Business Setup in Dubai Mainland
Dubai is one of the world’s most promising markets, contributing hugely to the UAE’s flourishing GDP. With all the sectors in the Dubai Mainland thriving at a fast pace, it is high time to start a business setup in Dubai. The mainland in Dubai is known as the area outside the free zones that is regulated by the Department of Economic Development. It’s a primary choice for many businesses.
Here’s what makes Dubai Mainland truly special:
- Full ownership for UAE nationals and partnership opportunities for foreigners with access to a large local market.
- Strategic location with world-class infrastructure, connecting businesses to Asia, Europe, and Africa.
- Freedom to operate without restrictions on trade within the UAE and fewer limitations compared to free zones.
Dubai is a global attraction, and the mainland being a top choice for the biggest international businesses, it makes for a great place to start your company. It has a place for entrepreneurs, businessmen, as well as foreign investors.
To successfully navigate the process of company formation in Dubai, you have to understand it first. This guide walks you through everything you should know before setting out to start your business.
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Business Licenses in Dubai Mainland
- Professional
- Commercial
- Industrial
- Tourism
This license is needed for businesses and consultancies offering their expert services in a field. It has a huge scope. All the businesses that deal in services instead of products come under this license category, including marketing agencies, legal firms, business consultants, etc.
If you’re a professional in your field and want to start offering your skills or expert advice in the market, you’ll have to acquire this license to set up a business.
A commercial license is required for all businesses involved in the trade of products in the market. Business activities such as selling, buying, importing, export, and distribution fall under the scope of this license.
If you’re starting a business in the Mainland in Dubai, which has trade operations, you will need to acquire this license and list the products you will be dealing in.
An industrial license is required for businesses and factories that involve the manufacturing of goods, labor work, or machinery. There is a huge scope for industrial businesses in the Mainland.
If you have a factory, company that is involved in manufacturing, product design, and raw materials, you will have to get this license to legalize your activities.
A tourism license is required for businesses and brands involved in the tourism sector of Dubai, which is a huge international attraction. Tourism businesses are quite profitable in the emirate due to high demand and facilities.
Business examples that come under this license include tour planning agencies, trip planners, hotels, and tour operators.
Steps to Start a Business in Dubai, UAE
Choose the business activities that your company will be involved in. You can check the list of approved activities by DED to see which ones suit you. This choice determines the type of license you will have to acquire.
Select the type of legal entity that suits your business. This choice should depend on your company’s goals and ownership details. Each type has a different scope and benefits.
Reserve a name from DED. The name has to be unique to avoid confusion with other brands, and it must not in any way be offensive to the norms of the Arab society.
After reserving the name, get an initial approval from the Department of Economic Development, letting them know of your business plans and goals. This step is mandatory and paves the road for the next steps.
Find a location that suits your business and finalize the lease agreement. There are many options available from executive offices, manufacturing units, to shared spaces.
Get additional approvals if required from different government bodies, depending on the nature of your business. These approvals are usually required from the Ministry of Interior, TDRA, Dubai Health Authority, Dubai Municipality, Ministry of Economy, etc.
Gather the required documents and ensure they are all correct and updated. Pay the fee as well on time. A mistake in this step or invalidation can cause needless delays and fines.
After the approval of your license application, you will be provided with your license, allowing you to legally operate your company in the UAE. There are a few more steps to be fully functional, though.
With a license in hand, open a commercial bank account. It will streamline all your financial transactions and let you enjoy the financial policies of the government
Apply for visas for your shareholders and workers. To make things easy, there is no restriction on the number of visas in the mainland. Once you get the visas, your company will be fully functional.
Why Businesses in Saudi Arabia Need GRO Support
Having an expert Government Relations Officer by your side makes those processes and interactions with government easier and accessible. It helps you avoid any penalties for non-compliance or delays in documentation.
Difference Between Mainland & Free Zone Online Business
- Mainland
- Free Zone
The mainland licenses are regulated by the Department of Economic Development (DED). It provides several benefits to online businesses. Here are some of the highlights:
- You can trade freely within the UAE market
- UAE residents and foreign investors can get government support
- Mainland partnerships may be better for the long term
Free zones are regulated by their own authority, offering many benefits to new e-commerce businesses in Dubai. Some of the highlights about free zone setup include:
- Free zones in Dubai offers 100% foreign ownership and tax benefits
- Limited to operating within the Free Zone
- License issued by Free Zone authority with simplified setup
Mistakes & Solutions to Set Up a Business in KSA
Wrong Company Structure
Mistake: Many people do not understand the company structures and end up choosing the wrong one.
Solution: Consult a local legal advisor before registering. Match your ownership orientation and company goals with the right structure.
