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Starting a Mainland Business in Dubai: What You Need to Know

Dubai is a thriving business hub and is known for its investor-friendly environment. Setting up a mainland business in Dubai can be a lucrative opportunity for entrepreneurs looking to establish a presence in the region. In this blog, we will explore what you need to know before starting a mainland business setup services in Dubai.

Legal Structure

The first step in setting up a mainland business in Dubai is to determine the legal structure of the company. The most common legal structure for mainland businesses in Dubai is a Limited Liability Company (LLC). The LLC requires a minimum of two shareholders and a local partner or sponsor who owns 51% of the company. The local partner or sponsor will be responsible for liaising with the government authorities and ensuring compliance with local laws and regulations.

Business Activity

The next step is to determine the business activity for the company. Dubai has a well-defined list of business activities, and it is essential to ensure that the proposed activity is permitted in Dubai. It is important to obtain the necessary approvals and permits from the relevant authorities before starting the business.

Location

Choosing the right location is crucial for the success of a mainland business in Dubai. The location should be easily accessible, have good infrastructure, and be in close proximity to potential customers and suppliers. Dubai offers several options for commercial properties, including free zones, business centers, and office spaces.

Local Sponsorship

Foreign investors must have a local sponsor or partner to set up a mainland business in Dubai. The local sponsor or partner should be a UAE national and will be responsible for ensuring compliance with local laws and regulations. The local sponsor or partner will not have any ownership in the company, and their role will be limited to fulfilling legal obligations.

Trade Name Registration

The next step is to register the trade name of the company with the Department of Economic Development (DED) in Dubai. The trade name should reflect the nature of the business activity and should not be identical to any other registered trade names. The trade name registration is valid for six months and can be renewed for an additional six months.

License Application

The next step is to apply for a trade license from the DED. The trade license is required to conduct business in Dubai and permits the company to engage in the registered business activity. The license application should be accompanied by the necessary documents, including the memorandum of association, the local sponsorship agreement, and other relevant documents.

Visa Processing

If the company requires visas for employees, it is important to obtain the necessary approvals from the General Directorate of Residency and Foreigners Affairs (GDRFA). The number of visas is based on the size of the office space leased by the company. It is important to note that the visa processing can be a time-consuming process, and it is important to plan accordingly.

Bank Account Opening

Once the trade license is obtained, the next step is to open a bank account. It is important to choose a bank that meets the company’s requirements and provides efficient banking services. The bank account should be opened in the name of the company and should be used for all financial transactions related to the business.

Conclusion

Starting a mainland business in Dubai can be a complex process, involving several legal and administrative procedures. It is important to work with a reputable and experienced company formation specialist to ensure that the company is set up in compliance with local laws and regulations. With the right approach, starting a mainland business in Dubai can provide several benefits for entrepreneurs looking to establish a presence in the region.

If you are considering starting a mainland business in Dubai, it is important to work with a provider that you can trust. At [Company Name], we offer a comprehensive range of mainland business setup services in Dubai.

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