Why MainLand Company Formation In Dubai?

Establishing a business in Dubai’s mainland district is regulated by Federal Law, with Mainland Companies being the most advanced corporate entities. It is a good choice to set up a business in Dubai’s mainland because of two main reasons.

1. Strategic Location: Firstly, the UAE's location is strategic in the Middle East, making it a valuable location for business investors to expand their operations and access other GCC nations.
2. Economic policies: Secondly, the UAE government provides various incentives to encourage company investors, such as 100% foreign ownership and no personal tax, to start business operations in various industries.
3. 3 Avoid double tax: In the UAE, if you own a company and do import-export transactions, you can sign an agreement to avoid paying taxes twice. This means you only have to pay taxes once, and not on both sides.
4. 4 Office Setup: It is easy to find office space in Dubai's mainland, which has become an increasingly popular location for business establishments.

Find a Local Sponsor

In Dubai, all mainland companies require a local sponsor, who will hold a 51% ownership in the company. The sponsor can be an individual or a company. The local sponsor will not have any involvement in the day-to-day operations of the company and will only be a partner on paper.

Choose a Business Name

Choose a unique and appropriate name for your company, which must be approved by the Dubai Department of Economic Development (DED). The DED has strict guidelines for business names, and any name that is deemed inappropriate or offensive will be rejected.

Apply for a Mainland Trade License

The next step is to apply for a Mainland Trade License of your company with the DED. This involves submitting the required documents, including the Memorandum of Association (MOA), to the DED for registration. The MOA outlines the company’s activities, ownership structure, and other details.

Obtain a Trade License

After registering the company, you will need to apply for a trade license from the DED. The type of license required will depend on your business activity. The trade license will allow you to legally operate your business within Dubai.

Rent a Business Location

You will need to rent a physical office space for your business, which must be approved by the Dubai Municipality. The location must be suitable for your business activity and must comply with the Dubai Municipality’s regulations.

Apply for Additional Permits

Depending on your business activity, you may need to obtain additional permits, such as a commercial permit, industrial permit, or professional permit. These permits may require additional documentation and approvals from various government agencies.

Open a Corporate Bank Account

Open a corporate bank account in Dubai, which is required to operate your business. The bank account must be in the name of the company and must be registered with the DED.

Hire Employees

You will need to hire workforce to run your business. The UAE labor laws stipulate certain requirements for hiring employees, including obtaining work visas and labor cards. You will need to follow these laws and obtain the necessary permits before hiring any employees.

Register for Taxes

Depending on your business activity, you may need to register for taxes, such as value-added tax (VAT). You will need to follow the tax laws of Dubai and register with the appropriate authorities.