Are you thinking of starting a business in Dubai? Well, you have chosen one of the best business ecosystems in the world for your new endeavour. Dubai is more than a city of architectural marvels—it is currently the most vibrant ground for new businesses.
Business-friendly governmental policies benefit investors and entrepreneurs. There is no question that the Emirate has a lot of potential. The jurisdictions in the Emirate where you can set up your business are the Dubai mainland, free zones, and offshore.
If you’re enthusiastic about establishing your business in Dubai, this blog will outline the essential steps and information required to register a new business in the Dubai mainland.
What is Dubai Mainland?
Before exploring the different aspects, let’s first understand the the Dubai mainland. It is a legal jurisdiction regulated by the Dubai Economic Department (DED) and other government entities. You can conduct business with any country in the world with a mainland company. Additionally, you will need a local sponsor to start your business in Dubai mainland. In this case, the local sponsor will hold the majority of the share, which is a minimum of 51%. The sponsor can be an individual or a company.
The Process of Starting a Business in Dubai Mainland
Here are the steps to set up a company in Dubai Mainland:
Select a Business Category
The primary step in starting a mainland business in Dubai is selecting a business category. Some of them are listed below:
This type of business engages in commercial practices such as trading, wholesale, and retail distribution.
This type of business provides professional services such as accounting, legal advice, engineering, consultancy, IT, medical, and educational services.
These businesses engage in manufacturing or processing activities.
In addition to these categories, tourism, agricultural, and occupational categories exist on the Dubai mainland. It is mandatory to obtain relevant licenses for your business from the above-mentioned categories.
Choose a Business Structure
Dubai offers many business structures, and you can choose one that best fits your requirements. A suitable business structure will help you select a valid license. The different business structures offered are:
It is owned and managed by a single individual who takes full responsibility for the debts and liabilities.
In this structure, two or more entities (companies or individuals) come together to run a business, sharing profits and liabilities.
These are companies with shares sold to the public on a stock exchange platform, with UAE nationals owning at least 51% of them.
This type of business structure has multiple owners (shareholders) who have limited liability for business debts and are protected by their share investment.
This is similar to a general partnership but restricted to specific professional activities.
Register a Business Name
When setting up a business in Dubai's mainland, you must select a trade name that matches the services your business offers. When selecting the name, it is important to abide by local regulations and naming conventions.
Get an Initial Approval
At this point, you must obtain a no-objection certificate from the DED for starting the business. If you intend to set up a company dealing with commodities, securities, or legal services, you will require additional approvals.
Draft Memorandum of Association (MOA)
After receiving the approval, you must approach an authorized entity, such as the Department of Economic Development (DED), to assist with drafting the Memorandum of Association and signing the Local Service Agent Agreement (LISA). The specific requirements will depend on the business's legal structure.
Rent an Office Space
Renting office space is essential for establishing a mainland business in Dubai. Businesses must have a registered address, which can be a co-working space or, in some cases, a virtual office.
Obtain a Business Licence
After completing the steps mentioned above, you must submit all the necessary documents to the DED and finalize the required payments. Then, you can obtain your trade license in Dubai. Depending on the type of business you are establishing, you may need to apply for additional licenses from the relevant authorities.
Chamber Membership
Registration with the Dubai Chamber of Commerce and Industry (DCCI) and obtaining a membership certificate are compulsory steps to legally operate a business in Dubai mainland. The registration verifies the existence of the business. The following documents are required while registering with the DCCI:
- Passport copies of all the partners (not applicable for a sole proprietorship)
- Copy of Memorandum of Association
- Approval from external departments
- Name reservation Certificate
- Certificate of initial approval
- Tenancy contract
Also read about: 10 Simple Steps to Start a Business in Dubai as a Foreigner
Why BSW?
Starting a business in Dubai can be tedious for any new business owner. That's where we step in! We at Business Setup Worldwide (BSW) assist small, medium, and large businesses in setting up and expanding their ventures. We provide comprehensive support for establishing businesses in the Dubai mainland, offering services that range from company incorporation to business solutions such as accounting, payroll, visa processing, and more. Our team of experts specializes in business consultation and efficiently manages legal documentation. Contact us today for assistance in starting your business in Dubai.
