The mainland also known as the onshore area refers to the region in Dubai that is located outside the free zones and is governed by the Department of Economic Development (DED). Consequently, the DED oversees issuing the Professional/Services License, Commercial License, and Industrial License—the three types of mainland trade licenses.
The economic environment in the United Arab Emirates offers highly favorable circumstances for investors and business owners. Although the United Arab Emirates’ free zones could be better suited for specific endeavours, particularly when launching your firm, a mainland corporation gives greater diversity and flexibility, which will secure your company’s long-term success.
This blog is the ideal guide for beginners who wish to get acquainted with Mainland company formation in Dubai.
Benefits of Mainland company formation in Dubai
There are several advantages that a mainland company formation has to offer some of them are as follows:
- Networking: The strategic location of Dubai Mainland is ideal for establishing business links. This gives entrepreneurs a chance to enhance their business network.
- Ideal location: Dubai is known for its prime location allowing entrepreneurs to connect to a variety of markets and clientele.
- Global scope: A mainland company in Dubai gives entrepreneurs the opportunity to expand their business on a local as well as a global scale.
- No financial restrictions: In contrast to free zones, mainland businesses are not restricted by financial constraints on their business activities.
- Diverse workforce: When you establish a mainland firm in Dubai, you can employ both local and foreign employees to meet your needs.
- Flexibility and Freedom for Business: Businesses located on the mainland are free to engage in a variety of business activities. Due to this flexibility, business owners can find new revenue streams, vary their goods, and react swiftly to market needs.
Steps for mainland company formation in Dubai
To promote global trade and expansion, the Department of Economic Development has facilitated the process of establishing a mainland company and made it easy. You just need to follow a few simple steps to successfully start your company in Dubai mainland. Below mentioned is a guide for a mainland company formation.
- Determine business activity: Business owners in the Dubai mainland are free to select a license based on the nature of their business activity and the services they intend to provide. It is advisable that you select a license best suited to accommodate your specific as well as multiple business activities.
Selecting the appropriate legal jurisdiction that aligns with your business operations can be challenging. You must seek the help of professionals who will help you select the most suitable choice that fits both your budget and your company’s activities.
- Choose the legal structure of your company: Dubai Mainland offers several legal structures for companies to choose from. The most common choices include limited liability company (LLC), Sole proprietorship, civil company, and public or private shareholding company. An LLC is the most sought-after legal structure requiring two or more shareholders. Each company must follow certain regulatory standards based on its legal structure.
- Select a tradename for your company: Choose a unique and appropriate name for your company that is reflective of your business activities. Ensure that your chosen name falls in line with the UAE naming conventions. The name should not contain any offensive words that will hurt public sentiments.
You must also check that your chosen trade name is not already in use by another company. You can easily verify the availability of your chosen trade name on the website of the Department of Economic Development.
- Gather the necessary documents: There are a number of documents that are required for mainland company formation in Dubai. The most essential documents include:
- Copies of Shareholders passport
- Passport-sized pictures
- Entry stamp
- Memorandum of Association
(Please note that documents required for company registration will vary depending on the legal structure of the company.)
- the ideal location for your company: Location plays an important role is attracting and targeting the right audience. It is Choose advisable to choose an office space that is well-suited for your business activities and meets the DED requirements. The UAE’s mainland offers a variety of office space options for new business establishments, each meeting different needs and price ranges:
- Virtual office space
- Leased office space.
- Completely owned workspace,
- Office building
- Workshop
- Warehouse
- Acquiring a Mainland license: You must apply for your license to the DED or the appropriate authorities, depending on the type of business you do. Moreover, additional permissions from relevant government agencies are also needed for some commercial activities. Following the approval of your application, you will also need to pay the required fees for your license and any further permits.
- Create a bank account: To acquire a mainland license in Dubai it is important that you open a corporate bank account. It is a legal requirement in Dubai to separate personal and professional funds. The UAE is home to several world-class international banks, prestigious local banks as well as digital banks. This allows entrepreneurs to weigh the advantages and disadvantages of each bank and make an informed decision.
Cost of Mainland company formation in Dubai
The price to establish a mainland company in Dubai can vary depending on the kind of business, the services required, and the legal framework. The initial cost of establishing a mainland company in Dubai is 14,900* AED.
Begin your entrepreneurial journey today!
Starting a business 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 Dubai mainland offers to its inhabitants. Do you want to learn more about establishing a prosperous mainland business in Dubai? Schedule a free consultation with our specialists at DUBIZ.
For any queries contact our experts at info@dubiz
