govern the procedure for mainland and free-zone entities across the Emirate.
WHAT ARE THE FIRST LEGAL STEPS TO RESERVE A TRADE NAME?
You must submit a trade name reservation application through the Dubai Economy and Tourism Department's online portal, attaching a copy of the shareholders' passports and a brief description of the intended activity. The reservation is valid for 60 days and can be renewed once if the name remains unavailable.
The Federal Decree-Law No. 32 of 2021 requires that the chosen name not be identical or confusingly similar to an existing entity and must reflect the company's legal form (LLC, branch, etc.) 【https://www.moj.gov.ae/assets/download/2026/4c0f0118-ee2a-4fde-862f-ee2c611467bd】. Dubai's Executive Council Resolution No. 13 of 2024 mandates that all name reservations be processed via the unified digital window, which issues an electronic certificate within one business day after payment of the AED 200 fee 【https://dlp.dubai.gov.ae/Legislation%20Ar%20Reference/2024/%D9%85%D8%B1%D8%B3%D9】.
HOW DO I PREPARE AND NOTARISE THE MEMORANDUM OF ASSOCIATION?
Draft the Memorandum of Association (MOA) in Arabic, specifying the company's name, objectives, share capital, shareholder details, and management structure, then have it notarised by a UAE-licensed notary public. The MOA must be signed by all shareholders or their authorised representatives.
Under Federal Decree-Law No. 32 of 2021, the MOA is the constitutive document that defines the company's internal governance and must comply with the prescribed template for limited liability companies 【https://www.moj.gov.ae/assets/download/2026/4c0f0118-ee2a-4fde-862f-ee2c611467bd】. Dubai's Executive Council Resolution No. 13 of 2024 requires that the notarised MOA be uploaded to the unified digital window as part of the licence application package, where the system validates the document against the template within 24 hours 【https://dlp.dubai.gov.ae/Legislation%20Ar%20Reference/2024/%D9%85%D8%B1%D8%B3%D9】.
WHAT SHARE CAPITAL IS REQUIRED FOR A MAINLAND LLC?
A mainland limited liability company must have a minimum share capital of AED 1 000, divided into shares of equal value, which must be fully paid up before licence issuance. The capital can be contributed in cash or in kind, provided the latter is valued by an approved auditor.
Federal Decree-Law No. 32 of 2021 sets the AED 1 000 minimum for LLCs formed in the UAE mainland, and stipulates that the capital must be deposited in a UAE bank account and a certificate of deposit submitted to the licensing authority 【https://www.moj.gov.ae/assets/download/2026/4c0f0118-ee2a-4fde-862f-ee2c611467bd】. Dubai's Executive Council Resolution No. 13 of 2024 automates the verification of the capital deposit through the unified digital window, which cross-checks the bank certificate with the licence application and issues a provisional approval within two working days 【https://dlp.dubai.gov.ae/Legislation%20Ar%20Reference/2024/%D9%85%D8%B1%D8%B3%D9】.
WHICH LICENCES DO I NEED AND HOW TO APPLY FOR THEM?
You must obtain a commercial licence from the Dubai Economy and Tourism Department (DED) for mainland activities, or the relevant free-zone authority licence if you choose a free-zone establishment. The application is submitted electronically via the unified digital window, accompanied by the reserved trade name certificate, notarised MOA, share capital proof, and tenancy contract for the business premises.
Federal Decree-Law No. 32 of 2021 requires that every commercial company hold a licence issued by the competent licensing authority before commencing operations 【https://www.moj.gov.ae/assets/download/2026/4c0f0118-ee2a-4fde-862f-ee2c611467bd】. Dubai's Executive Council Resolution No. 13 of 2024 specifies that the unified digital window processes licence applications in real time, issuing the commercial licence within three business days after all documents are validated and the applicable fee (starting at AED 10 000 for a general trading licence) is paid 【https://dlp.dubai.gov.ae/Legislation%20Ar%20Reference/2024/%D9%85%D8%B1%D8%B3%D9】.
WHAT ARE THE VISA AND IMMIGRATION REQUIREMENTS FOR SHAREHOLDERS AND EMPLOYEES?
Shareholders who wish to reside in the UAE must apply for an investor visa through the General Directorate of Residency and Foreigners Affairs (GDRFA), providing the company licence, tenancy contract, and proof of share capital. Employees require an employment visa sponsored by the company, which involves a labour contract approval from the Ministry of Human Resources and Emiratisation (MOHRE) and a medical fitness test.
