Dubai Mainland License, UAE

Benefit of office space – Mainland business can be accomplished anywhere in the country. Both freezone and offshore business entities are required to operate from certain geographical locations.

Do business anywhere in UAE – You may carry out the business endeavour anywhere in the UAE and there are no restrictions of any kind.

Favourable geographical location – UAE or Dubai serves as the gateway to the middle east. And hence there is scope for business diversification in the other GCC countries.

Corporate tax exemption – Mainland companies can enjoy the benefit of corporate tax exemptions. In many countries, foreign investors are required to pay a considerable amount of money in the name of corporate tax.

Income tax exemptions – Mainland companies are exempted from income tax.

Capital Incentives – Being a pro-business government, UAE has so many concessions and incentives in store for investors. There is no restriction like a “minimum capital prerequisite” to set up a business in the UAE.

No Currency exchange restrictions – Mainland companies in UAE need not go through currency exchange regulations.

Improved business opportunity – Starting up your business concern in the UAE mainland means that you get international exposure. You have a better reach to international clients and markets. You can leverage the international exposure of the mainland to expand or diversify your business.

Professional business ethos – Dubai has a professional business culture that gives due consideration to business enterprises of all types and nature. The professional work culture environment makes Dubai the favourite business destination of entrepreneurs, startups and seasoned professionals.

Hassle-free business set up formalities – The mainland business set formalities can be accomplished easily by following the guidelines issued by the License issuance authorities and other governmental agencies. With professional assistance and guidance from experienced Dubai Business consultants, you may accomplish the entire Company Incorporation formalities in the mainland with ease.

Generally, four major licenses are issued for businesses operating in the UAE mainland. The licenses are issued based on the business endeavor and they are:

1)Professional License – License issued for firms that undertake service-oriented endeavors. Professional License are required for professionals who take part in any professional activity like consulting. Compared to other licenses the cost involved in the issuance of professional license is less.

2)Commercial License – License issued for those business establishments that undertake buying and selling of goods or services or simply trading. Most traders opt for the general trading license in order to conduct more than one trading endeavour with a single license. Commercial licenses are very common in Dubai and UAE mainland. The entire formalities connected with Professional License like issuance, amendment, cancellation can be accomplished easily.

3)Industrial License – License issued for firms that involve in the manufacture of goods like factories, industries etc. When it comes to Industrial License, you may need to seek the approval of External Ministries and government departments depending upon the type of industrial activity.

4)Tourism Licence – All tourism related activities require a valid Tourism License. The Department of Tourism and Commerce Marketing DTCM has a major role in the issuance of Tourism license. A valid Tourism license is mandatory to conduct inbound and outbound tour related activities.

Step by step instructions for mainland company formation in Dubai, UAE: 

Assign a local sponsor in UAE for your business – Local sponsor is a UAE citizen who serves as your local service agent or LSA. You may even assign a UAE company with 100% UAE ownership as a local service agent. You are required to sign an agreement with the local service agent that specifies the official responsibilities of the service agent in connection with your business and other terms and conditions.

Local service agent’s NOC is mandatory to initiate your business endeavour in Dubai. Memorandum of Association (MOA) – Get ready with the MOA that clearly indicates the operational guidelines of your company like the purpose, capital involved, share details etc.

Obtain Initial Approval from the Department of Economic Development (DED) – DED performs the notarization of MOA and then issues the Initial approval. You may contact a business consultant to get this formality done.

Trade name registration – Find an appropriate trade name for your business and get it registered with DED. DED has the right to alter or discard the trade name if it has already been selected by another company.

Office space requirement – An office space is mandatory to set up any mainland business in Dubai or UAE. A registered office address is required for the issuance of trade license. Information regarding ownership agreement or tenancy can be produced as evidence of a registered address.

Apply for the license – If all the above-mentioned prerequisites are satisfied, you may apply for a trade license. DED is the agency that issues the mainland license in Dubai, UAE.

