Mainland Company Formation in Dubai, UAE
The United Arab Emirates is undoubtedly one of the most sought-after business destinations globally. The nation’s GDP is grossing 500 Billion Dollars per year, and a significant part of it comes from the mainland in each emirate. Mainland company formation comes with several benefits, including tax exemptions, an easy setup process, and affordable locations.
Here’s what makes business setup in the Mainland most attractive:
- Full ownership is allowed in many sectors without the need for a local sponsor.
- Access to a wider UAE market and ability to trade directly with clients and government entities.
- Fewer restrictions on office locations, visas, and business activities compared to free zones.
The mainland in each emirate has its Department of Economic Development, which regulates the business sector and provides commercial benefits. Each Mainland comes with its benefits and specifications, it is important to research which one is best for you.
Setting up a business in the UAE Mainland can be confusing, especially if you’re new to the country. There’s license acquisition, selection of business activities, choosing the right type of business structure, visa processes, etc. This guide walks you through it all.
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Business Licenses for UAE Mainland Business Setup
This license allows the holder to buy and sell goods. The activities under it include import, export, and re-export. A simple license has limitations on the number of products. If you are conducting business on a larger scale, you can get a general trading license to deal with a diverse range of products.
Key Benefits: Allows entry into a profitable business sector with thousands of eligible activities listed by the DED.
This license allows the holders to offer their professional services or opinions to their clients. Services could be related to activities such as accounting, management consultancy, media, and technical services.
Key Benefits: Lets industry experts have a profitable business model. Professional services in all sectors are always in demand.
This license allows activities such as logistics and manufacturing. It is suitable for businesses involved in production and industrial operations. It’s a popular type of business permit in the UAE.
Key Benefits: Provides access to industrial activities and incentives. You can import raw materials and design your products.
This license allows activities belonging to the tourism sector. The emirate has many tourist destinations and attractions that foreigners come to visit. Businesses in this sector are quite profitable and in demand, including tour planning agencies, hotels, and travel guide companies.
Key Benefits: Allows access to business sectors and ideas proven to be profitable and scalable.
This license is for businesses involved in publishing, broadcasting, or advertising. It is great for those working in media production and communication. Business examples include advertising agencies, PR firms, TV, radio, digital media studios and publishing houses, and bloggers.
Key Benefits: Access to a diverse and emerging sector and enormous chances for growth.
This license is for businesses providing expert advice in specific fields. Perfect for professionals offering strategic, financial, technical, or creative guidance. Business examples include management consultants, financial and investment advisors, marketing, HR, and branding consultants
Key Benefits: Opportunity to utilize the hard-earned skills or knowledge to solve others’ problems.
This type of business license is designed to accommodate a cost-effective option for small-scale companies and startups. This lets small-level businesses start their operations legally with government support and recognition.
Key Benefits: Entrepreneurs and small business owners can set up their businesses with minimal costs.
This license is designed to address the recent trend of freelancing. It allows individuals to offer services without needing a physical office. They can work from home and in flexible hours. It’s becoming quite the norm now. It is required for freelancers in creative, technical, or professional fields.
Key Benefits: Flexible work hours, the luxury to work with multiple clients, and personal ownership.
Steps to Start a Mainland Business Setup in Dubai - UAE
Setting up a company starts with choosing the set of activities your business will be involved in. Check the list of approved activities and decide the nature of your business. This step determines the type of license you will have to acquire for company formation.
Legal structures offer different needs and different perks for company setups. Popular examples include LLC, sole proprietorship, foreign ownership, and a branch office. Select a structure that fits your business needs, ownership, and goals.
Reserve a unique trade name through the Department of Economic Development website or mobile app. The name must not be offensive to the norms of society.
Obtain initial endorsement from the Department of Economic Development. This serves as a no-objection certificate and paves the way for the rest of the process.
Prepare a Memorandum of Association (MOA) and other required documents for acceptance. Ensure the validity and correctness of each document.
Find a suitable office space for your business operations. Finalize the lease agreement once you find a suitable pick. Popular options include executive offices, industrial facilities, and shared offices.
Depending on your commercial activity, additional approvals from other government authorities may be required to get started. Get those approvals if required.
Gather all the required documents and submit them along with the fee. Make sure that the submission is in time, or it can cause delays or fines.
Once your application is approved, you will receive your license. Now, you can start your business operations in the market.
Start a commercial bank account to streamline the company’s financial processes and get the visas for shareholders and employees to start company operations.
Understanding General Trading License in Dubai
Buying and selling goods
Importing and exporting products
Wholesale and retail trading
Selling items online (e-commerce)
Trading tools, equipment, and materials
Storing and delivering goods (logistics)
In simple terms, if your business involves handling different products, this license is required. It is one of the most useful and flexible licenses in Dubai.
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
Legal Entities for Mainland Company Formation in UAE
LLC
A Limited Liability Company requires 2–50 shareholders, offering limited liability for their share in capital. Foreign ownership is allowed without a local sponsor.
Perfect For: Foreign investors, startups, and small-to-medium enterprises.
Partnership Company
A partnership company allows ownership between two or more UAE nationals. They will be jointly liable based on their shares. This structure is not available for foreign investors.
Perfect For: UAE nationals looking to jointly invest in local businesses.
Sole Proprietorship
A sole proprietorship is owned by a single individual. Foreign owners require a UAE national as a local service agent to start a new company, but GCC and UAE citizens are exempt.
