Investing a business in Dubai mainland offers numerous advantages, including access to the local market and a strategic location in one of the world’s leading economic hubs. The mainland business setup provides opportunities for a wide range of commercial activities and is governed by the Dubai Department of Economic Development (DED). Here’s an inclusive guide on what you need to know about establishing a business setup Dubai mainland.
Choose your business activity:
The first step in setting up a business in Dubai mainland is to decide on your business activity. Dubai allows a wide range of commercial, professional, and industrial activities. Ensure your chosen activity aligns with the legal requirements and licensing conditions set by the DED. Each activity has specific licensing requirements and approvals, so it is important to select the one that best fits your business model.
Determine the legal structure:
Next, choose the appropriate legal structure for your business. Common structures include:
- Limited liability company (LLC): Requires a local partner with a minimum of 51% ownership unless exceptions apply.
- Sole proprietorship: Suitable for professional services and allows 100% foreign ownership.
- Partnership: Involves multiple partners and can be structured according to the nature of the business.
Each structure has its own regulatory requirements and implications for ownership and liability.
Secure a local sponsor or partner:
For most mainland business setups, especially LLCs, a local sponsor or partner is required. This sponsor is a UAE national who holds 51% of the shares in the company. It is essential to choose a reputable sponsor and establish a clear agreement outlining the terms of the partnership to avoid conflicts.
Apply for a trade name:
Select a trade name for your business that complies with Dubai’s naming regulations. The name should be unique, relevant to your business activity, and should not violate any trademarks or cultural norms. Once decided, you must register the trade name with the DED.
Obtain initial approval:
Before proceeding with the full registration, obtain initial approval from the DED. This approval indicates that your business activity and trade name are acceptable, and you can move forward with the licensing process. Initial approval may also require submitting a detailed business plan.
