Setting up a business in mainland Dubai is difficult. It is not as easy as it is in the Free Zones. To start with, you will need to understand all the legal and administrative procedures, and also equip the skill to run a successful business in the UAE marketplace.
To describe briefly, these are the steps requires to start business in Mainland Dubai
- Select the right business activity and legal type that suits your business
- Select a local partner or a local service agent
- Get the initial approval for name and business activity
- Get the MOA/Agreement notarized
- Choose the office space and get the contract of tenancy
- Obtain any other additional approval (if required)
- Final submission of for license
Let’s see in detail the important steps you need to do for setting up business
- Finding a local Sponsor
The biggest difference in setting up a business in the mainland or in a free zone is in the regulations of ownerships. You will need an Emirati (UAE national) to be your local sponsor for mainland business. Local sponsor will own 51% of the business shares and the remaining 49% ownership of the shares rests with the expat. These shareholders is not required to invest in your company but will still be a legal owner of majority shares. But the expatriate partner can be the managing partner of the company and hold 100% operational powers. Sponsors will not be required to involve with the daily activities of the company. For professional firm formation, the expat is allowed to own the firm 100% however a sponsor – officially called local service agent (LSA) is still a requirement. You can associate with a sponsor – for both local shareholder and local service agent on a mutually-agreed annual fee.You can get the UAE local sponsor with Kiltons Business Setup Services
- Registering with the DED
In mainland Dubai, The Department of Economic Development (DED) is the main regulatory body for forming companies. Their responsibility is the economic growth and welfare in Dubai and they achieve this responsibility by developing economic policies and regulations, identifying strategic growth sectors and providing efficient services to local and international investors. They are also the business registration and license issuing authority of the Dubai Mainland Business. They are also responsible for commercial compliance and consumer protection. You can get help with Kiltons Business setup services for all DED activities
- Get the business address verified
The Dubai Municipality is required to verify your office address (the office space varies depending on the license type). The tenant is responsible to ensure that the tenancy contract and Ejari (tenancy contract registration certificate) are in place before applying for a license.
If you aren’t sure of the processes of setting up a business or find it too tricky, it is always good to take the help of a local Dubai based business consultant like Kiltons Business Setup services to ensure the legal issues are handled carefully.