Dubai mainland company setup is strategically used as an access to penetrate the strong market in the UAE. Setting up a mainland company in Dubai can be maintained because it is regulated and has streamlined legal requirements for the establishment. Here is a detailed description of the requirements for setting up a mainland company in Dubai.
- Business Plan and Activity
A business plan should, therefore be very specific. It should identify the nature of the business, market analysis, financial projections, and operational strategies. Under Dubai mainland regulations, you are also obligated to specify the activities you will engage in as a business. The DED will scrutinize and approve your business activities to confirm that they comply with the stipulations of local legislation.
- Company Name and Legal Structure
First, you need to come up with a unique and appropriate name for your company; the name should not confuse existing businesses, nor should it be profanity or abbreviations that imply government affiliation. You also need to decide what legal structure your company shall assume; choose an LLC, a Sole Proprietorship, or a Civil Company. Each of them has various implications on ownership, liability, and governance.
- Office Space
A Dubai mainland company setup would essentially require a physical office space. This office space must satisfy local regulations and be adequate for the operations of your business. The size and location of the office depend on the nature and scale of your business.
- Local Sponsor or Service Agent
For most mainland companies, a local sponsor or service agent is required. A local sponsor is an Emirati national who owns 51% of the shares of the company; the remaining 49% would be owned by the foreign investor. A local service agent may be appointed for some professional services. This agent does not have equity in the company but can be useful in dealing with administrative and governmental matters.
Company formation in Dubai mainland is seriously thoughtful and involves many requirements. Just to come up with an effective business plan, a company needs to comply with legal and operational regulations. Every step is considered for the successful establishment of a Dubai mainland company.
