The Decisive Path: A Chairman's Blueprint for UAE Business Setup

The United Arab Emirates is still adding new companies at a brisk pace, but consultants who work in the sector say the difference between a smooth start and a difficult first year often comes down to the earliest choices made by founders.

The country has more than 50 registration options, from mainland licenses to free zones including DMCC, IFZA, RAKEZ, and ADGM. Each jurisdiction offers a different mix of market access, customs treatment, and visa allowances. Industry advisers warn that the wrong selection can lock a company into costs or limitations this will be challenging to reverse. 

Charlie Patel, founder of Decisive Zone, said most of the problems his firm sees could have been avoided with more planning at the start. “Activity type, jurisdiction, and licensing all have long-term consequences,” he said. “If those choices are rushed or misaligned, you can run into banking or visa barriers later.”

After deciding on the activity and jurisdiction, applicants move on to name approvals, document preparation, and in many cases leasing premises that meet licensing requirements. Banking, once straightforward, now involves more extensive checks as institutions apply tighter due diligence. Patel said that presenting a detailed and credible business case has become essential for securing accounts. 

The introduction of VAT and corporate tax has also changed the formation process. Compliance now has to be addressed alongside incorporation to avoid the expense of restructuring later. Patel said his firm — which has worked on more than 7,000 setups across different industries — integrates tax registration and reporting systems into its early-stage work to keep clients aligned with the rules from the start.