Mainland Company Formation in Dubai, UAE
Mainland Company Formation in Dubai, UAE
Dubai is a popular destination for businesses due to its strategic location, favorable business environment, and attractive tax regime. One of the options available for entrepreneurs looking to set up a business in Dubai is mainland company formation.
A mainland company is a company that is registered with the Department of Economic Development (DED) of the respective emirate. The DED is the government authority responsible for regulating and supervising the economic activity in the emirate.
Main advantages of mainland company formation in Dubai, UAE
- Wide range of business activities: One of the biggest advantages of mainland company formation in Dubai is that it allows businesses to undertake a wide range of business activities. Unlike free zones, where businesses are limited to specific activities, mainland companies can undertake any activity that is permitted by the DED.
- Access to local markets: Mainland company formation in Dubai advantages is that it allows businesses to access the local market. This is particularly useful for businesses that rely on local customers and suppliers.
- No restrictions on the number of visas: Unlike free zones, there are no restrictions on the number of visas that can be obtained for mainland companies. This allows businesses to hire as many employees as required for their operations.
- Ability to trade directly with local businesses: Mainland companies can trade directly with local businesses without the need for intermediaries. This allows businesses to establish closer relationships with their customers and suppliers.
Process of Company setup in Dubai Mainland
- Determine the business activity: The first step in mainland company formation is to determine the business activity you want to undertake. The activity must be permitted by the DED.
- Choose a legal structure: You must choose a legal structure for your company, such as a sole proprietorship, partnership, or limited liability company (LLC). The LLC is the most common legal structure for mainland companies in Dubai.
- Choose a trade name: You must choose a unique trade name for your company. The name must be approved by the DED.
- Obtain initial approval: You must obtain initial approval from the DED for your business activity, legal structure, and trade name.
- Prepare the Memorandum of Association: You must prepare the Memorandum of Association (MOA) for your company. The MOA outlines the company’s activities, share capital, and shareholders.
- Rent an office space: You must rent an office space for your company. The office space must comply with the requirements of the DED.
- Obtain necessary approvals and licenses: You must obtain necessary approvals and licenses from the relevant authorities, such as the Dubai Municipality, Dubai Chamber of Commerce and Industry, and the Ministry of Economy.
- Register with the DED: Finally, you must register your company with the DED. This involves submitting the necessary documents, such as the MOA, lease agreement, and approvals and licenses.
In conclusion, mainland company formation in Dubai provides businesses with the opportunity to undertake a wide range of activities, access the local market, and trade directly with local businesses. The process of company formation involves several steps and requires compliance with the regulations of the DED and other relevant authorities. It is recommended to seek the assistance of a business setup consultant to ensure a smooth and successful company formation process.
Documents required to start a mainland company in Dubai, UAE
- Passport copies and visa copies of all shareholders: All shareholders must provide a copy of their passport and visa. If the shareholder is a company, then a copy of the trade license and articles of association must be provided.
- No Objection Certificate (NOC): If the shareholder is a resident of Dubai, a NOC from their current sponsor must be provided.
- Local service agent agreement: For certain types of businesses, a local service agent agreement must be signed with a UAE national who acts as the company’s local sponsor.
- Memorandum of Association (MOA): The MOA outlines the company’s activities, share capital, and shareholders.
- Lease agreement: A lease agreement for the company’s office space must be provided.
- Initial approval certificate: An initial approval certificate from the Department of Economic Development (DED) must be obtained, which outlines the company’s activities and legal structure.
- External approvals: Depending on the nature of the business, external approvals from other government entities may be required. For example, a food and beverage company would require approval from the Dubai Municipality.
It is important to note that the requirements for company formation in Dubai can change, and it is recommended to consult with a business setup consultant to ensure that all necessary documents and requirements are met.
What are the locations for Mainland in Dubai, UAE?
- Dubai Mainland: Dubai Mainland refers to the area that is governed by the Dubai Department of Economic Development (DED) and offers a wide range of business opportunities. This area includes areas such as Bur Dubai, Deira, Jumeirah, and Sheikh Zayed Road.
- Dubai South: Dubai South is a strategic location that provides access to major transportation routes, including the Al Maktoum International Airport and the Jebel Ali Port. It is located near Dubai’s border with Abu Dhabi and is a popular location for logistics and distribution companies.
- Dubai Silicon Oasis: Dubai Silicon Oasis is a technology park that is designed to promote the growth of the technology industry. It offers a range of incentives and benefits for companies operating in the park, including tax exemptions, access to venture capital, and a streamlined business setup process.
- Dubai Healthcare City: Dubai Healthcare City is a healthcare free zone that is dedicated to promoting the growth of the healthcare industry. It offers a range of benefits and incentives for companies operating in the zone, including 100% foreign ownership, tax exemptions, and streamlined business setup procedures.
- Dubai Multi Commodities Centre: Dubai Multi Commodities Centre (DMCC) is a free zone that is dedicated to the growth of the commodities industry. It is home to over 17,000 companies and offers a range of benefits and incentives, including 100% foreign ownership, tax exemptions, and access to world-class infrastructure and facilities.
