Initial Approval in the UAE – First Legal Step to Set Up Your Business

Initial approval is not sufficient to open a company in the UAE. It only confirms that the government has no objection to your proposed business activity and structure. To legally establish your company, you must also reserve a trade name (if not yet done), sign a tenancy contract, notarise the Memorandum of Association (MOA), and apply for a trade licence. Only after completing these steps can your company be legally registered and allowed to operate.

Initial approval is typically issued instantly by the Department of Economy and Tourism (DET) when all documents are in order and the activity does not require additional review. For certain business types, a manual assessment may be required, which can extend the processing time. EGSH ensures accurate submission and tracks the status until approval is granted.

Initial approval is mandatory before you can apply for a trade licence. It is the first formal step in the business registration process in Dubai. Without this approval, you cannot proceed with tenancy registration, document notarisation, or final licence issuance. EGSH, as a government-authorised centre, ensures that your initial approval application is submitted correctly, without delays or compliance issues.

Foreign investors can apply for initial approval when registering a new company in Dubai. Non-GCC nationals must provide a valid UAE residence visa or entry permit alongside their passport. Depending on the legal structure, additional corporate documents may be required. EGSH assists foreign investors with preparing and submitting all documents in compliance with DET regulations.

The official government fee for initial approval for business in Dubai is AED 120. This fee is paid upon submission of the application. EGSH processes the payment on your behalf using authorised banking channels to ensure timely and compliant submission.

You can apply for initial approval either before or after completing trade name registration. These two steps are independent of each other and can be done in either order. EGSH can assist you with both procedures as part of the whole business setup process.

You can change your business activity after receiving initial approval, but you must submit a new request reflecting the updated activity. The initial approval is activity-specific, and the DET must reassess any change. As part of the regulated process for business setup in the UAE, the revised application must meet all current legal and procedural requirements. EGSH ensures that any updates are submitted correctly and in full compliance.

Initial approval is valid for six months from the date of issuance. During this period, you must complete the remaining steps of the company setup process, including trade name registration, tenancy contract, MOA notarisation, and trade licence application. If the initial approval expires before these steps are completed, you will need to reapply.