Dubai Mainland Company Requirements Explained

Setting up a Mainland company in Dubai offers numerous advantages, including extensive market access, flexible office locations, and the potential for 100% foreign ownership. Understanding the requirements for establishing a Mainland company is crucial for a smooth setup process. This article will explain the key requirements for setting up a Dubai Mainland company, providing a comprehensive guide for prospective business owners.
Business Activity and Legal Structure

1. Determine Business Activity:
The first step is to decide on the type of business activity your company will engage in. Dubai categorizes business activities into commercial, industrial, and professional. Each category has specific licensing requirements and regulations. It is essential to select the appropriate business activity as it will dictate the type of license needed.

2. Choose a Legal Structure:
Select the legal structure for your company. The most common legal structures in Dubai Mainland include:

Sole Proprietorship: Owned by a single individual.
Limited Liability Company (LLC): Requires a minimum of one shareholder and can have up to 50 shareholders.
Branch Office: A branch of a foreign company established in Dubai.

Each structure has its advantages and regulatory requirements, so choosing the one that aligns with your business goals is important.
Trade Name Registration

3. Register a Trade Name:
Choose and register a unique trade name for your company. The trade name should reflect the nature of your business and comply with the UAE’s naming conventions. The Department of Economic Development (DED) is responsible for approving and registering trade names.
Initial Approval

4. Obtain Initial Approval:
Submit an application to the DED to obtain initial approval for your business. This approval indicates that the authorities have no objections to your proposed business activities. Required documents typically include passport copies of the shareholders, a brief business plan, and the trade name reservation certificate.
Office Space Leasing

5. Lease Office Space:
Secure a suitable office space and obtain a tenancy contract. The DED requires proof of a physical office location for all Mainland companies. The size and type of office space should be appropriate for your business activities and comply with local regulations.
Drafting Legal Documents

6. Draft and Notarize the Memorandum of Association (MoA):
Prepare the Memorandum of Association (MoA) for your company. The MoA outlines the company’s structure, shareholder arrangements, and capital distribution. It must be notarized by a public notary in Dubai. The MoA is a critical document for the legal formation of your company.
Additional Approvals

7. Obtain Additional Approvals (if required):
Depending on your business activity, you may need to obtain additional approvals from relevant government authorities. For example, businesses in the healthcare, education, or financial sectors may require approvals from respective regulatory bodies.
Final License Application

8. Submit the Final License Application:
Submit all required documents, including the initial approval, MoA, tenancy contract, and any additional approvals to the DED. Pay the necessary fees for the final issuance of the business license. Once approved, you will receive your trade license, allowing you to legally commence business operations in Dubai Mainland.
Visa Processing

9. Apply for Visas:
After obtaining the trade license, you can apply for employee visas through the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA). Mainland companies have the advantage of a broader range of visa options compared to free zone companies.
Opening a Corporate Bank Account

10. Open a Corporate Bank Account:
Set up a corporate bank account in Dubai to manage your company’s financial transactions. Choose a bank that meets your business needs and provides comprehensive banking services. You will need to provide the trade license, MoA, and other relevant documents for account opening.
Conclusion

Setting up a Mainland company in Dubai involves several critical steps, from determining the business activity and legal structure to obtaining approvals and securing office space. By understanding and fulfilling these requirements, entrepreneurs can leverage the numerous advantages offered by Dubai’s robust business environment. Consulting with business setup experts can also help navigate the complexities of the process and ensure a seamless company formation experience.