Requirements for company formation in Dubai mainland
Business Activity Selection
To start the company setup process, it’s important to identify the legal structure and commercial activity of the company to apply for the registration and license. There are several types of company structures namely- Joint Liability Company, Simple Commanded Company, Limited liability Company (LLC), Public Joint Stock Company (PJSC), Private Joint Stock Company (PrJSC).
Selecting a legal form or structure of business depends mainly on the nationality of the investor/owner and the type of commercial activity.
Trade Name Registration
The name of the business set up in Mainland Dubai is approved by DED. The title of the business entity and the logo is required to be in line with the regulations set by DED for investors applying for registration and formation of business in mainland Dubai.
Local Sponsor or a Service Agent
Before anything, you have to appoint a UAE national as a local sponsor or partner of your company, to begin with, the process. Though, you can make an agreement that the local sponsor will not have any involvement in the business operations or profit sharing in your company.
Trade License for Company setup in Dubai
There are three different categories of registration under different license types, namely-
1. Commercial License (Commercial)
2. Professional Service License (Vocational)
3. Industrial License (Manufacturing Units and industries)
Applying for Initial Approval to Start Company formation in Dubai Mainland
Once the trade name is registered, your advisor will apply for initial approval certificate. The initial approval certificate is necessary for further processing of documentation and approval from other government bodies like – Ministry of Economy, Ministry of Interior, Ministry of Justice, and Civil Defense.
Foreign investors are required to obtain a certificate of approval from General Directorate of Residency and Foreigners’ Affairs before the initial approval. Initial approval does not permit an investor to start trading activities unless the commercial license is duly issued.
Office Space for Business Setup in Dubai
An office address verified by the Dubai Municipality is a prerequisite for establishing business in Dubai mainland. The office space depends on the availability of office space at the time of applying, the validity of the tenancy contract as well as the type of license investor has applied for.
Choosing a location for your Company formation
It is mandatory for all businesses in Dubai Mainland to have a physical address. Our Business Consultant will assist you in determining a site to conduct your business activity which would be fully compliant with the requirements set out by DED. In Dubai, for attestation purpose, you must present a rent agreement (MoU) registered with Ejari for the proposed location of your business. You may be able to add a new trade license to the same address. In Dubai, you would need to consider the following:
1. Ownership of LSA or Sponsor must be the same.
2. The total number of licenses owned by the local party cannot be more than 10 licenses per location
3. Not less than 200 sq. ft. for each space allotted.
Final Submission for Mainland Company Formation in UAE
After completing the above-mentioned processes, your appointed advisor, consultant or agent will submit all the documents to DED and finalize all due payments.
Tada! Mission complete! Within a few days, the investor will receive the Trade License and can establish and start a business in Dubai.
At RAZ, we are trained and experienced in providing timely assistance and facilities to help you get your trade license.