Starting a business in Dubai is very thrilling. A lot of people take Dubai as their destination because it provides many business prospects. Dubai mainland company formation is one of the most effective ways of starting a business in this region. In this article, you will understand everything about the process, the advantages, and how to begin.

What is Dubai Mainland Company Formation?

Mainland Dubai Company setup means establishing a business venture in the main cities of Dubai. These areas fall under the regulation of the Dubai Department of Economic Development (DED). They can set up a business anywhere in Dubai or the UAE if the company is mainland. For this reason, Dubai is a perfect place for business to begin.

Why Should You Choose Dubai Mainland for Your Business?

Dubai mainland company formation has numerous advantages.

• Local mainland firms have the opportunity to operate in Dubai and overall the UAE markets. It enables you to affect very many customers.
• Mainland companies can bid for governmental procurement. This is right if you are interested in carrying on a Dubai business setup with the government.
• You can select where you want your office to be located. 

Steps to Start a Dubai Mainland Company

Now, below you will find the steps that you will have to complete regarding the formation of a Dubai mainland company.

1. Choose Your Business Activity

Business activities that are legal in Dubai are many and these are what Dubai provides licenses for. You have to select one that serves your purpose. The reason for the completion of this step is to find out what type of license you require. Therefore, spend some time and do a lot of thinking on what your business will be doing.

2. Pick a Unique Company Name

After identifying your business activity you require a name for your business either limited or sole trader. The name should be unique. It means that you cannot use any bad words when speaking to them. Further, the name must correspond to your business’s activity. For instance, when conducting a bakery business, your name should be representative of baked foods. 

3. Decide on Ownership

Foreign investors in Dubai once had to find a sponsor from the UAE who managed to possess 51% of the firm. However, the current environment permits all sorts of business activities to be 100% foreign-owned. This means you have a full opportunity to own your business. 

4. Get Initial Approval from DED

To proceed with countenance, you must have an initial endorsement from the DED. It will be your business plan that you will be presenting to them. This is evidence that your business idea is aligned with the vision and mission of Dubai’s economic growth plan. When you have consent you may proceed to the following steps. If the concept does not find favor with them, then your business idea must be calibrated a little.

5. Prepare Legal Documents

Then you will be ought to come up with some legal papers. However, some of the most vital ones are the Memorandum of Association (MOA). The following document provides guidelines and the framework in which your company will operate. They also contain information about the owners of the vehicles and their roles. Ensure that before you proceed to the next form you have all the documents intact.

6. Choose a Business Location

Another essential step throughout the Dubai mainland business incorporation process is selecting the location of your business. You must lease a tangible workplace to be issued with a business permit. There is the flexibility that allows a person to choose an office that will suit his or her business. 

7. Get Special Approvals

Sometimes, it becomes necessary for businesses to secure more approvals from other related authorities. For instance, healthcare firms require permission from the health department. Likewise, restaurants require permission from the food control department as well before they open their business. 

8. Apply for Your Business License

That means, finally you have all the documents and approvals required for you to apply for your business license. You will submit everything to the DED and make all necessary payments. If so, you will get your business license. This is a legal permit that shows you are allowed legally to run your business in Dubai.

9. Register for Taxes

Based on the type of your business activity it might be necessary to get several taxes. Most enterprises are expected to include Value Added Tax (VAT). This can be done by the following steps; You have to first register with the Federal Tax Authority. 

10. Open a Corporate Bank Account

After the preparation of your business license, it is possible to open a corporate bank account. It’s important to have a separate business account for your banking needs. You can open an account in any bank in Dubai. When filing for the account most banks will ask for your business license and other legal documents.

Costs Involved in Dubai Mainland Company Formation

License Fees: These are the fees you pay to get your business license. As an entrepreneur, you also have to factor into consideration the following expenses; These vary depending on the type of business.

Office Rent: Offices are available in many forms in Dubai. The cost of renting an office depends on the location of the office and also an area of the office.

Dubai company registration Fees: Whenever you are going for business license registration there are certain fees charged.

Other Expenses: There are other costs such as visas, insurance and any other service you may require.

Benefits of Dubai Mainland Company Formation

Mainland company formation has a lot of benefits.

• Easy Access to Local Markets: You have complete freedom to trade anywhere in Dubai and throughout the UAE.
• No Currency Restrictions: Foreign exchange control presents no restrictions; this is because globalization fosters the ease of doing business in any corner of the world.
• Tax Benefits: Some of the privileges Dubai offers business include; venue and sales taxes are low, and there is no income tax for most companies.
• Flexible Office Location: This lacks limitation on the choice of the area you wish to set your office hence making you more flexible in your operation.

Legal Structures for Dubai Mainland Companies

The legal structure of companies in Dubai has been classified into different forms, Some of them include;

• Limited Liability Company (LLC)
• Sole Proprietorship
• Civil Company

Things to Keep in Mind

There are some things to consider when choosing a type of business in Dubai or forming a Dubai mainland company specifically.

• Follow the Rules: It is important to adhere to all laws and regulations of the DED and other departments.
• Economic Substance Requirements: Some businesses just require proving that they have real operations in Dubai.
• Stay Updated: While public laws and other pieces of regulation may shift periodically. It also means that you should be abreast with any changes that might be of benefit or otherwise to your business.

Conclusion

The process of incorporating in the Dubai mainland is a good start to doing business in one of the most progressive cities on the globe. It is however quite easy to follow but requires full compliance with all the steps indicated. In fact, with the right planning and appropriate papers, you can be in business within the shortest time possible. Therefore, if you are starting a business in Dubai, it is advisable to engage in mainland company formation. 

#DubaiMainlandCompany #BusinessSetupDubai #DubaiCompanyFormation #DubaiBusiness #MainlandCompanyDubai #UAECompanySetup #DubaiBusinessAdvantages #DubaiLLC #TaxBenefitsDubai #DubaiEntrepreneur