The Ultimate Guide to Mainland Company Formation in Dubai & UAE

Mainland Company Formation in Dubai
Are you an entrepreneur considering a business setup in Dubai? The UAE offers a compelling business
landscape, with the “mainland” area being a prime choice for those seeking freedom to trade across the
Emirates. This comprehensive guide will walk you through the essential steps and benefits of obtaining a
mainland license Dubai and establishing your presence in this dynamic market.

What is a Mainland Business Setup in Dubai? A mainland business setup refers to a company registered
with the Dubai Department of Economy and Tourism (DET) and the UAE government regulators. Unlike
free zones, a Dubai mainland company can conduct business directly with the local market and engage in
a wider range of activities. Recent changes in the law, allowing 100% foreign ownership for most
business sectors, have made Dubai mainland company formation even more attractive.

Key Benefits of a Mainland Company Formation in Dubai:

  • 100% Foreign Ownership: For most business activities, you can now own your company without the need for a local partner or sometimes referred as sponsor.
  • Freedom to Trade: A mainland company gives you the flexibility to operate anywhere in the UAE and internationally.
  • Wider Range of Business Activities: Access to a broader spectrum of commercial such as retail store, industrial, professional, and tourism-related activities.
  • Low Corporate Tax Rate: The UAE's low corporate tax rate makes it a tax-efficient jurisdiction.
  • Simplified Registration: The process for setting up a company in Dubai has been streamlined for efficiency.

The Process of UAE Mainland Company Formation: The journey to a successful UAE mainland company formation involves several key steps:

Legal Considerations

  • 1
    Determine Your Business Activity: Define your business type to choose the correct license (e.g.,Commercial, Industrial, Professional).
  • 2
    Choose a Company Name: Select and reserve a trade name that complies with UAE regulations.
  • 3
    Submit Required Documents: This includes passport copies of shareholders, a visa copy, and a no-objection certificate (NOC) if you are on an existing visa.
  • 4
    Get Initial Approval: Obtain an initial approval from the DET.
  • 5
    Third party regulatory approval – if required
  • 6
    Secure Office Space: Find a physical address for your business.
  • 7
    Finalize Registration: Submit all documents for the final license issuance.
  • Why Choose a Business Setup in Dubai Mainland? Choosing a business setup in Dubai mainland is a strategic move for businesses aiming for a strong local presence and the ability to expand globally. The vibrant economy, world-class infrastructure, and business-friendly policies make setting up a company in Dubai a smart investment.

Business Activities Under Dubai Mainland License

Industrial License

Primarily given to companies that transform natural resources into products.
Industrial-related activities such as:
  • Production
  • Segregation
  • Accumulation
  • Packaging

Commercial License

Primarily given to companies engaging in buying and selling of goods, commodities, and related trade activities.
Generally specialised traders and businesses who engage in:
  • Retail
  • Construction
  • Real Estate Activities

Professional License

Primarily given to individuals or corporations that provide services and practices that rely on skills, talent, and ability.
Individuals working in:
  • Artisanship
  • Carpentry
  • Consultancy services
  • Medical services
  • Printing and publishing
  • Beauty salons
  • Repair shops
  • Security
  • Document clearing

Tourism License

Primarily given to businesses involved in tourism-related activities, such as tour operators, travel agencies, companies dealing with inbound and outbound travel, excursions and event management.
Types of licenses available:
  • Inbound tourism license
  • Outbound tourism license
  • Travel agency license

Business Structures Under Company Formation in Dubai Mainland

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.

Advantages of a Mainland Business Setup in Dubai

  • No requirement to have a local sponsor
  • Freedom to operate anywhere
  • Collaborate with governmental entities
  • The physical office must be on the mainland and have at least 200 square feet of space
  • There are no restrictions on currency
  • Easy bank account opening procedures
  • Mailand business setup in Dubai is straightforward to incorporate additional visas, thereby facilitating flexibility in expansion
  • Benefits of connecting with a vibrant local and international market network
  • The capability to engage in trade and commercial activities within and outside the UAE
  • No minimum capital is required for most activities
  • A streamlined and uncomplicated process for registration and company formation in the UAE
  • Minimum corporate tax with the exemption of 0% corporate tax for businesses with a taxable income less than AED 375,000
  • No income tax levied
  • World-class infrastructure
  • There is no withholding tax applicable to income

UAE Mainland Company Formation Procedure

UAE Mainland Company Formation Procedure

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.

