How to Establish Your Mainland Company in Dubai

A Comprehensive Guide for UK Entrepreneurs

Establishing a mainland company in Dubai presents a unique opportunity for UK entrepreneurs looking to expand their business horizons. The city’s strategic location, coupled with a pro-business environment, makes Dubai a prime destination for international business operations. At DXB-VIP, we specialize in facilitating a smooth and efficient mainland company formation process. With our expertise, UK businesses can leverage Dubai’s dynamic market to their advantage.
part of rectangle
part of rectangle

Why Choose Dubai for Mainland Company Formation?

Enhanced Brand Reputation

Dubai is globally recognized for its robust economy and world-class business infrastructure. Setting up a mainland company here enhances your brand’s prestige, signaling reliability and stability to clients and investors worldwide.

Greater Business Flexibility

Unlike free zones, a Dubai mainland company offers the flexibility to operate anywhere in the UAE and beyond. This freedom is vital for businesses aiming to have a broad physical presence throughout the country.

Corporate Tax-Friendly Structure

The UAE’s commitment to maintaining a low-tax environment makes it an attractive location for business. With no personal income tax and various corporate tax incentives, Dubai offers a cost-effective solution for expanding your business.

Corporate Tax-Friendly Structure

The UAE’s commitment to maintaining a low-tax environment makes it an attractive location for business. With no personal income tax and various corporate tax incentives, Dubai offers a cost-effective solution for expanding your business.
_Dubai
_Dubai

Business-Friendly Policies

Dubai’s government continuously innovates its business policies to ensure a competitive edge for its mainland companies. These policies are designed to support business growth and streamline operations.

Access to International Markets

Dubai serves as a gateway to the Middle East, Africa, and South Asia. Mainland companies benefit from the city’s extensive trade networks and its position as a leading logistics and transport hub.

High-Quality Lifestyle

Dubai offers a high-quality lifestyle with world-class amenities, making it a preferred location for business leaders and professionals from around the world.

100% Foreign Ownership

As of recent reforms, foreign entrepreneurs can now enjoy 100% ownership of their mainland businesses in Dubai, a significant shift from the previous requirement of a local majority partner.

Versatile Economic Sector

Dubai’s economy is one of the most diversified in the region, encompassing sectors such as trade, logistics, tourism, and finance. This diversity allows businesses to thrive across various industries.

How to Start a Mainland Company in Dubai: A Step-by-Step Guide for UK Businesses

Determine Your Business Activity

First, clearly define the nature of your business. Dubai offers over 2,000 business activities across various sectors. Understanding your business scope will guide the registration process and compliance requirements.

Choose a Legal Form

Decide on the legal structure of your business, whether as a Limited Liability Company (LLC), a Professional License entity, or a Sole Establishment. Each has its benefits and compliance obligations.

Select a Trade Name

Your trade name should reflect your business activity and must adhere to the UAE’s naming conventions. DXB-VIP can assist in securing your trade name without hassle.

Apply for Initial Approval

Obtain initial approval from the Department of Economic Development (DED) in Dubai. This is an essential step in confirming your business setup plan.

Draft and Notarize the MOA/AOA

Prepare and notarize the Memorandum of Association (MOA) or Articles of Association (AOA) depending on your chosen business structure.

Finalize Your Business Location

Identify a physical location for your business. This step is crucial as the address will be used in your business licensing.

Obtain the Required Licenses and Registrations

Complete the final procedures for obtaining your business license from the DED, and register for VAT with the Federal Tax Authority if applicable.
For UK entrepreneurs poised to make a mark in the Middle East, Dubai’s mainland company formation offers an unrivaled opportunity. With DXB-VIP’s expert guidance, your business can maximize its potential in this vibrant market. Explore our services today at dxb-vip.com
part of rectangle
part of rectangle

FAQs

Mainland Company in Dubai is a company that is licensed by the UAE’s Department of Economic Development (DED). It is situated outside the free zones in Dubai.
Mainland Company formation in Dubai can provide several benefits to UK investors:

