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Dubai is one of the world’s most exciting and business-friendly cities, offering numerous opportunities for entrepreneurs. Known for its prime location, tax benefits, and modern infrastructure, Dubai has become a global hotspot for business and investment. We’ll walk you through the essential steps to setting up a business in Dubai, covering everything from company registration to legal requirements.
Many options are available, and establishing a business on the mainland is a top choice for many. It’s important to understand the details of the mainland business setup in Dubai.
A mainland business setup refers to establishing a business within Dubai mainland. Unlike free zone businesses, which are typically restricted to specific areas and offer different benefits, mainland businesses can operate across the UAE and have the flexibility to trade directly with the local market benefits companies seeking to engage with Dubai’s broader consumer base.
Dubai prime location between Europe, Asia, and Africa makes it a perfect gateway for international trade. The city boasts state-of-the-art infrastructure, a stable economy, and a varied market, attracting regional and global investors. With its business-friendly atmosphere, tax-free zones and flexible regulations, Dubai has become a favourite spot for entrepreneurs from many sectors, such as technology, finance, real estate, and logistics.
When planning to establish a business in Dubai, it’s essential to understand the available business structures. The main options include:
A mainland company operates in Dubai and can conduct business in the UAE and internationally. It allows businesses to have a physical presence and operate across various sectors without restrictions.
Dubai is home to many free zones that offer incentives such as 100% foreign ownership, tax exemptions, and streamlined processes for business setup. Free zones are provided to specific industries, including media, healthcare, logistics, and technology, providing entrepreneurs access to a targeted market.
Offshore businesses are ideal for entrepreneurs who want to establish a company in Dubai for international trading, asset protection, or holding purposes. Offshore companies benefit from favourable tax laws and confidentiality.
Choosing the right business structure for a mainland setup in Dubai is lengthy and challenging, as it requires ensuring compliance with local laws and optimisation of operational efficiency. The business structure you select will impact your liability, ownership, operational flexibility, and tax obligations. Below are some key considerations and common business structures available for mainland setups in Dubai:
In Dubai, the most common types of business structures include:
This structure allows a single individual to own and operate the business. It's straightforward and easy to set up, though the owner has unlimited liability for business debts.
In this structure, two or more individuals can share ownership and liabilities. Partnerships must have a local partner if they engage in commercial activities but can also operate with limited liabilities depending on the nature of the business.
Free zones offer 100% foreign ownership and various incentives, such as tax exemptions. However, operations on the mainland may be limited. This structure is ideal for businesses focused on import/export or trading.
An LLC is one of the most popular structures for expatriates. It allows up to 49% foreign ownership, with a local Emirati partner holding the majority stake. This structure offers limited liability protection, safeguarding personal assets against business liabilities.
Understanding the costs of starting a business in Dubai can help new entrepreneurs plan better. Here’s a breakdown of the main expenses involved, along with expected costs:
Trade License Fees Usually range from AED 7,000 to AED 15,000 annually.
Permits and Documentation: Can vary, but expect around AED 2,000 to AED 5,000 for various permits and legal documentation.
These are estimated costs and can vary depending on specific business needs, location, and other factors. Conducting thorough research or consulting with a local expert when planning your business setup is always a good idea.
Here’s a breakdown of different visa options available in Dubai, along with their benefits and expected costs:
Setting up a business in Dubai requires careful planning and the submission of necessary documentation. Here is a comprehensive guide outlining the key documents needed for a successful business setup, along with relevant keywords to enhance searchability:
1. Business Plan: A comprehensive business plan outlining your business model, target market, financial projections, and operational plan.
2. Business License Application: A completed application form for a business license from the Department of Economic Development (DED) or relevant authority.
3. Proof of Initial Capital: Documents proving you have sufficient funds for your business setup. This may require bank statements or investment certificates.
4. Shareholder Agreement: For partnerships, a shareholder agreement that outlines ownership percentages, responsibilities, and profit-sharing.
5. Lease Agreement: A tenancy contract for the business premises, including commercial offices, warehouses, or retail spaces.
6. No Objection Certificate (NOC): If applicable, an NOC from your current sponsor is required if you are relocating or starting a business on a residence visa.
7. Passport Copies: Clear copies of passports of all shareholders and partners, along with their residence visas (if applicable).
8. Approval from Relevant Authorities: Depending on your industry, approval from specific regulatory bodies may be required (e.g., health, education, tourism).
9. Emirates ID: All owners and employees can apply for an Emirates ID once their business is established.
10. Commercial Registration: Register your business name and secure commercial registration with the DED.
When considering the establishment of a business in Dubai, choosing the right corporate service provider is essential for navigating local regulations and ensuring a smooth setup process. Silver Oak Corporate Services stands out as a premier choice for business setup consulting in Dubai for several compelling reasons.
Strong Network of Partnerships: Silver Oak’s strong network of governmental agencies and financial institutions streamlines the business setup process. This ensures smooth communication and cooperation with regulatory bodies, thereby accelerating the overall setup timeline.
FAQ
Contact us for 24/7 support or queries about Mainland Business Setup in Dubai.
There are mainly four types of business licenses in Dubai:
Yes. In Free Zones, foreigners can own 100% of their company. As of recent reforms, in many sectors, foreigners can also own 100% of a Mainland company without needing a local sponsor.
Depending on the business activity and location (Free Zone, Mainland, or Offshore), it can take 3 to 10 working days to complete the company formation.
Costs vary based on location and license type, but initial expenses typically include:
Consult with Experts: Engaging with a local business consultant or legal advisor can provide in-depth insights into the advantages and disadvantages of each business structure. We can help you navigate local regulations, ensure compliance, and make an informed decision customized to your circumstances.
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For most Mainland businesses in the past, yes. But now, many sectors allow 100% foreign ownership. Free Zones don't require a local sponsor.
Business owners can apply for investor visas. You may be eligible for multiple employee/residency visas under your company, depending on the license package.
Yes, for Mainland companies. Free Zones may allow Flexi-desks (shared workspaces) to meet the minimum requirement.
Yes. Once your company is set up, you can apply for a business bank account. The process may take 2–4 weeks and includes due diligence by banks.
A consultant helps you: