Establish your mainland company in Dubai

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Mainland Company Formation in Dubai

A UAE mainland company is licensed by the Department of Economic Development (DED) in the respective Emirate of the United Arab Emirates. Here's an overview of the advantages of registering a company on the UAE mainland, along with a guide to setting up your business in Dubai mainland.

Benefits of mainland company formation in Dubai

Mainland company setup in Dubai offers several advantages for entrepreneurs, including a wide scope of trade, 100% ownership, and location flexibility. These are some of the reasons why entrepreneurs look to establish a mainland company in the UAE

Location flexibility and zero trade restrictions
Dubai mainland companies have unrestricted trade with other businesses and can operate from any location within the UAE. They can serve the government, trade directly with consumers nationwide, and establish multiple branches, enabling a strong presence across the Emirates.
Broad working scope
Mainland businesses are also in a position to undertake a wide scope of work.
Access to lucrative government contracts
Any incentive for mainland business setup in Dubai is that government tenders are big business in the UAE.
100% ownership control of mainland business entities
Traditionally, foreign ownership of a UAE business was limited to free zones or certain professional services companies on the mainland. However, recent changes allow 100% foreign ownership of mainland companies in the UAE, facilitating business for overseas investors without the need for local partners, except in strategic sectors like oil and gas.
Switching from free zone to mainland company formation in Dubai
Switching from a free zone to a mainland company formation in Dubai is a significant step for business growth. While free zone structures offer convenience and pre-packaged business solutions, they come with limitations. As businesses expand, transitioning to a mainland company becomes essential for prosperity. With the right UAE national sponsor or company formation specialist, moving from a free zone to the UAE mainland is a shrewd and manageable move.

Your checklist for mainland business setup in Dubai

It’s time for your business setup checklist. Let’s get your venture off to a successful start!

Setting Up Your UAE Company Starts with Fortunes Business

One of the most common questions asked by first-time entrepreneurs in this part of the world is whether they need a local sponsor (Nominee Shareholder) in Dubai. This depends on various factors, including your nationality and the nature of the business you intend to start.

If you’re a non-Gulf Cooperation Council (GCC) national looking to set up a business with a commercial or industrial licence on the United Arab Emirates mainland, then yes, you will need a local sponsor as a business partner. If, however, you are setting up in a free zone, or your business activity is covered by a professional services licence, a local sponsor is not required.

If your business does require a local sponsor, Fortunes Business is on hand to help. You'll establish a mainland LLC, with you retaining 49% ownership and the local sponsor holding 51%. However, profits aren't split in the same proportion, and the local partner typically has minimal involvement. Finding a local sponsor can be challenging; they must be a UAE national or a corporate entity owned by UAE nationals.

Your Dubai mainland success story starts here

Begin the next chapter of your business success with Dubai mainland company formation.

Mainland Licences

Basic Requirement
For all mainland business activities in the UAE, obtaining a license in one of these categories is essential.
Trade License Importance
Similar to many global locations, obtaining a trade license is crucial for validating your mainland company's legality in the United Arab Emirates. It is required before commencing business activity, ensuring compliance with local laws and regulations.
Crucial Step
While there are various steps involved in registering your business in the mainland, obtaining a trade license in Dubai is pivotal for business setup.
License Types
When starting a new business in the UAE, acquiring the appropriate trade license is paramount for long-term success. The type of business activities, company structure, and jurisdiction affect the type of trade license needed and applicable requirements.
Types of Trade Licenses
As you initiate the company formation process and establish a mainland business in Dubai, consider these three types of trade licenses.

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Types of mainland trade licence

Professional Trade Licence
- Required for providing professional services in Dubai mainland.
- Obtained from the Department of Economic Development (DED).
- Validates necessary qualifications and skills.
- Mandatory for professionals, specialists, craftsmen, and artisans.
- Allows various company structures like LLC, Civil Company, and Sole Establishment.
Commercial Trade Licence
- Essential for mainland companies trading goods and commodities.
- Permits formation of LLC or sole establishment.
- Tailored to specialized or general trading activities.
- Required for businesses including retail, construction, healthcare, and real estate.
Industrial Trade Licence
- Necessary for conducting industrial or manufacturing activities.
- Enables engagement in converting natural materials.
- Issued by the DED, with additional approvals possible from other authorities.

