Dubai is regarded as one of the best cities in the world and provides great opportunities for businesses from all around the world. According to numerous economists and business professionals, Dubai is one of the best places to set up and start a business.
This is because of the various facilities provided by the government such as world-class infrastructure, reliable connectivity, a talented workforce, cosmopolitan workspace and incentives to invest further. This conducive business environment provides great help for the growth and development of the business.
What is Dubai Mainland Company?
A mainland company is a type of business that holds a license from the Department of Economic Development (DED) in the corresponding Emirate of the United Arab Emirates. In this article, we provide an overview of the process and advantages of company registration on the UAE mainland, as well as a comprehensive guide to setting up a business on the Dubai mainland!
The process to Setup Your Business In Dubai Mainland
Business setup in Dubai Mainland is one of the most sought-after business locations. Business owners from all over the globe look for business setups here because of the many benefits like no taxes, a business-friendly government, the strategic location, and more. There are several rules and regulations to go through before Company formation in the Mainland. Here are the steps you need to take:
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Choose the Business Activity
The nature of a business activity determines the legal form and type of license, whether commercial, industrial, or professional. Different license types are available for different types of activities such as industrial, commercial, professional, tourism, agricultural and occupational.
You can register more than one Dubai mainland business activity. However, there are more than 2000 business activities to choose from in the UAE.
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Select Company Structure
Your ownership and the number of stockholders, among other things, are influenced by the legal structure you choose. While there are various legal structures available in Dubai Mainland such as:
- General partnership
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company (PrJSC)
- Civil company
- Local company branch
- GCC company branch
- Foreign company branch
- Free zone company branch
- Sole Establishment
- Holding companies.
However, the LLC company structure is the most popular and widely sought-after option in Dubai.
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Register Your Trade Name
A trade name is a means of differentiating one business from another and also provides insight into the nature and structure of the business. To obtain a trading name, an investor can submit an application to the economic department of the respective emirate either through its website or mobile application.
Requirements
- Followed by the legal structure of the company.
- Public morals and public order must not be violated
- It should be compatible with the company’s or entity’s activity and legal status
- The logos or names of any external bodies, including religions or governing authorities, are not allowed
- It must never have been registered before.
It is important to note that the registration of a trading name is handled by the local department of economic development, whereas the registration of a trademark is done by the Ministry of Economy. It’s worth noting that certificates for trade names can be renewed.
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Apply for an Initial Approval
Initial approval from the UAE Government indicates that there are no objections to establishing a business within the country. It allows investors to move forward with the next steps of the setup process. However, it’s important to note that this approval does not authorize the operation or practice of any Dubai mainland business activities.
Foreign investors are required to secure the approval of the General Directorate of Residency and Foreigners’ Affairs prior to obtaining the initial approval. Additionally, certain business activities may require further approval from relevant government entities in areas such as legal affairs, security affairs, and financial securities and commodities, prior to seeking the initial approval.
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Draft an MOA & LSA
For certain types of businesses, it’s necessary to provide either a completed and signed Memorandum of Association (MoA) or a Local Service Agent Agreement (LSA), depending on the business’s legal structure. Specifically, the Memorandum of Association is a requirement for the following legal forms of business:
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company (PrJSC).
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Select Dubai Mainland Location
In order to operate within the Dubai mainland, all businesses are required to have a physical address. The location and business premises must meet the requirements established by the relevant Department of Economic Development in each emirate, as well as the local municipalities’ land planning regulations.
Additionally, businesses must provide rental agreements for their offices and warehouses, and in some emirates, these agreements must be attested. For example, in Dubai, the agreement needs to be registered with Ejari.
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Get Government Approvals
Certain types of businesses may require additional approvals from government entities that oversee specific business activities. The following list categorizes examples of such activities according to the relevant ministries:
Ministry of Interior: Approval for general transport-related activities such as driving schools, fire equipment, alarm and safety systems, used-car dealers, used auto parts, and car rental.
Ministry of Justice: Approval for legal activities and legal consultancy.
Local Municipal Department: Approval for architectural and engineering affairs.
Telecommunications and Digital Government Regulatory Authority (TDRA): Approval for telecommunications activities.
Executive Council: Approval for travel and tourism, general services, charter trading, ship and maritime agencies, car clubs, charter air transport, and foreign company branches.
Ministry of Economy: Approval for insurance activities and insurance consultancy.
Local Health Departments: Approval for health-related activities.
Supreme Petroleum Council: Approval for onshore and offshore gas and oil-field services and onshore and offshore oil drilling operations.
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Submit Documents & Pay Fees
To obtain your Dubai mainland license, you’ll need to submit all the necessary documents and fees to the Dubai Economic Department (DED). Once the required documents have been submitted and the fees have been paid, your business license will be issued to you.
Required Documents
To obtain a license for any legal form of business, the following documents must be provided:
- Initial approval receipt and all previously submitted documents
- Copy of the lease contract, which has been properly attested by the Real Estate Regulatory Agency (RERA) in Dubai
- Memorandum of association that has been properly attested (for all types of companies)
- Any necessary approvals from other relevant government entities
- Service agent contract that has been properly attested (for civil establishments and companies that are 100% owned by non-GCC nationals) involving a local service agent within the UAE.
It is pertinent to note that after receiving the payment voucher, you are required to pay for your trade license within 30 days. Failure to make the payment within the specified timeframe will result in the cancellation of your application.
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Apply for Relevant Visas
If you’re an entrepreneur, you might need to hire staff to help you run and grow your business. You have the option of hiring employees locally in the UAE or recruiting individuals from other countries. However, if you choose to employ foreign workers, you’ll need to sponsor their visas.
Additionally, if you plan to bring your spouse or dependents, you’ll need to apply for visas for them as well.
It’s important to note that this is a general summary of the process and additional permits or steps may be necessary based on your specific trade activity and license. For a smooth business setup in Dubai mainland and registration in the UAE mainland, HA Group experts can provide guidance and support throughout the process.
Benefits of Dubai Mainland Company
Freedom to Trade in Dubai and the UAE
Mainland company setup in UAE provides the freedom to trade without limitations on who or where you can trade in Dubai. This setup ensures investors can conduct any form of business without worrying about violating trade permissions.
To establish a business in the UAE, it is essential to choose a local service agent (LSA) who will guide you through acquiring a business license and other legal formalities, including translation work. Your business setup in Dubai mainland consultant can also provide assistance on how to work with an LSA.
Ability to Expand and Trade Internationally
Dubai Mainland company formation offers the flexibility to expand your business and engage in international trade, allowing you to explore new markets and global connections. The adaptability of flexible business formations enables you to plan and execute logistics quickly to penetrate new markets efficiently and maximize returns.
Ability to Diversify Business Offerings
With Dubai’s smart city infrastructure, businesses can diversify their operations and take their business to the next level. Mainland business setup Dubai offers better business evolution and expansion scope with a faster and less restrictive administrative process than other formations in the UAE.
Ability to Do Business With the UAE Government
It provides the opportunity to tender for lucrative government projects and contracts, unlike another business setups in Dubai mainland. Winning such contracts from the UAE government can enhance your business status and reputation, both locally and internationally, making it easier to win government contracts in other countries.
Start Your Mainland Company in Dubai!
Starting a mainland company in Dubai can be a stress-free and effortless process, particularly when partnering with an experienced and reliable business formation team like HA Group. We will guide you through the formation process, managing every detail at every stage. Feel free to reach out to our team for more information or visit our office in Dubai to learn more about initiating a business setup in Dubai mainland.
