Company Formation in Dubai Mainland

Opening a business in the mainland of Dubai opens up opportunities that no other place provides to entrepreneurs and investors wishing to gain access to one of the world's most vibrant markets. Strategically located, with a strong economy, and pro-business policies, Dubai has become a global business and innovation hub. Setting up a mainland company grants full access to the UAE market, direct dealing with clients, eligibility to tender for government contracts, and much more flexibility compared to free zones.

Other recent policy changes allow 100% foreign ownership, thus providing full control over their businesses to investors. The process is a bit cumbersome but can be efficient and straightforward if done under appropriate guidance.

Business Activities Allowed for Dubai Mainland Companies.

Business activities for Dubai mainland companies are numerous and not limited to free zones. The Department of Economic Development categorizes business activities into different sectors and it allows businesses to work freely. Some of the main business activities include;

• Commercial Activities: Trading in goods, retail, and wholesale operations.
• Professional Services: Consultancy, legal services, healthcare, and educational services.
• Industrial Enterprises: Production, assembly, and processing.
• Tourism and Hospitality: Traveling companies, traveling agencies, and hotel businesses.
• Construction and Real Estate: Construction companies, management of properties, and companies dealing with real estate.

Types of Company Structures in Dubai Mainland

If you are planning to set up your company in Dubai mainland, then you have several options to consider based on your requirements for the business:

• LLC: The local shareholding must be at least 51% with the local partner. In the LLC structure, the liability is limited to the shareholders with regard to their capital invested.
• Sole Establishment: It is an individual owner who bears unlimited liability towards the debt of his company. Suitable for individual entrepreneurs.
• Branch Office: A subsidiary of a foreign company, an offshoot of the parent corporation can operate under the name of the parent entity but is subject to any or all local regulations.
• Publicly Quoted or Private: Suitable for larger size companies that wish to raise capital by floating in public shares as well as private shares  
• Representative Office: These are typically marketing offices where the legal entity cannot conduct its own direct trading or commercial activity within the country.

Benefits of  Dubai Mainland Company Formation

There are massive advantages in setting up a business in Dubai mainland, among which are:

• World-class infrastructure for all business needs
• 100% ownership in key industries
• Unrestricted flexibility for scaling up or down, as required
• A stable business environment and clear regulatory framework
• Seamless operation in both local and international markets
• Global networking through international conferences and trade expos
• Major banks' support and top audit services to drive growth
• Freedom to select your ideal office location
• Access to a global pool of highly qualified professionals

Documents Needed for Mainland Company Formation in Dubai

Dubai's mainland company setup is highly detailed and documented. Below are the comprehensive checklists of the documents needed to make the process a success without any hitch.

All Shareholders' Passport Copies: Clear valid passport copies of all the shareholders. This is one of the most important means of identification and verification tool.

Shareholders' Visa Copy: A copy of a valid UAE visa for resident shareholders from the UAE.

Photographs: All shareholders' and directors' passport-size photographs from recent times. These need to be UAE-standard official documents.

Proof of Residence: Shareholders require proof of current residence which may be a recent utility bill or bank statement by way of authenticating their data of residence. 

Memorandum of Association (MOA): In the case of local sponsors or partners, an MOA is usually required. It covers the company structure, shares, and responsibilities of each partner.

Trade Name Approval from DED: Before completing the company formation process, you should obtain trade name approval from the Department of Economic Development (DED) for proper compliance with UAE naming rules.

Initial Approval for Business Activities: Obtain a preliminary approval certificate over your desired business activities through DED or relevant offices. It lets you continue to go forward with the establishment process.

Ejari Registration: Dubai mainland companies are required to have an actual office place. Ejari registration, an attested tenancy agreement, would provide evidence on whether one is in good compliance with office space requirements, hence making it indispensable for establishing companies.

Different Types of Mainland Licenses in Dubai

In Dubai, mainland companies must obtain specific licenses depending on their business activities. The main types of licenses include:

Commercial License:

Businesses that engage in trading operations must have this license. It allows companies to import, export, and trade goods within the UAE and internationally.

Professional License:

Issued to individuals or firms providing professional services, such as consulting, legal services, or medical practices. This license requires the owner to have relevant qualifications and expertise.

Industrial License:

Essential for businesses engaged in industrial or manufacturing processes. This license permits businesses to set up factories and produce goods for local consumption or export.

Tourism License:

Required for businesses operating in the tourism sector, including travel agencies, tour operators, and hospitality services.

Service License:

For businesses offering various services, such as maintenance, cleaning, and logistics.

Key Steps for Setting Up a Mainland Business in Dubai.

Setting up a mainland business in Dubai involves several key steps:

1. Outline Your Business Activities:

Identify the specific business activities you wish to undertake and ensure they align with the appropriate license type.

2. Choose and Register a Trade Name:

Select a unique trade name that complies with Dubai’s naming regulations and register it with the Department of Economic Development (DED).

3. Obtain Initial Approval:

Apply for initial approval from the DED, which allows you to proceed with the company formation process.

4. Prepare Required Documents:

Gather necessary documents such as passport copies, proof of residence, and the Memorandum of Association (MoA).

5. Lease Office Space:

Secure a physical office location that meets regulatory requirements and register the tenancy contract through Ejari.

6. Submit Final Application:

Submit your final application along with all required documents to the DED for approval.

7. Obtain Business License:

Once approved, receive your business license from the DED, allowing you to legally operate your company.

8. Visa Processing:

Apply for work visas for yourself and any employees you plan to hire.

Dubai Mainland Company Formation Cost

The costs to establish a mainland company in Dubai vary according to the specific business activities and conditions involved. General Overview

• Company Registration Fees: Usually fall between AED 15,000 to AED 35,000
• Trade Name Registration: Around AED 735
• Initial Approval Fee: Around AED 235
• Office Rent: This can vary greatly based on location and average rentals start at AED 30 per square foot per annum.
• MoA Attestation: Approximately AED 1200.
• Business License: Varies between AED 10,000 to AED 30,000, subject to the type of license.
  

Also, the setup cost for a mainland company in Dubai varies between AED 23,000 and AED 50,000 or more, depending upon different office space requirements and other approvals.

Our Services for Mainland Company Formation

We ensure hassle-free mainland company formation in Dubai through our complete service at Reyson Badger. Our expert will ensure that your business setup runs smoothly, efficiently, and in full compliance with the regulatory requirements of the UAE. Here's how we can help:

• Business Consultation: Personalized consultations with our experts to assist in choosing the right business activity and structure aligned with one's goals.
• Document Preparation: All the necessary documents including MoA, trade name, and initial approval applications are supported, if any.
• Regulatory Approvals: All DED and other governmental agency regulatory approvals have to be obtained to smoothen the setup.
• Office Space Solutions: Find the right office space for you updated with local regulatory compliances and supporting the operational requirements of your business.
• Visa Processing: Solve the work visa procedures of you and your staff.
• Post-Formation Support: Continued compliance accounting and tax services to ensure that your business keeps rolling.

Why Choose Reyson Badger for Dubai Mainland Company Formation?

Reyson Badger delivers expert, comprehensive support for mainland company formation in Dubai, ensuring your setup is efficient, compliant, and tailored to local requirements. From selecting the ideal business structure to managing all regulatory approvals, we handle every detail including documentation, office space solutions, and employee visas. After formation, we continue to support your business with compliance, accounting, and tax services to keep operations seamless.

Get started with Reyson Badger today for a streamlined path to success in Dubai.