  • 100% Foreign Ownership
  • Ability to conduct business in local as well as international market
  • No business activity restrictions
  • Eligibility for doing business with Government authorities
  • Flexible office locations
  • No currency restrictions
  • Attractive tax environment
  • Easy access to the workforce
  • 100% profit repatriation

You can form different types of Mainland Companies in Dubai like:

  1. Limited Liability Company (LLC)
    This is the most common type of Mainland company you will find in Dubai. UK investors who want to set up an LLC company in Mainland, Dubai need to have a local partner with 51% shares of the company.
  2. Sole Proprietorship
    This type of company can be managed as well as owned by a single individual, with full control over the business but unlimited personal liability.
  3. Civil Company
    This model is normally used for professional services (e.g., legal, medical), where partners share unlimited liability.
  4. Branch of a Foreign Company
    This model allows an international company to open a branch in Dubai. This also lets them operate the company the same way as the parent company.
  5. Representative Office
    These offices are used for marketing and promoting the parent company’s products or services without being involved in direct sales or profit-generating activities.
  6. Public Joint Stock Company (PJSC)
    Suitable for large-scale operations, this model requires a minimum capital and offers shares to the public as well.
  7. Private Joint Stock Company (PrJSC)
    This type is somewhat similar to PJSC but it does not offer shares to the public. This type is suitable for larger businesses that want significant capital without public listing.
The cost of Mainland company formation in Dubai varies depending on certain factors like the type of business you choose, visas required, office space, the type of company you choose to run on the mainland, nature of operations, etc, but overall, it usually costs you around AED 15,000 to AED 35,000 for mainland company formation in Dubai.

The steps involved in forming Mainland Company in Dubai are as follows:

  • Choose the type of Business activity you want to run in Dubai.
  • Select a suitable legal structure for your business type (LLC, Sole Establishment, etc.). You will also have to consider factors like business ownership, liability, and tax implications.
  • Choose a unique name for your company. Keep in mind that it should comply with Dubai’s naming regulations.
  • Next, you will have to reserve the name through the Department of Economic Development (DED).
  • Submit your documents and application to the DED for initial approval.
  • Meanwhile, you will have to find a suitable office in mainland Dubai. For this, you will have to sign a lease agreement and get an Ejari certificate.
  • Submit your application to the DED. Pay the necessary fees.
  • Apply for visas for shareholders, managers, and employees.
The entire process of starting a business in Dubai usually depends on several things like the time taken to apply, the time taken for approval to come, the type of business you choose, etc. But usually, it takes 3-4 weeks for the entire process to complete.
Yes, you can form Mainland Company in Dubai as a UK citizen without residing there.

Here are a few common documents you need to form a Mainland Company in Dubai:

  • Passport copies of shareholders and managers
  • Visa copies of shareholders and managers
  • Detailed business plan
  • Trade name reservation certificate
  • Initial capital proof
  • No Objection Certificate (NOC) from the sponsor (if applicable)
  • EJARI contract, a registered lease agreement with the Dubai Real Estate Regulatory Authority (RERA)

DXB-VIP provides UK investors with help in forming a Mainland company in Dubai:

1. We provide help so that you understand how UK regulations and business practices go according to the requirements set in Dubai. .
2. We help you prepare the documents and forms that you may need for the business setup application.
3. We help UK investors with the translation of documents if necessary.
4. We make sure you are working according to both UK and Dubai rules and regulations.
5. We act as a liaison with Dubai authorities and providing local support.
6. We help with office space leasing, local sponsorship, and getting other relevant permits.

For a Mainland company in Dubai, the key compliance requirements include:

  • Trade License should be renewed annually by DED.
  • Office lease should be renewed & Ejari Registration should be done annually.
  • Visa & Immigration process should be timely completed for getting employee visas and labor cards.
  • Must adhere to the Wage Protection System (WPS) for timely wage payments.
  • An approved auditor should issue an Annual Financial Audit.
  • You must comply with VAT if annual revenue exceeds AED 375,000.
  • Economic Substance Regulations (ESR) filing if applicable.
  • Ultimate Beneficial Ownership (UBO) Declaration maintenance.
Yes, you can. Being a sponsor, you will have to bear all the costs of visa sponsorship.