A mainland company registration in Dubai, UAE, is an onshore company allowing entrepreneurs to conduct business activities anywhere inside and outside the UAE. Dubai’s Department of Economy and Tourism (DET) issues business licenses for starting a business in Dubai mainland.
With the government’s continue focus on economic diversification and innovation, Dubai presents an attractive proposition for entrepreneurs across various sectors.
Are you a startup entrepreneur or an investor planning on starting a company in Dubai? This post will guide you on how to open a company in Dubai mainland.
Benefits of Company Formation in Dubai Mainland
Company establishment in Dubai mainland offers many benefits including:
- 100% foreign ownership: Recent changes in UAE company law now allows 100% foreign ownership in most business sectors when starting a business in Dubai mainland.
- No restrictions on business activities: Mainland companies can conduct business anywhere in the UAE and beyond without restrictions.
- Government contract eligibility: Mainland companies can bid for lucrative government contracts.
- Credibility: A mainland license is often perceived as more prestigious, enhancing business credibility.
- Visa quotas: Mainland companies typically have higher visa quotas, allowing more employee sponsorships.
- Expansion opportunities: Easy scalability and the ability to open multiple branches across the UAE.
Types of Legal Structures in Dubai Mainland
Unlike Dubai free zone company registration, company registration in Dubai mainland offers several business structures to suit different business needs. Each structure has its own set of requirements and benefits.
- Limited Liability Company (LLC): The most common structure, requiring a minimum of two shareholders and 51% local ownership.
- Civil Company: Suitable for professional services, owned entirely by UAE or GCC nationals.
- Sole Proprietorship: Ideal for individual entrepreneurs in professional services.
- Branch of Foreign Company: A 100% foreign-owned entity operating as an extension of its parent company.
- Public Joint Stock Company (PJSC): Large-scale enterprises with a minimum capital requirement of AED 30 million.
Types of Business Licenses in Dubai Mainland
The DET issues four main types of trade licenses for new business setup in Dubai mainland. The choice of license will depend on the nature of your business activities and the scope of operations you plan to undertake.
- Commercial License: For trading activities, retail, import/export, and general commerce.
- Professional License: For service-oriented businesses and professional consultancies.
- Industrial License: For manufacturing and production activities.
- Tourism License: For Inbound, outbound, and travel agency tourism activities.
Additionally, there are specialized licenses for specific sectors such as education, agriculture, and healthcare.
Steps to Setup a Company in Dubai Mainland
The process to open a company in Dubai mainland is very straightforward, but if not done correctly, navigating the intricacies can be complex. So, it is always advisable to seek the assistance of experienced business setup consultant in Dubai like Corporate Business Services (CBS), to provide invaluable guidance. Below are a few steps:
- Choose your business activity and legal structure
- Select a unique company name and obtain a trade name reservation certificate from DET
- Prepare and submit the required documents to DET
- Obtain initial approval from DET
- Secure office space and sign a tenancy contract (EJARI)
- Apply for external approvals (if required for your business activity)
- Obtain the trade license and register with the Chamber of Commerce
- Open a corporate bank account
- Apply for residency visas
How Much it Cost to Open company in Dubai Mainland?
The initial cost to open a company in Dubai mainland varies depending on factors such as business activity, office space, and license type. However, It’s important to note that the costs can fluctuate based on government fees, which are subject to change.
A detailed cost breakdown should be obtained from a reliable business setup consultant to ensure accurate budgeting after discussing your business objective. Our expert consultants in Dubai can assist you with that.
VAT and Corporate Tax in Dubai
Value Added Tax (VAT): Implemented in 2018, the UAE charges a standard VAT rate of 5% on most goods and services. It stipulated that mainland businesses with an annual turnover exceeding AED 375,000 must register for VAT.
Corporate Tax: The UAE has introduced a federal corporate tax effective from June 1, 2023. The standard statutory tax rate is 9% for taxable income exceeding AED 375,000 for all companies registered in Dubai mainland. This aligns with global standards and OECD guidelines.
Do I Need a Local Sponsor to Start a Business in Dubai Mainland?
As of 2021, the UAE has amended its Commercial Companies Law, allowing 100% foreign ownership of mainland business formation in Dubai in most sectors. However, some strategic sectors still require local partnerships. For this, consulting with a business setup expert to determine the specific requirements for your intended business activity is important.
How Can CBS Assist You?
Corporate Business Services (CBS), as a leading business consulting firm in the UAE, offers comprehensive business setup services for entrepreneurs looking to establish their presence in Dubai and the UAE in general. Our services include:
- Tailored business setup solutions
- License and permit acquisition
- Legal structure advisory
- Office space procurement
- Visa and PRO services
- Corporate bank account opening assistance
- Ongoing compliance support
With our in-depth knowledge of UAE’s business landscape and regulatory environment, we can guide you through every step of the company formation process, ensuring a smooth and efficient setup. To get started, you can book a free personalized consultation with our experts now.
Business bank account in Dubai Business Compliance business license in Dubai Business Setup business setup consultant in Dubai business setup in Abu Dhabi business setup in Dubai company formation in Dubai company registration in UAE corporate bank account in Dubai Dubai Business Licenses Dubai Business Registration Dubai Company Formation Dubai freezone Dubai mainland Freezone Company Formation in Dubai General trading license in Dubai IFZA FREEZONE Limited Liability Company in Dubai LLC Company formation open company in Dubai Opening a business account in UAE profession license in Dubai small business ideas in Dubai Tax trade license in Dubai UAE Corporate Tax