Establishing a mainland business setup in Dubai requires a number of crucial procedures, permissions, and contacts with different government agencies. To guarantee a good and seamless business establishment, it is imperative to comprehend these stages. Our specialty at CorpLex is assisting investors with the process, making sure that your mainland business setup in Dubai is effective and in accordance with all UAE laws.

Starting a mainland business setup in Dubai involves a series of steps, including:

1. Identifying a business activity
2. Selecting an appropriate legal form
3. Registering the trade name
4. Applying for an initial approval
5. Drafting a Memorandum of Association and local service agent agreement
6. Selecting a business location
7. Getting additional government approvals
8. Submitting documents and paying fees

1.    Identify Your Business Activity

Identifying your business activity is a crucial step in the mainland business setup in Dubai. Business activity is the basis for selecting the legal form and type of licence, whether commercial, industrial, or professional, etc. The UAE offers over 2,000 business activities, which are grouped into six main types of licenses:

• Industrial
• Commercial
• Professional
• Tourism
• Agricultural
• Occupational

Note that an investment/business can have more than one business activity.

2.    Choose the Correct Legal Form

Once you’ve chosen your business activity, the next step in your mainland business setup in Dubai is selecting a legal form for your company. This is crucial because the legal form dictates the applicable regulations and laws that govern your business. In the UAE, an investor can select one of these legal forms:

• General or Limited Partnership
• Limited Liability Company (LLC)
• Public Joint Stock Company (PJSC)
• Private Joint Stock Company (PrJSC)
• Civil Company
• Local, GCC, Foreign, or Free Zone Company Branch
• Sole Establishment
• Holding Companies

Note that your company’s legal structure should be in line with the activity you have selected and the number of shareholders.

3.    Register the Trade Name

Registering the trade name is a vital step in the mainland business setup in Dubai. A trade name distinguishes one business from another and reflects the nature and the form of the business. When registering your trade name with the local Department of Economic Development in Dubai, it must meet certain criteria.

The trade name must:

• Be followed by the business structure acronym (legal form of the company) such as: LLC, EST, PJSC, PrJSC
• Not violate the public morals or the public order of the country
• Be compatible with the required type of activity and the legal status of the company or business entity
• Not contain names of any religion, or governing authority, nor names or logos of any external bodies
• Not have been previously registered

Once your trade name is approved, you will receive a payment voucher or transaction number for the next steps in the mainland business setup in Dubai.

4.    Obtain Initial Approval

An initial approval means that the UAE Government has no objection to the mainland business setup in Dubai. It also allows the investor to proceed with the next steps in setting up a business. For foreign investors, approval from the General Directorate of Residency and Foreigners’ Affairs is also required.

Some business activities may require additional approvals from relevant authorities before receiving the initial approval. These can include sectors like legal, security, or financial services.

5.    Draft Memorandum of Association (MOA) and Local Service Agent (LSA) Agreement

Depending on your legal structure, you must have the Local Service Agent (LSA) Agreement and the Memorandum of Association (MOA):

• MOA: Necessary for Joint Stock Companies, LLCs, and Limited Partnerships.
• LSA: Necessary for companies that are entirely owned by non-GCC nationals and in which the investor has designated a local service agent to work on their behalf.

We at CorpLex help draft and notarize these documents, making sure they adhere to all applicable legal standards required for your mainland business setup in Dubai.

6.    Select a Business Location

Selecting a business location is essential for a mainland business setup in Dubai. All businesses in the UAE must have a physical address to operate. The business premises and location must comply with the requirements defined by the respective emirate’s Department of Economic Development, as well as the land planning regulations of the local municipalities. This includes obtaining a rental agreement for your office or warehouse. In Dubai, agreements must be registered with the Ejari system for attestation.

7.    Get Additional Government Approvals

Certain business activities require further approval from specialized government entities, which is a key aspect of the mainland business setup in Dubai. These entities include:

• Ministry of Interior (for activities related to general transport – driving schools, fire equipment, alarm and safety systems, used-car dealers, used auto-parts, car rental)
• Ministry of Justice (legal activities and legal consultancy)
• Local Municipal Department (architectural and engineering affairs)
• Telecommunications and Digital Government Regulatory Authority (TDRA) (telecommunication activities)
• Executive Council (travel and tourism, general services, charter trading, ship and maritime agencies, car clubs, charter air transport, and foreign company branches)
• Ministry of Economy (insurance activities and insurance consultancy) Local Health Departments (health-related activities)
• Supreme Petroleum Council (onshore and offshore gas and oil-field services and onshore and offshore oil drilling operations)

Before moving on to the next phase, make sure that all necessary clearances have been acquired.

8.    Submit Documents and Pay Fees

Submitting documents and paying the necessary fees is the final step in the mainland business setup in Dubai. After fulfilling all prerequisites, send the required paperwork to the economic department and cover the related costs. Typically, the following documents are needed:

• Initial approval receipt and all the previously submitted documents
• Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in Dubai
• Duly attested memorandum of association (for all types of companies)
• Approvals from other government entities concerned, as may be required
• Duly attested service agent contract (for civil establishments and companies that are 100% owned by non-GCC nationals)

Note that you must pay for your trade licence within 30 days of receiving the payment voucher to avoid the cancellation of your application.

Collect Your Business Licence

After completing the above steps, investors can collect the business licence from service centres of the economic departments or through their websites, finalizing the mainland business setup in Dubai.

Why Set Up Your Mainland Business in Dubai with CorpLex?

Simplifying the complicated process of establishing a mainland business setup in Dubai is our area of expertise at CorpLex. Our team of professionals will walk you through every stage, making sure your company is set up for success and complies with all legal requirements. We provide customized solutions that streamline and expedite the process, from creating memorandums of agreement to gaining permissions and acquiring your company licence.

Are you prepared to launch your mainland business setup in Dubai? To find out how we can assist you in realizing your idea, get in touch with us right now!