Steps and Benefits of Mainland Company Formation in Dubai

        

In the UAE, setting up a mainland company opens the door to boundless opportunities for investors as they can work with a wide range of industries. Mainland companies are free to trade with companies within the UAE as well as intercontinental companies. The main features include having 100% ownership of their business (some companies may need a local sponsor).

Mainland companies are also known as onshore companies, and they have over 1000 business activities to choose from. This business setup is the best option for investors who want to operate outside the Free Zone and have a striking presence in the local market of Dubai. The Department of Economic Development (DED) is responsible for providing trade licenses to these companies.

What is Mainland Company in UAE?

A mainland company is a business setup in the UAE that is given a trade license by the Department of Economic Development (DED) of the particular Emirates. Mainland companies are legal entities that can trade locally as well as internationally. The trade licenses provided by the DED for mainland companies are professional as well as commercial.

You can set up your company anywhere in Dubai and expand your business in the country. In the upcoming section, we will explain the procedure for mainland company formation Dubai. 

Steps to Open a Mainland Company UAE

There are necessary steps involved in the mainland company formation Dubai

Get your Trade License

 A corporate license is required for a new trade company in mainland UAE to run their business legally. Submit your application online or through offices along with the required documents to get your trade license. There are five types of business licenses provided by the Department of Economic Development.

• Commercial License
• Industrial License
• Dual License
• Professional License
• E-Trader License

Under these licenses, the DED provides over 1000 business activities to investors.

Select your Legal Framework

There are a lot of legal frameworks that you can choose from for your company setup in mainland Dubai, depending on your business activities. These options are given below.

• General Partnership
• Limited Partnership
• Limited Liability Company (LLC)
• Public Joint Stock Company (PJSC)
• Civil Company
• Sole proprietorship
•  Private Joint Stock Company (PrJSC)

The Following Legal Setups Offer 100% Foreign Ownership.

• Limited Liability Company offers Single ownership/2-50 shareholders.
• General Partnership can have 2-50 shareholders
• Limited Partnership can have 2-50 shareholders
• A private Joint Stock Company can have 2-5 partners

You can hire an expert business consultant for more guidance on selecting a legal setup for your mainland company.

Registration of Company Name

Carefully select a trade name for your business setup in Dubai mainland. The name of the company must be unique and according to the requirements of the authorities. You can select a name and apply for registration to the economic development of your relevant emirates. 

While selecting a name, keep in mind the following.

• It must not be plagiarized.
• It should be according to the code of conduct of the country
• It should be according to the legal structure of the company
• Should not be the name of any religion or government offices  

The relevant economic department registers the trade name of the company, and the trademark is registered by the Ministry of Economy (MoE).

Renewal of certificate of trade name can be done

Select a Business Activity

Selecting an appropriate business activity is vital for mainland company formation dubai. The license you’ll be granted is according to the business activities of your company. There are more than 2000 business activities available in Dubai for investors. If you are starting an investment company or business, you can select more than one activity under one license.

Initial Approval

There are certain business activities and businesses that require initial approvals from government bodies. Getting an initial approval means that the UAE government has allowed you to set up your business in the country.

However, foreign investors must get approval from the General Directorate of Residency and Foreigners’ Affairs before getting initial approval. 

Inspect Foreign Ownership Criteria

While selecting business activities for your company, carefully inspect if you’re allowed to have full foreign ownership. If foreign ownership is not allowed for your legal structure of a mainland company, you’ll need to get a local partner from the UAE.

Submit Documents

The next important step is to submit all the required documents in order to get initial approval. You need to submit these documents for your mainland company formation dubai.

• Photocopy of investor’s passport (for foreigners)
• Emirates ID of investor (for resident)
• Photocopy of investor permit of residency
• Company’s Articles of Association (AoA)

For a private joint-stock company and a public shareholding company, you’ll need to submit. 

• Business feasibility report of the design

Obtain Other Government Approvals

Certain businesses require other government approvals. Some examples of such departments and their relevant authorities are given below.

There are other departments that require additional approvals, in order to select the right one, get in touch with a consultant to guide you through this procedure.

Select an Office Space

In order to run your business smoothly, you’ll need office space in the UAE. Select the appropriate location according to the needs of your business, the regulatory authorities, and the relevant department of economics. 

You need to provide an attested lease agreement of your office to the authorities in Dubai.

Apply to Get a Visa

Investors must apply for a visa while they are setting up a mainland company in Dubai. You can also apply to get visas for your workers according to the type of business you have. For foreign investors who want to start a mainland company, there is an option of a three-year residence visa along with their families to live and operate their business in Dubai.  

Other than that, mainland company formation Dubai entails getting approvals from various relevant authorities, which include the Department of Economic Development (DED), the Ministry of Labour (MoL), the Ministry of Interior (MoI), Dubai Municipality, and other departments.  

Cost of Mainland Company Setup Dubai

A mainland company set Dubai’s cost ranges between AED 15,000 and AED 35,000. However, these costs can be different according to the type of your business, trade license, visa, office space, and other requirements. 

Benefits of Starting a Mainland Company in Dubai

There are multiple benefits of mainland company formation Dubai, including.

• Extensive business opportunities by trading in local and international markets
• Full ownership of the company allows you full authority and adaptability
• Approach to Government Business Network
• Business-friendly regulations and a steady work environment
• Approach to world-class infrastructure and stable market
• Freedom to select office spaces according to your business needs

Summary

Taking everything into account, the process of mainland company formation is complex and needs thorough planning and strategy. The three key steps to incorporate a mainland company are obtaining initial approvals, registering the trade name, and securing a trade license.

Keeping in mind the cost involved and submitting the application to the relevant authorities is also necessary. If you are looking for an expert consulting company to guide you through the procedure for setting up your mainland company, Al-Riyady is here to help.

Our team is here to help you find answers to all your business-related queries. Our services include Accounting, Auditing, Business Plan & Feasibility Studies, Tax Consultancy, Business Liquidation, and much more.