Mainland Company Formation in Dubai
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Mainland company formation in Dubai should be at the forefront of your mind if you are an entrepreneur interested in setting up your business in a place known for offering the most conducive conditions for any business to flourish. Business-friendly policies and a wide variety of incentives offered by the government make Dubai one of the most business-friendly countries in the world.
If you have decided for business setup in Dubai mainland, the first thing you need to consider is to choose one jurisdiction from three jurisdictions available in the country – Mainland, Freezone, and Offshore. You need to be clear about your business objectives and vision, as a wrong decision in the initial stage, apart from resulting in fines and penalties, could also lead to inefficient business operation.
Mainland companies are legal entities registered with an Emirate authority (Department of Economic Development) in the respective Emirate of the United Arab Emirates. Since DED licenses these companies, they enjoy considerable ease and freedom in their setup and operations. Mainland companies can bid for government contracts, issue visas, and do business with other companies within the kingdom and internationally.
Benefits of Business Setup in Dubai Mainland
As mentioned earlier, mainland companies are business entities registered with an Emirate authority (Department of Economic Development) in the respective Emirate of the United Arab Emirates.
Here, we list a few important features and benefits of company formation in Mainland Dubai.
Types of Mainland Company Formation in UAE
As mentioned, the UAE offers three different jurisdictions – Mainland, Free zone, and Offshore. Choosing the one that closely aligns with your specific business goals and opportunities is important.
Here, we discuss in detail the three major types of company setup in Dubai Mainland.
Types of Mainland Licenses in Dubai
Just like any other country of the world, businesses interested in operating in mainland Dubai must obtain a trade license from the Department of Economic Development (DED) to operate legally as a company. When opting for a company set up in Dubai mainland, it is imperative to acquire the right trade license and legal structure, as the type of trade license you acquire will directly impact your tax obligations, legal liabilities, and your Dubai mainland company formation cost. Here, we mention three types of business structures available to foreign investors keen on establishing and operating a mainland business in Dubai.
Professional Trade License
As mentioned, businesses and entrepreneurs must obtain a professional business trade license from the regulatory body Department of Economic Development before providing their professional services to clients from the Dubai mainland. The main objective of this license is to ensure that the business can provide the desired services.
Commercial Trade License
Mainland companies involved in any trade activities(both general and specific), as well as selling goods and commodities, need a commercial trade license, which can be used to set up either an LLC or a sole establishment. Real estate businesses, broadcasting companies, healthcare service providers, and retail companies are a few of the types of businesses that need to apply for this license.
Industrial Trade License
Industrial trade licenses are required by businesses willing to engage in industrial or manufacturing-based activities in the UAE. DED issues this license, though additional permission may be required from the Ministry of Finance, Economy, and Energy and some other concerned authorities.
Step-by-Step Guide to Mainland Company Formation in Dubai
The mainland company, which is set up in Dubai, is managed by the Department of Economic Development (DED). We list here a step-by-step guide to help you establish your business in mainland Dubai.
Documents Required for Company Formation in Dubai Mainland
If you want to establish and operate your business in Dubai, you must obtain a mainland trade license issued by the Department of Economic Development (DED). This involves filling out all the requisite forms and submitting all the relevant documents. Also, ensure you have a valid tourist/visit visa if you are new to Dubai, as you will not be allowed to set up a business without a valid entry visa.
Please keep the following documents handy for initial approval.
► A copy of your passport is needed if you are a foreigner. Residents need to have a valid Emirates ID.
► A copy of the applicant’s residence permit/visa is required if you are not a GCC national.
► The company’s articles of association. This is not required for a one-person limited liability company.
► A feasibility study related to the concerned project must also be submitted for public shareholding and private joint-stock companies.
In case your organization has branches in other emirates and wishes to open a branch in Dubai, you will be required to submit the following:
► The parent company’s board resolution consenting to open up a branch in Dubai.
► A letter of authorization issued by the company’s managing director
► A copy of the parent company’s commercial registration certificate.
► A copy of the parent company’s memorandum of association (MoA).
A foreign company or a company operating in a free zone intending to open a branch must also submit a copy of the parent company’s license. The parent’s documents must be duly attested and signed by the UAE embassy and Ministry of Foreign Affairs in the company’s country of origin. The same documents should be translated into Arabic and duly attested by the Ministry of Justice in the UAE.
