Introduction: Dubai Mainland Company Setup
Setting up a company in Dubai Mainland offers businesses a strategic advantage in one of the world’s most dynamic and thriving markets. Dubai Mainland company setup is highly favored by entrepreneurs due to its unrestricted access to the local market, as well as international reach. Unlike free zones, mainland companies can trade freely within Dubai and across the UAE, engage in a wider range of business activities, and benefit from government contracts. The process of company setup in Dubai Mainland is streamlined and supported by Dubai’s progressive regulations, making it an attractive option for both new and established businesses.
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One of the key benefits of Dubai Mainland company setup is the ability to operate without limitations on the number of visas, allowing businesses to scale their operations seamlessly. Additionally, the mainland company setup in UAE offers flexibility in choosing office locations, from high-visibility spots in bustling commercial areas to quieter, more cost-effective locations. However, understanding the mainland company setup cost in Dubai is crucial, as it involves various fees, including licensing, local sponsorship, and government approvals.
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Documents Required for Dubai Mainland Company Setup
Setting up a company in Dubai Mainland, involves a series of procedural steps that require specific documentation. Having all the necessary documents prepared in advance can streamline the process and avoid any delays. Below is a comprehensive list of the key documents required for Dubai Mainland company setup:
- License Application: This is the official form submitted to the Department of Economic Development (DED) for initiating the company registration process.
- Attested Memorandum of Association (MOA): A legal document outlining the structure, activities, and ownership details of the company, which must be attested by a Notary Public.
- Governmental Forms: Specific forms required by the DED and other relevant authorities for the business setup process.
- Name Reservation Certificate: A document confirming the approval and reservation of the company’s trade name.
- Initial Approval Certificate: This document is issued by the DED, granting preliminary approval to proceed with the business setup.
- External Approvals (if required): Depending on the nature of the business activities, approvals from external departments or ministries may be required.
- Tenancy Contract: A lease agreement for the office space, which must comply with the DED’s requirements.
- EJARI Registration Certificate: The tenancy contract must be registered with EJARI, Dubai’s online system for registering lease agreements.
- Copy of NOC for Partners: If any of the partners are on a work visa, a No Objection Certificate (NOC) from their current employer will be required.
- Dubai Chamber of Commerce and Industry Registration: Mandatory registration with the Dubai Chamber for the company to engage in commercial activities.
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Cost of Setting Up a Mainland Company in Dubai
Setting up a mainland company in Dubai involves several costs, depending on the type of license you require. The three main categories of licenses are Professional, Commercial, and Industrial, each with its associated costs. Below is a detailed breakdown of the costs for each license type, along with additional expenses you might incur during the setup process.
License Cost for Professional License
A professional license is mandatory for businesses involved in specialized services, consultancy, or other professional activities. Here’s a detailed breakdown of the costs:
| Particulars | Amount |
|---|---|
| Initial Approval | AED 245 |
| Name Reservation | AED 620 |
| LSA Agreement (MOA) | AED 540 |
| Local Service Agent | AED 4,000 |
| DED Payment Voucher with Arabic Trade Name | Covered up to AED 4,000* |
| Infibiz Consultancy Fee | AED 1,000 |
| Total Cost | AED 10,405 |
License Cost for Commercial License
For businesses engaged in trading or other commercial activities, a commercial license is required.
Costs and Types of Licenses for Mainland Business Setup
The following table outlines the costs associated with obtaining this license:
| Particulars | Amount |
|---|---|
| Initial Approval | AED 245 |
| Name Reservation | AED 620 |
| LSA Agreement (MOA) | AED 540 |
| DED Payment Voucher with Arabic Trade Name | Covered up to AED 11,000* |
| Infibiz Consultancy Fee | AED 2,500 |
| Total Cost | AED 14,905 |
*The DED Payment Voucher amount covers costs up to the specified limit. Additional costs may apply beyond this amount.
License Cost for Industrial License
For businesses involved in manufacturing, production, or other industrial activities, an industrial license is required. The starting cost for this type of license is typically higher due to the nature of the activities involved:
| License Type | Starting Cost |
|---|---|
| Industrial License | Starting from AED 25,000 |
Additional Setup Costs
Apart from the license costs, you may encounter other expenses during the Dubai mainland company setup process. Some of these additional costs include:
- Agent Fees: AED 5,000 – AED 15,000 annually for foreign investors.
