How to set up a business in Dubai mainland
Considered the number one business location in the Middle East region, Dubai's Main Land business set up is an extremely attractive choice for a business looking to access these regions' rapidly expanding markets. An individual is offered almost 2000 choices to set up BUSINESS IN DUBAI. Once the choice is made by an individual, the next step in the process is to get the business approved by DED (Department of Economic Development). Afterward, an enormous list of business models available in Dubai mainland is made available to the individual which may include many of the business types like import or export, building an eCommerce website or opening a simple outlet of confectionery complete research needs to be carried out before proceeding to set up business in the mainland. Usually SWOT analysis’ is a preferred option that will provide ample help to an individual to decide once he decides to set up a business in Dubai. In addition to all this, it is very vital to know the type of business one wants to set up in Dubai, as that will precisely describe the type of license required by the individual or the organization. Setting up a business may require acceptance from Government departments.
While setting up a professional/ Service business in mainland usually a local partner is taken along as a Local Service Agent, while expat attaining 100% ownership of business. In commercial/ Trading business 51% share on MOA has to be of Local Sponsor. If taking up a partnership with a local partner is not feasible then one needs to do Side & service agreement, in which 100% Ownership is shown of investor and 0 % Share of Sponsor. However, business in mainland is a very extensive process, but with assistance of Shuraa Business Setup & its affiliated branches across Globe i.e Shuraa Delhi – India Branch, Shuraa Dhaka – Bangladesh Branch we make the process feasible. According to world bank stats, Dubai is currently standing at the top 10 position for setting up a company.
The government has put in place a stringent application process that every individual must follow in order to set up a company in Dubai. Setting up a business in the mainland also requires a valid name as it forms a vital part of legal proceedings. The name of the business setup in Dubai should specify its nature. The memorandum of association of the proposed business in mainland requires only a share of capital is set out, while as in some cases, at the time of business setup, one does not even require minimum capital. Starting up a business in Dubai Mainland all help is provided to the individual to find the properties suitable to one's requirements as well as the assistance regarding water, electricity, and the internet along with other amenities, else one can opt for Shuraa business Centres. Setting up a business renting business premises is a must. The tenancy agreement, Real estate regulation authority documents, and EJARI need to be submitted, following which initial approval will be granted by the DED
Getting a trade license in Dubai is would usually depend on the type of business one wishes to set up in the mainland. If an individual setups company in Dubai for carrying out the activities like import-export, clothes, accessories, furniture, electronics, then a general trade license in Dubai would suffice, if an individual wish to carry out multiple trade activities that are in the same field then a general trade license in Dubai will cover it all. But there are certain business activities in Dubai mainland which are not covered under the General license such as cars, guns, alcohol and medical products. For an individual to carry out such a business in the mainland, an approval from higher authorities or UAE municipalities is required. Once the approval is granted a commercial trade license is provide to an individual to carry out such a business in the mainland.
At the same time, there are certain advantages of getting a general trade license in Dubai as the approximate cost is very low up to AED 40K to 50K and the same time such trade license will be used as a legal holding structure and for warehousing as well. The holder of the general trading license is exempted from the taxes on profits, income. At the same time, the individual can trade in both mainland Dubai as well as internationally. The general trading license holder is also at the advantage that he can apply for multiple visas for their employees which will depend on the size of manpower that will be needed to set up a company in Dubai. The trader is also exempted from the process of submitting audit reports to the Government of Dubai. Also, the holder is provided with the facilities of both personal as well as corporate banking.
Cost of setting up Business in Dubai
Setting a business requires a significant upfront investment that will be used for office space, employee visas, license fees and so on. This cost varies according to the type of business one intends to start (Commercial, Service, industrial) as well as the type of legal formation that is intended to be created(establishment, company, branch). How much capital one needs to start a business depends on the form of business- for example, professional License 27k – 30k while Commercial License 32k – 35k, General Trading 45k – 50k. The cost is also determined by factors like where one intends to set up a business Whether the individual chooses the business in mainland or the Freezone. Both Freezone and mainland businesses have their merits and demerits as both require a different set of formalities to be carried out in order to start the business.
The Normal Duration to Setup Mainland company in UAE is 3- 5 Days. Whereas Free zones company generally takes 10 – 15 days, depending on type of freezone.