How to Establish a Mainland Company in Dubai: A Comprehensive Guide for Aspiring Entrepreneurs
Dubai is a city renowned for its dynamic business landscape, serving as a magnet for entrepreneurs and investors worldwide. The city’s conducive business environment, strategic positioning, and high standard of living make it an attractive destination for those seeking to establish their presence. Establishing a mainland company in Dubai comes with a range of significant advantages, making it an attractive option for businesses. These benefits include easy access to global markets and cutting-edge infrastructure. Additionally, operating in Dubai allows companies to conduct business freely across the UAE, tap into a diverse and skilled workforce, and thrive in a stable, business-friendly environment.
Previously, to start a company on the mainland, you needed a local partner with 51% of the shares. Nowadays, this condition is no longer necessary so the process of setting up a mainland business becomes more simple.
There are three primary types of licenses available:
- Commercial License: this license is designed for commercial activities and is required for most businesses.
- Professional license: issued for the provision of professional services, such as consulting or legal services and other companies that assist people.
- Industrial License permit: required for industrial activities, including manufacturing and production.
Moreover, additional permits may be required from various government agencies, depending on the nature of the business.
The process of company registration.
The process of establishing a company in Dubai involves several crucial steps:
- Determining the scope of operations: this involves carefully selecting the activities that the company will engage in.
- Choosing a name: the name should comply with the regulations governing corporate naming in Dubai. It is essential to ensure that the name is unique and does not disturb on any existing trademarks.
- Selecting a location for the company’s physical presence: this includes determining the best location for the office, considering factors such as accessibility, infrastructure, and being close to potential customers.
- Searching for a local partner: in some cases, a local sponsor may be required for mainland companies. Establishing a partnership with a local entity can provide valuable support and access to local markets.
- Submission of documents: this step involves preparing all necessary documents (copies of the shareholders’ passports, lease agreement for the office space).
- Obtaining a license: after submitting an application, the company obtains a business license from the relevant authorities.
The registration process can take anywhere from a few days to several months, depending on various factors. One of the main challenges that may arise is the time required to acquire additional permits. However, with proper planning and guidance, these steps can be managed efficiently.
The costs of setting up and running a business in Dubai.
The costs of setting up and running a business in Dubai vary based on several factors, including:
- Registration fees
- Rental fees for office space
- Fees for services provided by a local sponsor, (if any)
- Accounting services
One of the principal advantages of conducting business operations in the United Arab Emirates is the stability of the country’s economy and its banking sector. The exchange rate between the UAE dirham and the US dollar has remained constant for over 25 years, pegged at 3.65 per cent to the dollar.
KAIDZEN BIZ, with its experienced team, is well-equipped to help you quickly and easily establish a business in Dubai. We offer a wide range of services, including company establishment and registration, as well as trade license acquisition and government permits.
Got questions? Reach out to our team—we’re here to help!
