Dubai Mainland is the onshore area of Dubai where businesses operate under the regulations of the Department of Economic Development (DED). Setting up a business on Dubai Mainland offers several advantages, but it also requires compliance with specific legal structures and regulations. Here’s an in-depth look at the key aspects of a mainland business setup
Limited Liability Company (LLC)
A popular choice, especially for small to medium-sized businesses. Requires a local partner (UAE national) who holds a minimum of 51% ownership, with the foreign investor holding the remaining 49%.
Suitable for individuals providing professional services like consulting, legal, accounting, etc. Requires a local service agent, but full ownership is retained by the foreign investor.
Branch of a Foreign Company
Allows foreign companies to establish a branch on the Dubai mainland. The parent company retains full ownership, but a UAE national is required as a service agent.
Ideal for market research and promoting the business of the parent company. It does not engage in commercial activities and requires a local service agent.
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Key Steps in Mainland Business Setup:
Submission Procedures for Mainland Business License:
Begin by ensuring you have all the necessary documents ready. This typically includes:
- Passport copies of shareholders and partners.
- Visa copies.
- No Objection Certificate (NOC) from the current sponsor (if applicable).
- Memorandum of Association (MOA) outlining business activities.
- Tenancy contract for the business premises.
- Initial approval from the Department of Economic Development (DED).
- Additional documents depending on the nature of the business.
- Nature of Business: Define the core activities your business will engage in.
- DED Classification: Explore DED’s business activity classification system to match your operations accurately.
- Future Expansion: Consider potential future activities to ensure flexibility and adaptability.
Benefits of Properly Identifying Business Activities
- Legal Compliance: Accurate identification ensures alignment with legal requirements, preventing potential issues.
- Efficient Licensing: Choosing the right business activities streamlines the licensing process, saving time and resources.
- Scope for Growth: Future-proof your business by selecting activities that allow for expansion and diversification.
Consult with Avenue Classic’s legal and business setup professionals to make an informed decision based on your business objectives, ensuring compliance with regulations.