Dubai Mainland serves as a premier destination for entrepreneurs and businesses endeavouring to establish a presence in the United Arab Emirates (UAE). Its strategic location, global connectivity, and advantageous business policies present unparalleled opportunities for growth. Furthermore, recent reforms facilitate 100% foreign ownership for the majority of business activities, enhancing its appeal as a location for starting a business. If you seek services for company formation in Dubai mainland, consult the team at Gatestone Group.

Foreign nationals can now attain full ownership and management of enterprises in Dubai and the United Arab Emirates. The regulations concerning mainland business setup in Dubai are overseen by the Dubai Department of Economy and Tourism (DET) formerly kwon as Department of Economic Development (DED). The DEDs of Abu Dhabi and Dubai have released lists enumerating over 1000 activities approved for business incorporation within Dubai and the UAE that allow for 100% foreign ownership following the recent amendment of the law. However, certain activities pertaining to setting up a company in Dubai may require a local partner, and they are as follows:

✔ Oil exploration and production
✔ Banking, financing, and insurance activities
✔ Commercial agency
✔ Blood banks, quarantines, and venom or poison banks
✔ Security and military services
✔ Pilgrimage and Umrah services
✔ Water and electricity provision
✔ Fishing and related services
✔ Post and telecom services
✔ Road and air transport
✔ Printing and publishing

In accordance with the UAE Companies Law 2022, it is imperative to consider certain legal factors for company formation in Dubai mainland. The incorporation of a business in this region presents a multitude of possibilities and opportunities for entrepreneurs; however, it simultaneously entails the obligation of comprehending and adhering to the legal framework established by the UAE government to ensure a seamless and successful business incorporation process in Dubai and the UAE.

1. Restrictions pertaining to foreign ownership may continue to apply to certain activities, thereby constraining the capacities of foreign investors.
2. Consider the significance of trademarks, copyrights, and patents.
3. Employment procedures, including the Involuntary Loss of Employment (ILOE) scheme and the Emiratisation regulations, both mandated by the Ministry of Human Resources and Emiratisation (MOHRE), require adherence to established guidelines.
4. Adhere to all regulatory requirements, including Economic Substance Regulations (ESR), Ultimate Beneficial Owner (UBO) identification, Tax Registration, Anti-Money Laundering (AML) measures, and Counter-Terrorism Financing (CFT) protocols, among others.
5. Position the terms of the shareholder agreement subsequent to discussions and negotiations.
6. For initial approval, the foreign shareholder must enter the UAE.
7. The minimum number of shareholders required must be met.
8. The maximum allowable number of shareholders must not be surpassed.
9. Any modifications to the company structure, Memorandum of Association (MoA), or any other documentation will necessitate formal amendments.
10. Conduct thorough research prior to formulating a plan for establishing a company in the UAE in order to comprehend the available options.
11. Engage with distinguished business licensing consultants in the UAE, such as Gatestone Group, to assist you in selecting the most appropriate activities and organizational structure for your business incorporation in Dubai and the UAE.

Sole Proprietorship

100% Foreign Ownership, A professional sole proprietorship can be owned by an individual.
The company can legally practice professional services anywhere in the UAE.

Branch Office of Local and Foreign Companies

Businesses with UAE or foreign registrations are permitted to open a branch in the Dubai Mainland. The parent company’s license must include multiple activities the branch must perform.

Civil Company

In the UAE, recognised professionals like doctors, engineers, and lawyers can establish a civil company with 100% ownership. The company is limited to professional services, requires no local sponsor, and can have a few managers. It must be set up by at least two qualified professionals, and foreign companies can invest only if they are in the same business activity.

Single-Person Limited Liability Company

An individual or corporate entity can establish and own a single-person LLC.

Limited Liability Company

A Limited Liability Company (LLC) comprises two to fifty shareholders. For foreign nationals and expatriates aiming to establish a new business in the United Arab Emirates, an LLC represents the most effective legal structure. Certain business ventures allow foreign investors to hold 100% ownership in an LLC.

Private Joint Stock Company

A Private Joint Stock Company in the UAE requires at least three investors and is suited for commercial and industrial activities, excluding professional businesses. It must appoint one manager and have a minimum capital of AED 2 million. A GCC national can own 100% of the shares, and the company can operate multiple branches under the main license.

Public Joint Stock Company

A Public Joint Stock Company (PJSC) must have a unique trade name and is required to have at least 10 founding members, with UAE nationals holding between 30% and 70% of the capital. A PJSC can engage in industrial, commercial, or professional activities in accordance with DED regulations.

Foreign Ownership Regulations and Sectoral Restrictions

The government of the United Arab Emirates has granted foreign nationals the liberty to establish businesses within the country with full ownership; however, restrictions remain applicable to companies engaged in the gas, oil, energy, and other specified sectors. Should your enterprise fall within this category, selecting a reliable Emirati national, either as an individual or a corporate entity, is imperative.

Available Commercial Activities from DET

The Department of Economy and Tourism in Dubai (DET) offers more than 2000 commercial activities, such as manufacturing, e-commerce, media, and agriculture.

Choosing a Legal Business Structure

This includes deciding on legal business structures such as sole proprietorship, public joint stock company (PJSC), limited liability company (LLC), branch of a UAE company, or foreign company.

Selecting a Company Name Aligned with UAE Regulations

This involves picking a name for your company that reflects your business’s mission and values. Both originality and compliance with UAE regulations are essential.

Obtaining Government Approvals for Business Setup

This entails starting the authorized government agencies’ approval process for company creation in the UAE while making sure the paperwork complies with legal standards.

Drafting Legal Documentation in Compliance with UAE Law

Gatestone Group’s in-house attorneys will draft your legal documentation in accordance with UAE legislation.

Meeting Office Space Requirements in Mainland UAE

It is imperative to adhere to the minimum office space requirements for business establishments in mainland Dubai and the United Arab Emirates when considering the lease of office space. A range of physical office options is available, including co-working spaces and flexible desks.

Acquiring Your Trade License from DET

You will obtain your trade license from DET following the completion of the necessary paperwork and adherence to the fundamental standards for establishing a business on the UAE mainland.

Corporate Tax and VAT Registration Requirements

If the business surpasses the threshold, the FTA mandates that UAE enterprises register for corporation tax and value-added tax (VAT).

Opening a Corporate Bank Account for Your Business

Upon the completion of your company setup service, you may proceed to register a corporate bank account for your enterprise. This step is crucial for engaging in any form of business activities within the country. Thanks to the expertise of Gatestone Group, your business can initiate operations swiftly, facilitated by a streamlined and efficient bank account setup process.

Visa Application Requirements and Guidelines

This includes following the customary guideline of 100 square feet per visa while applying for visas under the firm.