Every successful business in the UAE has one thing in common: they all began with Initial Approval—a crucial confirmation from the relevant authorities that they have no objection to your proposed business activity. It’s not a license yet, but it signals you’re officially on the right track. This approval allows you to move forward with essential steps like securing a trade name, drafting documents, and finalizing your business location. Whether you’re a local entrepreneur or a foreign investor, understanding this stage is vital for a smooth setup process. In this guide, we’ll explain everything you need to know.
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What Exactly Is Initial Approval for a New Business in the UAE?
Initial approval is your first green light from the UAE authorities. Think of it as a provisional yes for your business, whether you are a startup or a growing business. It’s the government’s way of saying, Your business idea is allowed.
This step does not mean you can start yet. But it means you can continue.
Here’s what you need to know
- It checks if your proposed activity is legal in the UAE.
- Confirms your company name is unique and available.
- But wait: It’s not your final license. Instead, it lets you secure office space, apply for visas, and complete paperwork.
Why does it matter?
- Without this step, you can’t proceed.
- It’s fast (often 1-2 days online).
- Valid for 6 months—plenty of time to finalize things.
Need help with your application? BusinessLinkUAE guides you through every step.
Why Initial Approval Matters for Your UAE Business?
| Reason | Explanation | Benefit to Your Business |
| Confirms Legality | Ensures your business activity is legal | Avoids rejection or legal issues |
| Reserves Trade Name | Checks name uniqueness | Protects your brand identity |
| Allows Document Preparation | Let you prepare the official paperwork | Saves time during the final license application |
| Enables Office Lease | Permits for booking a business location | Meets legal requirements for physical presence |
| Supports Visa Processing | Allows applying for work and investor visas | Supports hiring and residency needs |
| Prevents Delays | Stops you from moving forward without approval | Avoids wasted time and costs |
| Verifies Business Model | Verifies that your concept aligns with the UAE’s business structure. | Increases chances of smooth approval |
| Speeds License Issuance | Prepares the ground for quicker final approval | Reduces overall setup time |
| Provides Security | Offers government backing for your business plan | Builds confidence for investors and partners |
Get your initial clearance as soon as possible to ensure a seamless setup. This crucial step helps you avoid delays and surprises. BusinessLinkUAE offers expert guidance through the whole process. Contact us immediately. to start your journey right.
9 Steps to Get Initial Approval for Your Business in the UAE
Following the right steps is key. Each stage leads directly into the next. This section breaks the process down into clear, actionable parts.
Step 1: Define Your Business Activity
- Choose what your business will do from the list of over 2,000 approved business activities.
- Your choice affects your license type: commercial, professional, industrial, or tourism.
- Pick an activity that fits your actual business goals.
- A single license can be used for many activities.
Step 2: Choose the Right Legal Structure
- The size, activity, and ownership of your company determine your legal structure.
- Options include:
- Sole Establishment
- LLC (Limited Liability Company)
- Civil Company
- Foreign Branch
- Make sure the structure matches your activity and the laws of the emirate you choose.
Step 3: Reserve Your Trade Name
- Choose a name that reflects your business and follows these guidelines:
- It must be unique.
- Can’t be offensive.
- It must match your business type.
- Add the legal structure abbreviation (e.g., LLC).
- You can do this before or after applying for initial approval.
Step 4: Submit Initial Approval Request
- This is your official “no objection” letter from the UAE authorities.
- You need this to proceed, but you cannot start operations yet.
- Once you have it, you can:
- Sign a lease agreement
- Draft legal papers (e.g., MOA or LSA)
- Apply for other approvals if needed
Common Documents Needed:
| Document | Use |
| Application Form | Required for submission |
| Passport Copies | For all owners and managers |
| Emirates ID | For UAE residents only |
| Business Plan | Describes business goals and structure |
| NOC | If under another sponsor |
| CV | Required for freelance license |
| Bank Letter | Shows financial standing (for shareholders) |
| Financial Reports | For corporate shareholders |
| Trade Name Certificate | Proves your name is registered |
Step 5: Prepare Legal Agreements
- Two common documents:
- MOA for LLCs and civil companies
- LSA Agreement for sole proprietors
- These outline duties, capital shares, and legal rights..
- These documents are crucial legal texts.
- Therefore, professional drafting is advised.
- Note: Notarization often comes later, but drafting is early.