Federal Decree-Law No. 32 of 2021 does not govern visas; instead, UAE Federal Law No. 6 of 1973 on Immigration and its implementing regulations set the visa categories and procedures 【https://www.moj.gov.ae/assets/download/2026/4c0f0118-ee2a-4fde-862f-ee2c611467bd】. Dubai's Executive Council Resolution No. 13 of 2024 integrates visa application steps into the unified digital window, allowing the company to submit visa requests after licence issuance, with typical processing times of five to seven working days for investor visas and three to five days for employment visas 【https://dlp.dubai.gov.ae/Legislation%20Ar%20Reference/2024/%D9%85%D8%B1%D8%B3%D9】.
HOW DO I OPEN A CORPORATE BANK ACCOUNT AND WHAT DOCUMENTS ARE NEEDED?
After obtaining the commercial licence, you must approach a UAE bank with the licence copy, MOA, share capital certificate, passport copies of authorised signatories, and a board resolution authorising the account opening. The bank will conduct due diligence and typically activate the account within five to ten working days.
Federal Decree-Law No. 32 of 2021 obliges companies to maintain a bank account in the UAE for capital deposits and operational transactions 【https://www.moj.gov.ae/assets/download/2026/4c0f0118-ee2a-4fde-862f-ee2c611467bd】. Dubai's Executive Council Resolution No. 13 of 2024 does not dictate banking procedures, but the unified digital window provides a verification service that banks may use to confirm the licence authenticity, reducing onboarding time 【https://dlp.dubai.gov.ae/Legislation%20Ar%20Reference/2024/%D9%85%D8%B1%D8%B3%D9】.
WHAT ONGOING COMPLIANCE OBLIGATIONS MUST I MEET?
You must renew the commercial licence annually, file audited financial statements with the DED or free-zone authority, maintain proper accounting records in accordance with International Financial Reporting Standards (IFRS), and renew any resident visas before expiry. Additionally, you must comply with UAE VAT registration if taxable supplies exceed AED 375 000 per annum.
Federal Decree-Law No. 32 of 2021 requires licensed companies to keep accurate books and submit annual financial statements to the licensing authority 【https://www.moj.gov.ae/assets/download/2026/4c0f0118-ee2a-4fde-862f-ee2c611467bd】. Dubai's Executive Council Resolution No. 13 of 2024 mandates that licence renewal applications be submitted through the unified digital window at least 30 days before expiry, with a standard renewal fee of AED 5 000 for a general trading licence 【https://dlp.dubai.gov.ae/Legislation%20Ar%20Reference/2024/%D9%85%D8%B1%D8%B3%D9】.
FREQUENTLY ASKED QUESTIONS
What is the cost of a mainland commercial licence in Dubai?
The base fee for a general trading licence starts at AED 10 000, with additional charges for specific activities, tenancy contract registration, and service fees. The unified digital window displays the exact amount before payment.
Can a foreign national own 100 % of a Dubai mainland company?
Yes, Federal Decree-Law No. 32 of 2021 allows 100 % foreign ownership for most commercial activities on the mainland, except for a limited list of strategic sectors that require Emirati partnership.
How long does it take to obtain a free-zone licence?
Free-zone authorities typically issue licences within three to five working days after submission of the required documents via their online portals, which are linked to the unified digital window for data sharing.
Is a physical office mandatory for a mainland company?
A mainland company must have a physical address evidenced by a tenancy contract or title deed; virtual offices are not sufficient for licence issuance.
What are the penalties for operating without a valid licence?
Operating without a licence is punishable by a fine of up to AED 500 000, possible closure of the business, and potential deportation of foreign employees under UAE Federal Law No. 3 of 1987 on the Penal Code.
Do I need to appoint a local service agent for a mainland LLC?
No, Federal Decree-Law No. 32 of 2021 removed the requirement for a local service agent for LLCs engaged in commercial or industrial activities; only professional licences may still need a local agent.
If your matter involves establishing a company in Dubai in the United Arab Emirates, you are welcome to request a consultation with Nour Attorneys. Our team can assess your position under the law currently in force and outline the options available to you. Request a consultation
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This article is for informational purposes only and does not constitute legal advice.
