Company Formation

1. Choose your field of operation

Prior to forming a business on the UAE mainland, you must first choose the sector in which you will operate. The Department of Economic Development has a list of thousands of allowed business activities (DED). Trade, agriculture, hospitality, and manufacturing are a few of these. Mainland enterprises are permitted to engage in any of the more than 2000 DED-listed activities, in contrast to many free zone businesses that are limited to certain activities based on where they are located.

2. Choose the perfect location.

The next stage is to choose where you desire to operate after deciding on your company activity. There are no location limitations for businesses operating on the UAE’s continental territory. The ideal site will rely on a variety of elements, including your chosen company activity and your budget. Setting up shop close to one of the popular ports in the UAE, such as Jebel Ali, Mina Zayed, or Mina Khalid, makes ideal financial sense if your firm relies on imports and exports. The simplicity of building branch offices is another benefit of setting up a mainland firm in Dubai. This implies that companies are not constrained to a single place and can gradually establish a significant local presence.

3. Choose your company’s legal structure.

Legally speaking, international company owners are permitted to establish a variety of firms on the UAE mainland. A Limited Liability Corporation is the most typical type of company structure on the mainland (LLC). A limited liability company is a separate legal entity that has two or more shareholders. To establish a business in the UAE mainland, a firm must create an LLC if it want to engage in commercial or industrial activity (including manufacturing and industrial operations). You’d need a local sponsor for this. A professional service firm can be established without a foreign sponsor and with 100% foreign ownership. Next, more on this!

4. Find a local sponsor or service agent.

Foreign company owners could previously only run mainland businesses in Dubai by collaborating with a sponsor or a local service agent. If an LLC is operating under a commercial or industrial license, a local sponsor is necessary. Either a UAE citizen or a business with a UAE address can serve as your local sponsor. The local sponsor will hold 51% of the company in both scenarios.

A corporate nominee from Invest First can serve as your local partner. This safeguards you against any risks while enabling you to maintain complete operational and financial control over the company. The sole need for establishing a professional business on the mainland is a local service agent (LSA). The LSA will merely serve as a representation in all administrative interactions and with the government; it will not own any ownership interest in the company.

5. Provide your business name

One of the most crucial business decisions an entrepreneur can make is selecting a trade name for the firm that accurately represents your brand and professional beliefs. There are several things to take in mind before traveling to the UAE. It is not permitted to use offensive language, make religious allusions, or imply support for other organizations. Your business’s trade name may only contain entire names. All names for your company’s trade name in other languages must be stated as they are pronounced, not translated. Check out our article on Picking a Business Name in the UAE to learn about the rules for naming your business.

6. Get a mainland trade license

It’s time to contact the Department of Economic Development to request a mainland trading license. A trade license application requires a number of different papers. A few examples of these include a license application, a statement outlining sponsor agreements, the ownership split between all partners, and shareholder visas.

7. Find an ideal office space

It’s time to choose an office space after you have a business trade license. Serviced offices on the mainland of the UAE are often owned and managed by a third party and come fully furnished. Typical items include desks, phones, internet access, and reception services. Typically, your lease payment would include electricity costs, rent, and the usage of office supplies. A “shell and core” sort of office space is on the other extreme of the range. This often necessitates a complete fit-out and décor, adding fees on top of the rent. There is also a middle ground with pre-fitted offices where the business owner only supplies their own equipment and pays bills separately.

8. Submit a visa application.

Business owners in the UAE mainland are not subject to any restrictions when applying for visas. Nonetheless, the quantity of office space needed should be in line with the quantity of visas requested. The standard is 100 square feet of office or warehouse space per visa. There are certain situations when this may not be true. For instance, the demand for office space would be far less if the company was a household cleaning service with more than 500 workers who worked remotely than it would be for a textile or manufacturing firm. You will be allowed to sponsor dependents, such as family members and domestic employees (maids or drivers, for example), for their visas as the owner of a UAE mainland firm. Foreign company owners who establish operations on the UAE’s continental territory are also eligible for an investment visa, which allows them and their families to reside and do business in the country for up to two years.

9. Collaborate with a business consultant for company setup

A thorough grasp of the legal and business formation procedures is necessary to set up a mainland firm in the UAE. For international business owners, working with UAE-based business setup experts helps reduce the burden of starting a firm. A business consultant may work with you and comprehend your company’s objectives. This would give you more assurance that you may launch a prosperous business on the Dubai mainland.