The Complete Guide to Forming a Mainland Company in Dubai

Setting up a mainland company in Dubai involves a detailed and structured process to ensure compliance with local laws and regulations. This guide will walk you through the essential steps required to establish and legally operate a business in the UAE's mainland, from choosing the right legal structure to obtaining all necessary licenses and approvals.

1. Determine Business Activity and Legal Structure

Business Activity: The first step is to clearly define the specific business activities that your company will engage in. This will dictate the type of license required. Different activities may come with different licensing requirements and regulatory frameworks.

Legal Structure: You'll need to choose the most suitable legal structure for your enterprise. Common options include Limited Liability Company (LLC), Sole Proprietorship, Civil Company, Branch of a Foreign Company, and Representative Office. Each has its own advantages and requirements.

2. Choose and Reserve a Trade Name

Your trade name, also known as business name, must be unique and comply with the naming conventions set by the Department of Economic Development (DED). You can reserve the name through the DED, ensuring it is not already in use.

3. Initial Approval

Application: Submit an initial approval application to the DED along with necessary documents, such as passport copies and a business plan. The application process ensures your business meets the foundational requirements to establish a presence in Dubai.

Approval: Upon successful submission, you will receive initial approval, which allows you to proceed with the formal setup process. This approval is crucial as it confirms your eligibility to set up your business.

4. Prepare Legal Documents

Memorandum of Association (MOA): Draft and notarize the MOA, detailing the ownership structure and business activities. This document outlines key information about your company's establishment and operations.

Local Service Agent Agreement: If you are appointing a local service agent, prepare an agreement with them. This ensures that a local entity acts on your behalf for certain administrative tasks and compliance requirements.

5. Secure Office Space

Lease Agreement: Securing a physical office space is essential for any company operating in Dubai. Obtain a tenancy contract and register it with Ejari, the official online rental contract registration system.

6. Obtain Approvals and Licenses

DED Licensing: Submit the final application to the DED, including all required documents, such as the MOA, Ejari certificate, and initial approval. The DED will review your application and issue the necessary licenses. Some businesses may require additional approvals from relevant authorities, such as the Dubai Municipality or Dubai Health Authority.

7. Business License Issuance

License Fee: Pay the applicable license fees as per the DED's guidelines. Trade License: After payment, you will receive a trade license from the DED, formally permitting your company to operate in Dubai.

8. Open a Corporate Bank Account

Bank Account: Open a corporate bank account with a bank in Dubai. Provide the necessary documentation, such as your trade license, MOA, and passport copies, to prove your company's legitimacy and official status.

9. Visa Processing

Establishment Card: Apply for an establishment card from the General Directorate of Residency and Foreigners Affairs (GDRFA) to facilitate the onboarding process for your company. This card serves as proof that your company is officially established and legally recognized.

Employment Visas: Obtain employment visas for your shareholders, employees, and dependents. Ensure that all visa application forms and supporting documents are submitted to comply with immigration regulations.

Summary of Required Documents

Trade Name Certificate: AED 600 - AED 1500 Initial Approval Certificate: AED 1200 - AED 3000 Memorandum of Association (MOA): AED 2000 - AED 5000 Local Service Agent Agreement (if applicable): Fees vary Tenancy Contract and Ejari Certificate: Varies depending on location and size, AED 20000 - AED 100000 annually Passport Copies of Shareholders and Managers: Required as supporting documents for various procedures Visa Application Forms and Supporting Documents: Required for obtaining employment visas Proof of Paid Fees: Documentation for all relevant fees

Summary of Costs Involved

The overall cost of forming a mainland company in Dubai will vary based on the specific services you need and the size of your operation. Some key cost areas include:

Trade Name Reservation: AED 600 - AED 1500 Initial Approval: AED 1200 - AED 3000 MOA Notarization: AED 2000 - AED 5000 Office Space: AED 20000 - AED 100000 annually Trade License Fee: AED 10000 - AED 15000 Visa Fees: AED 3000 - AED 5000 per visa

Conclusion

Navigating the complex process of establishing a mainland company in Dubai can be challenging, but it is crucial for businesses looking to launch operations in the UAE's mainland. By following these steps and ensuring thorough preparation, you can successfully establish your company and operate legally within Dubai and the wider UAE market. The assistance of business setup consultants can further streamline this process, providing valuable expertise and guidance every step of the way.