Know all about Mainland business setup in Dubai -2022

author Post By: endeavour 06 Nov, 2021
Know all about Mainland business setup in Dubai -2022

Setting up a new business in Dubai or any part of the world is quite a challenging job. This is especially true in the case of beginners.Interested in knowing more about Mainland business setup, Dubai? Read ahead and find all facts you need to know about setting a new Mainland business, in Dubai.

For the past few decades, Dubai has grown from a mere business community to the most preferred business hub for entrepreneurs around the globe. Dubai, in particular the mainland, offers vast opportunities for business growth and development.A mainland business setup in Dubai is a favourite choice among foreign investors because of the flexibility it provides in developing new business operations. The government policies are also welcoming for new startups.

However, the process of setting up a business in the mainland has some administrative and legal proceedings.If you are keen to start a business in the UAE, it is essential to have an understanding of the rules and regulations and the differences between the various business jurisdictions. Confused about how to proceed with the business setting in Dubai? Hire a business setting provider like Endeavour for Dubai mainland business setup.

Endeavour has polished its expertise in providing business advisory solutions through strong leadership and a great team of passionate and goal-oriented experts. We guide our clients through the entire process of registration and getting the license to start their venture in Dubai mainland.

This article discusses various aspects of the types, structures and procedures of Dubai Mainland Business setup. 

What is the mainland and what makes it preferable?

In Dubai, the business jurisdictions are divided into 3: Mainland, Freezone and Offshore. A mainland company is an onshore company, registered under the government authority of the concerned Emirate. The company’s trade license is issued by the Department of Economic Development (DED) of the particular Emirate.

An investor, while investing in a mainland company in the UAE, gets an unrestricted opportunity to trade in the UAE local market as well as outside UAE. Now, an expat investor is allowed to have 100% ownership right for his/her businesses located on the mainland. Apart from this, the zero taxation policy isgreat! This particularly attracts new business owners and startups to the area, to set up their business in a budget-friendly way.

Keen to know more about low-cost business setup in Dubai? Feel free to contact Endeavour’s team of business consultants and advisors right now!

  • Welcome to the World Class Business Infrastructure

The economic policies set forward by the government of UAE is favourable and pleasing for new business owners planning to start a new venture here. By getting a mainland trading license, Sharjah, Abu Dhabi, Ajman and RAK also becomes other options to consider, apart from Dubai. Companies in the mainland continue to experience the world’s latest technology and architectural infrastructure for the smooth operations of their business.

  • Get Access to limitless opportunities

Countless companies have successfully established their ventures in the mainland. With a mainland trading license, the owner’s business setup in Dubai is not restricted to a particular area. The freedom to do business from anywhere in and around the UAE helps investors to target new customers and look out for new sales and delivery channels.

What are the categories of mainland company licenses?

The DED is the responsible authority for issuing the business license in the UAE. Following are the three categories of mainland business licenses.

  1. Professional license

A professional license is issued when an individual or company is engaged in the utilization of intellectual abilities in the business process.

The entity can be registered as a civil works company if the ownership involves more than one person.

IT service providers, any form of consultancies, (legal, Insurance, tax, marketing etc.) craftsmen can all apply for a professional license in the UAE.

  1. Commercial license

When the business involves activities like trading(buying and selling of goods), import and export, logistics etc., require a commercial license, to operate in UAE. For specific business activities, the type of commercial license varies. A few of them are:

. Oil and gas trading

. Spare parts trading

.Trading in chemicals

. Publications and media materials

. Gold and precious metals trading

. Automobile trading etc.

Based on the business activity, an investor has to acquire a specific business license in the UAE.

  1. Industrial License

In UAE, an industrial license is awarded to companies involved in any manufacturing or production activity. Presence of a physical office in the UAE is mandatory to apply for an industrial license.

Specific industrial license types are:

. Garments manufacturing license

. Dairy products

. Animal feeds manufacturing

. Carpets manufacturing

. Aluminium and steel parts manufacturing.

What are the types of mainland companies recognized in UAE?

. Sole Establishment: Business owned completely by a single individual.

LLC (Limited Liability Company):Every stakeholder is liable based on his/her individual share in the company. There is no minimum capital required to form an LLC in Dubai.

Branch of a Foreign Company: A company formed as an extension of an already existing foreign parent company, located outside UAE. The company can operate its business transactions, get into agreements with other companies and provide service to its customers, all in the name of the parent company.

Representative Office:Unlike the Branch Office, a representative office cannot freely exercise every activity and earn profit. It has to outsource all its projects to the parent company. Here, the role of a representative office is just to do marketing or promotion of the products and services of the parent company.

How to start a company in Dubai mainland?

. Identify your business activity from the list provided by DED.

. Determine the company structure or the legal form.

. Choose and register an apt trade name.

. Get the initial approval.

. Hire a local service agent and get MOA(Memorandum of Association) signed and notarized.

. Set up a business location.

. Gather all necessary government approvals from various ministries.

. Submit all final documents and get the business license.

These are the steps involved in setting up a business in Dubai mainland. A new investor might find it difficult to kick-start the initial steps. Don’t hesitate to get the help of our professional consultants. Schedule a free appointment and avail our services at the earliest.

Do  Mainland Companies require a license renewal?

Yes, business licenses need to be renewed on an annual basis, in Dubai. The basic process of license renewal involves a series of steps, including some paper works. The renewal must be done before the due date to avoid any kind of penalty.

If you are not planning to renew your Mainland Business Licence renewal, then you should atleast apply for “ Freezing the License”. This lets the business owner freeze and delay the renewal process for a specific period of time and hence avoid the overdue license renewal charges.

Planning to start a new mainland business startup in the UAE? Then you are at the right door to knock on! Engage with Endeavour Business Service providers and forget about the hassle of administrative and paper works. As a tycoon in the business service providing industry, we can provide our customerswith the right solution for setting a new business in the UAE.