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.

Types of Mainland Company Formation in Dubai
  • Limited Liability Company (LLC)
  • Public Joint Stock Company (PJSC)
  • Private Joint Stock Company
  • Branch of a Foreign Company
  • Representative Office
  • Civil Company

Documents Required from Shareholders

  • Initial approvals from DET
  • Passport copies
  • Copies of Emirates IDs
  • Notarised Memorandum of Association (MoA)
  • Proof of Address

Additional Documents Required

  • Parent company documents
  • Board resolution from the parent company
  • Power of Attorney (PoA) for the general manager

Why Gatestone Group for Mainland Business Setup In Dubai?

Why Gatestone Group for Mainland Business Setup In Dubai?

25+

Years Experience in the Middle East

457

Clients Worldwide 

50+

Jurisdictions

203

Projects Completed

100%

Customer Satisfaction Rate 

98%

Client Retention Rate

Frequently Asked Questions

Frequently Asked Questions

1. What are the common business structures to setup a business in Dubai and UAE mainland?
The common structures for mainland business setup in Dubai include Limited Liability Companies (LLCs) for small to medium-sized enterprises and branches of foreign companies. Larger enterprises can opt for Public or Private Joint Stock Companies.
2. Can foreigners own 100% of a mainland company in the UAE?
Yes, foreigners are allowed for setting up a business in Dubai and the UAE with 100% full ownership, based on the provisions of Federal Decree-Law no. (32) of 2021. However, specific activities may require a local partner.
3. What are the steps for mainland business formation in Dubai and the UAE?
The process of setting up a company in the UAE encompasses:
  • Selecting a business activity
  • Securing a unique business name
  • Obtaining local sponsorship
  • Drafting legal documents such as the memorandum of association
  • Gaining initial approval from the Dubai Economy and
  • Tourism (DET)
  • Leasing office space
  • Obtaining the necessary license
4. What are the types of licenses in Dubai and UAE mainland?
There are six main types of licenses in Dubai and UAE mainland:
  • Commercial license: For businesses that engage in trading activities and e-commerce license in Dubai and the UAE.
  • Industrial license: For businesses that are involved in manufacturing or processing activities
  • Professional license: For businesses that provide professional services
  • Tourism license: For businesses that operate in the tourism and hospitality sector
5. What is the minimum share capital requirement for a mainland company?
Share capital requirements vary based on the business activity and the emirate in which the company is established. It is typically specified during the licensing process.
6. How long does it take to setup a mainland company in Dubai mainland?
The timeline depends on factors like business activity, approvals required, and documentation efficiency.
7. Can a mainland company operate in any emirate in the UAE?
Mainland companies are initially registered in a specific emirate. If they want to operate in other emirates, additional approvals or branch offices may be required.
8. What are the ongoing compliance requirements for mainland companies?
Compliance involves submitting audited financial statements, license renewals, and adhering to changes in regulations. Non-compliance may lead to penalties or business suspension.
9. Is Value Added Tax (VAT) registration mandatory for mainland companies in the UAE?
Yes, businesses meeting the required turnover threshold must register for VAT. It is a standard practice for mainland companies engaged in taxable activities.
10. Are mainland companies subject to corporate tax in the UAE?
Yes, effective 1 June 2023, all mainland companies are subject to 9% Corporate Tax in the UAE.
11. What is Dubai Economic Department license in the UAE?
Dubai Economy and Tourism (DET), formerly known as the Department of Economic Development (DED) in Dubai is the government body responsible for regulating and promoting economic activities in the Emirate of Dubai. It is the main licensing authority for businesses operating in Dubai.

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