Mainland company formation in Dubai

Guide for Mainland Company Formation in Dubai

by Zaara 09, Aug 2017

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, talented workforce, cosmopolitan workspace and incentives to invest further. This conducive business environment provides great help for the growth and development of the business.

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Why is Business Setup in Dubai Mainland such a lucrative idea?

The geographical area in which all the private business organizations are allowed to conduct their business by the Dubai Economic Department (DED) is known as Dubai Mainland All the commercial activities by these private businesses are conducted in the Mainland. These are prime locations where a foreign business owner can establish and conduct businesses. Examples of such businesses are International Food Chain, Shops for Luxury Goods, Automobile manufacturing, export and import businesses and various other business activities.

As per the latest changes in the Business Incorporation laws of United Arab Emirates, if a foreigner intends to establish a Sole Proprietorship or an LLC business, then the Foreign Owner can hold only up to 49% of the business if set up is in Mainland and a UAE national mandatorily holds 51% of total equity.

Business Activities like Trading, Manufacturing, Contracting, and Packaging would be eligible for 100% ownership by a foreign entity.

The following are the jurisdictions that provide the Opportunities for Mainland Company Formation in Dubai:

  1. Sheikh Zayed Road

This is a highway that connects the two biggest cities of the United Arab Emirates, namely Abu Dhabi and Dubai. Also known as E 11 Road, the Sheikh Zayed Road is a crucial infrastructure and comprises most of the skyscrapers and an amazing skyline. Alongside it is situated some of the world's largest Ventures, International companies, and Businesses.

  1. Al Karama, Bur Dubai, and Deira

These three are the older historic parts of Dubai. Together they form one of the largest residential hubs in Dubai. They are known for historic venues, tourist destinations, residential complexes, real estate, gold souk, and wholesale businesses.

  1. Business Bay

If you are looking for infrastructural assistance for business ventures such as financial sectors, professional consultants, retail industry, hospitality ventures, Business Bay is the location for you. It is the central business district and is responsible for creating multiple business set-up centres. The Business Bay will consist of upwards of 240 buildings which will include both Commercial and Residential infrastructure.

  1. Al Quoz

It is one of Dubai's upcoming commercial hubs and has the benefit of providing warehouse and industrial options closer to the city. This area has been divided into four parts – factories, industrial setups, warehouses, and other locations. It also consists of shopping centres, malls, and labour accommodation zones.

  1. Al Qusais

This zone comprises both Industrial as well as Residential areas. This area also comprises a number of Educational and Medical institutions. With so many amenities available nearby, it is one of the best places for setting up a company.

  1. Jumeirah

It is the city's coastal part and a hub for residential areas and lavish business development modules. This area gives Dubai a luxurious feel of the accommodation, real estate, and hospitality sector. This place is an attractive destination for setting up a business.

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Advantages of Setting up a Business in Dubai Mainland

There are a number of reasons which make setting up a business in Dubai very profitable. Here are some of the reasons which play a vital role in attracting investors from all around the globe:

  1. Zero Taxation

There is no tax levied on the businesses in Dubai making it one of the best places to set up a business.

  1. Easy Recruitment

Once you have decided to set up a business in Dubai, the business will require manpower. The businesses will face no problem on this front as there is no limitation in getting employment visas in Dubai. The place also boasts of a comparatively easier recruitment process.

  1. Capital Requirement

Many places have numerous restrictions on the capital requirements for a business making them unfit for setting up a business. Dubai has very limited restrictions on minimum capital requirements for a business thus making it a very lucrative place for business incorporations.

  1. No yearly auditing

There is no requirement for auditing of a company on an annual basis, however auditing of a company should be done frequently. The auditing requirement also depends on the size and nature of the business being conducted.

  1. Processing legal documents

There is no restriction on the processing of the legal documents of the business. 

  1. Low import duty

A low import duty means that it costs less for the business to import machinery or raw materials. This will significantly bring down the cost for the business thus increasing profit.

  1. Ease in acquiring Business space

It is easy to get affordable business space with a flexible rent option and all the amenities necessary for the business in Dubai.

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How to form Dubai Mainland Company Formation?

The procedure for the formation of a Dubai Mainland Company is quite simple and straightforward, just like any other incorporation in the UAE. The steps to register your business in Dubai Mainland are provided below:

  1. Decide the Activity to be performed

First and Foremost the management needs to decide on the business activity to be performed in Dubai.

  1. Get an Agent (If Required)

In the case of a Sole Proprietorship Business or an LLC Business, the management needs to get a Local Service Agent who will own 51% of the shares in your business. In case of activities like Trading, Manufacturing, Contracting, and Packaging 100% foreign ownership would be applicable.

  1. Check the location of Business

Check for a suitable location and will the business be easily accessible to its customers.

  1. Obtain Initial Approval

Obtain initial approval from the Department of Economic Development Dubai (DED) to ensure smooth working of the business.

  1. Get your office space

Having office space is mandatory in Dubai mainland. A registered office address is required for the issuance of a trade license. Information regarding ownership agreement or tenancy can be produced as evidence of a registered address.

  1. Apply for Mainland License

If all the prerequisites mentioned above are satisfied, you may apply for a Dubai mainland license. DED is the agency that issues the mainland license in Dubai, UAE

  1. Submit all the Documents

Submit all the relevant documents connected with company incorporation to the Commercial registration department and DED and pay the required license fee

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Documents Required to Business Setup in Dubai Mainland

Here are some of the documents which will be required to set up a business in Dubai. The authority can ask for more documents if required. Here is an estimated list of all the documents:

  • License Application

  • Attested LLC agreement

  • Required governmental forms

  • Name reservation and initial approval certificates

  • External departments approval

  • Tenancy contract

  • EJARI registration certificate

  • Copy of NOC for partners

  • Dubai Chamber of Commerce and Industry Registration

If you are new to Dubai or UAE and have doubts regarding company incorporation and license issuance, it is advisable to entrust the job to an experienced business consultant. Commitbiz's Business Set up Services can assist you through the entire tasks associated with mainland business formation in Dubai and UAE.

Our team has established their credibility in providing services to small, large and medium enterprises. We have set up businesses for international organizations and business owners in Dubai Mainland and understand this area's fundamentals. We are registered agents and provide complete package solutions on company formation, registration, setup, etc. To get more information on our services or jumpstart your mainland business setup in Dubai, contact us today.

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Q. What is a Mainland Company?

Mainland company is a company which is set up in the Mainland Jurisdiction of UAE and can trade goods and services within UAE (except Freezone) or outside the UAE.

Q. Documents required for a Mainland Company Formation?

Some of the important documents required for Mainland Company Formation are:

  • License Application
  • Attested LLC agreement
  • Required governmental forms
  • Name reservation and initial approval certificates
  • External departments approval
  • Tenancy contract
  • EJARI registration certificate
  • Copy of NOC for partners
  • Dubai Chamber of Commerce and Industry Registration