Rules for Company Formation in the Dubai Mainland

Rules for Company Formation in the Dubai Mainland: Starting a company in the Dubai Mainland comes with the knowledge that there won’t be too many restrictions and regulations while conducting business activities. What is necessary though, is to have a local sponsor. You can maintain a 100% percent ownership but you still have to have a local sponsor as it is legally required for business documentation. If you want to maintain full ownership, the local sponsor has to agree to refrain from interfering in the business activities.

Types of Companies in the Mainland

Limited Liability Company (LLC): The company needs to have a minimum of two shareholders and maximum up to 50. Each shareholder is liable according to the percentage he/she holds.

Branch Office: Investors can expand into Dubai and are given an opportunity to set up their branch office in the mainland.

Public Shareholding Companies: This type of company is suitable for businesses dealing with large lucrative figures like banking, finance and insurance.

Professional Firms/Civil Companies: Owners can choose their field of functioning and can retain a 100%percent ownership.

Representative office: Can exist without a shareholder but cannot conduct business activities. Its sole purpose should be research and marketing.

Steps of Incorporation

One should decide the business entity to be formed and get the name approved. The business owner must then start by finding a trustworthy sponsor without whom he cannot start the business. Then comes the drafting of the Memorandum and Articles of Association, followed by submission to seek approval from the Department of Economic Development (DED).

Then one should find reasonable, strategic and affordable office space to conduct the business activities out of and geta tenancy contract. The next step is to apply for a trade license. Getting the relevant trade license for your business is important. There are three types:

Commercial licenses: These licenses cover all trading activities and are for businesses where 51% of shares are with the UAE National and 49% with the business owner/expat partner.

Industrial licenses: These licenses cover all manufacturing and production activities and are for businesses where 51% of shares are with the UAE National and 49% with the business owner/expat partner.

Professional licenses: These licenses cover all professional services, craftsmen and artisans and all the shares are held by expat partner only.

All that is left to do now is submit all applications and pay the necessary fee, after which you can obtain your license and conduct business activities! Setting up a business in the Dubai Mainland has many advantages such as unrestricted operations, working with government bodies and its open wide presence in the market in and out of UAE.

Setup your Business Today!

Originally posted 2021-09-29 07:42:12.