Mainland Company Formation in Dubai: A Quick Overview
Starting a business in Dubai can turn your dreams into reality. A rich economy, advanced infrastructure and tax-saving benefits make business setup in Dubai a favorite among investors from different parts of the world. Mainland company formation in Dubai has witnessed tremendous growth over the years as foreign entrepreneurs remain eager to explore new opportunities.
While free zone business setup remains equally popular, mainland business setup offers certain advantages that cannot be overlooked.
Find out more about Dubai mainland company formation in this article and see for yourself if it is the right choice for you. In this guide, you will get all the essential details about its process, requirements, and costs in one place.
What is a mainland company in Dubai?
A mainland company in Dubai refers to the business established on Dubai’s “mainland”, area which lies outside the freezones. Mainland companies are free to operate across the UAE, internationally and across a range of sectors.
The good news is that as per the recent changes in law, now most of the activities for mainland companies let you enjoy complete 100% ownership as foreign entrepreneur. However, please keep in mind that certain strategic sectors still need partnering with local sponsors.
Process to start your business in Dubai mainland
The journey of business in Dubai mainland opens up many exciting opportunities for entrepreneurs. Here are essential steps for mainland company formation in Dubai:
Determine nature of your business:
First, you must decide the business operations and choose the legal structure for your business. There are more than 2000 activities belonging to diverse range of sectors like healthcare, information technology, media, finance, education, and more that can be pursued by entrepreneurs.
Along with business activities, you must also choose the legal form of your business such as sole establishment, limited liability company, joint stock company, holding company, civil company, or some other type.
Get a business name registered:
Next step involves selection and registration of a name for your business. The name must be as per the modern market, unique and trendy. It should also be as per the naming rules of UAE government.
Get the initial approval:
For starting any sort of business in Dubai, including mainland company formation in Dubai, a preliminary permission is required from the Department of Economic Development. Obtaining it is like getting a good-to-go signal from the UAE government for your business establishment.
Secure an office space:
Whether or not you require a physical office space depends on the nature of the business license you need. Nonetheless, you get many options of affordable spaces that you can rent out in Dubai. You must secure tenancy contract for rented space and get it registered on UAE government’s Ejari portal.
Seek additional permits:
Many businesses are required to obtain approvals from some specific government bodies like Ministries. Take example of real estate business, they need to get permit from the Land Department Dubai.
Apply for the business license:
When all the approvals are sorted, next step will be to apply for the right business license. For that you will need to fill in the application form and submit it with the DED along with all the essential documents. The process also includes payment of necessary fees.
Your application will be reviewed by DED and they will check if you fulfil all the legal requirements. If they are satisfied, your license will be granted to you. If not, there could be delays or authority may ask for extra information.
Get the business visa:
Once your license is issued, you can operate your business legally in the mainland Dubai. However, you may first need proper visas to enter, stay and work in the UAE. Therefore, you must obtain business visa for yourself and employment visas for your staff.
Open corporate bank account:
You will need to have a bank account opened in the name of corporate in Dubai. There are many well-known international as well as domestic banks where you can make application for account opening. Every bank has its own minimum balance, initial deposit and other requirements. Choose the one that best meets your financial needs.
Navigating through the process of mainland company formation in Dubai can be overwhelming for novices. That is why we recommend getting advice from professional business setup consultants like Dubiz Business Setup.
Main types of licenses in Dubai mainland
To start and operate business legally in mainland Dubai, you must get the appropriate trade license. The license type you need depends on the nature of operations of your business. Here are the major types of business licenses available for mainland business setup in Dubai:
Professional License: This license is intended for qualified professionals such as consultants, artists, and IT specialists. It enables them to work in Dubai and exercise their job.
Industrial License: Companies engaged in production or manufacturing operations in Dubai must have this license. It necessitates a physical site within the United Arab Emirates and permits them to operate within industrial zones.
Commercial License: This license is intended for companies that purchase and sell items. They can trade both inside and outside of the UAE thanks to it. Depending on the particular products being exchanged, there are several kinds of commercial licenses.
Tourism License: Businesses engaged in tourist-related operations in Dubai, including hotels, restaurants, travel agencies, and tour operators, are eligible to apply for a tourism license. It enables them to work in the emirate’s tourism industry.
E-commerce License: For selling products online through websites, social media, or online marketplaces, an e-commerce license is needed.
Legal requirements for mainland business setup in Dubai
To avoid any delays or issues in your mainland company formation in Dubai, you must be very careful to fulfil all the legal and documentation requirements. Below given is a general list of documents that you need to submit for getting mainland business license in Dubai:
- Filled application form
- Copy of valid passport
- Passport sized photo
- Initial approval receipt
- Trade name reservation
- Lease contract copy, if needed
- Local service agent contract, if needed
- A business plan
- Bank statements
- NOC from local sponsor, if needed
Please note that there may be some documents that we might have missed in the list as the requirements depend on the business setup case. For detailed information on your unique business setup, it is advisable to talk to professional experts such as Dubiz Business Setup.
How much does Dubai mainland business setup cost
The cost of mainland business license can start from anywhere around AED 17,900* for a professional license and AED 23,900* for LLC license. However, the total cost of mainland company formation relies on various factors such as your business license type, number of visas needed, office space requirements and more.
You must consult concerned experts, like Dubiz Business Setup, to know the exact prices for Dubai mainland company formation.
Wrapping up!
Dubai remains a top choice for business setup and the mainland has grabbed the eyeballs in recent years since it now allows complete business ownership to foreigners for many activities. Also, mainland company formation in Dubai offers other benefits like unrestricted UAE and international market access, direct access to government contracts and projects and much more.
If you partner with the right business setup consultant, your business journey in Dubai will be completely hassle free and quick. Dubiz Business Setup offers end-to-end solutions for establishing a mainland company in Dubai. They can guide you through the licensing, visas, business bank account, tax compliance and more. Book a free consultation session with their experts today!
