Step by step guide for mainland company formation in Dubai, UAE:
Select a Local Sponsor in the UAE
For the mainland company setup, you will need a local sponsor who is an Emirati (UAE national). The local sponsor will own 51% of the business shares and the remaining percentage of the shares rests with the owner. The expatriate partner can also be the managing partner of the company and hold 100% operational power. An agreement must be signed with the local sponsor that states the official responsibilities of the sponsor about your business and other terms and conditions.
Draft a Memorandum of Association
Local service agent’s NOC is mandatory to start your business activity in Dubai Mainland. Draft a Memorandum of Association (MOA) that specifies the operational guidelines of your company which includes the purpose, capital, share details, etc.
Obtain Initial Approval from the Department of Economic Development (DED)
DED is the authority that performs the notarization of MOA and issues regarding initial approval. You can take the help of a professional business consultant to get things done on time.
Trade Name Registration
Choose an appropriate trade name for your business and get it registered with the Department of Economic Development (DED). There are a set of naming conventions created by the authorities. So you need to follow all the instructions and do proper research to make sure that the name isn't already in use. DED has the right to alter or reject the name if it has already been used by another company.
Office Space Requirement
Office space is mandatory for mainland business setup in Dubai or UAE, especially for obtaining a trade license. The authorities will accept the information regarding the ownership agreement or tenancy contract as evidence of a registered office address.
Apply for Trade License
After going through all the above-mentioned steps, you can apply for a trade license. DED will issue your mainland license after checking your documents.
Pay License Fee
Submit all the necessary documents related to company formation to the Commercial registration department and DED and pay the license fee.
Get Your License
Get your trade license from the DED. The application will be processed by the concerned authorities. Once they have accepted all your application and documents, a trade license will be issued.
If you aren’t sure of the incorporation processes or find it too complicated, it is ideal to take the help of a professional business consultant in the UAE. This will make sure that all the legal issues are handled carefully. Bizvise Business Setup will help you set up your business in Dubai Mainland in a hassle-free manner.