This guide will cover some of the most important details of mainland companies setup in Dubai. We’ll cover the required documents, how much capital to invest, and what trade licenses you need. Also, we’ll cover the important steps you’ll need to take to set up a business in Dubai. If you’re wondering whether to incorporate a business in Dubai, you’ve come to the right place.
Documents required for setting up a company in Dubai Mainland:
While the UAE allows foreign investors to form their own companies, they must follow certain requirements when setting up a business in the emirate. The UAE requires companies to have a physical office in the emirate. For this, a foreign investor must appoint a local sponsor and have at least four percent of the shares in the company. Furthermore, a company must have approval from the relevant authorities before it can start operations.
Minimum capital required to set up a company in Dubai Mainland:
There are several benefits of setting up a business in the UAE mainland, but there is no mandatory minimum capital requirement. The UAE Commercial Companies Law does not even mandate a minimum share capital, although the company must have sufficient funds to perform its business activities. In addition, mainland companies do not require annual audits, which can be cumbersome for companies in free zones. Mainland companies can practice any business, regardless of location, and may lease office space anywhere within the country.
Getting a trade license in Dubai Mainland:
To start a business in Dubai, you must obtain a trade license. The Department of Economic Development issues trades licenses to individuals and corporate entities. Every business activity in Dubai needs special consent from the relevant ministry or another authoritative establishment. Getting a trade license is necessary for any business in Dubai as it supports the growth of new businesses and the renewal of old ones, enabling more profits for the company. A trade license is a legal approval required by every enterprise in Dubai. You can contact a service agent if unaware of the procedures and rules.
Before getting a trade license in Dubai, you must own at least 50 percent of the company. However, nowadays, the majority of commercial licenses in Dubai do not require local participation. You can even be 100% foreign-owned. You can also choose a specific type of trade license based on your business model.