Step 6: Secure a Business Location
- You need a physical address that meets regulations.
- In Dubai, register the lease with Ejari.
- This proves your business has a legal operating space.
Step 7: Get Activity-Based Government Approvals
Some industries need more clearances:
- Health: Dubai Health Authority (DHA)
- Food: Dubai Municipality Food Safety
- Industry: Ministry of Advanced Technology and Industry (MoIAT)
- Education, telecom, finance: require special permits
Step 8: Finalize License and Pay Fees
- Send in all required documents using the Free Zone or DED portal.
- Pay fees within the given time frame (often 30 days).
What Happens After Initial Approval?
- It’s Not a License to Operate:
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- Remember, this is not your final trade license.
- You cannot yet conduct business or issue invoices.
- It is merely permission to proceed.
- Therefore, more steps follow.
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- Next Crucial Steps:
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- Secure your business premises (office lease).
- Apply for investor and employee visas.
- Get additional approvals for regulated activities (if needed).
- Finally, apply for your trade license.
- Thus, it guides your journey forward.
- Once approved, you receive your trade license.
Step 9: Sign up with the Chamber of Commerce
- You become a part of the UAE business community by taking this step.
- It offers credibility, legal benefits, and access to networking services.
Mainland vs. Free Zone Setup: What’s Different? Understanding the Two Paths
| Feature / Requirement | Mainland Company Initial Approval | Free Zone Company Initial Approval |
| Governing Authority | Each Emirate’s Department of Economic Development (DED) | Specific Free Zone Authority |
| Foreign Ownership | Up to 100% allowed in many sectors | 100% foreign ownership |
| Market Access | Can trade anywhere in the UAE | Restricted to the Free Zone or international trade |
| Trade Name Reservation | Can be before or after initial approval | Often integrated with the Free Zone process |
| Local Sponsor | Not always required now; depends on activity/structure | Not required |
| Physical Office | Generally required, Ejari registration | Often flexible options: flexi-desks, co-working |
| Required Documents | Copies of passports, application forms, and information on company activities. | Passport copies, business plan, reference bank cert |
| Additional Approvals | Often needed for regulated sectors | Maybe needed, but often simpler |
| Cost of Initial Approval | Around AED 120-235 | Varies by Free Zone (part of the overall package) |
| Timeline | Can be quick, but depends on external approvals | Often faster, less documentation |
Best Practices for a Smooth Approval
Gather All Documents Early
- Incomplete forms cause delays.
- Double-check passport copies, trade name proof, CV, and financial records.
Consult a Setup Expert
- Professionals can handle details, spot risks, and save time.
- Their local knowledge is valuable.
Use Online Services
- Many approvals are now digital.
- Online systems speed up every step.
Watch for Regulatory Updates
- UAE laws can change.
- Stay informed to stay compliant.
Initial Approval Steps & Key Requirements Summary
| Step | Action | Key Requirement / Document | Why It Matters |
| 1 | Define Activity | Specific product or service you’ll offer | Sets license type and ensures legal compliance |
| 2 | Choose Legal Structure | LLC, Sole Establishment, Free Zone, etc. | Affects ownership, liability, and business rules |
| 3 | Select Trade Name | Unique name that follows UAE naming rules | Protects brand identity; required for approval |
| 4 | Gather Documents | Passport, visa, Emirates ID, and NOC (if required) | Verifies identity; missing papers delay approval |
| 5 | Draft MOA / LSA | MOA (LLC) or LSA Agreement (Sole Establishment) | Defines company structure and partner roles |
| 6 | Submit Application | Send your work to Free Zone or DED (online or in person). | Starts the government review of your business setup |
| 7 | Pay Fees | AED 100–350 depending on the emirate and setup | Confirms application and moves the process forward |
| 8 | Await & Collect Approval | Initial approval certificate | Confirms your business idea is accepted; needed for next steps |
Common Mistakes to Avoid
- Using a taken or restricted trade name
- Choosing the wrong activity code
- Submitting incomplete or outdated documents
- Not getting NOC if you’re on a UAE visa
- Applying without required sector approvals
A Strong Start with Initial Approval
Initial approval is the UAE’s way of saying your business plan is acceptable. It opens the door to the following stage. When you follow the steps correctly, you set your business on firm legal ground.
The UAE welcomes new businesses. With a clear strategy and attention to rules, your path to starting a company becomes easier. It all begins with this first official go-ahead.
