Planning to begin a company in Dubai? In that case, it is sure that you need the services of trusted consultant in Dubai, who has the expertise, proficiency, knowledge and skill-set to help you set up your Dubai business effortlessly. Dubai Mainland business setup could be challenging but with enough knowledge and you can plan effectively and go about the process with confidence.
Here is a brief of the various procedures that you need to follow for setting up your Dubai business. From the initial approval to obtaining the DED (Department of Economic Development) license to trademark registration, there are quite a few steps in the process of registration. Check out the article to understand better.
Initial approval Is Essential for Setting Up the Business in Dubai
Preliminary approval means that the UAE government has no objection to establishing a business in the country. This allows investors to move forward with the next steps in setting up a business. It does not, however, authorise the authority to conduct or practice business activities.
Before initial approval, foreign investors must obtain permission from the General Directorate of Residency and Foreign Affairs. These include activities related to legal matters, security matters, and financial security and products.
MOA and LSA Are Necessary for Starting a Business
The Dubai mainland business setup requires a complete and signed Memorandum of Understanding (MoA) or Local Service Agent Agreement (LSA), depending on the company’s legal form. The Memorandum of Understanding is required for the following business legal forms:
- Limited partnership
- Limited Liability Company (LLC)
- Public Joint Stock Company (PJSC)
- Private Joint Stock Company (PJSC).
UAE-based law firms, courts, and notaries prepare and attest to public MOUs and agreements. Businesses owned entirely by non-GCC residents require local service agents in the UAE. The appointment of a local service agent will be subject to a contract attested by a notary public or court.
Registering the Trade Name Is an Important Step
The name of a business distinguishes one business from another. It also reflects the nature and form of the business. An investor can apply for a business name through the economic department in each emirate through his website or mobile application. Follow the business structure overview (legal form of the company) such as LLC, EST, PJSC, PJSC. Do not violate the morality or public order of the people of the country.
Comply with the necessary types of activities and the legal position of the organisation or business entity. Any religion cannot have the name or the name of the governing authority or the name or logo of any external organisation. Previously not registered. During the application process, you will be issued a payment voucher or a transaction number, which you must use as a reference when you provide.
Selecting A Business Activity Is a Must
When choosing a business activity for your entrepreneurial venture, keep in mind the selection activity related to the UAE market. Do an in-depth study of the feasibility and profitability of the action before you decide to start a business in the UAE.
Select the Right Jurisdiction Based on Business Requirements
The UAE company formation is divided into different economic zones – mainland, free zone, and offshore. These economic zones are also called jurisdictions. Each jurisdiction has its own set of laws and regulations regarding the business setup. They also meet the needs of different businesses. Choosing jurisdiction for your business depends on your business needs and your business activities.
Finding A Local Partner Is a Necessity for Setting Up a Dubai Business
To start a business in mainland UAE, it is imperative to find local partners for your business. Local partners or local sponsors must be UAE citizens only. Under UAE commercial law, a local sponsor will hold a 51% stake in your company. Finding a trusted partner or sponsor can be tedious, especially for a first-time entrepreneur. A business setup consultant can connect you with corporate sponsorship providers to be granted documented authority and 100% ownership of your business.
Getting Your External Approvals Is a Must
The Department of Economic Development may request additional approvals from other government or non-government organisations, depending on your business activities. For example, some businesses may be asked for authorisation from municipalities, certain banks, embassies, etc.
Why Is the Mainland Company the Best in the UAE?
The United Arab Emirates (UAE) offers the best environment in the Gulf region. Due to its strategic location, vibrant economic policy, and positive planning, it is a fantastic location for setting up a company. Well-planned enterprises, various tax incentives, avoidance of double taxation, and abundant natural resources such as oil have enabled the UAE to enrich the services, industry, and trade sectors and have played an essential role in making it a dynamic business hub.
The mainland of Dubai offers an entrepreneurial ecosystem that investors and entrepreneurs around the world highly prefer. The registration of the company formation in Dubai Mainland falls under the Dubai Economic Development Department (DED). The government agency is responsible for issuing trade licenses to all businesses wishing to conduct business on the mainland.
You can start your own business in Dubai for less than AED 19,500. Dubai is home to entrepreneurs as well as investors from every corner of the globe. Every year, a growing number of foreign investors and business people come to the UAE to take advantage of its core business environment.
There has never been a better time to set up a mainland company in Dubai than it is now. Business-side legislation, a flexible regulatory environment, easy business approvals, and fast-track lines have made Dubai’s mainland licenses a preferred choice among the region’s start-up communities and investors.