How Does A Mainland Company Setup Dubai?

Mainland company setup dubai as an international hub that offers opportunities to many different industries and ethnicities. All foreigners and international investors finds it quite potential due to open, secure, economic-friendly climate and numerous business promotion initiatives. In this blog, you will learn the benefits, documents, and steps to registering a company in dubai.

Benefits of mainland company setup dubai

Broad working criteria

Businesses on the mainland can also take on a variety of projects. Simply re-register the new business activity with the DED when you want to broaden your offerings within the mainland, and you're good to go. Read Also This - What Is The Cost Of A Dubai Business Setup For A Nightclub

Getting access to profitable government contracts

Government tenders in the UAE represent significant business opportunities. In recent years, the Abu Dhabi Executive Council has given the green light to significant government spending, totaling AED 17.5 billion (USD 4.76 billion), towards various projects. This allocation encompasses an infrastructure development budget exceeding AED 4 billion, around AED 2 billion dedicated to education, and a combined AED 1.2 billion designated for upgrades to governmental and social facilities. By establishing a reputable mainland company in Dubai, you can position yourself advantageously to capitalize on these lucrative government contracts.

100% control and ownership of mainland corporate enterprises

Historically, there were only two situations in which a UAE company firm could have 100% foreign ownership:

• While establishing a free zone.
• When forming a civil business or a sole establishment for professional services on the mainland.

This change has brought about a positive shift for international investors seeking to establish businesses in the Emirates. This new opportunity is particularly beneficial for overseas investors who are new to the region.

Process for mainland company setup dubai

In Dubai, you can primarily create four different sorts of mainland companies: Professional firms or civil corporations; limited liability companies (L.L.C.); branches of a foreign company; and representative offices. The UAE government introduced the Bashr service, an integrated eService that enables company owners to register their companies in the UAE in as little as 15 minutes by connecting to federal and local government agencies that offer services for commercial licenses. The following are the steps to mainland company setup dubai-

Choose business activity-

To be able to conduct your intended business operations, you must obtain a trade license. To establish the type of license you require (whether industrial, commercial, professional, tourism, agricultural, or occupational), you must first determine the nature of your company. In the UAE, there are more than 2,000 business opportunities available. You might engage in multiple commercial activities. Read More - How To Do A Dubai Business Setup Of Car Rental?

Determine the legal structure-

After deciding which type of trade license to apply for, the next step is choosing the company's legal structure. The legal structure of the firm serves as the foundation for establishing which rules and regulations are relevant, largely depending on the needs of the business. Make sure the business's legal structure corresponds to its primary business activity. The list of available legal forms is as follows:

• General partnership
• Limited partnership
• Limited liability company (LLC)
• Public joint stock company (PJSC)
• Private joint-stock company (PrJSC)
• Civil company
• Local company branch
• GCC company branch
• Foreign company branch
• Free zone company branch
• Sole Establishment
• Holding companies

Register the trade name

Give your Dubai business an acceptable name, expresses its nature and form, and conform with all UAE trade name laws. You can use the Dubai Economic Department's website or mobile application to submit an application for a trade name. The trade name you select must be preceded by an abbreviation of the business structure (such as LLC, EST, PJSC, and PrJSC), and it must not infringe upon international public morals or public order. Make sure your trade name hasn't already been registered by another organization and doesn't contain the names of any religions, governing organizations, or other external organizations, as well as their names or logos. You will receive a payment voucher or transaction number as part of the application procedure, which you must use as a guide when making a payment. A skilled business advisor in Dubai, like Adam Global, can not only assist you in choosing the ideal name for your ideal company but can also register the trademark with the Ministry of Economy.

Apply for initial approval

You must obtain initial clearance before moving forward with establishing a business in Dubai, demonstrating that the UAE government has no issues with the establishment of the enterprise. Even after receiving the initial approval, you still need to secure the authority to conduct or practice the commercial activity. To apply for the initial approval, make sure you have the General Directorate of Residency and Foreigners Affairs' approval. Before asking for the initial approval, some operations (such as those involving legal matters, security matters, financial securities, and commodities) necessitate further approvals from governmental bodies pertinent to that particular firm. Read Also This - Is The Spare Parts Dubai Business Setup Profitable?