After the application has been initially approved, is it possible to make changes?
No, once you get initial approval, changes to your trademark details are limited. It’s important to submit a complete and accurate application from the start.
How long does it take to obtain initial approval in the UAE?
The process is often very quick. Many applications get initial approval in minutes or hours. Complex activities might take longer. Indeed, external government approvals can add time. Providing complete documents helps speed it up.
Initial Approval Timeline & Validity (Typical)
| Aspect | Details (Mainland / Free Zone) | Notes |
| Processing Time | 1–3 Business Days (often faster online for simple activities) | Time may vary based on activity type, emirate, and document accuracy |
| Validity Period | 6 Months | Enough time to secure office, visas, and apply for final license |
| Renewal | Can extend for 6 more months (with fee) | Helpful if setup is delayed due to approvals or leasing |
| Cost | AED 100–350 (depends on emirate and legal structure) | This is for the initial approval only, not the full license |
The Total Cost of Issuing Initial Approval: Your Investment in a Smooth UAE Start
Starting your UAE business journey means understanding every expense. Many entrepreneurs wonder: What is the total cost of issuing the initial approval? This isn’t always a single, fixed number. Instead, it’s a small, crucial investment that varies. Understanding these fees clarifies your budget; moreover, it prevents hidden surprises. Here, we break down what you’ll actually pay for this vital first step.
Understanding the Direct Initial Approval Fees
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Initial Approval Fee (Government Fee)
- This is the core fee paid to the DED (Department of Economic Development) or Free Zone Authority.
- It covers the government’s review of your business idea.
- This fee confirms your proposed activity is allowed.
- Therefore, it’s a mandatory cost to proceed.
- Range: Typically AED 100 – AED 310 in mainland Dubai.
- Range: Often AED 100 – AED 300 in free zones.
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Trade Name Reservation Fee:
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- This fee secures your chosen company name.
- It prevents others from using it.
- You pay this to the DED or Free Zone Authority.
- Therefore, it’s paid before or with initial approval.
- Range: Typically AED 200 – AED 900.
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Activity-Specific Initial Approvals:
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- Some business activities need extra initial clearances.
- Think of medical, educational, or financial services.
- These require additional fees to sector authorities.
- Therefore, your business type impacts total cost.
- Example: DHA initial approval can be AED 1000 – AED 2000.
Beyond Direct Fees: What Else Contributes to the Initial Approval Investment
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Memorandum of Association (MOA) Notarization:
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- This document outlines your company’s structure.
- For mainland LLCs, it often needs notarization.
- Notary Public fees apply for this legal step.
- Therefore, factor this into early costs.
- Cost: Often 0.25% of share capital, minimum AED 500, or flat fees up to AED 1,500.
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Service Agent / Consultant Fees:
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- Many entrepreneurs use setup consultancies.
- They help prepare documents and submit applications.
- Their fees cover expert guidance and PRO services.
- Therefore, they streamline the process greatly.
- Range: Varies widely, often AED 5,000 – AED 10,000 for PRO services, but some initial packages may include small fees.
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Translation Costs:
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- Documents not in Arabic may need translation.
- Legal translations are often mandatory.
- This adds a small but necessary expense.
- Therefore, budget for certified translation services.
- Cost: Typically AED 200 – AED 500.
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Government Service Fees (Tasheel / Amer):
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- These are administrative processing fees.
- They are paid at government service centers.
- They apply to various stages, including initial steps.
- Therefore, they add to the overall initial outlay.
- Cost: Often AED 230, or AED 345 for initial approval Tasheel.
Cost Variations: Mainland vs. Free Zone Initial Approval
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Mainland Initial Approval:
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- Generally involves fees to the DED.
- May have separate trade name, initial approval, and Tasheel fees.
- Example: Initial approval AED 310, Trade Name AED 660.
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Free Zone Initial Approval:
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- Fees are often bundled into a package.
- Some free zones have a single registration fee.
- This may include initial approval implicitly.
- Therefore, check specific free zone packages.
- Example: Ajman Free Zone initial approval AED 100.
- SHAMS offers packages starting AED 5,750, which bundle initial costs.
Exoplore more about launching PTY company registration in UAE.
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Factors Influencing Final Cost:
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- Emirate: Costs vary significantly across Dubai, Abu Dhabi, Sharjah, etc.
