Everything About Mainland Company Formation in Dubai

Dubai, where everyone does business, is where dreams turn into reality. This isn’t just a tagline; it is a reality experienced by countless entrepreneurs who have thrived in this vibrant city. You get the best possible infrastructure, an ideally located geography, amazing tax benefits, and, besides that, very quick and efficient processes to start your business.

Dubai offers three main economic zones for business setup: Freezone, mainland and offshore. Out of these, one great option to choose is company formation in Dubai mainland where entrepreneurs enjoy unlimited business benefits.

If you are a beginner and want to be part of Dubai’s thriving business community, you are exactly where you should be. We will answer all your questions and help you fully understand UAE mainland company formation, along with the legal processes and requirements involved.

Meaning of Mainland in UAE

The mainland, also known as the onshore area, refers to the economic region in Dubai, which is governed by the prestigious Department of Economic Development (DED). This area lies outside the free zones and offers greater diversity and flexibility to companies operating in it. DED is also responsible for issuing Dubai mainland license to businesses.

Types of Business License Available in Dubai mainland

Essentially, you get these business license options in Dubai mainland:

• Commercial license: Issued to businesses trading goods and commodities, like retailing, distributing. It is also issued to import export business in Dubai.
• Professional license: Issued for providing professional and expert services such as consultation, IT services, legal services, accounting services, engineering, etc.
• Industrial license: Issued for permitting manufacturing, production, industrial activities, and related operations.
• Tourism license: Issues for operating in tourism and hospitality sector in Dubai such as running a travel agency in Dubai, etc.
• E-trader license: Issued to small and home-based entrepreneurs who want to sell products through social media and personal websites.

Advantages of Company Formation in Dubai Mainland

Starting a business on the mainland means securing long-term success as an investor. There are several advantages that company formation in Dubai mainland offers, including:
Wider business opportunities: There are over 2000 activities listed by DED from which you can choose.

• Business-friendly policies: Investor and startup-friendly policies make the setup process smooth and simple.
• Freedom to trade: You can enjoy unrestricted access to both local UAE and international markets.
• Thriving economy: Dubai’s flourishing economy accelerates the growth of businesses.
• Top-notch infrastructure: You gain access to modern and state-of-the-art facilities supporting every aspect of your business.
• Full ownership: On the mainland, for most activities, you do not need a local sponsor and can enjoy 100% ownership of your business.
• Corporate tax benefits: The tax-friendly structure and policies allow you to keep more of the profits you earn.
• Networking opportunities: Establish business links with the developed and modern business community of Dubai.
• Ideal location: Dubai’s strategic location helps you access a wide clientele and markets.
• Global talent pool: In the mainland, you can employ both local and foreign employees to meet your HR needs.

How to Open a Mainland Company in Dubai

When it comes to promoting global trade and expansion, the UAE government has left no stone unturned. The Department of Economic Development (DED) has made the process of company formation in Dubai mainland easy and straightforward.

Just follow a simple process, and you will enter a world of endless opportunities. Here are the steps you need to follow for mainland company formation in UAE:

Step 1 – Determine business activity:

Dubai offers excellent business opportunities for entrepreneurs. In fact, the Department of Economic Development (DED) lists over 2,000 activities across various sectors, including education, IT, agriculture, finance, marketing, retail, fashion, science, and more. You can choose single or multiple activities based on your intentions and preferences. Keep in mind that the activities you select will determine the type of license you need for your business.

Step 2 – Choose the legal structure of your business:

Dubai mainland offers several types of legal structures for businesses to choose from. The most common options include limited liability company (LLC), sole proprietorship, civil company, public/private shareholding company, branches of international companies, as well as holding companies. LLC company formation in Dubai is often preferred by entrepreneurs due to the exclusive benefits it offers.

However, the legal structure you choose has long-term implications for your business and should be selected with careful consideration.

Step 3 – Select and register trade name for your business:

Next, you will need to choose a unique and appropriate name for your company that reflects your business activities and complies with legal requirements. Remember, it should not contain morally or religiously offensive terms.

Additionally, make sure that the name has not been previously registered. You can check the availability of your chosen name on the DED’s official website. Selected name should be registered with DED.

Step 4 – Obtain initial approval from DED:

You must obtain the UAE government’s consent to proceed with establishing your business in Dubai. You need to secure a No Objection Certificate (NOC) from the DED. However, this does not mean you can start operating legally just yet. It allows you to proceed with the license application and other formalities.

Step 5 – Prepare the legal documents:

There are several documents you need to have ready for company formation in Dubai mainland, UAE. It is also important to get essential documents, such as the Memorandum of Association (MOA) and Articles of Association (AOA), notarized. For a sole proprietorship, you may additionally need a Local Service Agreement (LSA).

Step 6 – Find local agent or local sponsor, if needed:

Most activities in mainland Dubai do not require a local sponsor. However, there are still some that do. If you find that you need a local sponsor, it is essential to choose one who is trustworthy and reliable. Your local sponsor can be either a UAE based company or a UAE national and owns 51% stake in the business.

For most of the professional companies in mainland, you will need to partner with local service agent who does not own any share in your business but acts as a representative in government and administrative processes.

Step 7 – Choose a suitable office location:

Location plays a crucial role in attracting and targeting the right audience. It is advisable to choose office space that is well-suited for your business activities and meets DED requirements. The UAE’s mainland offers a variety of office space options for new business establishments, each catering to different needs and budgets:

• Virtual office space
• Leased office space
• Completely owned workspace
• Office building
• Workshop
• Warehouse

Typically, there are third-party service providers who offer fully furnished office spaces. If you rent office space, you will need to get the lease agreement registered on the Ejari portal.

