Business

9 Quick Steps to Register a Mainland Company in Dubai

Dubai is a bustling economic hub that has carved its niche as an international destination for entrepreneurs. Entrepreneurs and investors are attracted by the strategic position, tax advantage, and better infrastructure of the city. A Dubai mainland company establishment provides direct access to a local market and freedom for business operation in all parts of UAE.

The thing is, whenever you’re opening a mainland company in Dubai, you have to understand just how the registration is completed. In this blog, you will get a full, step-by-step guide to take you through the journey.

What is a Mainland Company?

A mainland company in Dubai is licensed by the Department of Economic Development (DED), and it has permission to operate throughout the UAE without restriction.

Unlike free zone companies, a mainland company can trade directly to the local market, and its activities are not restricted to certain zones or areas. This thereby makes them the most attractive choice for entrepreneurs who want maximum operational flexibility.

Benefits of Registering a Mainland Company in Dubai

First of all, let’s take a closer look at the key benefits awaiting every businessman after setting up a mainland company in Dubai:

1. Market Accessibility: You are free to operate freely within the UAE and also with other nations.
2. Foreign Ownership: Recent reforms have allowed complete foreign ownership in many sectors, reducing reliance on local sponsors.
3. Tax Advantages: Dubai has an attractive tax regime with no corporate or personal income taxes for most businesses.
4. Strategic Location: Dubai is literally a gateway to the world that offers unparalleled connectivity across Europe, Asia, and Africa.
5. Infrastructure and Support: Advanced infrastructure alongside a supportive business ecosystem creates an ideal environment for development in the city.

How to Register a Mainland Company in Dubai?

Steps that need to be followed in order to register a Mainland company in Dubai are as follows:

➢   STEP 1. Identify Your Business Activity

• The first step in setting up a mainland company is to determine your business activity. The DED recognizes more than 2,000 economic activities, which fall under commercial, industrial, and professional categories.
• Every business endeavour may have different requirements in terms of approvals, permits, and licenses.
• Let your long-term business goals align with the choice you made, and consult professionals if needed.

➢   STEP 2. Determine the Business Structure

Among major decisions that will affect your operations like the extent of liability, and compliance requirements, choosing the right business structure comes on top. The following are some common structures of business:

• Limited Liability Company (LLC): Ideal for businesses seeking local market access.
• Sole Establishment Registration: This is suitable for individual ownership of professional services.
• Branch Office: This offers foreign companies establish their presence in Dubai.
• Civil Company: This is designed for professionals such as doctors, lawyers, and engineers.

Your decision will depend on the number of shareholders, the nature of the business, and the capital requirements.

➢   STEP 3. Choose a Trade Name

Choosing a trade name is a major decision because it identifies your company, but the name has to be within the following parameters set up by DED:

• It should not contain any offensive language or inappropriate terms.
• It must reflect the nature of your business activity.
• It cannot include the names of government entities or external bodies.
• The trade name should be unique and not already registered.

Once you have narrowed down your choice, the selected name should be submitted to the DED for approval.

➢   STEP 4. Apply for the Initial Approval

You will need to acquire initial approval from DED before proceeding with the other steps, which merely means that the government should not have any objection to your idea of the business. Documents required for this process:

• Copies of shareholders’ and managers’ passports.
• A duly filled Application form.
• Details of the proposed business activity.

Receiving this approval is a mandatory step that confirms your eligibility to proceed.

➢   STEP 5. Draft a Memorandum of Association (MoA)

Most of the mainland companies, particularly LLCs, need to prepare the Memorandum of Association. It defines the ownership structure of the company, the way the capital will be divided, and the rules and regulations that define the operations of the company. Key Inclusions are:

• Names and roles of shareholders.
• Percentage of the Ownership.
• Scope of Business Operation.

You might need to involve a lawyer who will help make the MoA compliant with local regulations.

➢   STEP 6. Secure a Location for your Business

Every mainland Dubai company has to have a physical address. This means you are either going to rent or buy office space that would suit the business activity you have chosen. Factors you are bound to Consider:

• Premises size and location.
• Proximity to clients and suppliers.
• Accessibility to employees.

The lease agreement shall be attested through Ejari, Dubai’s online system, for the registration of rental contracts.

➢   STEP 7. Obtain a Business License

It is actually the most crucial document that legalizes your operation in Dubai. The type of license will depend on your business activity:

• Commercial License: The license for the trading, importing, and exportation of goods.
• Industrial License: This license is required for manufacturing and industrial operations.
• Professional License: It covers those businesses offering professional or consultancy services.

The license is issued by the DED when all approvals and documentation are in place.

➢   STEP 8. Register for Value Added Tax (if applicable)

If the turnover of your firm exceeds the designated threshold for annual turnover, your company should register with the Federal Tax Authority for Value Added Tax. Do this to comply with all kinds of taxes. Otherwise, this can attract penalties.

➢   STEP 9. Opening a Corporate Bank Account in Dubai

Open a current corporate bank account with any reputable financial institution in Dubai to facilitate business transactions. Documents required for this process include:

• Trade license
• MoA
• Copies of the passports of the shareholders.
• Initial approvals and proof of address.

Look for a bank that aligns with your business needs and offers services such as foreign currency accounts and international transactions.

Documentation Checklist for Mainland Company Registration

Below is a comprehensive list of documents that are usually required during the process of Mainland company registration in Dubai:

1. Photocopies of shareholders’ and managers’ passports.
2. The initial receipt of the approval.
3. MOA and attested Lease Agreement.
4. Filled-in application forms.
5. approval certificate for Trade Name registration.
6. Business plan (if required for certain activities)
7. Specimen signatures of the managers and the shareholders.
8. Proof of financial standing (if applicable)

Regulatory Considerations for Mainland Business Setup

Compliance with local law and regulation is very crucial to the smooth operation of your mainland company. The regulatory considerations for Mainland business setup include:

• Renewing your trade license annually.
• Ensuring that the salaries of employees are paid with a guarantee and in due time via the Wage Protection System (WPS).
• Filing the Value Added Tax returns, if applicable.
• Adhering to UAE’s labour laws and immigration policies.

Challenges and Solutions during Mainland Company Formation

While Dubai has a business-friendly environment, the process of Mainland company formation may be quite cumbersome for beginners. Common challenges faced by many include understanding the legal requirements, obtaining approvals, and overcoming cultural barriers.

In order to overcome these challenges, the business must consider the following:

• Hiring business setup consultants who are familiar with the local landscape.
• Engaging legal professionals to assist with documentation and compliance.
• Utilize the online resources and facilities provided by the DED.

To Wrap Up

Setting up a company on the mainland in Dubai can be a really strategic move for your business, hence opening up opportunities. The steps above will guide you through a smooth setup of your firm, positioning your business for success in one of the most active markets in the world.

From choosing the right structure and activity down to obtaining needed approvals and licensure, these are all meaningful milestones that place a foundation of importance for your venture to build upon.

Nonetheless, the incorporation of streamlined procedures and strategic benefits that Dubai boasts, along with infrastructural support, is what makes this destination ultimate for every other entrepreneur/investor moving towards the region for setting up business entities. Get expert assistance from Enterslice by visiting our official website https://enterslice.com/.

Frequently Asked Questions