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.
Activities Requiring A Local Partner
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
Legal Considerations
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.
- Restrictions pertaining to foreign ownership may continue to apply to certain activities, thereby constraining the capacities of foreign investors.
- Consider the significance of trademarks, copyrights, and patents.
- 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.
- 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.
- Position the terms of the shareholder agreement subsequent to discussions and negotiations.
- For initial approval, the foreign shareholder must enter the UAE.
- The minimum number of shareholders required must be met.
- The maximum allowable number of shareholders must not be surpassed.
- Any modifications to the company structure, Memorandum of Association (MoA), or any other documentation will necessitate formal amendments.
- Conduct thorough research prior to formulating a plan for establishing a company in the UAE in order to comprehend the available options.
- 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.
Business Activities Under Dubai Mainland License
When setting up a business, Dubai is regarded as one of the most desirable locations. The primary factor driving the continual influx of investors and entrepreneurs is the simplicity of the process, which offers a multitude of profitable advantages. With a diverse array of options available, we at Gatestone Group assist you in selecting the activity that is most suitable for your mainland company formation in Dubai.
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
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.
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?
25+
Years Experience in the Middle East
500
Clients Worldwide
50+
Jurisdictions
250+
Projects Completed
100%
Customer Satisfaction Rate
98%
Client Retention Rate
FAQs
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.
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.
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
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
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.
The timeline depends on factors like business activity, approvals required, and documentation efficiency.
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.
Compliance involves submitting audited financial statements, license renewals, and adhering to changes in regulations. Non-compliance may lead to penalties or business suspension.
Yes, after obtaining the commercial license, mainland companies can open corporate bank accounts 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.
Yes, effective 1 June 2023, all mainland companies are subject to 9% Corporate Tax 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.
