You are currently viewing What are the Procedures For Mainland Company Formation in Dubai?
  • Post published:November 29, 2023

Dubai plays an important role as one of the most inviting locations in the Middle East for investors and company owners trying to start or grow their businesses. Damaar Business Consultants assists with the best service for entrepreneurs and investors. We ensure effortless and the most convenient service for business setup in Dubai for all kinds of businesses.

Dubai became a dreamland by possessing a diversified market, excellent infrastructure, a stable economy, a prime location, supportive authorities that promote innovation and business activity, and more. There are different types of business entities and licenses that you need to consider, depending on your business activity, legal structure, ownership, and location. Keep reading to understand more about mainland business and the procedures for mainland company formation in Dubai.

The Ins and Outs of Mainland Business in Dubai

The mainland company is one of the most prominent varieties of commercial enterprises in Dubai. A mainland firm is licensed under the Department of Economic Development of Dubai. Moreover, mainland businesses are free to operate anywhere in the United Arab Emirates or abroad. A mainland business can bid on government contracts and provide services to other mainland or free zone businesses.

Making the right choice for business in Dubai

You might have heard about the Mainland and Free Zone possibilities Dubai offers for businesses. Mainland businesses, as aforementioned, can operate anywhere in the UAE, both locally and internationally. Free Zone companies require intermediaries to perform some of their business activities along with other limitations. Beyond all the benefits, mainland company formation in UAE comes with several obligations and responsibilities that need to be taken care of.

Procedures in Company Formation

Anyone interested in forming a mainland company in Dubai needs to follow certain procedures and requirements that vary depending on your business activity and legal form.

Choose the business activity

Selecting the type of business activity you wish to execute in Dubai is the first move. There are well over 2,000 company options available, spanning from occupational services to manufacturing, commerce, consultancy, tourism, and agriculture.

The kind of license you need to apply for from the DED depends on the kind of business activity you undertake. Types of licenses according to the business activities include:

  • Commercial license – Trading or buying and selling of goods.
  • Industrial license – Manufacturing or industrial activities.
  • Professional license – Professional services such as consultancy, education, health care, etc.
  • Tourism license – Tourism-related services such as travel agencies, hotels, restaurants, etc.
  • Agricultural license – Agricultural activities such as farming, animal husbandry, etc.
  • Occupational license – Personal services such as tailoring, beauty salons, etc.

Select a legal form

The next step is to select a legal form for your mainland company. The legal form refers to the structure and ownership of your company. Besides, this also determines your rights and liabilities as a business owner. You need to select a legal form that suits your business needs and objectives. You also need to consider the ownership requirements for each legal form. You can select one from the following legal forms:

  • General partnership
  • Limited partnership
  • Public joint stock company (PJSC)
  • Private joint stock company (PrJSC)
  • Limited liability company (LLC)
  • Civil company
  • Sole Establishment
  • Holding companies.
  • Local company branch
  • Foreign company branch
  • Free zone company branch
  • GCC company branch

Register the trade name

Getting your mainland company’s trade name registered is the third stage. Trade name uniquely defines your company and sets it apart from competitors in the market. You must select a trade name that accurately represents your company activity and legal structure while abiding by DED guidelines.

You can check the availability of your desired trade name and reserve it online through the DED’s website or app. A charge needs to be paid for trade name registration and renewal. The reservation of a trade name is valid for six months and can be renewed for another six months.

Apply for initial approval

The initial approval is a document that confirms that the DED has no objection to you starting your business in Dubai. Before receiving the first clearance, foreign investors must receive clearance from the General Directorate of Residency and Foreigners Affairs.

Prepare the Memorandum of Association or Local Service Agent Agreement

The Memorandum of Agreement (MOA) is a legal agreement that describes the relationship between your company’s partners or owners and outlines their rights, obligations, and responsibilities. The LSA is a legal instrument that specifies your relationship with your Local Service Agent and describes their function and responsibilities.

The MOA or LSA must be drafted in line with the DED’s norms and regulations and authorized by a public notary in Dubai. Along with your first approval certificate, you must also submit a copy of the MOA or LSA to the DED.

Select the business location

The actual premises in which you will be carrying out your company’s activities are referred to as the business location. You must select a business location that fulfills the needs of your company activity, legal structure, and license category.
You also need to obtain a tenancy contract or an Ejari certificate from your landlord or property owner that proves your right to use the business location.

Get additional government approvals

You need to obtain additional permissions from the authorities. Various government permissions from the appropriate departments are required based on your company activity, legal structure, and kind of license. For instance, you must obtain permission from the Ministry of Energy and Infrastructure to carry out an industrial operation. Likewise, the Dubai Health Authority must give its clearance before you may carry out any medical activities.

Submit documents and collect your license

To register a mainland business in Dubai, you must submit the necessary paperwork and pay the associated costs. Depending on your company activity, legal form, kind of license, and location, various expenses are applicable. The DED will issue you a mainland company license after you complete all the necessary paperwork and pay the required costs.

You can set up your business in the mainland of Dubai effortlessly by collaborating with experts in Damaar. Our experts will help you all the way to acquire your business license in Dubai.