DUBAI MAINLAND

dubai mainland company formation in uae

DUBAI MAINLAND COMPANY FORMATION

Dubai mainland company formation refers to the process of setting up a business in the mainland area of Dubai, which is governed by the Dubai Economic Department (DED). This type of company formation is a popular choice for businesses that want to operate in the local market and have access to a wider range of business activities. When choosing the best place to open a business in Dubai mainland, it’s important to consider factors such as location, accessibility, and cost to ensure that you find the right fit for your business needs.

Hassle-free and affordable company setup solutions for new companies in Dubai Mainland

There has never been a better time to setup a Mainland company in Dubai. The UAE government’s new company laws, flexible regulatory procedures, quick timelines, and easy approval processes have made the Mainland License a favorite choice amongst the region’s start-up community and investors. According to the new FDI laws, one does not need a local sponsor to launch their company, denoting expats can now own 100% of the onshore company.

Advantage Of Dubai Mainland Company Formation

  1. Access to a wider range of business activities: Companies formed in Dubai mainland have access to a wider range of business activities, including trading, manufacturing, and services.
  2. No restrictions on the location of business: Unlike free zones, companies formed in Dubai mainland can operate anywhere in the UAE, giving them greater flexibility in terms of location.
  3. No restrictions on the number of visas: Companies formed in Dubai mainland can apply for as many visas as required, subject to meeting the relevant criteria.
  4. No minimum capital requirement: There is no minimum capital requirement for companies formed in Dubai mainland, making it easier and more cost-effective to start a business.
  5. Tax Benefits: While Dubai does not impose corporate or personal income tax, there are specific taxes, such as the Value Added Tax (VAT), that may apply. However, the absence of corporate income tax is a significant advantage for businesses operating in Dubai mainland.
  6. Access to local market: Companies formed in Dubai mainland have access to the local market and can trade with other companies in the UAE.

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    How To Start a Company In Dubai Mainland

    Choose A Business Activity

    The first step is to choose a business activity that is permitted in Dubai mainland. This can be done by consulting the Department of Economic Development's (DED) list of permitted activities.
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    Step 01

    Choose A Legal Structure

    The next step is to choose a legal structure for your company. This can be a sole proprietorship, partnership, or limited liability company (LLC).
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    Step 02

    Choose A Trade Name

    You will need to choose a trade name for your company that is not already registered with the DED.
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    Step 03

    Obtain Initial Approval

    You will need to obtain initial approval from the DED for your company's business activity and trade name
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    Step 04

    Draft the Memorandum of Association

    The MOA is a legal document that outlines the company's objectives, activities, and ownership structure. It must be drafted in Arabic and submitted to the DED for approval.
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    Step 05

    Obtain A Business License

    Once the MOA is approved, you can apply for a business license from the DED.
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    Step 06

    Register for VAT

    If your company's annual turnover exceeds the threshold for VAT registration, you will need to register for VAT with the Federal Tax Authority (FTA).
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    Step 07

    Register For Social Security

    You will need to register your employees for social security with the General Authority for Pension and Social Security (GAPSS).
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    Step 08

    Get Additional Approvals

    Depending on your business activity, you may need to obtain additional approvals from other government departments, such as Dubai Municipality, SIRA, DHA, DLD etc .
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    Step 09

    Best Places to Open a Business in Dubai

    When it comes to choosing the best place to open a business in Dubai mainland, there are several factors to consider, including location, accessibility, and cost. Here are some of the best places to open a business in Dubai mainland

    License type and Business Activity under Dubai mainland

    Industrial License

    Industrial license in Dubai mainland is for companies involved in manufacturing and industrial activities.
    Activities under an industrial license include manufacturing, assembling, packaging, processing, and production of goods.
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    Commercial License

    Commercial license is suitable for trading activities, including import and export, retail, and distribution.
    Activities under a commercial license include wholesale trading, retail trading, e-commerce, food and beverages, textiles, electronics, and more.
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    Professional License

    Professional license is for professionals, service providers, craftsmen, and artisans.
    Activities under a professional license include consultancy, auditing, legal services, medical and healthcare services, engineering services, marketing services, information technology services, and more.
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    Tourism License

    Tourism license allows various activities such as operating travel agencies, tour operators and managing hotels.
    Activities under a tourism license include Travel agencies, tour operators, event management companies.
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    Frequently Asked Questions (FAQ)

    A Dubai mainland company is a business entity that is registered and operates within the boundaries of the Dubai mainland, as opposed to free zones or offshore areas.

    The procedure for setting up a mainland company in Dubai involves several steps such as obtaining initial approval, selecting a legal structure, registering the trade name, drafting the Memorandum of Association (MOA), obtaining necessary approvals and licenses, and finally, registering with the Department of Economic Development (DED).

    Foreign individuals or companies can own 100% of a mainland company in Dubai by setting up a professional or industrial license through specific legal structures, such as a civil company or a limited liability company (LLC) with corporate shareholders.

    The legal structures available for mainland companies in Dubai include a sole establishment (only applicable to UAE nationals), civil company (partnership between UAE nationals and expatriates), limited liability company (LLC), branch office, representative office, and private joint-stock company.

    The time required to set up a mainland company in Dubai can vary depending on factors such as the complexity of the business activity, obtaining necessary approvals, and completing the documentation. On average, it can take anywhere from a 1 day to a few weeks.

    The minimum capital requirement for a mainland company depends on the business activity and legal structure chosen. For instance, an LLC typically requires a minimum capital of AED 100,000, while professional licenses usually do not have a specific minimum capital requirement.

    The cost of setting up a mainland company in Dubai can vary between AED 10,000 – AED 35,000 depending on various factors such as the legal structure chosen, the size of the company, the business activity, and the professional fees associated with consulting and support services.

    Yes, you can apply for a mainland company setup in Dubai remotely, without physically visiting Dubai. Contact Just Probiz Documents Clearing services for professional business setup and we can guide you through the process and handle the documentation and submission on your behalf.

    Yes, it is possible to change the business activity after the mainland company formation process. This can be done through a formal amendment process, which involves updating the company’s MOA, obtaining necessary approvals, and ensuring compliance with the regulations and requirements related to the new business activity.

    The tax rate is set at 9%, which applies to all mainland companies with a taxable profit of more than AED 375,000. However, not all companies have to adhere to this policy. There are many exemptions from the corporate tax. These mainly include small businesses, free zone companies, and government entities.

    Yes, you can have multiple business activities under one mainland company. The business activities should be listed in the company’s MOA and authorized by the licensing authorities. It is important to ensure that the activities are compatible and within the legal framework.