Your Guide to Setting Up a Mainland Company in Dubai

12 Feb Your Guide to Setting Up a Mainland Company in Dubai

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1 Why Choose Dubai Mainland for Business Setup?

2 Steps for Dubai Mainland Company Setup

3 Costs of Dubai Mainland Business Setup

4 FAQs About Dubai Mainland Business Setup

Dubai Mainland Company Setup: A Complete Step-by-Step Guide

Starting a business in the UAE is a lucrative opportunity, and Dubai Mainland company setup offers vast benefits for entrepreneurs. The process involves several steps, from selecting a business activity to obtaining the required licenses. In this guide, we will walk you through the full process of setting up a Dubai Mainland company successfully.

Why Choose Dubai Mainland for Business Setup?

Registering a business in Dubai Mainland grants entrepreneurs access to the local UAE market as well as international trade without restrictions. Some key advantages include:

100% Foreign Ownership: Recent regulations now allow full foreign ownership for most business activities without a local sponsor.
Strategic Location: Dubai serves as a global business hub with world-class infrastructure.
No Currency Restrictions: Transactions are seamless with unrestricted capital movement.
Versatile Business Activities: Unlike free zones, Dubai Mainland companies can cater to government contracts and work with UAE-based clients.

Steps for Dubai Mainland Company Setup

1. Choose the Right Business Activity

The first step in business setup in UAE is selecting the most suitable business activity. The Department of Economic Development (DED) offers various categories, including trade, manufacturing, consultancy, and professional services.

2. Determine the Legal Structure

Deciding on the legal framework is crucial when you start a company in UAE. Some of the common legal structures include:

Sole Proprietorship: Best for independent professionals offering consultancy services.
Limited Liability Company (LLC): A popular choice that allows multiple shareholders.
Branch of a Foreign Company: Allows international companies to establish a presence in Dubai.

3. Register the Trade Name

Choosing a unique and relevant trade name is essential for branding. The name must comply with UAE regulations and should not violate public morals or be offensive.

4. Obtain Initial Approvals

Before proceeding, you need approvals from the DED and other authorities specific to your business activity. This ensures your business complies with necessary guidelines.

5. Draft the Memorandum of Association (MoA)

The MoA outlines the company’s operational structure and ownership details. It must be signed by all shareholders and notarized by a UAE court.

6. Choose a Business Location

Dubai Mainland businesses must have a physical office space. The office should meet regulatory requirements, and a tenancy contract (Ejari) must be obtained.

7. Apply for a Business License

The type of business license depends on your activity:

Commercial License: Required for trading businesses.
Professional License: Ideal for consultancy and service providers.
Industrial License: Required for manufacturing and industrial activities.

8. Obtain Additional Approvals (If Required)

Some businesses require extra clearances from regulatory bodies, such as health, tourism, or the Financial Services Authority, depending on the sector.

9. Register with the Dubai Chamber of Commerce

All Dubai Mainland companies must register with the Dubai Chamber of Commerce to operate legally.

10. Open a Corporate Bank Account

Once your company is registered, you must open a corporate bank account in the UAE. Choose a bank that aligns with your business needs.

11. Get VAT Registration (If Applicable)

If your annual revenue exceeds the VAT registration threshold, you must register with the UAE Federal Tax Authority (FTA) and comply with taxation regulations.