Why Entrepreneurs Prefer to Set up Business in Dubai Mainland

Dubai Mainland is known for its infrastructure and business facilities. Starting a continental business in Dubai is still the first choice of most companies when starting their business in Dubai. Starting to setup business in Dubai mainland is a very interesting and time-consuming task. Most professional business setup companies provide the best PRO services in Dubai and they offer the best corporate setup services in mainland Dubai.

Why Choose Dubai Mainland?

Dubai Mainland is the general geographic area authorized by DED (Dubai Department of Economics) of all private companies and their agents to carry out commercial business functions. It is the best place for foreign business owners to work, such as B. International wholesale chains, luxury goods, automakers, etc.

Under UAE business establishment law, foreign owners can only own up to 49% of the company when forming an LLC in Dubai if they are based in the mainland and UAE national must hold 51% of the total capital, except in the following cases:

  • Activities 100% owned by GCC
  • Cases where GCC companies partner with UAE National
  • Where the law requires 100% local ownership
  • Businesses located in the free zone

Requirements for Setting Up Business in Dubai Mainland

A verified Dubai City Council office address is required when starting a business in Dubai. The office space requirements for incorporating a continental company in Dubai may vary depending on the type of license the investor is seeking and the investor is responsible for providing a valid office lease agreement at the time of applying for a continental company license in Dubai.

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Setting up a business company in Dubai involves 6 main steps. However, there are some activities whose continental structure requires special approval from certain government agencies. The top 6 steps required to start a business on the mainland are:

  • Selection of business activities and approval of names
  • Selection of local partners or service agents
  • Apply for pre-approval to establish a continental company
  • Preparation of legal certification and ISA
  • Contact a professional company for office space and rental
  • Final submission on the company formation in the UAE

Professional business consultants of a company will help the clients choose the most suitable solution for starting a business and guide them through the complete procedure of starting a business in mainland Dubai and registering a business with the Dubai Economics Department.

Types of Business Licenses Available in Dubai

Dubai Department of Economic Development (DED) is the main licensing authority that issues permits for all types of business activities in Dubai. The basic requirement for all business licenses is the selection of the appropriate license category from the following 3 license categories:

Dubai Commercial License

Dubai Commercial License covers all types of commercial activities. It is a type of limited liability company (LLC). According to Article 22 of the Companies Act, it is stipulated that at least 51% of shares of UAE citizens must be owned. This commercial license will have the local emirate (local sponsor of Dubai) holding a 51% stake in the company and the local emirate will be paid annually. Local sponsors can be personal or corporate sponsors.

Dubai Professional License

It’s a kind of sole proprietorship or civil society, depending on the number of investors/partners. Licensees are allowed to own 100% of foreign property. To obtain this license, a citizen of the United Arab Emirates must be appointed as a local service agent, but not have a stake in the company. The grant is paid annually.

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Dubai Industrial License

To start production or industrial activity

Basic Process of Business Company Formation in Dubai

Here are some of the basic steps of setting up a business as well as company formation in Dubai:

Choose the Name of the Company

Choosing a proposed company name is the first step in starting a business in Dubai Mainland. Each company chooses a trading name before it is founded. This trade name must be unique and comply with DED rules and regulations. This name must be approved by DED (Ministry of Economy)

Choose a Business Activity

You need to be aware of your business as if you were running a business, need to get a business in Dubai Mainland license, and in the case of services, need to form a professional company.

Choose a Local Sponsor

A local sponsor (Local Emirates) is required to establish a continental company in Dubai (except for those with a professional license where the local Emirates acts as the local service agent). The local sponsor will own 51% of the company’s shares for an annual fee. In the case of a professional license, a local service agent is required. UAE citizens will not own shares in the company in any professional company.

Select an Office Location

Choosing a suitable location and signing a rental agreement are also required to set up a business in Dubai Mainland. You can also choose a virtual office in each business center, but that depends on the business.

Preparation of the M&A

The next step is to prepare the MOA (Memorandum of Association) of the new company.

Final Submission

License applications, MOAs, lease agreements, and various other documents are also required for final filing, depending on the type of business and jurisdiction selected for your business.

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