Guide to Setting Up a Mainland Business in Dubai

Dubai offers a unique opportunity for entrepreneurs and businesses to establish themselves in the Emirates. The Dubai Economic Agenda 2033 (D33) aims to increase the economy in the coming decade by fostering diversification and sustainability. It has also led to a lot of booming opportunities in Dubai, establishing Dubai as a leading destination for diverse economic ventures.

With multiple investment opportunities in Dubai, you can set up a business either on the mainland or in the free zones. Business setup in Dubai Mainland offers you flexibility, access to diverse markets and global talent pool, and a wide range of international business opportunities and financial services. Here, we will provide you with an overview of the process, key steps, and requirements for successful mainland company formation in Dubai.

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What is a Mainland Company in Dubai?

A mainland company can conduct business within and outside Dubai. Unlike free zone companies, which are restricted to operating within their designated zones, starting a mainland company is one of the best investments in the UAE.

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Why is Mainland Company Formation in Dubai Lucrative?

There are numerous reasons for Mainland Company Formation in Dubai. Let us take a look at them -

• Market Access

Mainland companies have full access to the entire Dubai market and can also do international business. Having access to such a diverse market helps them engage with numerous customers and suppliers.

• Limited Trade Restrictions

With direct access to the global market, your company can trade with multiple companies with fewer restrictions. You need to comply with the local laws and customs to import and export goods legally.

• Wide Range of Investment Opportunities

Unlike free zones, a wide range of investment opportunities in Dubai are permitted for mainland companies.

• Access to Talent

Mainland companies also have access to the best local and international talents required to foster business growth and innovation.

• Full Foreign Ownership

Foreign entrepreneurs have complete autonomy over business operations and earn profits without the need to have a local sponsor in Dubai. However, some businesses like healthcare, oil and gas, and e-commerce businesses require a local sponsor to hold 51 percent of the shares.

• Tax Benefits

Liberal corporate taxes and no personal tax help businesses increase their profits and foreign investment.

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Steps for Dubai Mainland Company Formation

An entrepreneur can set up a mainland company in Dubai within minutes through a unified online platform called ‘Bashr’.The platform is associated with federal and local government entities that process business licenses in Dubai. Let us look at the steps to follow for mainland company formation in Dubai.

Step 1: Choose the Business Activity

Dubai offers businesses more than 2,000 business activities to choose from. The chosen business activity will determine the type of business license in Dubai you need to apply for. There are six types of licenses: industrial, commercial, professional, tourism, agricultural, and occupational.

Step 2: Determine the Company’s Legal Structure

The mainland company’s legal structure is based on the business requirements. It helps determine the laws and regulations the company must follow. In Dubai, you can select any one of the mentioned legal structures:

• Sole Establishment
• Limited Liability Company (LLC)
• Public Joint Stock Company
• Private Joint Stock Company
• Civil Company
• GCC Company Branch
• Local Company Branch
• Representative Office of a Foreign Company

Step 3: Register the Trade Name

The trade name of the business should reflect the nature and form of the business. The Dubai Department of Economic Development (DED) helps in trade name registration in Dubai. The trade name must not violate the public morals or the public order of the country. It should not contain the names of any religion or governing bodies.

Step 4: Get Initial Approval

Get an initial approval from the UAE government stating that they have no objection to the setting up of business in the country. It also allows the entrepreneur to proceed with the next steps. However, they cannot run the business yet.

Step 5: Generate MoA and LSA

Generate a completed Memorandum of Association (MoA) or a Local Service Agent (LSA) agreement based on the legal structure of the business. The MoA is required for business structures like limited partnerships, LLCs, public joint stock companies, and private joint stock companies.

Step 6:Apply for Additional Government Approvals

For specific mainland company formation in Dubai, additional government approvals are needed. This is required if you are venturing into activities related to legal and consultancy, architectural and engineering affairs, insurance, telecommunication, healthcare, onshore/offshore, and oil and gas.

Step 7: Submit Documents

After you avail all the approvals, submission of the required documents is required:

• Receipt of initial approval and copies of all previously submitted documents
• Copy of lease contract
• Duly attested MoA
• Receipt of approvals from other governing bodies

Step 8:Collect the License

The last step involves paying the required fees and collecting the license from the service center of the economic department. Post that, you can start your business activity.

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Why Choose Commitbiz LLC?

As mentioned earlier, setting up a mainland company in Dubai is the best investment in the UAE. While the process involves several requirements and steps, you can streamline it with the help of proper guidance. If you are planning to start a mainland business in Dubai, the experts at Commitbiz LLC can offer you the right advice. Contact us to speak with our expert consultants and ensure smooth company formation.

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