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Dubai is an excellent business destination for companies and enterprises around the world. In case you wish to start a new business, want to expand to new markets or want to relocate your existing venture, then the UAE and Dubai are great options to consider. Let us now take a look at the Dubai Mainland company formation cost and setup procedure.

What is a Mainland Company in UAE?

A Mainland Company in Dubai allows the entrepreneur to operate freely throughout the Emirates and poses no territorial restrictions. However, to incorporate as a Mainland Company, the board must have an Emirati agent either as an individual or corporate undertaking. Such an agent must own at least 51% stake in the company if they wish to operate within the UAE. However, this rule will not be mandatory in the following cases;

  1. Business activities which allow 100% Foreign Ownership
  2. Large partnerships between UAE Nationals and other GCC companies 
  3. Activities which allow 100% Local Ownership

What are the different business licenses available to Mainland Companies?

  1. Professional license – For companies that help with activities such as training, consultancy and management.
  2. Industrial license – For manufacturing businesses and industrial companies which have either an owner or leased warehouse/manufacturing facility within the country.
  3. Commercial license – For businesses that involve in trading and other retail activities including, import and export, logistics, real estate service and tourism. 

What are the different types of Mainland Company Formation in Dubai?

  1. Sole Establishment: Mainly applies to professionals and those engaged in service activities, such as consulting. Emirati law allows for 100% foreign ownership of such business structures if registered outside Free ones. They also do not have any minimum capital requirement.
  2. Limited Liability Company or Commercial Establishment: Emirati law does not permit 100% foreign ownership in such cases. The minimum share capital in such cases amounts to AED 300,000.
  3. Branch of Foreign Company
  4. Representative Office
  5. Civil Company: Owned 100% by a foreign corporation or individual and can have up to three shareholders and one local agent. Such companies can apply to both professional and service licenses in the UAE.

Mainland company set up in the UAE

  1. First and foremost, business owners must select an appropriate business activity and develop an initial business plan.
  2. Based on the activity chosen, the business owner must select the most appropriate business structure to incorporate their business as.
  3. Next, owners must select a trading name for the company and ensure it complies with Emirati company naming laws. Also, by this stage, owners must start collecting all the required documents for the later steps.
  4. The owners must then prepare a Memorandum of Association and draft a Local Sponsor Agreement as per their requirement.
  5. Next, the owners must establish a location for their business and obtain a lease contract known as Ejari as required. 
  6. The owners must then obtain all the required external approvals from other authorities, including the Ministry of Health, Civil Defense and Police.
  7. Afterwards, the entrepreneurs must obtain a business license depending on the business activity they wish to engage in, and they can then start their operations.

How can we Help?

KGRN Chartered Accountants offer a company formation service in the UAE. We have decades’ worth of experience guiding companies through complicated business systems in the UAE. Some of the procedures for setting up a company can be complicated and lengthy, and hence you should seek a company formation service in UAE. Our experts will be able to help you decide the business structure, and explain the UAE company formation cost to you. We will also help you complete the process with ease! So, what are you waiting for? Build the company of your dreams with KGRN by your side!

For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com

Related Resources:

Business Setup in Dubai

Mainland Business Setup Dubai

Company Formation in Dubai