- Market Fees: Approximately 2.5% of the annual rent (for a Commercial License).
These costs can vary depending on the nature of the business, the location of the office or warehouse, and the specific requirements of the local authorities. It’s essential to budget for these additional expenses to avoid any surprises during the setup process.
Calculate your business setup cost.
Step-by-step process for setting up a company in Dubai Mainland
1. Identify Your Business Activity
Determine the primary activity of your business. This will help in choosing the right type of license and legal structure.
Types of Licenses:
- Commercial License: For trading and commercial activities.
- Professional License: For service-based activities.
- Industrial License: For manufacturing and industrial activities.
2. Choose a Legal Structure
Select the legal form of your business based on your needs and the type of activity. The legal structure affects ownership, liability, and regulatory requirements.
Common Legal Structures:
- Limited Liability Company (LLC)
- Sole Proprietorship
- General Partnership
- Public Joint Stock Company (PJSC)
- Private Joint Stock Company (PrJSC)
- Civil Company
- Branch of a Foreign Company
3. Reserve Your Trade Name
Choose and reserve your trade name with the Department of Economic Development (DED). Ensure the name reflects your business activity and complies with UAE naming regulations.
Provisions:
- Must not violate public morals.
- Cannot contain names of religions or authorities.
- Must be unique and not previously registered.
4. Obtain Initial Approval
Apply for initial approval from the DED. This confirms that there are no objections to your business establishment.
Requirements:
- Completed application form.
- Copy of passport and UAE residence visa (if applicable).
- Proof of trade name reservation.
5. Draft the Memorandum of Association (MoA) or Local Service Agent Agreement
Prepare a Memorandum of Association (MoA) or a Local Service Agent (LSA) agreement, depending on your business structure.
For LLCs:
- Drafted and attested by a notary public.
For foreign-owned companies:
- An LSA agreement with a UAE national, attested by a notary public.
6. Select a Business Location
Secure a physical office space or business location. Ensure it meets the requirements set by the local economic department.
How to Get a Professional License in Dubai?
Requirements:
- Tenancy contract.
- Ejari registration (in Dubai).
- The location must comply with zoning laws and regulations.
7. Get Additional Government Approvals
Depending on your business activity, you may need approvals from other government entities. For instance, activities related to health, finance, or legal services may require additional approvals.
Examples:
- Ministry of Health for health-related activities.
- Ministry of Economy for insurance activities.
8. Submit Documents and Pay Fees
Compile and submit all necessary documents to the DED or relevant authority. Pay the applicable fees for license issuance and other approvals.
Required Documents:
- Initial approval receipt.
- Trade name reservation certificate.
- Attested Memorandum of Association.
- Lease agreement.
- Additional approvals, if required.
9. Collect Your Business License
Once all documents are reviewed and fees are paid, collect your business license from the service center or online portal.
Documents for License Collection:
- Receipt of payment.
- Attested lease contract.
- Memorandum of Association.
- Additional approvals, if applicable.
Setting up a company in Dubai Mainland involves several steps, including choosing your business activity and legal structure, reserving a trade name, obtaining initial approval, drafting necessary agreements, securing a business location, obtaining additional approvals, and paying the required fees. Each step is crucial for ensuring compliance with UAE regulations and successful establishment of your business.
Benefits of Setting Up a Dubai Mainland Company
Setting up a company in Dubai Mainland offers several strategic advantages, making it an attractive choice for businesses aiming to expand in the UAE.
Mainland vs Freezone Company Setup in UAE: Cost Comparison
Here are the key benefits:
1. Access to the Local Market
A mainland company can operate anywhere in Dubai and across the UAE. This provides direct access to the local market and allows for more flexibility in terms of business operations and locations.
Advantages:
- Wider Reach: Ability to cater to a larger customer base within the UAE.
- No Restrictions: No limitations on the business activities or areas of operation.
