Setting up a business in the UAE Mainland can be an exciting venture, but it also comes with its own set of challenges. As a chartered accountant firm with deep-rooted expertise in the UAE business landscape, we are here to guide you through the entire Mainland business setup in Dubai process.
- Advantages of Starting Business in UAE Mainland
Unlike free zones, mainland businesses can operate anywhere within the UAE, allowing for unrestricted access to the entire market. This provides greater flexibility in terms of customer reach and business expansion.
Mainland companies have a wider range of permissible business activities compared to free zones. This opens up opportunities for businesses in various sectors, offering greater versatility and growth potential.
Mainland companies are eligible to bid on government contracts, which can be a significant source of revenue. This provides a stable and lucrative avenue for businesses looking to expand their customer base.
Mainland Business Formation
Mainland businesses can operate anywhere in the UAE, have full ownership (in certain cases), and can engage in a wider range of activities compared to free zones.
The requirement for a local sponsor depends on the business activity. For professional services, 100% foreign ownership is allowed, but other business types may require a local sponsor.
The visa options depend on the employee’s role and qualifications. Common options include employment visas, investor visas, and freelance visas.
The timeline can vary depending on various factors, but typically it takes several weeks to complete the process.
Steps to Start Business in UAE
Determine Business Activity
- Clearly define the nature of your business.
- Choose an activity that aligns with your business goals and the UAE’s economic landscape.
Select a Legal Structure:
- Decide on the most suitable legal structure for your business.
- Options include sole proprietorship, partnership, limited liability company (LLC), or public joint stock company.
Register Your Trade Name
- Choose a unique and memorable name for your business.
- Check availability with the Department of Economic Development (DED) in your chosen emirate.
Obtain Initial Approval:
- Submit an application to the DED for initial approval of your business activity and trade name.
- This step involves providing necessary documentation and meeting specific requirements.
Prepare Legal Documents
- Draft the Memorandum of Association (MOA) and Local Service Agent Agreement (LSA), if required.
- These documents outline the company’s structure, shareholders, and responsibilities.
Select a Business Location:
- Find a suitable office space in your chosen emirate.
- Lease agreements and tenancy contracts will be required.
Obtain Additional Government Approvals:
- Depending on your business activity, you may need permits or licenses from other government authorities.
- Examples include health permits, municipality approvals, or industry-specific licenses.