Perfect For: Professionals offering services like consultancy or freelance work.
Public/Private Shareholding
Under this structure, the share capital is divided into tradable shares. Liability is limited to share capital. Founding members sign the memorandum and articles of association.
Perfect For: Large-scale projects, companies planning IPOs, or seeking big investments.
Branch Companies
This structure allows local and foreign companies to open branches in the UAE Mainland These branches are an extension of the parent company and don’t require a different identity.
Perfect For: Companies looking to expand their business in the United Arab Emirates.
PJSC
A Private Joint Stock Company requires at least 51% ownership by country nationals. Liability is limited, and you can conduct various commercial and industrial activities.
Perfect For: Large-scale businesses and foreign investors in select industries.
Benefits of Mainland Company Formation in Dubai - UAE
100% ownership
Wider market access
Govt contract access
Flexible locations
More visa options
Broad business scope
Strong UAE presence
No currency limits
Fewer trade limits
Local credibility
Eligibility for Mashreq Bank Account in Dubai
- Must be 18 years or older
- Must have a valid passport
- Must have a valid UAE visa or Emirates ID
- Must show proof of income or job
- Must provide proof of address
- Must pass bank’s checks (KYC & AML)
- Business owners must show trade license
- Must meet bank’s minimum balance rules (if any)
- Must have a clean legal background
- Must agree to bank’s terms
Requirements for Mainland Company in the UAE
- Passport copies
- Visa copies
- Emirates ID (if any)
- No Objection Certificate (NOC) (if applicable)
- Trade name options
- Business activity list
- Initial approval form
- Lease/rent agreement
- MoA & LSA agreement
- Passport-sized photos
Required Documents for Businesses
- Valid trade license
- Commercial registration certificate
- Memorandum of Association (MOA)
- Emirates ID of all signatories
- Passports of all shareholders
- Proof of operating address
- Board resolution (if applicable)
Common Mistakes & Solutions When Opening a Mashreq Account
Wrong Account Choice
Mistake: Choosing an account that does not suit your needs can cause problems later.
Solution: Check account features and pick the right type (salary, savings, etc.).
Missing Documents
Mistake: Submitting incomplete or incorrect papers can delay your application.
Solution: Double-check all documents before applying. Ask the bank for a checklist.
Ignoring Online Option
Mistake: Not using Mashreq’s app may cause extra effort and time.
Solution: Try Mashreq NEO for fast and easy online account opening.
Low Balance Maintenance
Mistake: Not maintaining required balance can lead to fines (for some accounts).
Solution: Choose zero-balance salary account if you want to avoid this issue.
Delaying First Deposit
Mistake: Not making the first deposit on time may keep your account inactive.
Solution: Deposit the required amount soon after opening the account.
Common Mistakes & Solutions When Opening a &
Mashreq Account
Wrong Account Choice
Mistake: Choosing an account that does not suit your needs can cause problems later.
Solution: Check account features and pick the right type (salary, savings, etc.).
Missing Documents
Mistake: Submitting incomplete or incorrect papers can delay your application.
Solution: Double-check all documents before applying. Ask the bank for a checklist.
Ignoring Online Option
Mistake: Not using Mashreq’s app may cause extra effort and time.
Solution: Try Mashreq NEO for fast and easy online account opening.
Service Highlights for Mainland Company Setup
Cost Structure
Establishing a setup in the Mainland UAE can cost you around 8,000 AED to 30,000 AED, depending on your requirements, activities, location, and several other factors. Contact IBG Consultancy for an exact quote.
Business Terms
Several terms and conditions by local authorities have to be followed, including establishing a physical office, registration of approved activities, special approvals, and a minimum of one shareholder and one manager policy.
Regulatory Services
The DED in each emirate ensures streamlined and helpful regulatory services, including license updating, renewal, and company liquidation. It streamlines the business regulation.
Offshore Setup Timeline in JAFZA
Day 1 – 2
This period goes into choosing your company name, gathering all required documents, and submitting the full application to the Jebel Ali Zone Authority.
Day 3 – 5
During this period, JAFZA reviews your application and documents. If everything is correct, they approve and issue your certificate.
Day 6 – 10
This final period goes into opening a bank account in your company’s name. This completes your company setup. Most setups take 7–10 working days.
Account Opened
Get your account activated and ready to use, without any delays or confusion.
Simplify the Process of Business Setup With IBG Consulting
Solution? You need a business consultancy with years of experience, legal knowledge, and useful networks to experience a smooth business formation process. IBG Consultancy has it all and more, including suitable visa packages for a wide range of businesses. Contact IBG Consultancy for a smooth Company Formation in the Mainland, UAE.
Frequently Asked Questions
What is the difference between a free zone and a mainland business setup in Dubai?
While free zones are ideal for limited trade within specific zones, setting up a mainland business gives you the freedom to operate anywhere in Dubai and across the UAE. Mainland enterprises can trade directly with the local market and government bodies.
Can I get a government contract if I establish a mainland enterprise?
What types of companies exist in mainland?
Who can establish a mainland company in Dubai?
What’s the cost of mainland company setup in Dubai?
Do I need to get a Dubai mainland license for every type of business activity?
Can I establish a company for a small setup or freelance work?
What are the benefits of forming a mainland enterprises compared to a free zone company?
Is a physical office required when establishing a mainland enterprise?
Can foreign investors fully own a company in the mainland?
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