Mainland Company Formation in Dubai 

In the dynamic landscape of global business, Dubai has emerged as a prime destination for entrepreneurs and investors seeking growth and success. Mainland company formation in Dubai, through a Dubai Mainland license, allows onshore companies to conduct business activities inside and outside the UAE. This option provides unparalleled access to local and international markets and flexibility to operate across the UAE. Dubai’s Department of Economic Development (DED) facilitates this process by issuing trade licenses to Mainland companies, providing benefits such as 100% foreign ownership, business with government entities, and easier access to open bank accounts. Mainland Company formation is an attractive option for entrepreneurs seeking to establish a strong, adaptable, and scalable regional presence.

Filings.ae can assist you in every step of Mainland Company Formation in Dubai, making your business setup seamless and efficient.

What is Dubai Mainland Company?

A Dubai Mainland Company is a business entity registered with the Department of Economic Development (DED) in Dubai, UAE. This type of company allows businesses to operate both within the UAE and internationally without any geographic restrictions. 

• Mainland companies can operate anywhere within the UAE and abroad. They are not restricted to specific zones or areas.
• The DED allows for a vast array of business activities that can be conducted by mainland companies. This flexibility enables businesses to easily expand or change their operational scope by registering additional activities with the DED.
• Mainland companies can open multiple branches across Dubai and other Emirates, increasing their operational reach and presence within the country.

Benefits of Mainland Company Formation in Dubai

Forming a mainland company in Dubai offers numerous benefits that can be advantageous for businesses looking to establish a strong and flexible presence in the Middle East. Here are some of the key benefits:

• Strategic Location: Dubai's strategic location makes it a gateway between the East and West, providing businesses with access to markets across Europe, Asia, the Middle East, and Africa. Mainland companies benefit from this global connectivity through excellent air, sea, and land transport links.
• No Trade Restrictions: Mainland companies in Dubai face no restrictions on where they can trade within the UAE or who they can do business with, including local and international markets. This contrasts with free zone companies, which are generally restricted to doing business within their specific free zone and with international markets unless they use a local distributor.
• Diverse Economic Sectors: Dubai's economy is not just limited to oil; it's also strong in sectors such as real estate, construction, tourism, hospitality, technology, and finance. Mainland companies can operate in nearly any industry, giving business owners a wide array of opportunities for diversification and growth.
• Eligibility for Government Contracts: Mainland companies can bid for and secure lucrative government contracts, an opportunity that is generally not available to free zone businesses. These contracts can be significant, especially in sectors like infrastructure development, health care, and education.
• 100% Foreign Ownership: Recent changes in UAE law now allow for 100% foreign ownership of mainland companies in many sectors. This is a significant shift from the previous requirement for a UAE national to hold at least 51% ownership in mainland companies outside of free zones.
• Ease of Doing Business: Dubai has a reputation for its ease of doing business, with a regulatory environment that is conducive to starting and growing a company. The government continually works on improving business laws to attract foreign investments.
• Ability to Issue Various Visas: Mainland companies can apply for an unlimited number of visas, depending on the office space size and the nature of the business. This is particularly beneficial for businesses that require a large workforce.
• Local and International Banking Facilities: Dubai offers robust banking facilities that are conducive to business operations, supporting both local and international banking needs. Mainland companies benefit from easier access to corporate bank accounts and loans.
• Networking Opportunities: Operating a mainland company in Dubai offers vast networking opportunities with other global businesses and access to a large pool of potential clients and partners.

These benefits make Dubai mainland company formation a compelling choice for businesses aiming to leverage Dubai's dynamic market.

Business Activities Allowed in Dubai Mainland

Identifying the appropriate business activity is a crucial first step when setting up a company in Dubai Mainland. This decision impacts several aspects of the business setup, including the selection of the legal form and the type of license required. Here's a detailed look at how to identify and select business activities in Dubai:

• Dubai's Department of Economic Development (DED) offers a comprehensive list of 2,000+ business activities. This list is categorised broadly into different sectors such as commercial, industrial, professional, tourism, agricultural, and occupational.
• Align your business goals with the activities listed. Each activity has specific regulations and requirements, so it’s important to choose one that aligns with your long-term business objectives.