Pay the license fee – Submit all the relevant documents connected with company incorporation to Commercial registration department and DED and pay the required license fee.

Get your license – Get your trade license from the DED. The company registration procedures shall be accomplished in a week if all the formalities are through.

If you are new to Dubai or UAE and have doubts regarding company incorporation and license issuance, it is advisable to entrust the job to an experienced business consultant. Ahil Alzyn Commercial Brokers Business Set up Services can assist you through the entire tasks associated with mainland business formation in Dubai and UAE.

Our advisors and consultants are always ready to help you.

The document requirements changes with the type of shareholder. Individual shareholders require a specific group of documents. Corporate shareholders require another set. Both requirements are listed below. 

Individual shareholder documents

• The foreign shareholders, directors and managers are required to submit their copies of their passport. 
• Employer’s NOC is applicable if the shareholder is on an employment visa.
• UAE shareholder’s National ID card (copy)

How to find a local partner in UAE? 

If you are new to Dubai or UAE, getting a reliable and proactive UAE national sponsor can be a challenging task. Without adequate business contacts, goodwill and experience, it is difficult to attain the apt person as the local sponsor for your business endeavour. Getting the wrong person as your business partner may adversely affect your business and peace of mind. Save your precious time and energy on the task of finding the perfect UAE national partner. Leave the task to Ahil Alzyn Commercial Brokers Business Set up Services. Our decades of experience in the Business set up domain of UAE will help you find the most appropriate UAE national partner for your business. 

Corporate Sponsorship

Mainland LLC companies may seek the service of a corporate sponsor. Here the Corporate sponsor would function on behalf of individual sponsor. A corporate sponsor must be a corporate company owned by UAE nationals. 

Types of Company formation in Mainland UAE

1. Incorporation of Professional Company – Professional companies rely on the professional or intellectual capabilities of its shareholders. Business establishments that provide all kinds of consultancy services can be put in to the category of professional companies. Accounting firms, legal firms, educational consultants, consultancies that deal with administration and management all come under the category of professional companies. A professional trading license is mandatory for all professional companies to operate in the mainland UAE. At certain scenarios, professional company licenses demand educational qualification of the shareholders in order to ensure the quality of the services.

Professional company assets are subject to government monitoring. The monitoring is conducted for assets like websites to safeguard certain professional standards. 

Foreign investors or shareholders can fully own a professional company. However, the service of a UAE national is mandatory for company incorporation. The UAE national has no ownership rights or equity share in the company but receives a fixed annual service fee.

1. Incorporation of branch office – You may set up your branch office in Dubai. The branch company can operate as the child company of the parent company and perform all the business activities and transactions vested upon the parent company. The activities include customer-oriented interactions and services, settlement of agreements on behalf of the parent company etc. The branch office is not supposed to perform any operations that the parent company is not allowed to undertake. Business establishments of the financial sector like banks, financial institutions and insurance companies can set up branch offices in Dubai. 

Step by Step instructions for branch office incorporation in Dubai

• Assigning a local service agent - is one of the most important tasks associated with branch incorporation. The local service agent should be a UAE national. You may even appoint a company based in UAE that has a 100% UAE citizen ownership. The local service agent performs the tasks related to acquiring licenses, visa and other important documents. And these tasks are initiated for a certain fee. The local service agent has no ownership rights or any say in the day to day operations or management of the branch. 
• Trade name reservation – Approach the Department of Economic Development (DED) for trade name registration of your branch. 
• Ministry of Economy - initial approval 
• After you get the initial approval from the Ministry of Economy, you are required to apply for a Commercial License. The license issuance is carried out by the DED and the validity of the license is 1 year. 
• Find appropriate office space for your branch and confirm the location. 
• Get a Corporate bank account 
• Accomplish the employee-related formalities like labour cards and visa. 
• Get the Dubai Chamber of Commerce and Industry membership. 

