If you're considering starting a business, business setup in dubai mainland is an excellent choice. Beyond its awe-inspiring architecture,
Dubai boasts one of the world's most thriving business ecosystems. It's a
fertile ground for new ventures, offering untapped potential.
Renowned economists and business professionals consistently
rank Dubai among the top destinations for business setup. The government's
commitment to facilitating growth is evident through its provision of
world-class infrastructure, reliable connectivity, a talented workforce, and a
cosmopolitan workspace. Moreover, the government offers enticing incentives to
attract further investment. This dynamic environment creates a conducive
atmosphere for your business to flourish and thrive.
Dubai Mainland, defined by the Dubai Economic Department
(DED), refers to the geographical area where private businesses can conduct
their operations. It's the prime location for foreign business owners to
establish and operate their companies. Within Dubai Mainland, all commercial
activities take place, making it an ideal hub for business ventures.
With Dubai's extensive support and opportunities, launching
your business here can lead to tremendous growth and success. Whether you're an
aspiring entrepreneur or an established business owner, Dubai provides the
perfect platform for your new endeavor.
Understanding
Mainland Business in Dubai
Business setup in Dubai mainland is simply an onshore entity
registered with the relevant emirate's government body, and the Emirate's
Department of Economic Development (DED) issues its trade license. Mainland
companies are not subject to any restrictions on their commercial activities.
Mainland company formation in Dubai is meant for businesses
that want to conduct commercial activities within Dubai and the rest of the
UAE. They allow for trading across the UAE and are subject to UAE commercial
laws and regulations.
There are several advantages to setting up a mainland
business in Dubai. First, mainland companies have greater flexibility and can
conduct a wider range of business activities. They can trade anywhere within
the UAE, unlike free zone companies which can only operate within the free
zone.
Mainland businesses also have access to more business
partners and suppliers across the UAE. In addition, mainland companies may be
able to access more business incentives and government tenders. Unlike free
zone companies, mainland businesses can also own property anywhere in Dubai.
Steps to
Setting up a Mainland Business in Dubai
Business setup in Dubai mainland involves acquiring a trade
license and completing various formalities. As an entrepreneur, it is crucial
to consider and fulfill these requirements to operate legally. This guide will
outline the process of obtaining a trade license and registering your company
with the Department of Economic Development (DED) in Dubai Mainland.
1. Identifying the Business Activity
Before embarking on the process of mainland company
formation in Dubai, the initial decision to make is determining the industry in
which you plan to operate. The Department of Economic Development (DED)
provides a comprehensive list of permitted business activities, encompassing
thousands of options. These activities span various sectors, including trading,
agriculture, hospitality, and manufacturing. Unlike businesses in free zones
that may face restrictions based on location, mainland businesses enjoy the
freedom to engage in any of the 2000+ activities listed by the DED. This
flexibility offers entrepreneurs ample opportunities to choose the most
suitable industry for their business ventures.
2. Choose the Right Business
Structure
From a legal perspective, foreign entrepreneurs in the UAE
mainland have several options for establishing their businesses. There are
three primary business structures to consider:
·
Limited Liability Company (LLC): The
LLC structure is the most common choice in Dubai Mainland. The company
must have between 2 and 50 shareholders. An LLC is suitable for various types
of businesses and provides limited liability protection to its shareholders.
·
Sole Proprietorship: A sole
proprietorship involves a business owned by a single individual. This structure
is suitable for small businesses with minimal investment requirements. However,
it's important to note that the owner of a sole proprietorship is personally
liable for the business's debts.
·
Branch Office: A branch office is a
distinct legal entity of an existing company. It is a suitable option for
businesses seeking to expand their operations to Dubai Mainland while
maintaining a connection to their parent company.
These business structures offer flexibility and cater to
different business sizes and objectives.
3. Choose a Company Name
Selecting a company trade name that effectively communicates
your brand and professional values is a critical decision for any entrepreneur.
There are specific factors to consider in the UAE when choosing a trade name,
and avoiding offensive language, religious references, or any association with
other organizations is important. Additionally, trade names in the UAE should
only include full personal names.
4. Register Your Company with the DED
Now comes the crucial step of applying for a mainland trade
license with the Department of Economic Development. During the trade license
application process, you will need to provide various documents. These include
a license application, a memorandum of sponsor arrangements, and details
regarding the ownership percentage among all partners and shareholder visas,
among other necessary documents. Ensuring these required documents are
completed and submitted is essential for a successful trade license application
in the UAE mainland.
5. Avail the External Approvals
Certain business setups in Dubai mainland may require
approvals from Dubai ministries, municipalities, and judicial authorities.
Obtaining these external approvals is of utmost importance and should be
diligently pursued by business owners to ensure the proper certification of
their businesses. Complying with the necessary procedures and securing the
required approvals will contribute to the legitimacy and credibility of the
business in Dubai.
6. Apply for a Mainland Trade
License
The next step to proceed with mainland company formation in
Dubai is to apply for a mainland trade license from the Department of Economic
Development. This application requires the submission of several essential
documents. Some of these documents include the license application, the
memorandum of sponsor arrangements, and details of the ownership percentage
among all partners.
Here is an overview of the documents typically required for
mainland company formation in Dubai:
·
Name Reservation Certificate
·
Certificate of Initial Approval
·
Tenancy Contract
·
Passport copies of all partners (except for sole
proprietorships)
·
Approvals from external departments, if
applicable
·
Copy of the Memorandum of Association
Ensuring the completeness and accuracy of these documents is
crucial for a successful application and the subsequent issuance of the
mainland trade license.
7. Securing a Physical Office Space
Now, locating office space in Dubai is essential, as every
business in the city must have a physical address. To proceed, you will need to
obtain Ejari's attestation. This requires providing your initial approval
certificate, tenancy agreement, and other necessary documents. Once you have
obtained Ejari, you can proceed with the procedures involved in setting up your
business in Dubai. Securing the appropriate office space and completing the
Ejari attestation process are crucial steps in ensuring compliance and
establishing a solid presence for your business in the city.
8. Opening a Corporate Bank Account
Once you have received approval and all the necessary
documents, you can proceed to open a bank account at any bank. You can open an
account at local and international banks in the UAE. There are many banks in
Dubai, so it is important to research and choose the right bank for your
business. Consider factors such as fees, services, and location when deciding.
9. Obtaining Visas for Dependents
There is no specific limit on visa applications for business
owners in the UAE mainland. However, aligning the number of visas requested
with the required office space is important. As a general guideline, a rule of
thumb is to allocate approximately 100 square feet of office or warehouse space
per visa. Nevertheless, this may vary depending on the nature of the business.
As the owner of a UAE mainland company, you can sponsor visas for dependents,
including family members and domestic staff such as maids or drivers.
Business setup in Dubai mainland involves navigating
intricate legal and company formation procedures. At ExpressPRO, we specialize
in assisting overseas entrepreneurs, offering our expertise as UAE-based
business setup consultants. By working with our dedicated team, you can
alleviate the stress and complexities of setting up a company. Our consultants
will collaborate closely with you, comprehending your unique business goals and
ensuring you feel confident in embarking on a successful venture in Dubai's
mainland. Trust ExpressPRO to guide you through the journey of business setup
with ease and peace of mind.