Requirements to obtain a UAE trade licence

When applying for a mainland licence in Dubai you must do so through the Dubai Economic Department.

Before opening any business with the Dubai Economic Department, one must meet the following legal requirements to obtain a trade licence in the UAE:

Determine the business category – whether it is professional, commercial, or industrial;
Determine the type of business activity;
Determine the legal structure of the business entity; and
Determine the trade name of your business.
The local department of economic development registers your trade name
The Ministry of Economy registers your trademark (if applicable).

Depending on the legal form of a business, it is also a requirement to complete and sign a Memorandum of association (MoA) or a local service agent agreement (LSA). The memorandum of association is required for the following business legal forms:

Limited partnership
Public joint stock company (PJSC)
Limited liability company (LLC)
Private joint stock company (PrJSC)

Get expert help in starting your new business in Dubai

Identifying all the licenses and permits applicable to your business in mainland Dubai can be challenging. Fortunes Business offers comprehensive support in setting up your company, obtaining the necessary licenses in mainland Dubai and providing additional business services for future growth and success.

Do you need help in choosing a trade licence for your business?

Contact us today so our team can assist you.

Mainland Visas

Private Companies
Private companies can secure new employment entry permits for their employees, requiring application for residence visa status within 30 days of the employee's arrival in the UAE. For companies registered in a free zone, the employment visa is valid for three years, while for onshore registered companies, it's valid for two years. Additionally, employers are responsible for arranging all travel arrangements for new employees, including any 'okay to board' requirements from certain airlines.
Family Residency Visas
(Please note that the information below only applies to residents of the UAE).

If your family members are outside the UAE, you must first apply for an entry residence visa. After they arrive you then have up to 30 days to apply for the residence stamp. Your monthly salary should not be less than AED 4,000 (or AED 3,000 plus accommodation). If you wish to sponsor a residence visa for your parents, your minimum monthly salary should be AED 20,000 (or AED 19,000 plus a two-bedroom accommodation).

Required documentation includes:
- Typed application form.
- Salary certificate (for government employees) or attested work contract (other employees).
- Three months of most recent bank statement for long-time residents. New residents may submit the most recent month but must have a bank letter confirming salary transfer.
- Attested tenancy contract, Emirates ID card, and labour card.
- Marriage certificate that has been attested by UAE authorities (for UAE marriages) or in your home country for spouse sponsorship.
- Passports (original) and copies of both sponsor and family member(s).
- Medical check-up report of spouse or children over 15-years of age from an authorised hospital or clinic.
- Three passport photos per family member.
- Please note that for your family member’s residence visa to remain valid he or she must not be out of the UAE for more than six months. In the case where a Muslim expatriate has married more than one wife, he can only obtain one residence visa.

Mainland Business Activities

A mainland company licence gives you access to thousands of business activities. Activities can at times even be bundled if your business idea crosses into two defined licences. With certain activities, special approval is required from the relevant government department and Fortunes Business will guide you here from commencement to completion.

Popular Mainland Activities

Activity Name

Description

Gym

Gyms or gymnasiums and health clubs can be formed as either professional licences or LLCs.

Hospitality

Hospitality licences cover food and beverage activities such as cafes, bars and restaurants.

Import-Export

These licences enable you to trade freely with mainland clients without having to use distributors.

Retail

Retail licences cover shops in malls and other outlets and include everything from clothing to books stores.

Event and Entertainment

Licences include event management and event planning for private and public events.

Manufacturing

Manufacturing licences cover the manufacture of goods in the UAE for distribution locally and globally

Healthcare

Healthcare licenses require special approval from the Dubai Health Authority.

Start Your UAE Mainland Venture

Dive into the UAE's thriving business scene. With Fortunes Business, navigating licenses and approvals is a breeze. Discover the possibilities today.