• February 25, 2024
  • hussaifhussain
  • 0

Mainland business in Dubai refers to setting up a company or conducting business activities within the jurisdiction of Dubai mainland, as opposed to free zones or offshore areas. Mainland businesses in Dubai are regulated by the Dubai Department of Economic Development (DED). Setting up a mainland business allows companies to operate and trade directly within the local market and beyond, without the restrictions imposed on free zone or offshore companies, such as limitations on conducting business outside the designated zones or restrictions on certain types of activities. Mainland businesses can engage in a wide range of commercial activities and have the flexibility to lease office space anywhere in Dubai. They also have access to the local UAE market and can bid on government contracts.

Setting up a mainland business in Dubai involves several steps and considerations. Here are the details:

  1. Choose a Local Sponsor: In Dubai mainland, foreign investors are required to have a local sponsor, who is a UAE national or a company wholly owned by UAE nationals. The local sponsor must hold at least 51% of the shares in the company. However, the profit and management can be negotiated through legal agreements.
  2. Choose a Legal Structure: Businesses can choose from various legal structures such as Limited Liability Company (LLC), Sole Establishment, Civil Company, or Branch of a Foreign Company. The most common structure for foreign investors is an LLC.
  3. Trade Name Reservation: Before registering the business, it’s essential to reserve a trade name for the company. The name should be unique and comply with the naming regulations set by the DED.
  4. Prepare Legal Documents: Prepare the necessary legal documents, including Memorandum of Association (MOA), Article of Association (AOA), and other required documentation depending on the chosen legal structure.
  5. Submit Application: Submit the application for company registration along with the required documents to the DED. This process can typically be done online or through authorized service centers.
  6. Obtain Initial Approval: Upon submission, the DED will review the application and grant initial approval if all requirements are met. This approval allows the investor to proceed with the next steps.
  7. Lease Office Space: Mainland businesses are required to have a physical office space in Dubai. Lease a suitable office space that complies with the regulations set by the DED.
  8. Final Approval and Licensing: After securing the office space and fulfilling other requirements, submit the final documents to the DED for final approval and issuance of the business license.
  9. Visa Processing: Depending on the legal structure and size of the business, apply for residency visas for investors, employees, and dependents through the General Directorate of Residency and Foreigners Affairs (GDRFA).
  10. Open Corporate Bank Account: Once the business is licensed, open a corporate bank account in Dubai to conduct financial transactions related to the business.
  11. Compliance and Renewals: Ensure compliance with all local regulations and renew business licenses annually to maintain legality and continuity of operations.

Setting up a mainland business in Dubai offers several advantages such as access to the local market, the ability to bid on government contracts, and no restrictions on conducting business outside the designated areas. However, it’s essential to work with legal advisors or business consultants familiar with local regulations to navigate the process smoothly.


Leave a Reply

Your email address will not be published. Required fields are marked *


Typically replies within Hour