Explore License Possibilities for Company Formation in Dubai
FreeZone
Mainland
Offshore
Steps to Business Setup
Setting up a business in Dubai mainland involves a series of steps and adherence to certain regulations. Here’s a general guide to help you understand the process:
Choose a Business Activity:
- Determine the type of business activity you want to engage in. Dubai offers a wide range of activities across various sectors.
Legal Structure:
- Decide on the legal structure for your business. Common structures include Sole Proprietorship, Limited Liability Company (LLC), or Branch of a Foreign Company.
Local Sponsorship:
- For most business structures, a local sponsor (UAE national) is required. The local sponsor holds 51% of the shares in the company. However, profit and loss sharing can be mutually agreed upon and detailed in the legal documents.
Choose a Business Name:
- Select a unique and acceptable business name. Ensure it complies with the naming conventions and does not violate any trademarks.
Draft a Memorandum of Association (MOA):
- Prepare the MOA, which outlines the company’s activities, details of shareholders, and the share capital.
Obtain Initial Approval:
- Submit the required documents to the Department of Economic Development (DED) for initial approval. This includes the MOA, lease agreement for the office space, and other relevant documents.
Office Space:
- Rent an office space in a location approved by the DED. This is a mandatory requirement for mainland businesses.
Finalize Legal Documents:
- Finalize all legal documents, including the local sponsorship agreement and lease agreement. Make sure all shareholders sign the necessary documents.
Submit Documents to DED:
- Submit the finalized documents to the DED for final approval and business registration.
Payment of Fees:
- Pay the required fees for business registration, licensing, and any other applicable charges.
Receive Trade License:
- Once all approvals and payments are completed, you will receive your trade license. This license allows you to conduct business in Dubai.
Visa Processing:
- Apply for visas for you and your employees. The number of visas you can obtain depends on the size of your office space.
Open a Corporate Bank Account:
- Open a corporate bank account in the UAE.
Compliance with Regulations:
- Ensure ongoing compliance with UAE laws and regulations, including timely renewal of licenses.