- Business Activity: Regulated activities incur higher fees.
- Legal Structure: LLCs might have different fees than Sole Establishments.
- Visa Requirements: Though not initial approval cost, number of visas affects total initial setup cost perception.
- Office Space: Flexible desk vs. physical office dramatically impacts initial overall spend.
Breakdown of Initial Approval Related Costs (Typical Dubai DED Mainland)
| Cost Component | Description | Typical Fee Range (AED) |
| Trade Name Reservation | Fee to reserve your chosen company name. | 620 – 900 |
| Initial Approval Fee | Government fee for preliminary approval of business activity. | 100 – 310 |
| Tasheel/Amer Fee | Administrative processing fees for initial application. | 230 – 345 |
| MOA Notarization | Fee to legalize Memorandum of Association (for LLCs/Civil Cos.). | 500 – 1,500 (min 0.25% capital) |
| Activity-Specific Initial Approval | Extra initial fees for regulated sectors (e.g., medical, legal, education). | 1,000 – 3,000+ (per authority) |
| Translation Costs | For documents not in Arabic (e.g., passports, business plans). | 200 – 500 |
Initial Approval Cost by Jurisdiction Type (General Ranges)
| Jurisdiction Type | Typical Initial Approval Cost (AED) | Notes on Cost Structure |
| Mainland (DED) | ~950 – 2,500+ (excluding MOA %age) | Often itemized: trade name (620–900) + initial approval (100–310) + Tasheel/Amer (230–345) + activity-specific fees. MOA notarization (0.25% of capital) may significantly raise total. |
| Free Zones | ~100 – 3,000+ | May include small specific fees (e.g., Ajman Free Zone AED 100) or be bundled in larger registration/license packages (e.g., SHAMS starts at AED 5,750). |
| Offshore (RAK ICC) | ~850 | Often included in bundled registration/renewal costs. centered on registration, not initial approval in the DED sense. |
3 Ways to Save Money
1. Pick Your Emirate Wisely
- Ras Al Khaimah zones cost 40% lessthan Dubai.
- Meanwhile, Abu Dhabi fees rise for tourism licenses.
2. DIY When Possible
- Handling paperwork yourself?
- Budget under AED 1,000 for the mainland.
3. Apply Online
- Use [ded.gov.ae](https://www.ded.gov.ae) or free zone portals.
- Saves 15–30% vs. in-person submissions.
Always ask free zones for a fee sheet. Some hide approval costs in packages. Get this in writing early!
Get Your Initial Approval Through Business Link
At Business Link, we take the complexity out of obtaining your initial approval in the UAE. Our consultants manage the entire process—from verifying business activity eligibility to submitting documentation—ensuring you meet all government requirements efficiently. With our in-depth knowledge of both mainland and free zone regulations, we help you secure this critical step quickly so you can proceed with confidence.
Summary
How Does Initial Approval Shape Your UAE Business Setup? It sets the foundation for everything that follows. Missing steps here can cost time and money. So, don’t wait—get your initial approval right the first time. Business Link is here to guide you through every stage, making the process smooth and fast. Start your journey with confidence. Reach out today and take control of your UAE business future.
FAQ’s
Can my request for initial approval be rejected in the UAE?
Yes, your request for initial approval can be rejected. This happens for several reasons. Sometimes, it is due to incomplete documents. Also, a criminal record causes issues. Furthermore, security concerns can lead to rejection. Avoid these pitfalls carefully.
What happens after I receive initial approval in the UAE?
After getting initial approval, you proceed. You secure your business location. This includes signing tenancy contracts. Then, you seek external department approvals, if needed. Finally, you prepare for the final license issuance. This completes your setup.
Is initial approval mandatory for all types of businesses in the UAE?
Yes, initial approval is mandatory for nearly all businesses. This applies across the mainland and free zones. However, some specific activities might have different requirements. Always confirm what your chosen setup needs. It is a critical first step.
What happens if my application is rejected during the initial approval stage?
If rejected, you will receive a notification explaining the reasons. You can respond by correcting errors or providing additional information within a given deadline.
Does initial approval guarantee final registration of my trademark?
No, initial approval means your application passed the first review. Your trademark still needs to be published and go through an opposition period before final registration.
Can I change details after initial approval?
Major changes aren’t allowed. You’ll lose initial approval if you alter the name, logo, or class. Thus, double-check before filing.