Complete and sign MOA & LSA

If your business operates under a legal structure such as a Limited Partnership, Limited Liability Company (LLC), Public Joint-Stock Company (PJSC), or Private Joint-Stock Company (PrJSC), you will be required to provide a completed and signed Memorandum of Association (MoA) or a local service agent agreement (if applicable). To prepare and authenticate these documents, you can seek assistance from a law firm, court, or notary public in Dubai. Alternatively, you can also approach a reputable business setup company in Dubai, such as Adam Global, to facilitate this process efficiently.

Find a excellent business location

A physical address is necessary for a business to operate in the UAE. You must ensure that the lease agreement for the office space you are renting complies with both the DED's specifications and the Dubai municipality's land planning guidelines. The lease for the offices and the storage facility must be submitted for approval. The agreement needs to be registered with Ejari to incorporate a company on Dubai's mainland.

Obtain additional government approvals

Certain trade activities require additional approvals from regulatory bodies that govern those specific activities. These regulatory bodies include, but are not limited to, the Ministry of Interior, Ministry of Justice, Telecommunications & Digital Government Regulatory Authority (TDRA), Legal Activities & Legal Consultancy, Ministry of Economy, Supreme Petroleum Council, Executive Council, Local Health Departments, and Local Municipal Departments. Obtaining the necessary approvals from these entities is essential for engaging in such trade activities.

Pay for, sign, and pick up your Dubai business license

After completing the aforementioned steps, you may go to the economic departments' service centers or websites to pick up the business license as well as all of the corporate paperwork. The application will be terminated if payment is not made for your trade license within 30 days of obtaining the payment voucher.

Why do mainland company setup dubai over the free zone?

• Ownership: Up until recently, a foreign investor setting up a business on the mainland was only permitted to possess a maximum of 49% of the company; the remaining 51% had to belong to the Emirati sponsor. The UAE government now permits 100% foreign ownership for a limited number of mainland-registered economic activities, nonetheless. As you have full ownership from day one, free zones don't have this constraint or the necessity for local sponsors.
• Business division: A free zone corporation cannot conduct business outside the free zone without the assistance of a local agent, which is the key distinction between free zone and mainland businesses. The mainland companies benefit from this restriction as they are permitted to conduct business throughout the UAE.
• Workspace: A mainland company's real office space must be at least 200 square feet. The DED will grant your business a license if you have acquired the necessary space. Since many free zones permit businesses to establish virtual workplaces, free zone enterprises don't need to provide a physical site.
• Visas: There are no visa limitations for mainland businesses, but the amount of visas awarded varies by workplace. As a result, if your company requires more visas, you'll need to acquire or rent larger spaces. Free zone businesses are subject to quotas on the number of visas they can apply for, in contrast to mainland businesses. Typically, the number of visas offered varies depending on the free zone rules and is between 1 & 6.
• Approvals for Free Zone Business Setup: For a mainland corporation, you would need government authorization from multiple different government organizations. These include the Ministry of Labour, Dubai Municipality, and the Department of Economic Development, among others. On the other hand, every free zone abides by its unique set of laws and regulations governing the establishment of new enterprises within its jurisdiction. Furthermore, initiating a business within a free zone does not necessitate obtaining approval from governmental authorities or agencies outside the free zone.

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Documents for mainland company setup in Dubai

To set up a mainland company in Dubai, you will need to provide the following documents for acquiring a license:

1. Receipt of initial approval and submitted documents before.
2. A verified copy of the lease agreement, duly attested by the Real Estate Regulatory Agency (RERA) in Dubai.
3. Duly attested memorandum of association (applicable to all types of companies).
4. Approvals from other relevant government entities, as per their requirements.
5. A properly attested service agent contract in the UAE, involving a local service agent (necessary for civil establishments and businesses completely owned by non-GCC residents).

These documents are essential for the process of obtaining a license for your mainland company setup in Dubai.

Conclusion -

In conclusion, mainland company setup dubai offers numerous advantages and opportunities for both local and international entrepreneurs. With recent changes allowing 100% foreign ownership, the process has become more accessible and streamlined.