Note: If your business plan involves multiple activities, ensure that all are compatible under the same license or if different licenses are required.

What is a Dubai Mainland License?

A Dubai Mainland License is a permit issued by the Department of Economic Development (DED) that allows businesses to operate within Dubai without restrictions on their trade activities or location. This license is essential for entrepreneurs and companies seeking to establish a strong presence in Dubai’s thriving business environment, as it provides the flexibility to conduct business across the UAE. With a Mainland License, companies can engage directly with Dubai’s local market, partner with government entities, and access various growth opportunities in one of the world’s most dynamic business hubs.

Types of Licenses for Mainland Company Formation in Dubai

Dubai provides a range of licenses tailored to different business activities for Mainland Company formation, allowing companies to operate legally and effectively within the UAE’s diverse economy.

Industrial License

An Industrial License permits a Mainland Company to engage in manufacturing and industrial activities, such as production, segregation, accumulation, and packaging. It is intended for businesses that transform raw or natural materials into finished goods, and it is typically required for companies involved in processing and production industries.

Commercial License

The Commercial License is issued by Dubai’s Department of Economic Development (DED) for companies involved in buying, selling, and trading goods within the UAE. This license supports general and specialized traders and companies in the retail, construction, and real estate sectors, making it ideal for those seeking to carry out trade activities within Dubai.

Professional License

A Professional License is granted to individuals or corporations offering specialized services that rely on skills, talent, and expertise. This license is suitable for companies and professionals in accounting, consultancy, design, and tourism who want to establish a Mainland Company focused on skills-driven industries.

Tourism License

Dubai’s tourism sector offers three specific types of Tourism Licenses for Mainland Companies:

• Inbound Travel License: Allows a company to organise and manage travel services within Dubai, catering to tourists exploring the city.
• Outbound Travel License: Enables a company to provide and sell travel packages beyond Dubai’s borders, catering to international travel needs.
• Event Management License: Permits companies to organise global meetings, conferences, and exhibitions, allowing them to host large-scale events in Dubai.

Agricultural License

The Agricultural License is designated for businesses involved in agricultural activities, including farming, cultivation, and other agricultural production. This license is essential for companies or individuals who engage in activities related to the growth and harvesting of crops, livestock farming, and other agricultural processes.

Occupational License

An Occupational License is granted to individuals providing services based on their personal skills and intellectual abilities. It applies to professionals who rely on their expertise and talents, such as artists, craftsmen, consultants, and other skilled individuals offering unique, talent-driven services.

Types of Company Structures in Dubai Mainland

When setting up a business in Dubai Mainland, selecting the appropriate company structure is crucial as it determines the laws and regulations that will apply to your operations. Here’s a brief overview of each legal form available in the UAE:

• General Partnership: This form is reserved for UAE nationals only where all partners are jointly and severally responsible for the company's liabilities.
• Limited Partnership (also known as Partnership in Commendams): Comprises general partners, who are UAE nationals and fully liable for the company's debts, and limited partners, who are only liable to the extent of their contributions.
• Limited Liability Company (LLC): One of the most common forms, offering a flexible structure with a minimum of one and a maximum of 50 shareholders whose liability is limited to their shares in the capital.
• Public Joint Stock Company (PJSC): Suitable for large projects requiring capital from the public. Shareholders’ liability is limited to the value of the shares they hold.
• Private Joint Stock Company (PrJSC): Does not trade shares publicly and requires a minimum of three founding members.
• Civil Company: Generally for professionals in fields such as consulting, medical services, and law. It can be owned 100% by expatriates.
• Local Company Branch: A branch of a domestic company in the UAE operating under the same legal identity and business activities as the parent company.
• GCC Company Branch: A branch of a company based in any GCC country, treated similarly to UAE company branches.
• Foreign Company Branch: Allows 100% foreign ownership, operating under the commercial license of the foreign company.
• Free Zone Company Branch: A branch of a company based in one of Dubai’s free zones, operating in mainland Dubai under certain conditions.
• Sole Establishment: Owned and operated by an individual, not a corporation, and the owner bears all financial liabilities.
• Holding Companies: Established to control other companies (subsidiaries) through owning shares and managing corporate governance rather than conducting operations directly.

