Dubai is a thriving hub for international business, and setting up a company in mainland Dubai can be a great way to tap into the opportunities available in the region. However, the process of company formation in Dubai can be complex and time-consuming, with various legal and administrative requirements to be met.
In this guide, we’ll provide a comprehensive overview of the process of company formation in mainland Dubai, including the various types of companies you can form, the legal requirements, and how Decision Management Consultants can help you establish a company in Dubai.
There are several types of companies you can form in mainland Dubai, depending on your business needs and goals. The most common types of companies include:
1. Limited Liability Company (LLC): An LLC is a popular choice for foreign investors looking to set up a business in Dubai. This type of company requires at least two shareholders and can be used for a wide range of business activities.
2. Sole Establishment: A sole establishment is a company owned by a single individual, and is suitable for small businesses or entrepreneurs looking to start a business in Dubai.
3. Branch Office: A branch office is an extension of a foreign company, and is suitable for companies that want to establish a presence in Dubai without setting up a separate legal entity.
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To form a company in mainland Dubai, you will need to meet certain legal requirements, including:
1. Obtaining a trade license: All companies in Dubai must obtain a trade license from the Department of Economic Development (DED). The type of license you need will depend on the nature of your business activity.
2. Renting office space: All companies in Dubai must have a physical office space, which can be rented or leased.
3. Finding a local sponsor: For LLCs, you will need to find a local sponsor who will own at least 51% of the company’s shares. This is a legal requirement for all foreign companies setting up in Dubai.
One of the major benefits of setting up a mainland business in Dubai is the ability to do business with companies and individuals in the local market without restrictions. Unlike free zones, which are designed to cater to specific industries and have certain limitations on where and how they can do business, mainland businesses can operate anywhere in Dubai and have access to the full range of local market opportunities.
In addition, mainland businesses have greater flexibility in terms of the types of business activities they can undertake and the ability to partner with local companies, which can be beneficial for growth and expansion. Mainland businesses also have access to a wider range of government services and support, as they fall under the jurisdiction of the Dubai government and its various departments and agencies.
Another advantage of setting up a mainland business is the ability to hire a greater number of expatriate employees, as mainland companies have fewer restrictions on hiring compared to free zone companies, which are required to hire a certain number of UAE nationals. This can be particularly beneficial for companies looking to recruit specialized talent from around the world.
Overall, the major benefit of setting up a mainland business in Dubai is the ability to tap into the full range of local market opportunities and enjoy greater flexibility and access to government support and services.
Step one: Choose a business activity: Before you can apply for a trade license, you will need to choose a business activity and ensure it is permitted in Dubai.
Step two: Choose a company name: You will need to choose a unique company name that is not already in use in Dubai. This can be done through the DED website.
Step three: Reserve the company name: Once you have chosen a name, you will need to reserve it with the DED.
Step four:Draft the Memorandum of Association (MOA): The MOA is a legal document that outlines the company’s structure, shareholders, and activities. This document must be notarized and submitted to the DED.
Step five: Obtain approval from government authorities: Depending on the nature of your business activity, you may need to obtain approvals from other government authorities before you can apply for a trade license.
Step six: Obtain a trade license: Once you have completed all the necessary steps, you can apply for a trade license from the DED.
Establishing a company in mainland Dubai can be a complex process, but with the help of Decision Management Consultants, you can ensure a smooth and hassle-free experience. With over 30 years of experience in the UAE, Decision Management Consultants has the knowledge and expertise to assist you with every step of the company formation process.
Our team of experienced consultants can help you navigate the legal and administrative requirements for company formation in Dubai, and provide you with the necessary guidance to ensure that your business is set up for success. From helping you choose the right type of company to providing guidance on obtaining a trade license and finding a local sponsor, we can provide the assistance you need to establish your business in Dubai.
At Decision Management Consultants, we pride ourselves on providing our clients with customized solutions that are tailored to their specific needs and goals. We understand that every business is unique, and our team of experts will work closely with you to develop a strategy that meets your specific requirements.
Setting up your own business has never been easier. DMC takes care of it all so you can focus on what matters – building your business. For more information about company formation in the UAE mainland or free zones, please call us on +971-4-262 40 23