Mainland Company Formation
Mainland company establishment in Dubai is an excellent investment opportunity for both businesses and investors. Mainland companies are business entities that operate within Emirati territory, providing the benefits of commercial law. Mainland companies in Dubai operate under the jurisdiction of the DED (Department of Economic Development). The laws governing their activities can be found in Article No. 38 of Law No. (19) of 2004 on Licensing of Business Entities. As of June 2021, the government of the United Arab Emirates allows 100% foreign ownership of businesses on the mainland. Previously, expat business owners were only permitted to own a maximum of 49% shares, with Emirati sponsors holding the remaining 51%.
Shanayauae provides consultation for obtaining a Dubai mainland license and starting a business in the most popular locations of the UAE. We ensure your business license meets the requirements of the Dubai Economic Department.
Our experienced consultants will guide you through each step for a successful corporate setup.
Process to Start a Mainland Business in Dubai
Step 01: Memorandum of Association (MOA)
Prepare the MOA to specify the guidelines for your new company, including its purpose and capital structure.
Step 02: Obtain Initial Approval
Get initial approval from the Department of Economic Development (DED). The department will notarize your MOA once finalized and issue you an approval letter. Business consultants like Shanayauae can assist in this process.
Step 03: Trade Name Registration
Choose an appropriate trade name and register it with the DED. Ensure it is unique to avoid rejection of your application.
Step 04: Mainland Commercial Office Space
Office space is mandatory to start a business in Dubai or the UAE. You must provide a registered office address for your trade license, supported by either ownership agreement or tenancy documents.
Step 05: Apply for Trade License
Submit your trade license application to the Department of Economic Development, after fulfilling the necessary eligibility requirements.
Step 06: License Fee
Pay the license fee and submit all the required documents to the Commercial Registration Department of the Ministry of Commerce (MoC) and the DED.
Step 07: Get Your Trade License
After registration with the DED, your company’s trade license will be issued within a week.
Mainland Business License Types
Professional License
A professional license is needed for individuals offering professional services such as consulting. It is typically less expensive than other types of licenses.
Commercial License
A commercial license is required for businesses involved in trading goods or services. A general trading license allows conducting multiple business activities under one license. These licenses are common across Dubai and the UAE mainland.
Industrial License
An industrial license is necessary for businesses involved in manufacturing goods. These licenses can be issued by state or national governments, depending on the type of industrial activity.
Tourism License
Any tourism-related business requires a tourism license. The Department of Tourism and Commerce Marketing (DTCM) issues these licenses, which are essential for conducting tour-related activities both inbound and outbound.
Freezone Company Formation
In the United Arab Emirates (UAE), companies are allowed to establish business activities in Free Zones. Setting up a business in a Dubai Free Zone requires a license issued by the UAE Free Zone Authority (FZA). The FZA issues licenses based on the specific business activity of the company. The number of licenses issued depends on the information provided by the applicant, such as the number of potential employees and the total capital investment for establishing the free zone operation.
Companies in Dubai Free Zones are not subject to the same commercial laws as those on the UAE mainland. Foreign investors must obtain a free zone license by setting up a company in one of Dubai’s free zones to benefit from 100% ownership and additional advantages like tax exemptions, repatriation of profits, and foreign exchange controls.
Our experienced consultants at Shanayauae will guide you through each step for a successful corporate setup.
Process to Start a Freezone Business in Dubai
1 . Type of Business
When starting a business in a Dubai free zone, investors must determine the type of business they want to establish, as well as select the appropriate free zone for their venture, since each zone has unique permitting requirements.
2 . Trade Name
After selecting the type of business, investors will choose a name for their company, following the company-naming conventions set by the government.
3 . Apply for a License
Once the business name is finalized, it must be registered with the local agency responsible for authorizing businesses in free zones. Different free zones are authorized to issue specific types of licenses.
4. Rental Space
After obtaining a business license in a Dubai free zone, the investor can begin searching for office space, either to buy or rent.
5 . Initial Approvals and License
Before a license is issued, all necessary approvals from the relevant authorities must be secured. Once the approval process is complete, the investor can start business operations. This process typically takes two to four weeks.
Offshore Company formation in Dubai
Some reasons to form an offshore company in the UAE includes
Individual citizens can benefit from a country’s tax exemptions, but the primary motivation for establishing companies in an offshore jurisdiction is to access investor-friendly laws and regulations and international business opportunities.
Shanayauae provides consultation for obtaining a Dubai mainland license and starting a business in the most popular locations of the UAE. We ensure your business license meets the requirements of the Dubai Economic Department.
Our experienced consultants will guide you through each step for a successful corporate setup.
There are two different jurisdictions for setting up an Offshore business in the UAE. These are:
- Jebel Ali Free Zone (JAFZA)
- Ras Al Khaimah (RAK)
Documents Required for Offshore Company Formation in UAE:
- Address proof
- Copies of passports of owner and shareholders
- Notarized Memorandum of Association (MOA)
- Business plan
Our experienced consultants will guide you through each step for a successful corporate setup.