Ignoring Saudization
Mistake: Saudi Arabia features solid Saudization requirements, and many new business owners ignore them, causing issues for themselves.
Solution: Check your Nitaqat classification before hiring. Plan early to hire qualified Saudi staff and remain compliant.
Wrong / Incomplete Paperwork
Mistake: Many business owners submit incomplete documents, or the documents aren’t translated correctly.
Solution: Use certified Arabic translations for all foreign documents. Consult with professionals to ensure the validity and completeness of your documents.
Name Doesn’t Match Activity
Mistake: Choosing a name that doesn’t match what your business does.
Solution: If the authority requires it, your name should reflect your main activity (e.g., “Bright Tech Solutions” for an IT company).
Poor Arabic Translation
Mistake: Using incorrect or unclear translations.
Solution: Make sure any non-Arabic names are translated properly. You can use professional help if needed.
Delaying the License Process
Mistake: Reserving a name but not starting the licensing in time.
Solution: Use the 6-month reservation period wisely. If needed, apply for a renewal before it expires.
Benefits of Business Setup in Dubai Mainland
No trade limits
Prime UAE access
Flexible office spots
Global connectivity
Easy visa process
Broad business types
Low tax rates
Top infrastructure
Government support
Strong legal system
Regulatory Requirements for Application Process in KSA
- Must have a valid job offer from a licensed Saudi employer
- Employer must have a valid commercial registration
- Employment contract must be approved by authorities
- Medical test clearance from an approved center required
- Applicant must be at least 21 years old
- Profession must match the job role and qualifications
- Employer must request a work visa through the Ministry of Labor
- Visa must be endorsed by the Saudi embassy in home country
- Applicant must have a clean criminal record
- Educational documents may need attestation and verification
Required Documents
- Passport copies
- Visa copy (if applicable)
- Emirates ID (if available)
- Trade name certificate
- Initial approval letter
- MOA or LSA agreement
- Tenancy contract (Ejari)
- NOC from sponsor (if needed)
- Passport-sized photos
- Business activity details
Types of Legal Entities to Set Up Your Business
Limited Liability Company (LLC)
This is the most common type of business in Dubai. Two or more people can own it. It offers limited liability, meaning that they only lose what they put in if the business fails.
Suitable for:
Trading, making products, or offering services.
Sole Proprietorship
This type of business is owned by one person. The owner makes all the decisions.
If the business loses money, the owner must pay from their own money.
Suitable for:
Freelancers, consultants, or small service providers.
Civil Company
This type of legal entity is for skilled people like doctors or lawyers. They can own the business fully. If the business has debt, the owners must pay it.
Suitable for:
Professional services like medical, law, or engineering.
Branch of a Foreign Company
This allows a foreign company to start a branch here without establishing a new company. The main company is responsible if anything goes wrong.
Suitable for:
International companies that want to work in Dubai and expand their business.
Costs and Features in Mainland Company Setup
Mainland Business
The Mainland offers a cost-effective setup. It ranges from AED 25,000 to AED 35,000, as it varies based on the business operations selected, visa requirements, and licensing details.
Regulatory Services
The mainland authorities and government keep the business environment in check. It offers an easy process for license renewal, company amendment, and company liquidation.
Supportive Environment
The Mainland features a supportive environment for business. Apart from the tax relaxations, the authorities facilitate you to conduct your business operations smoothly and make profits.
Company Registration
Once approved, you will receive your license to start a business in KSA.
Simplify Company Formation in Dubai UAE Mainland with IBG Consulting
Lack of legal knowledge and experience
High Initial Costs and uneven visa packages
Cultural and Market Understanding
Finding the Right Talent
To solve these problems and experience a smooth business formation, your business needs an expedited consultancy firm. IBG Consultancy, with years of experience in the field, industry and legal knowledge, and useful networks, offers you a smooth and fast company setup solution. Contact today, learn more, and get instructions specific to your business.
Frequently Asked Questions
What is the difference between Free Zone, offshore, and Mainland companies?
Free Zone companies are located in specific zones with tax benefits and 100% foreign ownership. Mainland companies allow businesses to conduct operations across the UAE and outside the UAE but often require a UAE national partner. An offshore company is registered inside the country but usually doesn’t have any operations here.
How much does a setup for business in Dubai cost?
Can I start a business in the UAE without a business license?
Why should I hire business setup consultants in Dubai?
Can a Free Zone company do business in the Mainland UAE?
What are the benefits of starting your business in the UAE Free Zone business?
What are the key steps to set up your business in the UAE Mainland?
How do I open a bank account in the UAE for my business?
What should I consider when creating a business plan for Dubai?
What support is available for business growth in Dubai and the UAE?
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