Mainland Company Formation Dubai | Dubai Mainland Business Set Up

What Is A Dubai Mainland Company Setup?

Mainland companies are entities registered with the Department of Economic Development (DED) in the United Arab Emirates. These companies offer numerous advantages, making them an attractive investment option for investors and ambitious startups seeking to grow their businesses and expand their operations.

Benefits of Business Setup in Mainland

Setting up a mainland business in Dubai allows you to do business across Dubai and the United Arab Emirates in addition to the GCC countries. Business setup in Dubai mainland also allows you to expand your business by opening new branches, hiring more employees, taking part in tenders, government projects and many other benefits.

Mainland Dubai offers several options for business registration, including sole proprietorships, civil companies, limited liability companies (LLCs), representative offices of foreign companies, branches of free zone companies, and branches of UAE-based companies. Among these, LLCs are the most popular choice in the UAE’s local market.

Limited Liability Company Setup in Dubai

Limited Liability Company (LLC) is the standard form of company in the UAE mainland and the most common. LLC licenses are issued by the Department of Economic Development (DED), which is the government body authorized for license issuance for mainland company registration and activities regulation.

Although the new UAE Commercial Companies Law allows setting up an LLC company in Dubai with one shareholder, it is common for these companies to be formed with a minimum of 2 shareholders. Since this type of mainland company formation in Dubai requires foreign investors to have a local partner with 51 per cent of the company’s shares for specific activities, it’s usually formed with a minimum of 2 shareholders. While the maximum number of shareholders allowed for an LLC company is 50.

Advantages Of Setting Up An LLC Company In Dubai

The limited liability company allows business owners to carry out their business activities anywhere within the United Arab Emirates and the GCC countries without any restrictions or location limitations
There is no restriction on owning or leasing properties
There are no limitations on the number of visas that can be obtained under an LLC
There is no minimum capital requirement

How To Set Up An LLC In Dubai?

The first step of your business setup in Dubai mainland as an LLC is to choose the activity that matches your company’s business the most from the activities presented by the Department of Economic Development. Whether it is commercial, industrial, professional or craftsmanship. You can choose the activity of your company from more than 2000 options of commercial activities offered by the Department of Economic Development.

Limited Liability Companies (LLC) require a partner who is a citizen of the United Arab Emirates or one of the GCC countries depending on the activity of your company, as some activities do not require a partner but only a service agent. Foreign and professional companies require the appointment of a service agent.

What types of business can an LLC company operate in?

Investors can hold an LLC license of one of 3 types of business: commercial, professional, and industrial.

1. Commercial:

All types of trading activities fall under this category. With an LLC license, almost any product can be imported and exported to Dubai. Excluding products that require approvals from other government agencies, such as jewelry trade, magazines and newspapers.

2. Professional:

Services and crafts fall under the professions category. It is the easiest type of license and should only include professional activities. New investors usually prefer this type because of its low cost and fast processing times compared to other types of license issuance.

3. Industrial:

Manufacturing activities fall under the industrial category. The license location must be a warehouse or factory. Industrial activities require approvals that include: the Ministry of Economy, Civil Defense, the Municipality and others.

How to get an industrial License in Dubai?

With the superior logistical facilities and services and the solid ground that Dubai provides, in addition to being a commercial center that enjoys a geographical location between the East and West and forms a link between them, it provides investors in the industrial field with the best location to set up their business.

To obtain an industrial license in Dubai, you need to register your company with the Department of Economic
Development DED.
The activities that fall under the industrial license in Dubai include production, separation, assembly, packaging, etc.
The industrial license requires a physical warehouse within the UAE.

Frequently Asked Questions

1. How to set up a Mainland Company in Dubai?

An LLC company in Dubai can be formed according to the following steps:

Choosing the name of the new company, make sure that it’s unique and relatable to your business activity
Choosing your local partner if applicable
Registering your company with the DED, Department of Economic Development
Preparing the Memorandum of Association or Service Agent Contract and getting it attested by the notary public in Dubai
Obtaining external approvals from the relevant government agencies
Submitting the completed documents to the Department of Economic Development (DED) and issuing the trade license

2. Can a mainland company have offices in a free zone?

Mainland companies can do business anywhere in the UAE without restrictions or location limitations. This includes having offices in any free zone in the UAE.

3. What is a mainland license?

Mainland companies are companies registered with the Department of Economic Development (DED) in the United Arab Emirates and they are the most common. Mainland companies enjoy a lot of advantages like carrying out business activities anywhere within the United Arab Emirates and the GCC countries without any restrictions or location limitations with no minimum capital requirement and no limitations on the number of visas that can be obtained.

4. How long is a mainland license valid for?

The minimum validity period of a limited liability company license is one year from the date of issuance, subject to renewal. The license may be issued or renewed for a longer period of time not exceeding four years.

Mainland Company Formation in Dubai