Documents needed for MOE – Initial approval 

• In order to get MOE – Initial approval, the following documents are necessary. 
• Registration forms
• Trade name registration (proof)
• Parent company’s MAA (Memorandum and Articles of Association)
• Parent company’s Certificate of Incorporation 
• Passport copy of the director
• Parent company’s NOC
• Local service agent – Naturalization book and passport (copy)
• The local director of the branch requires a power of attorney. 
• Board resolution from parent company
• Setting up a new branch in Dubai requires the authorization of the management of the parent company. 

Documents needed for DED - Commercial License issuance

• MOE – Initial approval 
• The Parent company should issue a statement that defines the business undertakings of the branch
• Parent company’s audited financial statement (previous 2 years)
• Property lease contract (copy)
• Initial approval documents (Copy)

Kilton’s branch Incorporation Services in Dubai

If your company requires a branch in Dubai, Ahil Alzyn Commercial Brokers can guide you through the Business Incorporation process. We assist you in matters related to:

• Documentation related services
• Finding a trustworthy local service agent
• Coordinating the various government agencies for approvals
• Branch location assistance
• Corporate bank account opening assistance

1. Limited Liability Company Incorporation – Limited Liability Company Incorporation is one of the most preferred mainland business priorities. LLCs can accommodate multiple shareholders ranging from 2 to 50. A wide range of business activities can be incorporated under LLC with exception to financial endeavours like insurance or banking. When it comes to company equity share, the foreign shareholder holds 49% of the company share and the remaining 51% goes to the UAE national or local sponsor. 

The company share ratio need not be followed in the case of profit and loss acquired. The LLC licenses are issued by the Department of Economic development or DED. 

Instructions to set up a Limited Liability Company in Dubai

• Reserve the trade name
• Office space registration
• General information of shareholders - name and nationality. 
• Capital share of the individual shareholder.
• Identity information of managers like name and nationality
• Profit and loss share of shareholders. 

1. Representative office – An International business concern is allowed to set up a representative Office in Dubai on its behalf in order to attain UAE-wide representation. The representative office is established mainly for the promotion of business. At times, the international company may form a representative office to end all the business transactions with its clients. The representative office is not authorized to perform any business transactions in the UAE. 

The Ministry of Economy’s approval is mandatory for the registration of a representative office. 

Advantages of setting up Representative office 

Economical company set up cost

The total cost of formation of a Representative Office in the UAE mainland is around AED 100,000. 

Many shareholders

Maximum of 50 shareholders can take part in company formation. And hence representative office has the benefit of flexibility. 

Share capital benefit

Minimum share capital is not required for representative office formation. 

Mainland business setup has the advantage of selecting a wide range of locations. The most preferred business set up jurisdictions in Dubai are listed below.

Business Bay – Business Bay is a business hub ideal for service and hospitality sector business concerns. From small shops to big MNCs, Business Bay is an ideal location for a variety of business establishments. The region is located between Dubai Creek and Sheikh Zayed road.

Deira – Deira is one of the oldest parts of Dubai. Located in Dubai north, Deira shares the border with Sharjah and is an ideal location for establishing small shops and medium enterprises.

Al Quoz – Al Quoz is located in the South-west region of Dubai. The region is basically an industrial area. Both the Sheikh Zayed Road and Al Khail Road run parallel to each other on either side of Al Quoz in the north-south direction. As an industrial area, Al Quoz is a preferred destination for setting up warehouses, industrial concerns and other related business activities.

Al Qusais – Located close to Dubai International Airport, Al Qusais is another well-known industrial area. The region has well-equipped residential complexes too. Al Qusais belongs to the suburbs of Dubai. Al Qusais is ideal for setting up commercial establishments, educational concerns, etc.

Jumeirah – Located in the west-coast, Jumeirah has a lot to offer for real estate and tourism sectors. The resorts and restaurants in the region attract tourists from all over the world.