Mainland Business setup in Dubai
Mainland Business setup 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.
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.
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.
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.
- Freedom to trade across Dubai and in the UAE.:
- Wider Scope of Business internationally:
- Freedom to grow company:
- Ability to deal with the 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.