These are just some of the popular locations for mainland company formation in Dubai, UAE. It is important to research and choose the location that is best suited to your business needs and objectives.
FAQ'S
Frequently Asked Questions
Which location is suitable for your business in Dubai Mainland?
Here are some specific areas in Dubai Mainland that are popular for setting up a business:
- Business Bay: Business Bay is a central business district in Dubai that offers a range of commercial and residential properties. It is located near Dubai’s major transportation routes and is home to several businesses in industries such as finance, technology, and retail.
- Downtown Dubai: Downtown Dubai is a bustling district that is home to some of Dubai’s most iconic landmarks, including the Burj Khalifa and the Dubai Mall. It is a popular location for businesses in the hospitality, tourism, and retail industries.
- Sheikh Zayed Road: Sheikh Zayed Road is a major highway that runs through Dubai and is home to several commercial and residential properties. It is a popular location for businesses in industries such as finance, technology, and consulting.
- Al Quoz: Al Quoz is an industrial area in Dubai that is home to several warehouses and factories. It is a popular location for businesses in industries such as manufacturing, logistics, and construction.
- Dubai Investment Park: Dubai Investment Park is a mixed-use development that is designed to promote the growth of businesses in a range of industries. It offers a range of commercial and residential properties and is home to several businesses in industries such as logistics, manufacturing, and construction.
These are just some of the specific areas in Dubai Mainland that are popular for setting up a business. It is important to research and choose the area that is best suited to your business needs and objectives.
How many visas can be applied for a mainland business in Dubai, UAE?
The number of visas that can be applied for a mainland business in Dubai, UAE depends on several factors, such as the size of the business, its legal structure, and the type of business activity it is engaged in. In general, the Dubai Department of Economic Development (DED) sets a minimum requirement of a certain amount of office space and/or a certain level of capital investment in order to be eligible to apply for a certain number of visas.
As a general guideline, a mainland business can typically apply for one visa per 10 square meters of office space. For example, a business with 100 square meters of office space may be eligible to apply for up to 10 visas. However, this is not a hard and fast rule and the actual number of visas that can be obtained may vary depending on the specific circumstances of the business.
It is important to note that there may be additional requirements and fees associated with obtaining visas for employees, such as medical tests and security checks. It is recommended to consult with a business setup consultant or the Dubai DED for the most up-to-date and accurate information regarding visa requirements and eligibility for a mainland business in Dubai, UAE.
What is the process for setting up a mainland company in Dubai, UAE?
The process for setting up a mainland company in Dubai, UAE involves several steps, including obtaining a trade name and initial approval from the Dubai Department of Economic Development (DED), preparing the necessary legal documents, such as the Memorandum of Association (MOA) and Articles of Association (AOA), and registering with the DED. It is recommended to seek the assistance of a business setup consultant or a local law firm to navigate the process.
What are the types of legal structures available for mainland companies in Dubai, UAE?
Mainland companies in Dubai, UAE can be set up as a sole proprietorship, a partnership, a limited liability company (LLC), or a branch of a foreign company. The most common legal structure for small to medium-sized businesses is an LLC.
What are the advantages of setting up a mainland company in Dubai, UAE?
Setting up a mainland company in Dubai, UAE offers several advantages, such as the ability to conduct business with the local market, access to government contracts, and the ability to sponsor employee visas. In addition, mainland companies are not subject to the restrictions on business activities that are imposed on free zone companies.
What is the minimum capital required to set up a mainland company in Dubai, UAE?
The minimum capital required to set up a mainland company in Dubai, UAE varies depending on the legal structure and the type of business activity. For example, the minimum capital required for an LLC is AED 300,000. However, the actual amount may be higher or lower depending on the specific circumstances of the business.
What are the requirements for obtaining a commercial license for a mainland company in Dubai, UAE?
To obtain a commercial license for a mainland company in Dubai, UAE, the business must have a physical office address, a valid tenancy contract or Ejari, and must comply with all relevant laws and regulations. The commercial license is issued by the Dubai Department of Economic Development (DED).
How long does it take to set up a mainland company in Dubai, UAE?
The time it takes to set up a mainland company in Dubai, UAE varies depending on the legal structure and the complexity of the business activity. However, on average, the process can take between 1-2 weeks for obtaining initial approvals and up to 2-3 months for completing all the necessary legal formalities and obtaining the commercial license.
How much does it cost to register a company in Dubai Mainland?
The cost of registering a company in Dubai Mainland depends on various factors such as the type of legal structure, the business activity, and the location. Here are some of the costs involved in registering a mainland company in Dubai:
- Trade name reservation and initial approval fees: AED 660 – AED 1,070
- Notarization and attestation of legal documents: AED 2,000 – AED 5,000
- Professional fees for business setup consultant or local law firm: AED 10,000 – AED 20,000
- Commercial license fees: AED 10,000 – AED 15,000 (depending on the business activity)
- Office rent and security deposit: varies depending on the location and size of the office
- Visa and immigration fees: AED 4,000 – AED 8,000 per employee visa
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