Dubai Mainland Company Name: Guidelines and Criteria

A trade name serves as a unique identifier for businesses and reflects the nature and form of the business. Investors can register their trade name through the Department of Economic Development (DED) in Dubai.

Criteria for Selecting a Trade Name in Dubai:

The selected trade name must:

• Include the business structure acronym denoting the legal form of the company (e.g., LLC, EST, PJSC, PrJSC).
• Not conflict with public morals or the public order of the UAE.
• Be appropriate for the type of business activity and comply with the legal status of the company or business entity.
• Exclude names of any religion, governing authorities, or names or logos of external bodies.
• Not be previously registered by another entity.

Initial Approval for Company Setup in Dubai Mainland

Obtaining initial approval is a crucial step in establishing a business in Dubai Mainland. This approval indicates that the UAE Government has no objection to the establishment of the business within the country. However, it is important to note that this approval does not authorise the investor to commence business operations or practice any business activity.

Requirements for Foreign Investors:

Foreign investors are required to secure approval from the General Directorate of Residency and Foreigners’ Affairs before proceeding with the initial approval.

Special Approvals for Certain Activities:

Businesses engaging in certain activities may need to obtain additional approvals from specific government entities before applying for initial approval. This is particularly applicable to activities involving:

• Legal affairs
• Security Affairs
• Financial securities and commodities

These additional approvals ensure that the business complies with the specialised regulations governing these sectors. After receiving the initial approval, the investor can proceed with the subsequent steps required to establish and license the business in Dubai Mainland fully.

MoA and LSA Requirements for  Company Setup in Dubai Mainland

When establishing a business in Dubai Mainland, the legal form of the business determines whether a Memorandum of Association (MoA) or a Local Service Agent Agreement (LSA) is necessary.

Memorandum of Association (MoA)

The MoA is a crucial document that outlines the company’s structure and regulations. It is required for the following legal forms of business:

• Limited Partnership: Specifies the roles, responsibilities, and financial contributions of the general and limited partners.
• Limited Liability Company (LLC): Details the company’s business activities, share distribution among shareholders, and management practices.
• Public Joint Stock Company (PJSC): Includes information on share capital, founding members, and how public shares are managed.
• Private Joint Stock Company (PrJSC): Describes the company’s share distribution, internal governance, and operational protocols.

The MoA must be drafted in accordance with UAE law and requires approval from the relevant authorities to ensure compliance with legal standards.

Local Service Agent Agreement (LSA)

For businesses that involve foreign ownership and operate in professional sectors, a Local Service Agent Agreement might be required. This agreement is between the foreign entrepreneur and a UAE national who acts as a service agent. The agent facilitates the necessary administrative functions with government bodies but does not hold equity in the company.

Business Location for Dubai Mainland Company

For every business operating in Dubai Mainland, maintaining a physical address is mandatory. The chosen business premises must meet the criteria set forth by Dubai's Department of Economic Development (DED) as well as comply with the urban planning and zoning regulations enforced by the local municipality.

Requirements for Business Premises:

• Office and Warehouse Leases: A rental agreement for office or warehouse space must be secured and provided as part of the licensing process.
• Ejari Registration: In Dubai, all rental agreements must be registered with Ejari, the real estate regulatory system.