Step 8 – Obtain any necessary external approvals:

For specific business activities, you need to obtain additional approvals from relevant government bodies. This may include activities related to the RTA, educational services, healthcare, travel, tourism, etc. You may need to work with the Ministry of Labour, Ministry of Municipality, Ministry of the Interior, Ministry of Justice, or some other body.

For example, to start real estate business in Dubai, you need approval from Dubai Land Department. Similarly, to start a healthcare business in Dubai, you need approval from Dubai Health Authority (DHA).

Step 9 – Apply and receive your mainland business license:

Finally, you must apply for Dubai mainland license with the DED. You will need to fill out and submit an application form along with the necessary paperwork and pay the associated fees. Be meticulous with your documentation, as incomplete or inaccurate paperwork can lead to cancellations and delays.

Step 10 – Create a business bank account:

In Dubai, it is mandatory to have a separate bank account for your business. Personal accounts cannot be used for business purposes. Therefore, choose a suitable bank to open a business bank account. Dubai is home to several world-class international banks, prestigious local banks, and digital banks.

Factors such as minimum balance requirements, interest rates, and available facilities will influence your choice. Once your account is set up, you can easily track and manage your business’s financial transactions and apply for additional services, such as a business credit card. Opening a bank account for non-residents and expats can be challenging, so we advise you to contact our consultants, who can guide you through the process.

Step 11 – Apply for the necessary visas:

This is the final stage. Now, you will need to sort out immigration and visas. As a foreigner, you will need a Dubai business visa to stay and work in the UAE legally. If you have staff, they will also require visas. Once you obtain your visa, you can sponsor your family as well. The process involves medical tests, background checks, and the submission of documents and applications.

Dubai Mainland Legal Structure Types

For your mainland business setup in Dubai, you need to choose a suitable legal form. Here are the types of legal structures allowed on Dubai mainland:

Sole establishment:

A single person solely can start and run a business on mainland in Dubai. A single person will become responsible for all the profits, liabilities and risks of the firm.

Limited liability company:

Shortly known as LLC, a limited liability company restricts the liability of its shareholders to the percentage of stake they hold in the company. Such companies can have a minimum of 2 and maximum of 50 shareholders.

Branch/representative office:

An existing foreign company or a GCC company can extend its branch to Dubai mainland by establishing a branch or representative office here.

Civil company:

Professionals belonging to same field can come together to start and run a civil company on Dubai mainland.

Holding company:

Holding company acts as a parent company that owns stake in other companies which are known as its subsidiaries.

Joint stock company:

A joint stock company can be a public or private company where the shares are bought and sold by the shareholders.

Documentation for Mainland Company Formation in Dubai

The documents required for company formation in Dubai mainland typically include:

• License application form
• Passport copy (with at least 6 months validity)
• Passport size photographs
• Initial approval receipt
• Trade name
• Lease contract copy
• MOA
• Additional government approvals, if needed
• LSA, if needed
• Business plan
• Bank statements
• NOC from local sponsor, if needed

Please note that documents required for company formation in Dubai mainland may vary depending on your specific business conditions. Contact our experts at Dubiz Business Setup for detailed information.

Dubai Mainland Company Formation Cost

The cost of mainland company formation in Dubai, UAE starts from AED 17,900* for a professional license. The LLC company formation in Dubai will cost you around AED 23,900*.

Please note that the mainland company setup Dubai cost depends on the kind of business, the services required etc. You can consult Dubiz to know more.

Start your Mainland Company with Dubiz

Company formation in Dubai mainland can help you achieve the success you have been dreaming of. With the right approach and mindset, you can easily capitalize on the numerous opportunities that mainland company setup in Dubai offers. And there is no better partner than Dubiz in achieving that. Dubiz is not just a service provider; we are your partner in success of your business setup in Dubai.

With over 7 years in the industry, we have gained extensive expertise in the UAE’s business landscape along with developing strong government ties. Our experts come from various fields and can assist you in every step of setting up your business in Dubai offering full range of Dubai mainland company formation services. We offer:

• Company registration in Dubai mainland
• Trade licensing
• Visa handling and renewals
• Vat and tax support
• Bank account assistance
• AML compliance and auditing
• Recruitment services
• Digital marketing support

Let us join hands and create something big together!

Contact Dubiz Business Setup Now:

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485 

📧 Email: info@dubiz.co

Frequently Asked Questions (FAQs)

1. What is mainland company in UAE?

Mainland company in Dubai and UAE refers to businesses operating in the areas outside free zones, that is, on onshore areas. Mainland businesses are regulated by Department of Economic Development (DED).

2. What is a mainland license in the UAE?

A mainland license in the UAE is a business license issued by DED to businesses that allows them to operate within the UAE and outside its borders.

3. What are the types of mainland business structures?

UAE mainland offers various types of legal structures that businesses can have:

• General partnership
• Limited partnership
• Limited liability company (LLC)
• Public joint stock company
• Private joint stock company
• Civil company
• Holding company
• Local/GCC/International company branch
• Sole establishment

4. Can I have 100% ownership of business in UAE mainland as a foreigner?

Yes, many business activities on the UAE mainland now allow complete foreign ownership. That means no hassle of finding a local sponsor!

5. Is the physical office mandatory for company setup in Dubai mainland?

Yes, all companies operating in Dubai mainland must have a physical office.

6. What types of business licenses are available in Dubai mainland?

There are broadly three main types of Dubai mainland license for businesses:

1. Commercial license
2. Industrial license
3. Professional license