STEPS TO START A BUSINESS ON THE MAINLAND: KEY STEPS TO SUCCESS

 Starting a business on the mainland in Dubai offers strategic advantages, including access to a larger market and the ability to engage in business across the UAE. This guide will walk you through the process of a mainland business setup and address common questions related to business setup in Dubai.

Understanding Mainland Business Setup

Business setup on the mainland in Dubai allows companies to operate within the local market and beyond. Unlike free zones, mainland businesses can trade directly within the UAE market without restrictions on geographical activities.

Advantages of Mainland Business Setup

• Access to Local Market: Mainland businesses can trade freely within Dubai and across the UAE.
• Flexibility: Greater flexibility in choosing business activities and office locations.
• No Currency Restrictions: Mainland companies can transact in any currency without restrictions.
• Business Diversity: Ability to engage in a wide range of activities, including retail, services, and trading.
• Strategic Location: Access to international airports, ports, and major transportation networks.
  

Key Steps to Start a Business in Mainland Dubai

1. Determine Your Business Activity

Identify the business activities you wish to undertake. Unlike free zones, which have predefined activities, mainland businesses can engage in a broader spectrum of activities. Ensure your chosen activities align with the UAE’s regulations and licensing requirements.

2. Choose a Local Sponsor or Local Service Agent

For certain business activities, you may need a local sponsor or local service agent who is a UAE national or a company wholly owned by UAE nationals. This requirement varies based on the business activity and location.

3. Reserve Your Trade Name

Choose a unique trade name for your business and reserve it with the Department of Economic Development (DED) in Dubai. Ensure the name complies with the DED’s naming guidelines and is available for registration.

4. Prepare Your Memorandum of Association (MOA)

Draft the Memorandum of Association (MOA) outlining the company’s activities, shareholders, and ownership structure. The MOA must be notarized by a public notary in Dubai.

5. Rent Office Space

Secure a physical office space for your business operations. The office space must comply with Dubai Municipality’s requirements and be suitable for your business activities.

6. Obtain Initial Approval from DED

Submit your application for initial approval to the DED. This step involves submitting your business plan, MOA, and other required documents. The DED will review your application and provide initial approval to proceed with the setup process.

7. Sign Lease Agreement and Get Ejari

Sign a lease agreement for your office space and register it with Ejari, the online registration system governed by the Dubai Land Department. Ejari registration is mandatory for obtaining your trade license.

8. Finalize Your Trade License Application

Submit your trade license application along with all required documents to the DED. The documents typically include:

• Completed application form.
• Copy of the lease agreement and Ejari registration.
• Passport copies of shareholders and managers.
• No objection certificate (NOC) from the sponsor (if applicable).
• Initial approval from the DED.

9. Pay Fees and Obtain Your Trade License

Pay the necessary fees for your trade license, registration, and other related services. Once approved, you will receive your mainland business license, allowing you to legally operate in Dubai.

10. Register for VAT and Employ Visa Services

If applicable, register for Value Added Tax (VAT) with the Federal Tax Authority (FTA). Obtain visas for shareholders, employees, and dependents through the General Directorate of Residency and Foreigners Affairs (GDRFA).

FAQs About Mainland Business Setup

What Are the Costs Involved in Mainland Business Setup?

Costs vary depending on the business type, office location, and additional services required. Basic setup costs start from approximately AED 15,000 and can increase based on specific requirements.

How Long Does It Take to Set Up a Mainland Business?

The setup process typically takes 1 to 2 weeks for initial approvals and another 1 to 2 weeks for final trade license issuance, depending on the completeness of documentation and approvals.

Can Mainland Companies Operate in Free Zones?

Yes, mainland companies can establish branches or subsidiaries in free zones to benefit from tax exemptions and other incentives offered by free zones.

What Are the Documentation Requirements for Mainland Business Setup?

Documentation requirements include passport copies of shareholders and managers, MOA, lease agreement, initial approval from DED, and other specific documents based on business activity and structure.

Is a Local Sponsor Required for Mainland Business Setup?

For certain activities, a local sponsor or local service agent may be required. This requirement varies based on the business activity and the location within Dubai.

The Bottom Line

Starting a business on the mainland in Dubai offers significant advantages for entrepreneurs seeking to establish a presence in the UAE market. By following the key steps outlined in this guide and seeking professional guidance where necessary, you can navigate the mainland business setup process effectively and position your business for success in one of the world’s most dynamic business environments.