The United Arab Emirates (UAE) has been an attractive destination for entrepreneurs and investors looking to establish businesses in the region. Among the various business setups available in the UAE, setting up a mainland business in Dubai is one of the most popular options. In this blog, we will discuss the key things that you should know before taking the first step towards setting up a business in Dubai mainland.

What is a Mainland Business Setup in Dubai?

A mainland business setup in Dubai refers to establishing a business in the mainland areas of Dubai, governed by the Dubai Economic Department (DED). Mainland businesses in Dubai allow entrepreneurs to conduct local and international business activities without restrictions or limitations.

Essential Things to Know Before Setting Up a Business in Dubai Mainland

Here’s a list of things you need to know in detail before setting up shop in Dubai Mainland:

1. Business License and Activity Restrictions

Before setting up a business in Dubai mainland, it is essential to understand the different types of business licenses available and the activity restrictions that may apply to specific business activities. The DED issues grants for other business activities, including commercial, professional, and industrial support. Each license has its own set of requirements and restrictions, which must be considered before starting your business.

2. Partnership with a Local Sponsor

One of the most important things to consider before setting up a business in Dubai mainland is the requirement of a local sponsor. A local sponsor is a UAE national or a company that holds 51% of the shares in the business. The sponsor is required to be a passive partner and is not involved in the business’s day-to-day operations. While having a local sponsor is mandatory for mainland businesses in Dubai, choosing a reliable and trustworthy sponsor is essential to avoid future issues.

3. Business Registration Process

The business registration process in Dubai mainland involves several steps, including obtaining initial approval, registering the trade name, obtaining the necessary licenses, and completing the registration process with the DED. The process can be complex and time-consuming, and it is essential to seek the assistance of a professional consultancy firm to ensure that all the requirements are met and the process is completed smoothly.

4. Office Space Requirements

Mainland businesses in Dubai are required to have physical office space, which must be rented or owned by the company. The office space requirements may vary depending on the type of business activity and the number of employees. Ensuring that the office space meets all the essentials, such as zoning regulations and safety standards, is essential.

5. Visa and Residency Requirements

Once the business is established, the owners and employees must obtain the necessary visas and residency permits to live and work in Dubai. The visa requirements may vary depending on the type of business activity and the nationality of the individuals. To avoid legal issues, it is essential to meet all necessary visa and residency needs.

6. Taxation and Financial Reporting Requirements

Dubai mainland businesses are subject to corporate taxation, which is currently set at a rate of 20%. In addition, companies must comply with financial reporting requirements and maintain accurate records of all financial transactions. It is important to seek the assistance of a professional accounting firm to ensure that all the financial reporting requirements are met.

Conclusion

Business setup in Dubai mainland can be complex and time-consuming. But it is a rewarding experience for entrepreneurs and investors with the proper guidance and support. Before taking the first step towards setting up a business in Dubai mainland, it is essential to understand the different types of business licenses available, the requirement of a local sponsor, the business registration process, office space requirements, visa and residency requirements, and taxation and financial reporting requirements. Seeking the assistance of a professional consultancy firm can ensure that all the needs are met, and the process is completed smoothly.