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.