Benefits of Setting Up A Company In Mainland Dubai

CONTENTS

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Any foreign investor, whether it’s an individual or corporate, who wants to start a business in UAE or Dubai can choose a Mainland Company Set Up Option, also known as a local market jurisdiction. In this SetHub Guide, we are going to cover the benefits of setting up a company in the Mainland area and how we can set up a local market company. 

What is a Mainland Company in the UAE?

In simple terms, a UAE Mainland company is registered in the local market or the Mainland area of the UAE. Generally, it is governed by the company’s commercial law and it is licensed by the Department of Economic Development.

There are no territorial restrictions on business activities or location of premises for the LLC in UAE. A Mainland company can therefore trade anywhere in the UAE or GCC, including the free zone areas as well. It also provides the investor the flexibility to open an office space and warehouse facility anywhere in the Emirates to keep the cost low.

Furthermore, we have to understand that each Emirate of UAE has this Mainland area company setup, not only in Dubai. We have this Mainland area in other Emirates as well, like Abu Dhabi, Ras Al Khaimah, Fujairah, and Ajman—all the Emirates have Mainland company setups. 

Steps to Set Up a Mainland Business in the UAE

So now we will cover the steps to take when you are setting up a business in the Mainland area. First of all, we have to identify our business activity—what kind of business we want to set up in a Mainland area. Once we decide on the business activity, we will go further for the next step, which is choosing the right legal form for our company. It can be an LLC or a sole establishment, depending on how many partners are in your company.

The third step is registering the trade name. We have to choose the right and appropriate name for our company as we have DED name guidelines which we have to follow and ensure that the name does not conflict with these rules and regulations.

Once we decide on the business activity and name, we will then apply for the initial approval where we submit the documents of the owner, like their passport copy and other necessary documents, and get the initial approval certificate from the Department of Economic Development. Once we have this certificate, we will move forward to the next step, which is drafting the MOA or AOA (Memorandum of Association and Articles of Association). These documents should be in English and Arabic.

Once we draft the MOA and AOA, we will sign them digitally. After the MOA, the next step is finding the right location for your business. For location, you may opt for a virtual office or a physical office—it’s totally up to you, depending on your preference.

After finalizing the office, the next step will be obtaining external approvals. If your business activity requires any external approvals, then we have to approach the particular government authority to obtain them. Afterward, we will submit all these documents together to DED, and we will get a payment voucher, which is generally a system-generated invoice. We will make the payment, and we will get our business license on the same day.

Types of Mainland Licenses Issued by DED

Now we will cover the types of licenses issued by the Department of Economic Development for Mainland companies. Broadly, there are four types of licenses issued by DED:

Commercial License – Mainly for buying and selling goods or services, or simply trading

Industrial License – Better suited for companies that need to manufacture goods.

Professional License – Go with this option if your business is more service-oriented. 

Useful Considerations When Incorporating a Company in a Mainland Are

  • They can trade anywhere in the UAE, including free zone areas.
  • There is no restriction on the number of visas that can be obtained, as long as it is within the regulatory framework and is based on the size of the premises.
  • It is required to take on a physical workspace with a minimum size of 100 square feet.
  • There are no restrictions on the location where the company can rent office premises.

How Much Does it Cost to Open a Company in the Mainland Area?

The cost of setting up a Mainland company, or we can say a local market company, totally depends on the business activity, number of shareholders, and share capital. The cost may start from AED 10,000 and go up to AED 25,000, depending on your business activity and other criteria.

How Long Does it Take to Open a Company in the Mainland Area?

A Mainland company setup offers an instant license, and the process can be done through the “Invest in Dubai” portal, where the company can be set up in less than one day. However, if your business requires external approvals, the process can take up to one or two weeks.

How Can SetHub Help?

If you are still unsure about whether the mainland option is right for you, our experts at SetHub can offer you some tailored advice and point you in the right direction. We will evaluate your case based on your requirements and what you want to achieve as a business and do our best to give you the right recommendation! We are also well versed in free zone setup as well, we work together with many popular free zones in Dubai, so if we conclude that mainland setup is not for you, we can explore options in free zones as well. These come with several advantages too, so it’s best to get talking to find out more.

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