Entrepreneurs and investors prefer Dubai for their company formation because of its investment versatility and strategic market location. A mainland company is a legal entity registered under the Dubai Economic Department (DED) and governed by the UAE commercial company law (Federal Law No. 2 of 2015). Dubai is a rapidly developing global marketplace with tons of promising investment opportunities. This has greatly contributed to the challenges encountered in forming a mainland company in Dubai.
Dubai mainland presents better advantages in terms of company expansion and investment opportunities as against the free zones in UAE. Mainland companies are permitted to trade anywhere in UAE or wider Gulf Cooperation Council (GCC) states.
How to Form A Company in Dubai Mainland?
What type of trade license the Mainland Company in Dubai can have?
1. Commercial license
The Commercial license is the most common trade license in Dubai, it includes all kinds of commercial activities, it can also include some professional activities, if approved by the Dubai Economic Department, the activities must be linked to each other, most investors choose the general trading activity, this allows them to practice multiple direct trading activities in one license, and enables them to import and export almost any product to Dubai, except trading of some products which requires approvals from other government departments such as jewelry, magazines and newspapers trading, the legal form can be sole establishment for locals and GCC nationals or LLC.
2. Professional license
3. Industrial license
4. Tourism license
What are the legal forms of a Dubai Mainland Company?
1. Sole Establishment:
2. One Person Company (LLC):
3. Civil Company:
4. Limited Liability Company (LLC):
The Limited Liability Company is the most common legal form in Dubai due to the various option of trading activity it provides. LLC is licensed to carry out industrial, commercial, professional and even tourism activities in Dubai. LLC must have between 2-50 shareholders. 51% share volume of a Limited Liability Company should mandatorily be owned by a local sponsor or partner who is a UAE national. The shareholder’s liability is limited to their extent of share in the company’s capital although investors retain maximum legal ownership of LLC in Dubai, LLCs can practice any industrial, commercial, professional or tourism activity.
5. Branch of a Foreign Company:
Many foreign organizations seek to open branch offices in Dubai because of its numerous trade benefits. A branch of a foreign company can practice professional activities including some commercial and industrial activities with a special permit from the Ministry of Economy. The company branch basically provide a branding service for the parent company and can also be involved in the provision of service and products in Dubai. The branch company must operate under the name of the parent company and provide the same services as the parent company. Foreign companies require the service of a local agent for the formation of a branch office in Dubai. The Local Agent will liaise with the government for the issuance of trade licenses and labor permits.
Benefits of A Branch Company:
6. Representative Office:
Foreign companies establish representative offices in Dubai for the sole purpose of promoting their activities. A representative office is not a business structure in its own, but rather a business activity that a foreign branch can conduct in the promotion of its products and services. A Local Service Agent is required in the formation of the representative office in Dubai. The contracted Local Service Agents represents the company in liaising with the government for obtaining licenses. Dubai government offers a 100% foreign ownership of this type of establishment. Foreign investors do not require local sponsor or partners in the formation of a representative office in Dubai.
Representative offices in Dubai are allowed to carry out commercial activities of the parent company only after due registrations and permit issuance from the following government authorities;
Representative office formation in Dubai requires serious paper works and important decision-making processes. With our full support and assistance, your representative office will be up and running in no time. Our many years of experience in Dubai mainland business setup will help us provide you with the best representative office setup strategy.
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The Required Documents to Set up a Mainland Company in Dubai
For individual Shareholders:
For Corporate Shareholders:
|Legal Form||Require MOA||Local Service Agent Agreement Required? (When no local partner present)|
|Individual Establishment (Sole Proprietorship)||No||Yes – Professional|
|One Person Company||Yes||NA|
|Limited Liability Company||Yes||NA|
|Private Shareholding Company (Private Joint Stock Co)||Yes||NA|
|Public Shareholding Company||Yes||NA|
|Simple Limited Partnership||Yes||NA|
|Branch of Foreign Company||Copy of the main company's MOA attested by Ministry of Foreign Affairs||Yes|
|Branch of Dubai Based Company||Copy of the main company's MOA||No|
|Branch of U.A.E. Based Company||Copy of the main company's MOA||No|
|Branch of GCC Company||Copy of the main company's MOA attested by Ministry of Foreign Affairs||No|
|Branch of a Free zone Company (commercial/industrial/professional– no local)||Copy of the main company's MOA||Yes|
Road Map to Starting Your Mainland Company in Dubai
When you decide to start a branch or setup a new company, picking the best business setup consultant in Dubai is just as important as any other process involved. Our business setup consultancy is a highly positioned company with many years of experience and skilled experts who are well abreast with the company formation procedures.The business setup in Dubai follows a number of steps which can be achieved in the shortest time frame with the proper assistance. The setup process includes:
This is a very important aspect of the business setup process. The quality of the name chosen will go a long way in telling your potential customers about your company and the services you render. This stage must be undertaken with patience as most good trade names have been taken or reserved. Picking out a trade name is an important aspect of the general guidelines necessary for the issuance authority.
One of the most important aspects when you decide to start a company in Dubai is finding a suitable company local sponsor who is professional and trusted to act as a nominee partner or local service agent.
This stage ensures the authorities awareness of your business and the verification of all required documents. All paper documents including passports copies, visa copies and NOC’s are submitted for verification. This stage also entails the signing and submission of application form for approval.
Finding an office space after the issuance of the initial approval is important for the company setup in Dubai. Depending on the type of license obtained, the office location and options available might vary. In a case where your license is a mainland license, more options such as the business bay and Sheikh Zayed road are available for the taking. The business centers in Dubai provide furnished offices with a rent including all utility bills.
This stage of the process requires all partners involved to sign a partnership agreement which includes a declaration of the company’s capital, shares and the profit of each partner. This agreement would be attested at the notary public. This procedure might differ depending on the type of license acquired.
After thoroughly vetting all submitted documents and fulfillment of all requirements, the DED issues the final payment voucher. After payments are made, your official business license will be issued and your company can legally operate in Dubai.