2. Flexibility in Business Activities
Dubai Mainland companies can engage in a wide range of business activities without the constraints often found in Free Zones.
Advantages:
- Diverse Activities: Ability to conduct various activities under one license.
- Adaptability: Flexibility to adapt business activities as market needs evolve.
3. No Limitations on Office Location
Unlike Free Zones that may have restrictions on office locations, mainland companies can choose their business premises freely.
Advantages:
- Prime Locations: Option to set up offices in prime commercial areas of Dubai.
- Customizable Spaces: Ability to choose locations that best fit your business needs.
4. Direct Trade with the UAE Market
Mainland companies can engage in direct trade with UAE customers and businesses without the need for a local distributor or agent.
Advantages:
- Direct Sales: Ability to sell directly to customers and businesses.
- Enhanced Relationships: Easier to build and manage relationships with local clients and suppliers.
5. Increased Credibility and Business Prestige
Operating a mainland company in Dubai often carries a higher level of credibility and prestige compared to operating solely in Free Zones.
Advantages:
- Trust Factor: Increased trust and recognition among clients and partners.
- Professional Image: Enhanced business reputation within the UAE market.
6. Ease of Hiring Local Talent
Mainland companies have the advantage of hiring UAE nationals, which can be beneficial for meeting Emiratization quotas and accessing local talent.
Advantages:
- Emiratization Compliance: Easier to comply with local hiring regulations.
- Local Expertise: Access to a pool of skilled local professionals.
7. Greater Flexibility in Business Structures
Dubai Mainland offers flexibility in choosing various business structures and legal forms based on your business needs.
Advantages:
- Diverse Structures: Options such as LLCs, sole proprietorships, and partnerships.
- Adaptability: Ability to choose a structure that best suits your business model.
8. Potential for Business Expansion
Mainland companies often have more opportunities for business growth and expansion within the UAE and beyond.
Advantages:
- Expansion Opportunities: Easier to scale operations and open additional branches.
- Regional Reach: Potential for growth into other GCC countries.
Conclusion
Setting up a company in Dubai Mainland presents a host of benefits, including unrestricted access to the UAE market, flexibility in business operations, and the ability to operate from prime locations. The mainland setup allows businesses to engage in a wide range of activities without the constraints typically found in Free Zones, while also providing greater opportunities for growth and expansion. With the freedom to choose your office location, the credibility of operating in a prestigious market, and the ease of hiring local talent, Dubai Mainland stands out as a prime choice for entrepreneurs and businesses looking to establish a strong presence in the UAE.
How Infibiz Can Help to Set Up Your Business in Dubai Mainland
Infibiz offers comprehensive support for businesses looking to set up in Dubai Mainland, ensuring a smooth and efficient process.
Book Free Consultation with Infibiz’s Experts.
Here’s how we can assist:
1. Expert Guidance and Consultancy
Our team provides expert advice on every aspect of the Dubai mainland company setup process. From choosing the right business structure to navigating regulatory requirements, we guide you through each step.
2. Streamlined Documentation Process
We handle all the necessary documentation and paperwork required for setting up your business, including license applications, Memorandum of Association (MOA), and Local Service Agent (LSA) agreements.
3. Efficient License Acquisition
Infibiz helps you obtain the appropriate licenses for your business activity, whether it’s a professional, commercial, or industrial license. We ensure all fees are managed and submissions are completed promptly.
4. Office Location and Lease Assistance
We assist in finding and securing the ideal office location for your business. Our services include negotiating lease agreements and ensuring compliance with local regulations.
5. Local Market Insights
Gain valuable insights into the local market and business environment with our market research and advisory services, helping you make informed decisions and optimize your business strategy.
6. Ongoing Support and Compliance
Our support doesn’t end with company registration. Infibiz provides ongoing assistance to ensure your business remains compliant with UAE regulations, helping you address any operational or legal challenges that may arise.
7. Customized Solutions
We offer tailored solutions to meet your specific business needs, ensuring a customized approach that aligns with your goals and objectives.
For a seamless and successful Dubai mainland company setup, trust Infibiz to be your partner in navigating the complexities of the UAE business landscape and achieving your entrepreneurial ambitions.