Additional Government Approvals for Business Activities

Securing additional approvals from specific government entities is essential for certain types of business activities in Dubai Mainland. Here's an overview of the activities and the corresponding government entities from which approvals may be required:

• Ministry of Interior: Approvals for transport-related services like driving schools, fire safety equipment, car rentals, and dealerships.
• Ministry of Justice: Required for legal services and consultancy.
• Local Municipal Department: Necessary for architecture and engineering services.
• Telecommunications and Digital Government Regulatory Authority (TDRA): For telecommunication-related activities.
• Executive Council: Covers travel and tourism, general services, maritime services, and foreign company branches.
• Ministry of Economy: For insurance services and consultancy.
• Local Health Departments: Required for health-related services.
• Supreme Petroleum Council: Approvals for onshore and offshore oil and gas services and drilling operations.

Documents Required to Obtain a Business License in Dubai Mainland

To secure a business license for any legal form in Dubai Mainland, you will need to provide the following essential documents:

• Initial Approval Receipt: This includes the receipt and all documents previously submitted during the initial approval phase.
• Lease Contract: A copy of the lease contract for your business premises duly attested by the Real Estate Regulatory Agency (RERA) in Dubai.
• Memorandum of Association: Required for all types of companies, and it must be duly attested.
• Government Entity Approvals: Any additional approvals from relevant government entities specific to your business activity.
• Service Agent Contract: Necessary for civil establishments and companies entirely owned by non-GCC nationals, involving a UAE local service agent. This contract must also be duly attested.

Procedure for Mainland Company Formation in Dubai

After understanding the essentials of business activity, licensing, legal forms, and other critical aspects, here’s a simplified step-by-step guide to setting up your mainland company in Dubai:

Step 1: Choose Your Business Activity

Identify the business activity you wish to pursue from the 2,000+ options listed by the Dubai Department of Economic Development (DED).

Step 2: Select a Legal Structure

Decide on the legal form for your business, such as an LLC, Sole Establishment, or Branch Office, based on your business needs and ownership preferences.

Step 3: Register Your Trade Name

Select and register a unique trade name that complies with DED’s guidelines and reflects your business activity and legal structure.

Step 4: Apply for Initial Approval

Obtain initial approval from the DED, indicating the government’s no-objection status for your business setup. Foreign investors may need additional approvals before proceeding.

Step 5: Draft and Attest Necessary Documents

Prepare and get your Memorandum of Association (MoA) or Local Service Agent (LSA) agreement attested as per your chosen legal structure.

Step 6: Secure a Business Location:

Rent and register a physical office or warehouse space in compliance with DED and municipal regulations. Ensure your lease is registered with Ejari.

Step 7: Obtain Additional Approvals (if needed):

Depending on your business activity, secure any required approvals from specific government bodies, such as the Ministry of Interior, Ministry of Justice, or local health departments.

Step 8: Submit Your License Application: 

To obtain your trade license, provide the DED with all necessary documents, including the attested MoA, lease contract, and initial approval receipt.

Step 9:Apply for Visas:

Once you have your trade license, apply for visas for yourself, your employees, and any dependents. Ensure your office space accommodates the number of visas required.

Step 10: Receive Your Business License and Start Operations:

Once all the previous steps are completed, you will receive your business license from the Department of Economic Development (DED). With this license, you are officially authorised to start your business operations in Dubai Mainland.

Streamline Your Mainland Company Formation in Dubai with Filings.ae

Filings.ae can help you navigate the entire process of Mainland Company Formation in Dubai with ease and efficiency. Our experts provide personalised guidance on selecting the right business activity, choosing the appropriate legal structure, and obtaining all necessary approvals and licenses. Whether it's registering your trade name, securing a prime business location, or setting up a corporate bank account, Filings.ae provides comprehensive support to ensure your business is up and running without any hassle. Let us handle the complexities of the setup process so you can concentrate on growing your business in Dubai.

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