Company Formation Cost in Dubai Mainland
The business setup cost in Dubai mainland primarily depends upon the nature of the business, visa costs, and the cost associated with renting or buying office space. You also must mandatorily pay government fees for a notary, registration, and license. Also, business owners must pay an Investor Visa fee, which is valid for three years. Additionally, business investors must also pay an annual sponsorship fee. Furthermore, you need to pay a certain fee to the Department of Economic Development (DED) to obtain a license to start a business. An investor must also pay a one-time fee when choosing a name for the business. You need to open a bank account for your business, and depending upon the type of account you choose, you also need to pay a certain fee.
Considering all these factors and Dubai mainland license cost, an investor wishing to start a business setup in mainland Dubai may expect expenditures near AED 15,000 to AED 50,000. It is seen that LLC is often the most preferred company structure in Dubai, probably due to the presence of multiple shareholders, making it a sought-after option for investors with limited resources.
To sum up, the latest business setup cost in Dubai mainland ranges from approximately AED 15,000 to AED 35,000, influenced by various factors such as government fees, the number of visas, and extra permits. It is important to remember that, despite the ease of setting up a company in Mainland UAE, investors need to be careful at every stage of the entire process, as even a slight misstep can prove disastrous.
Why Choose Dubai Firms for Dubai Mainland Company Formation?
The government’s geographical location and business-friendly policies make Dubai one of the most favored business destinations in the world. However, like any other place in the world, business owners interested in business setup in Dubai mainland may need the requisite license, documents, and another relevant permit to mainland business setup in Dubai. This can be difficult, as any foreigner can hardly be expected to know local rules, business culture, dialects, and how the government functions. Getting the help of experts like Dubai Firms can free the entire process from any hassles and glitches.
With their vast expertise and years of experience, Dubai Firmz has helped hundreds of entrepreneurs in mainland company setup in Dubai. From helping you choose the right business activity and legal structure to assisting you in getting all the relevant licenses and aiding you with VAT registration, visas, renting or buying of office space, to the opening of a bank account, Dubai Firmz ensures you fully comply with all the licensing and regulatory requirements.
First and foremost, you must decide on the business activity and the sector in which you wish to operate. Then, you must get your business name approved and apply for a license from the Department of Economic Development(DND). You must also buy or rent an office and complete all the visa processes for yourself, your dependents, and your staff.
The business setup cost in Dubai mainland primarily depends upon the nature of the business, visa costs, and the cost associated with renting or buying office space. An investor wishing to set up a business in mainland Dubai may expect expenditures between AED 15,000 and AED 50,000.
Mainland companies can operate freely without restrictions on restricted areas and zones. Also, mainland companies can directly trade with the UAE government and bid for lucrative government contracts. Additionally, mainland companies can operate locally and internationally, unlike companies operating in free zones.
As per the new government rules, foreigners can have 100% ownership of their mainland company in many sectors. Earlier, the laws stipulated that mainland companies must have a local owner with a 51% share in their company.
It depends upon factors like the jurisdiction and the nature of your business. With a good firm by your side, you can hope to register a mainland company in Dubai within a week. Experts can prevent delays by ensuring all your documents are in order and error-free to expedite your registration process.
Yes, you can set up a company in Dubai Mainland without residing in the UAE. Remote registration is possible through authorized agents or legal representatives. However, a visa and Emirates ID are required for certain roles. Many entrepreneurs manage operations remotely with minimal physical presence in the country.
Dubai Mainland offers three main types of licenses: commercial (for trading businesses), professional (for service-oriented businesses), and industrial (for manufacturing). Each license type permits specific business activities. Choosing the right license is essential to ensure regulatory compliance and operational alignment with the intended business model in the UAE.
Starting a business in Dubai Mainland typically costs between AED 20,000 to AED 50,000, depending on business activity, office space, and legal requirements. Costs include trade license fees, government approvals, visa processing, and office rent. Budgeting carefully is key to ensuring a smooth business setup and ongoing operations.
Dubai Mainland introduced a corporate tax rate of 9% on net profits exceeding AED 375,000, effective June 2023. This rate aligns with global standards, promoting transparency and economic stability. Small businesses below this threshold remain exempt, encouraging startups while ensuring larger firms contribute to national development.
A local sponsor is no longer mandatory for most mainland businesses. Foreign investors can now fully own their companies. However, certain regulated sectors still require a UAE national as a local service agent or equity partner. It’s best to check specific legal requirements based on business activities.
