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Dubai Business Setup

Dubai Mainland, the beating heart of the UAE’s commercial landscape, offers a compelling proposition for company formation. Known for its strategic geographic location, dynamic economy, and business-friendly regulations, Dubai Mainland provides companies with access to lucrative markets, a robust infrastructure, and a thriving business ecosystem.

It enables entities to trade directly with the booming UAE market without the requirement of a local distributor, offering unrivaled business opportunities and facilitating seamless growth. Its reputation as a global business hub and the flexibility it affords in business operations make it an appealing destination for entrepreneurs and business owners looking to establish a firm foothold in the Middle East market.

Setting Up a Business in Dubai: Steps

Dubai Mainland is highly coveted as a business destination, attracting entrepreneurs worldwide. Its appeal lies in the multitude of benefits it offers, such as tax exemptions, a business-friendly government, strategic location, and much more. However, before embarking on the journey of setting up a company on the Mainland, it is crucial to navigate through the various rules and regulations. Here are the essential steps you need to take for mainland company formation in Dubai.

Choose the Right Business Activity & Structure

To initiate a Mainland business setup in Dubai, the initial step is to determine the nature of your business activity and determine business structure. The business structure choices include LLC company formation in Dubai, Sole Proprietorship, Private Shareholding etc.

Find a Local Sponsor

To set up a business in the UAE, one of the crucial steps is finding a local sponsor. In Mainland, it is a requirement for foreign businessmen to have a local sponsor who holds a minimum of 51% of the company shares. This sponsor plays a role as a silent partner.

Select Trade Name and Acquire Initial Approval

Next, you will need to obtain initial approval from the relevant authorities and carefully choose a trade name. It is crucial that your trade name is unique to ensure its approval.

Prepare the MOA or LSA agreement

To proceed, it is necessary for you to draft a Memorandum of Association (MOA) and a Local Sponsor Agreement (LSA), followed by notarization of both documents.

Acquire Tenancy Contract

The next step would be to acquire a tenancy contract for your business address. As company formation consultants in Dubai, this is also something we can help with.

Receive Additional Approvals

You will need to obtain the necessary approvals from the relevant government departments. Keep in mind that various business activities may necessitate different approvals.

Submit Documents to DED and Receive Trade License

To obtain your business license in Dubai, you must submit all the necessary documents to the Dubai Economic Department (DED). Once you have submitted the required documents and paid the fees, your business license will be issued to you.

Documents Required for Setting Up a Company in Dubai

  • License Application
  • Attested LLC agreement
  • Required governmental forms
  • Name reservation and initial approval certificates
  • External departments approval
  • Tenancy contract
  • EJARI registration certificate
  • Copy of NOC for partners
  • Dubai Chamber of Commerce and Industry Registration

Advantages of Business in Dubai Mainland

The benefits of setting up a business in Dubai Mainland are numerous, including:

  • Access to premium office spaces designed to cater to varying business needs.
  • Complete freedom to manage and operate your business with minimal restrictions.
  • A strategic geographical location serving as a gateway to global markets.
  • Exemptions from corporate tax, promoting economic growth and stability.
  • Personal income tax exemptions, allowing for greater disposable income for employees.
  • Low cost business setup in Dubai is possible.
  • Absence of currency exchange restrictions, facilitating smoother and more efficient financial transactions.
  • Improved business opportunities in a thriving and diverse marketplace.
  • An optimistic business atmosphere that fosters innovation and encourages growth.
  • A hassle-free business set-up process due to streamlined procedures and supportive government policies.

Dubai Business Setup FAQs

Can we select any trade name for our business in Dubai Mainland?

Your chosen trade name must be unique and acceptable by the relevant authorities in Dubai. It is crucial to ensure that the name is not already in use or offensive to cultural sensitivities.

What is the importance of a Memorandum of Association (MOA) in setting up a business?

An MOA is a legal document that outlines the key operational aspects of your business, such as business objectives, share distribution, and the roles and responsibilities of shareholders. It is required for the business setup process.

What is the EJARI registration certificate?

EJARI is a system that ensures rental agreements are accessible to involved parties in a legal format. The registration certificate is proof that your rental agreement is logged in the EJARI system, a requirement for obtaining a license.

Which external departments will I need approval from during the business setup process?

The specific departments vary based on your business activity. Some activities might require approval from the Ministry of Health, the Ministry of Economy, or other relevant bodies.

How long does it take to receive a trade license?

The timeline varies based on the type of business activity and the timeliness of document submission. However, once all necessary documents have been submitted and the fees paid, the process is typically swift.