Mainland company formation in Dubai can be an extremely profitable investment choice for both private and corporate investors. Companies that fall under commercialized geographic zones that are permitted to function and operate inside the limits of Emirati jurisdiction are referred to as mainland companies.
Dubai Mainland Licence refers to any business entities that are classified as commercial, professional, and sole establishments and registered with the Dubai Economic Department (DED). First and foremost, having a license for the Dubai mainland gives you the greatest freedom and flexibility as you expand and run your business. The government has altered a number of laws and policies that control how mainland businesses operating in the UAE must operate.
The firm equity share is governed by one of the most significant rules that apply to mainland business setups.
What is Mainland?
The UAE government changed the way business is done after the implementation of the Commercial Companies Law in June 2021. For companies located in mainland Dubai, the UAE government has permitted 100% foreign ownership. Prior to this change, foreign business owners were only permitted to own up to 49% of their company, with the remaining 51% being owned by the Emirati sponsor. Currently, revisions to UAE company law mean that foreigners establishing a company in Dubai will no longer require an Emirati shareholder or agent.
You have the freedom to expand your firm’s branches in the country by mainland company formation in Dubai. The main prerequisite for conducting business in the UAE is having a license in one of the three categories listed above commercial, industrial, or professional.
Our experts at Shuraa offer advice on starting a business in the most sought-after regions of the UAE and acquiring a license for the Dubai mainland company formation. By ensuring that your mainland license in Dubai, United Arab Emirates, complies with the Dubai Economic Department, we help you save time and money on the Dubai trade license process.
Different Types of Mainland License
Generally, four major licenses are issued for UAE mainland company formation. According to the business venture, licenses are issued, and they include:
1. Professional License
A license is granted to businesses that engage in service-related activities. Professionals who engage in any professional activity, such as consulting, must hold a professional license. Unlocking professional potential comes at a more budget-friendly price with the issuance of this license compared to other licensure options.
2. Commercial License
Businesses that engage in trade or the purchasing and selling of goods or services are granted licenses. Many traders opt for the general trading license because it permits them to engage in multiple trading activities. In Dubai and the rest of the UAE, commercial licenses are extremely common. It is simple to complete all professional license-related formalities, including issue, amendment, and revocation.
3. Industrial License
Firms involved in the manufacture of goods, such as factories and industries, are granted a license. Depending on the nature of the industrial activity, you may need to obtain clearance from External Ministries and government bodies for an Industrial License.
4. Tourism License
A valid Tourism Licence is required for any tourism-related activities. The Department of Tourism and Commerce Marketing (DTCM) is responsible for issuing tourism licenses. To undertake inbound and outward tour-related activities, a valid tourism license is required.
Steps to follow Mainland Company Formation in Dubai
The process of Mainland Company Formation in Dubai is straightforward. The following is a broad description of the process for forming a Mainland Company in Dubai:
1. Identify the Nature of Your Business Activity
The first step in creating any corporation or business is to generate ideas. It is critical to commit to the business activity you wish to pursue. You can do this by researching the Dubai market. Similarly, you might engage in your preferred trading activity. It is critical to make an informed decision, possibly with the assistance of an expert. Because your chosen activity will decide the license you will need to apply for, as well as any other permits you may require.
2. Determine Your Company’s Legal Structure
Your ownership as well as the number of stockholders, and other factors will be determined by the legal framework. Although Dubai Mainland provides a variety of legal formations, an LLC is the most popular.
3. Register the Trade Name
After you’ve decided on your trading activity, the next step is to reserve your trade name. Before proceeding, it’s essential to choose a trading name. This, however, can be a difficult task. Your business name must adhere to the government’s guidelines. A professional, such as a Shuraa consultant, may help you choose an acceptable trade name.
3. Create LSA or MOA.
When you’ve decided the type of company you wish to open in Dubai, you must create a Memorandum of Association (MOA) stating whether it’s a public shareholding company, private shareholding company or a limited liability company. In case it’s a sole proprietorship, you will need a local service agent agreement (LSA).
4. Choose Your Business Location.
To run a business in the UAE, you will have to get a working space. Remember, it should comply with the emirate’s Department of Economic Development, local municipalities regulations, zoning policies, etc.
