Company Formation in Dubai Mainland
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How Much Does Business Setup In Dubai Cost?
It depends on several factors, such as your business activity, Free zone or Mainland, Number of Visas required, and shareholders . Based on our 4 years of experience in business setup in Dubai, we have developed a Business Setup Cost Calculator to give you answer.
What is the Department of Economic Development?
The Department of Economic Development (DED) is the governing authority responsible for issuing trade licenses for businesses operating in Dubai mainland. Under Law No. 13 of 2011, the DED regulates all economic activities for companies outside the free zones, ensuring compliance with local regulations. Its mission is to foster economic growth and drive effective policy implementation across various sectors in Dubai.
We work closely with the DED to align with the government’s vision for expansion, providing seamless support for business setup in Dubai mainland. Our services simplify the process, offering hassle-free corporate solutions to help businesses establish and thrive in Dubai mainland.
What is a Mainland Company?
A mainland company, licensed by the Department of Economic Development (DED) of the relevant Emirate, can operate anywhere within the UAE. Often called an ‘onshore’ company, business setup in Dubai Mainland is highly desirable for entrepreneurs due to the unrestricted business opportunities across the UAE.
Benefits of Business Setup in Dubai Mainland:
- Flexibility: Business setup in Dubai Mainland allows you to operate in both local and international markets without restrictions.
- Unlimited Visas: There is no limit on the number of visas your company can issue.
- Office Location: Your business can be located anywhere in mainland Dubai, offering greater convenience.
- Visibility: Enjoy enhanced brand visibility and accessibility in the local market.
- Government Contracts: Gain access to government tenders, as mainland businesses are eligible for contracts with government departments, which typically do not engage with free zone companies.
Licensing Options Under Department of Economic Development:
Commercial License: A Commercial License is issued as a Limited Liability Company (LLC) for any commercial activity in Dubai. It is the most popular form of business setup in Dubai Mainland for commercial entities.
Professional License: A Professional License is issued for businesses based on the skills, services, and expertise of the individuals involved. The company can be either a sole establishment or an LLC. Foreign nationals can establish a sole establishment under their name, except for certain restricted activities. For sole establishments, a UAE national must be appointed as a local service agent.
Branch Office: A branch office license allows a company to extend its local or foreign operations to Dubai Mainland. It does not have a separate legal personality and can only perform the business activities of its parent company. Special approval from the UAE Ministry of Economy is required, and a UAE national must be appointed as a local service agent.
Representative Office: A representative office is primarily set up to promote the business and expand the presence of the parent company in Dubai Mainland. Like a branch office, it requires a UAE national to act as a local service agent.
Free Zone Business Setup
Mainland Business Setup
Run your business anywhere in the UAE without any limitations.
Offshore Business Setup
Set up your offshore company and operate outside the UAE with a corporate bank account.
Step 1
Effortless documentation for International entrepreneurs.
Step 2
Selecting the ideal license for your business requirements.
Step 3
Acquiring Employment Entry Permits and Residence Visas for Staff.
Step 4
Establishing a Corporate Bank Account in the UAE
Starting a business in Dubai mainland has become significantly more appealing for foreign investors due to recent legislative changes. Previously, foreign investors needed to partner with UAE nationals, who had to own at least 51% of the company shares, leaving foreign investors with a maximum of 49%. This minority stake restricted their ability to manage their companies independently. Additionally, certain business structures required foreign investors to appoint a local service agent—often a UAE national—who would charge fees without holding any shares. These hurdles often discouraged foreign investment for business setup in Dubai mainland.
To enhance investor confidence and attract foreign investment, the United Arab Emirates amended the UAE Commercial Companies Law, allowing for 100% foreign ownership of onshore companies. This significant change took effect on June 1, 2021.
Key Benefits of 100% Foreign Ownership
The new regulations allow for 100% foreign ownership of companies engaged in specific business activities listed in the UAE’s ‘positive list,’ which features over 1,100 activities across various sectors. The Dubai Economy has issued guidelines to streamline the process for full ownership of mainland companies, emphasizing several key points for business setup in Dubai Mainland:
Eligible Activities: The Dubai Economy supports 100% foreign ownership for a wide range of commercial and industrial activities. Commercial activities include general trading, contracting, jewelry, gold, pearls, luxury watches, and more. Industrial activities encompass sectors like metal and construction, flooring, building materials, food production, water production, and paint. Education and hospitality are also included in the positive list.
Amendment of Existing Companies: Existing mainland companies in Dubai can reduce the shareholding of an Emirati partner or allow them to resign by amending their company documents through legal channels.
Licensing and Incorporation: The amendment does not alter the processes for licensing, incorporation, and renewal of Dubai mainland companies. These services remain accessible through the existing channels of the Dubai Economy.
Legal Structures: The new law does not change the current legal structures of Dubai mainland companies, such as sole establishments, civil companies, and Limited Liability Companies (LLCs). However, it does allow for the transformation of an LLC into a one-person company with limited liability under a foreigner’s name.
Foreign Branches: Foreign companies can establish branches without needing an Emirati agent, and existing agents can be removed.
Commercial Agencies: The amendment does not affect commercial agencies, which continue to be regulated by separate laws and must be owned exclusively by UAE nationals.
These changes significantly enhance the opportunities for business setup in Dubai Mainland, making it easier for foreign investors to establish and operate their companies.
Impact and Opportunities
Why Choose Agility Global for Mainland Company Formation?
Corporate Tax & VAT
Receive expert guidance to ensure compliance with Corporate Tax and VAT obligations under the Federal Tax Authority (FTA).
Bank Account Opening
We will help you in opening your corporate or personal bank accounts in UAE effortlessly with trusted banks in the UAE.
Accounting & Payroll
Our accountants handle finances, offering bookkeeping, reconciliation, payroll, and audit support, reducing hiring expenses.
Compliance Services
Our specialists at Agility Global assist with UAE’s regulatory requirements, including ESR reports and UBO filings.
PRO Services
Leave administrative tasks to our PRO team, allowing you to focus on business while saving time and money.
Legal Services
Our legal team advises on UAE laws regarding M&As, corporate restructuring, financing, and dispute resolution.
