Dubai Mainland is well-known for its pro-business facilities and infrastructure, which is regulated by the Department of Economic Development (DED) . When establishing a business in Dubai, acquiring company registration in Dubai mainland is the utmost preference of most organizations. However, there are certain dares and defies associated with setting up your business that you need to understand beforehand. Business Setup is serving as one of the leading consultancies which offer you the best services in setting up the mainland company in DED. We have rounded up all the essential details that you need to know before kick-starting your business in DED Dubai.

Types of DED Companies in Dubai

Dubai offers several business structures for companies looking to establish a presence in the emirate. The most common types of DED companies include:

Sole Proprietorship

A sole proprietorship is the simplest form of business entity in Dubai. It is owned and operated by a single individual, who is responsible for all aspects of the business, including its liabilities. This structure is well-suited for small-scale, low-risk operations.

Limited Liability Company (LLC)

The LLC is the most popular business structure in Dubai. It offers a balance of liability protection and operational flexibility. LLCs in Dubai must have at least one UAE national partner holding a minimum of 51% ownership, with the remaining shares available for foreign investors.

Private Joint-Stock Company

A private joint-stock company is a more complex business structure that involves the issuance of shares. These companies must have a minimum of 2 and a maximum of 50 shareholders. They offer greater access to capital and can be useful for larger-scale operations.

Public Joint-Stock Company

Public joint-stock companies are listed on the Dubai Financial Market (DFM) or NASDAQ Dubai. They have a minimum of 10 shareholders and must comply with stringent regulations governing their operations and reporting requirements.

Other license facilities

E trader license and Commercial license

Additionally, entrepreneurs can explore obtaining an e-trader license to facilitate online trading activities. The commercial license is essential for conducting various business activities within the emirate. 

Instant license

Entrepreneurs may also consider obtaining an instant license for quicker business setup processes. Moreover, those interested in expanding their operations beyond Dubai can explore opportunities in Abu Dhabi and other regions within the Middle East. 

Industrial license

It’s crucial to adhere to the regulations set forth by the Dubai Economic Department and the Dubai Economy to ensure smooth business operations. Additionally, mainland companies may need to obtain specific licenses such as an industrial license depending on their activities.

Tourism license

Entrepreneurs interested in the tourism sector can explore obtaining a tourism license to capitalize on the flourishing tourism industry in Dubai.

You might be also interested in knowing the Difference between Free Zones and the DED

What is the Mainland Company Setup in DED Dubai?

The Department of Economic Development is the business nucleus of Dubai which regulates under the jurisdiction and authority of the government of Dubai – UAE. It was established in 1992 with the foremost intention of organizing and regulating the trade and commerce of Dubai while enhancing its economic growth and department of Dubai and the United Arab Emirates across the globe. DED is primarily responsible for setting up business in Dubai mainland, registration of companies, and allotment of mainland Dubai licenses while also monitoring consumer protection and commercial compliance in Dubai.

What is the Business Setup Process in DED Dubai?

There are certain conditions that you need to consider while opting for a business setup in Dubai mainland . Firstly, you have to have a local sponsor of your business who is a UAE national. However, you can have your local sponsor as sleeping partners which means that they will not be having any interference or involvement in profit sharing as well as in business operations. You can also acquire a DED professional license for 100% ownership, but you will still need the local service agent. In other words, for setting up a professional business, you need to have a service agent who acts as a figurehead representative of your business, while establishing documentation, a DED trader license, and legal agreement needed while having no active participation in profit sharing, business operations, and business management.

What Are the Fundamental Requirements?

When setting up business in Dubai mainland , you first need to acquire a verified official address from the Dubai Municipality. However, office space requirements tend to vary with respect to your choice of business license. Additionally, being an investor it is your responsibility to confirm that a valid contract of tenancy is available for the office space, at the time when you are applying for the Dubai DED license. Furthermore, besides some specific activities and special approvals from particular government authorities and departments, that DED could ask you to fulfill, there are six major things you need to complete in sequence.

• Think of your business nature and get the approval for its chosen trade name.
• Find and select a suitable service agent or local sponsor for your mainland business setup.
• Put on the initial approval for business setup in Dubai mainland.
• Organize all the documents related to MOA (Memorandum of Agreement) and Court Notarization.
• Acquire the tenancy contract and office space.
• Finally, submit all the documents to Dubai Mainland Company for the mainland company formation in DED.

UAE nationals are encouraged to participate in various business ventures to contribute to the economic growth of the country, leveraging their Emirates ID for identification and authentication purposes.

Choosing the Right Location for a DED Company

When setting up a DED company in Dubai, the choice of location can have a significant impact on the company’s operations and success. Entrepreneurs must carefully consider the following factors:

Free Zones vs. Mainland

Dubai offers both free zones and mainland areas for business setup. Free zones provide attractive tax incentives and streamlined licensing processes, but they may have restrictions on the types of business activities allowed. Mainland companies, on the other hand, can operate in a wider range of industries but are subject to different regulatory requirements.

Factors to Consider when selecting a location

Industry Requirements: The chosen location should align with the specific needs of the company’s industry, such as access to specialized infrastructure, logistics, or a skilled workforce.

Infrastructure and Accessibility: Consider factors like transportation links, availability of office space, and proximity to key business hubs or customer bases.

Tax Implications: Understand the tax benefits and obligations associated with the different location options, as this can impact the company’s overall financial performance.

Ongoing Compliance and Regulations

Establishing a DED company in Dubai is just the beginning. Entrepreneurs must also ensure ongoing compliance with various regulations and requirements to maintain their business operations.

Annual Reporting and Renewals

DED companies must submit annual reports, renew their trade licenses, and fulfill other administrative obligations to remain in good standing with the Dubai Economic Department.

Accounting and Auditing Requirements

Dubai requires DED companies to maintain accurate financial records and undergo regular audits to ensure compliance with local and international accounting standards.

Labor and Employment Laws

Companies must adhere to Dubai’s labor laws, which cover issues such as employee contracts, working hours, leave policies, and termination procedures. Proper management of the workforce is crucial for maintaining a compliant and productive work environment.

Business Setup Consultants has a team of highly qualified professionals who uphold extensive skills in how to start a business in Dubai UAE . We can help you with overcoming all the difficulties that you may come across in initiating your business. Being a leading business setup consultant, our team of professionals is ever ready to fulfill all the documentation and legal process for you at a very affordable fee. All you need is to take a minute to talk to our expert. It probably sounds complex to you, but trust us with Business Setup, you can achieve it with no stresses in the head.

Give us a call at +971 4 4301245 or email us at info@businessetup.com to find out about how you can set up your business in Dubai