5. Apply for Additional Government Approvals.
For specific businesses, the government looks for additional requirements. For example, if you want to use an English brand name for your business, you may have to submit an extra AED 2,000 for it, whereas for Arabic words, it is free.
6. Pay Fees and Collect License
It is time to apply for the license after finalizing your activity, reserving your commercial name, and charting the legal framework. Ensure that you provide all the required paperwork to the Dubai Department of Economic Development (DED) when submitting your documents.
Benefits of Mainland Company Formation in Dubai
Registering a company on the mainland offers numerous advantages. A Dubai mainland company setup can pave the way for a prosperous future in your business endeavors and professional ventures. Mainland firms provide a diverse range of commerce, complete ownership, and location flexibility. These are just some of the reasons why entrepreneurs choose to set up a mainland company in the UAE.
1. Location flexibility and zero trade restrictions
A business operating in Dubai mainland enjoys the freedom to trade with other companies without any limitations or geographical boundaries. Mainland companies can also provide government services or deal directly with consumers from anywhere in the UAE. Establishing a mainland company enables enterprises to open multiple branches, facilitating a significant presence across the Emirates.
2. Broad working scope
Mainland enterprises can also take on a wide range of projects. To expand your business offerings on the mainland, all you need to do is register the new business activity with the DED, and you’ll be ready to conduct trade legally.
3. Access to lucrative government contracts
The fact that government tenders are a huge business in the UAE is an incentive for mainland businesses to set up shop in Dubai. You will be well positioned to take advantage of such beneficial government contracts as an established mainland company in Dubai.
4. 100% ownership control of mainland business entities
Traditionally, 100% overseas ownership of a UAE commercial company was only permitted in two situations:
- When setting up in a free zone or
- When setting up a professional services company in the mainland (as a Sole Establishment or Civil Company)
In recent years, UAE has allowed 100% foreign ownership for company formation in Dubai mainland. This is a positive change for prospective foreign investors wishing to do business in the UAE. This is fantastic news for overseas investors who are new to the UAE.
Because there is no requirement to find an Emirati company or individual to act as a partner, business owners may get right down to business. To foreign investors, 100% foreign ownership of mainland UAE businesses offers great potential for the UAE’s growth-machine economy. Certain important sectors, such as oil and gas, do, however, still require a local partner.
Documents Required for Mainland Company Setup in Dubai
To complete the submission process, the necessary documents must be furnished to the relevant authority.
- Passport copy of the shareholders.
- Entry stamp or Visa page.
- Passport-size photograph.
Note: Depending on the sort of activity you choose, you will need to submit a handful of additional documents. The mainland incorporation services provided by Shuraa can assist you in understanding the particular documentation needs. Our professionals will also guarantee that all of your documentation is in order.
Can Free Zone switch to the Mainland?
We can assist you if you are currently operating in a free zone business structure and are thinking about expanding to a mainland company setup in Dubai. Over 30,000 businesses presently operate out of the three largest UAE-free zones. Foreign entrepreneurs can establish themselves in a free zone and benefit from the simplicity of pre-packaged business inclusions.
However, this paradigm has limits for business owners. While free zone firms are a great place to start for UAE enterprises, when it comes time to expand, it’s time to convert to a mainland corporation. Changing to a mainland company is critical for commercial success. Moving from a free zone to the UAE mainland is a wise and manageable move with the proper UAE national sponsor or company formation professional such as Shuraa.
Dubai Mainland Company Formation with Shuraa
Starting a mainland company in Dubai has become a smooth and stress-free process, thanks to the reliable support of Shuraa. With their experienced and knowledgeable business formation team from the Shuraa India branch, every aspect of the formation process is handled with meticulous care. Whether you visit their Indian offices or reach out to their dedicated team, you can be confident in receiving comprehensive assistance for your mainland business setup in Dubai.
Trust Shuraa to guide you through the entire journey and make your entrepreneurial dreams in Dubai a reality. Don’t hesitate to contact them today for more information and take the first step towards a successful venture in the thriving business landscape of Dubai.