Dubai’s strategic position, strong infrastructure, and welcoming business policies make it a desirable place for entrepreneurs to establish a mainland company. This guide provides a detailed overview of the steps involved in Mainland Company Formation in Dubai and introduces you to the expert services provided by Decisive Zone, a leading business consultancy firm.
What is a Mainland Company?
A Mainland Company is a business that is officially registered with Dubai’s Department of Economic Development (DED). It gives you the freedom to operate within the UAE market and beyond, with several benefits like the ability to trade freely within Dubai and the UAE, no restrictions on office locations, and the opportunity to expand your business internationally.
Benefits of Setting Up a Mainland Company in Dubai
- Freedom to rent commercial space in any area
- Ability to conduct a wide range of business activities
- Option to trade anywhere in the UAE and internationally
- 100% foreign ownership
- No currency restriction
- Easy employment visa processing
- Advantage of bidding on government projects
- Ability to open a corporate bank account easily
Step-by-Step Guide to Mainland Company Formation in Dubai
Here is the step-by-step guide to form Mainland Company in Dubai:
Step 1: Choose Business Activity
The first step in Mainland Company Setup in Dubai, UAE is selecting the type of business activity you want to undertake. The DED in Dubai provides a wide range of business opportunities, divided into four sectors: industrial, commercial, professional, and tourism. The correct activity must be identified because it determines the necessary license and other legal criteria.
Step 2: Choose Company Structure
Selecting the appropriate legal structure for your Mainland Company Setup is essential. The available structures include:
- Sole Proprietorship
- Civil Company
- Limited Liability Company (LLC)
- Private Shareholding Company
- Public Shareholding Company
The most common form for foreign investors is the LLC.
Step 3: Get Trade Name Approval
An essential phase in the Mainland Company Formation procedure in Dubai is selecting a trade name. The name needs to be distinct, appropriate for your company, and follow DED naming guidelines. Decisive Zone can assist in checking the availability and reserving your trade name. An essential phase in the Mainland Company Formation procedure in Dubai is selecting a trade name. The name needs to be distinct, appropriate for your company, and follow DED naming guidelines. Decisive Zone can assist in checking the availability and reserving your trade name.
Step 4: Get Initial License Approval
Prior to completing the full registration, you must first have DED approval. This approval confirms that the DED has no objections to your business activity and trade name. It is also necessary to draft and sign the Memorandum of Association (MOA) and local service agent agreement if required.
Step 5: Get External Approval (If Required)
Depending on your line of work, you might need to obtain additional government approvals. For instance, activities related to health, education, or finance may need special permissions from authorities like the Ministry of Health, the Knowledge and Human Development Authority (KHDA), or the Central Bank.
Step 6: License Issuance
Once all paperwork is ready and approvals are secured, submit them to the DED along with the required fees. The fees vary depending on the business activity and legal structure. The trade license will be provided by the DED following receipt and approval of the application. This license gives your business the right to conduct business in Dubai and the UAE.
Step 7: Open Company Bank Account
After obtaining your trade license, the next step is to open a corporate bank account. This involves choosing a bank that meets your business needs and providing all necessary documents, such as the trade license, MOA, and shareholder information. Decisive Zone can facilitate introductions to banking partners and assist with the account opening process.
Step 8: Get Establishment Card
To process visas and communicate with the immigration department, you need the establishment card, also called the immigration card. The General Directorate of Residency and Foreigners Affairs (GDRFA) is the organization that issues this card. Decisive Zone can help you apply for and obtain the establishment card.
Step 9: Open Labour File
Opening a labor file with the Ministry of Human Resources and Emiratization (MOHRE) is necessary to hire employees legally. This step involves submitting your trade license, establishment card, and other relevant documents to the ministry. Decisive Zone provides assistance in completing this process efficiently.
Step 10: Process Visa
The final step in Mainland Company Formation in Dubai is processing visas for the business owner(s) and employees. This includes applying for entry permits, conducting medical tests, obtaining Emirates IDs, and stamping residence visas on passports. Decisive Zone offers comprehensive support for all visa-related procedures to ensure compliance with UAE immigration laws.
Additional Tips for Successful Mainland Company Setup
- Research thoroughly to understand market conditions and competition.
- Network with local businesses and authorities to gain insights and support.
- Stay updated on UAE business regulations and compliance requirements.
- Utilize business consultancy services like Decisive Zone for expert guidance.
Frequently Asked Questions
What is the difference between Mainland and Free Zone companies?
Mainland companies can operate anywhere in the UAE and internationally, while Free Zone companies are restricted to their specific zones and often have limitations on local market trading.
How long does it take to set up a Mainland Company in Dubai?
The process can take between 1 to 4 weeks, depending on the business activity, legal structure, and the efficiency of document submission.
What are the ongoing compliance requirements for a Mainland Company?
Mainland companies must renew their trade license annually, maintain proper accounting records, and comply with VAT and other regulatory requirements.
Can Decisive Zone help with visa processing?
Yes, Decisive Zone offers comprehensive support for visa processing, including investor visas, employment visas, and dependent visas.
Setting up a Mainland Company in Dubai can be a rewarding venture with the right guidance and support. Decisive Zone is committed to making the Mainland Company Formation process easy and efficient, allowing you to focus on your business growth and success. Contact us today to start your journey towards establishing a thriving business in Dubai.
