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Mainland Business setup in Dubai

Setting up a mainland business in Dubai provides proximity to all the conveniences and this city gives many advantages in Company incorporation. Dubai is a popular destination in establishing Mainland Business. The Department of Economic Department in Dubai (DED) has geographically categorized jurisdiction of Dubai Mainland Business.

Mainland Business Setup in Dubai

Mainland Business setup in Dubai

Step by step procedure of setting up a mainland business in Dubai
  • Step 1

Types of Mainland Business in Dubai:

  • Branch of Foreign office
  • Limited Liability Company (LL.C)
  • Professional firms
  • Public Shareholding company
  • Representative office.
  • Branch of Foreign Office:

In Dubai, the branch office is an extension of an international parent company. The branch office must also receive a trade license for the same practices which are carried out by its parent company.

  • Limited Liability Company (LLC)

It is one of the most common forms of business entities, an LCC can be incorporated with the participation of at least 2 shareholders and the maximum number is 50 shareholders. The percentage of liability that each partner must bear depends on the ratio of individual shareholding.

  • Professional Firms

Professional Firms are committed to a particular profession for carrying out their domain-related professional practice. Unlike an LLC, this type of firm does not have a 51 percent shareholding limit. 

  • Public Shareholding Companies

Public Shareholding Companies perform public shareholding, financial and banking, insurance activities. For the establishment process for public shareholding companies, the minimum capital required is US$ 2,725 million and is appropriate for larger projects.

  • Representative Office

Dubai allows foreign investors to establish a representative office without any shareholder in presence. A representative office is not involved in the daily activities of companies and is more geared towards the promotion of marketing activities and research.

Step 2

Documents Required for Mainland company formation:

  • Certified passport copies for all shareholders and managers are required.
  • Copy of the UAE residence visa, if applicable.
  • No Objection Certificate (NOC) from the current UAE residence visa sponsor.
  • Certified proofs of address for each shareholder of the company.
  • CV for each shareholder of the company.
  • Professional/bank reference letter for each shareholder.

If the Corporate entity is the shareholder, the following documentation will be required: 

  • Memorandum and articles of association of the company.
  • A board resolution agreeing to incorporate a new LLC in Dubai.
  • A power of attorney (POA) to the general manager to incorporate the new LLC.

Step 3

The following license needs to be obtained:

Commercial Business License:

In this type of License, 51 percent shares are in the hand of local and 49 percent will be owner, my foreign partner.

  • Professional Business License:

In this type of License 100 percent shares are held by the foreign partner and locals will act as service agents.

  • Industrial License:

Businesses that deal with manufacturing or any industrial activity.

Step 4

Procedure for Dubai Mainland Formation:

  • The first step in this process is to select the type of business activity to do business in the Mainland. It could be either Commercial (trading), Professional (vocational) and Industrial (Manufacturing).
  • The second is to determine the legal form of business. The legal form of the business in the UAE’s mainland depends mainly on the investor nationality and type of business activity. There is a different type of types of Mainland Business in Dubai.
  • Next, the trade name needs to be registered. One can later change the trade name, but it needs to change in all government-related records such as labor cards for employees, immigration cards, and so on.
  • After the trade name is determined, the initial certificate of approval must be issued. Only after initial approval has been obtained one can continue to obtain additional approvals from authorities other than the Economic Department needed for certain business activities.
  • To conduct a business, applicants must identify a business location. The proposed location of the business with a rent agreement (MoU) and this must be registered for certification with Ejari.
  • After that obtaining permission from Economic Department is necessary. These bodies are the entities that govern the activities in question.
  • After completing the procedures, one needs to submit all the documents to the Economic Department in Dubai and finalize due payments. Then License is obtained from the authority for business formation.

Step 5

Advantages of the Dubai mainland Business Formation are:

  • Freedom to trade across Dubai and in the UAE.: 

The Dubai Mainland companies have access to the UAE and beyond without any restriction. In contrast to free zone trading is easier as with free zone companies there is a strict restriction of trading only within the same jurisdiction. By setting up a Dubai Mainland nosiness one can plan any type of trade without having to worry about trade permission in Dubai.

  • Wider Scope of Business internationally: 
Dubai Mainland offers a wider scope of business than Dubai Free zone which applies across the border as well. Dubai Mainland registration gives freedom to trade internationally which is necessary for many brands in our increasingly connected world.

  • Freedom to grow company:
The Dubai Mainland registration gives real opportunity to grow the company and the team. An unlimited visa option is an advantage for growing the company. Dubai Mainland helps to expand business branches to the other parts of Dubai and the UAE.

  • Ability to deal with the UAE or GCC governments:

The ability to diversify the Dubai Mainland business setup gives opportunity for smoother. Quicker, administrative as its easier to deal with UAE or GCC governments.

  • Dubai's Mainland Company is excluded from corporate tax in the case of corporate or personal tax.
  • In Dubai Main Land Business there is no currency restriction.
  • 100% repatriation of capital and profits are admissible.
  • The registration process is simple and hassle-free for mainland businesses. Moreover, there is also no provision for regular auditing.
  • Renting an office in Dubai is easier with affordable space and flexible rent or lease for office
  • There are no restrictions on processing legal documents.