Rules for Company Formation in the Dubai Mainland
Starting a company in the Dubai mainland comes with the experience that there won’t be too various restrictions and laws while conducting business activities. What is needed through is to have a regional sponsor? You can maintain a 100% percent ownership, but you still must have a local sponsor as it is officially required for business documentation. If you want to maintain full ownership the local sponsor must agree to refrain from interfering in the business activities.
Types of Companies in the Mainland
Limited Liability company (LLC): The Company Formation in UAE requires to have a minimum of two shareholders and maximum up to 50. Each shareholder is answerable according to the percentage he/she holds.
Branch Workplace: Investors can expand into dubai and are given an opportunity to set up their branch office in the mainland
Public shareholding Companies: This type of company is suitable for businesses dealing with large lucrative figures like banking, finance and insurance.
Professional Firms/civil Companies: Owner can choose their field of
Functioning and can retain a 100% ownership.
Representative Office: can exist without a shareholder but cannot conduct business activities. Its sole purpose should be research and marketing
One should decide the business entity to be formed and get the name approved. The business owner must then start by finding a trustworthy sponsor without whom he cannot start the business. Then comes the drafting of the memorandum and articles of Association, followed by submission to seek approval from the Department of Economic Development (DED)
The one should find reasonable, strategic, and affordable office Space to conduct the business activities out of and geta tenancy contract. The next step is to apply trade license. Getting the relevant trade license for your business is important. There are 3 types:
Commercial Licenses: These trade license cover all trading activities and are for business where 51% of shares are with the UAE National and 49% with the business owner /expat partner.
Industrial licenses: These licenses cover all manufacturing and production activities and the business where 51% of shares are with the UAE National and 49% with the business owner
Professional License: These licenses cover all professional services. Craftsmen and artisans and all the shares are held by expat partner only.
All that is left to do now is submit all applications and pay the necessary fee, after which you can obtain your licensee and conduct business activities!
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