After enacting a Business setup in Dubai, the First decision that a Businessman has to take is choosing the economic zone to set up the venture in. The three zones available in Dubai are Mainland, Free zone, and offshore. Three of them offer different advantages and have different rules and regulations to be followed. You may choose one according to your relevance.
Most of the entities prefer to set up their venture on the Mainland. In 2019, the Department of Economic Development (DED) issued over 38,000 licenses for Dubai Mainland, more than 90% of the licenses issued in 2018. Private businesses set up on Mainland are subject to commercial operations by the Department of Economic Development in Dubai (DED).
This is because Mainland delivers comprehensive measures to businesses to operate their company more efficiently compared to other jurisdictions. With excellent infrastructure, more accessible access to customers and flexibility, Dubai Mainland is a great attraction for business people looking for a Business setup in Dubai.
Specific advantages that Mainland offers over other economic zones are listed below:
- With a mainland company, you can do and operate a business from any part of the UAE.
- There are no restrictions from DED on the capital requirement for company formation
- There are many options available to rent an office space
- No corporate tax and No personal income tax
- Very few restrictions on the number of visas that a company can attain
- You can operate up to ten related business activities
There are four types of Licenses issued by the Department of Economic Development(DED) for forming a company on the Dubai mainland:
- Professional: This license is acquired for non-physical services such as consultancy. Expats are the owners of 100% shares, and a UAE national agent is appointed for local service.
- Commercial: Be it general or specialized trader, both are required to obtain the license to carry out relevant business activities safely. Companies involved in commercial trade have to apply for a commercial license.
- Industrial: Companies involved in manufacturing and turning raw materials or natural resources into finished goods acquire an Industrial license to practice their trade.
- Tourism: A travel agency license is issued for the operator of outbound tourism.
You can choose the license relevant to your business activity. This also shows additional permission you may have to take from the Ministry of Economy and Commerce, Ministry of Finance and Industry, Ministry of Health, Registration from the Chambers of Commerce and Industry, etc.
After choosing business setup in Mainland of Dubai, You need to start with the registration process. There is a list of documentation and paperwork required for any company formation on the Mainland.
According to UAE’s commercial law, Owners of companies to be formed in the Mainland must have a UAE national as their business partner.
The following steps should be followed to incorporate your new venture on Mainland:
- Choose the business activity you’re going to perform
- Set a name for your business and get it approved
- Find a reliable business partner
- Get initial approval
- Draft the Memorandum of Association (MoA)
- Choose an appropriate office place to rent
- Get your Ejari, & your attested tenancy contract
- Submit all the required documents to DED
- And collect your business trade license