People worldwide know Dubai is a hub and center for opportunities and growth. To support this growth, the UAE government has established laws allowing foreigners to own mainland companies in Dubai. These laws are designed to attract foreign investments and contribute to a stable economy. You have heard it right; you can also start a 100% owned DED mainland company in Dubai.
This article provides a complete guide for everyone who knows about Dubai’s business structure as a foreign investor. It includes every single detail, from eligibility criteria to benefits and necessary steps, to ensure you have everything at your fingertips.
Eligibility Criteria for a Foreign-Owned DED Mainland Company
Approved Business Operations:
As a Foreign investor you can choose certain business activities approved by DED where they can own 100% ownership. In sectors like banking, insurance, and oil and gas usually need local partners or have strict rules.
Physical Office Requirement:
Foreign investors need to maintain an actual office within Dubai. This office must be a physical location, not a virtual space, and should accommodate the business’s operational needs and employee capacity.
Emiratization Policy:
In the United Arab Emirates, a policy is called the “Emiratization Policy”. It requires foreign businesses to hire citizens from the UAE, which helps the country’s national economy.
Follow The Country’s Law:
All foreign businesses must follow federal law by the government of UAE, whether it’s labor, immigration, or corporate governance law. You must also follow rules against money laundering and data protection to avoid fraud.
Annual License Renewal and Audit Requirements:
To avoid legal proceedings against you. Renew your license every single year, and the business will be audited regularly to ensure that you are following the financial and operational rules.
Minimum Share Capital:
The minimum investment you need to start your business depends on the vision you are carrying for your business entity. You’ll figure this out based on how big your business plans are.
Benefits of Foreign-Owned DED Mainland 100% Foreign Ownership
Access to a Broader Market:
Owning a mainland company permits access to the broader UAE market without needing a local agent or distributor, unlike in free zones.
No Corporate or Personal Income Tax:
One of the most enticing benefits is that no corporate or personal income taxes in this location maximizes profitability.
Government Support and Incentives:
Dubai’s government gives foreign businesses good reasons to start here, like fast licenses, modern facilities, and strong trade deals.
Process You Need To Start A 100% Foreign-Owned DED Mainland Company In Dubai
We have gathered the whole information about how to start a 100% foreign-owned DED mainland company in Dubai & have compiled it into a process that is:
Step 1: Determine Business Activity
Identify and select a specific business activity from the DED-approved list that allows 100% foreign ownership. Ensure it matches your business objectives and adheres to Dubai’s regulatory standards.
Step 2: Choose a Trade Name
Choose a trade name that reflects your business identity and complies with DED’s naming rules. Avoid names suggesting governmental affiliation unless you have the necessary permissions.
Step 3: Secure Office Space
Obtain a physical office space in Dubai. This is a critical requirement for registering a mainland company and should align with your business’s operational needs.
Step 4: Obtain Initial Approvals
To obtain the Department of Economic Development’s initial approval for your business idea, you need a detailed plan with all required important information and documentation.
Step 5: Finalize and Submit MOA:
The Association Memorandum (MOA) is signed after the initial paperwork process. This document needs to contain details on the investors, how much money they put into the business, and the management directors’ strategy for the company. You will require assistance from an Ignitzone legal advisor.
Step 6: Submit Documentation for Final Approval
Finalize and submit all required documents to the DED for final approval. This package should include the MOA, shareholders’ passport copies, an NOC from the sponsor if needed, and the office lease agreement.
Step 7: Pay Fees and Collect License
After the document is approved, pay the required licensing fees to the DED. After the payment, you will receive your business license, which allows you to start operations.
Step 8: Ministry Of Labor and Immigration Registration
Register your business with the Ministry of Labor to obtain labor cards and with the Immigration Department to process your organization team’s visas.
Step 9: Open a Corporate Bank Account
Provide your new business license, MOA, and other company documents to set up a corporate bank account. This account will handle all business financial transactions.
Step 10: Commence Business Operations
With all regulatory and legal procedures complete, you are now ready to begin your business operations in Dubai.
List of Documents Required for Foreign-Owned DED Mainland Company:
The list of documents that are required to register your firm as a 100% Foreign Own DED Mainland Company in Dubai includes:
- Passport-size photos of Owners
- Passport & Visa Copies
- No Objection Certificate (NOC)
- Trade Name Reservation Certificate
- Memorandum of Association (MOA)
- Lease Agreement
- Business Plan
- Registration and licensing application.
Having these documents ready can significantly speed up the process.
Places to Consider in Dubai for Mainland Company Formation:
Dubai offers numerous prime locations for mainland company formation, each providing unique business opportunities. Here’s a concise overview of the top areas:
- Sheikh Zayed Road: Connecting Abu Dhabi and Dubai, this vital corridor is populated with significant businesses and international organizations.
- Bur Dubai, Al Karama, and Deira: These densely populated areas combine residential, historical, and commercial activities, known for their real estate, gold souks, and wholesale markets.
- Business Bay: Dubai’s central business district supports financial services, professional consultancies, retail, and hospitality sectors with over 240 commercial and residential buildings.
- Dubai Industrial Park: Close to the urban center, this park offers industrial spaces, warehouses, labor accommodations, and retail amenities.
- Al-Qusais: A mix of residential, industrial, educational, and medical facilities, making it a versatile location for business setups.
- Jumeirah: Known for its luxurious commercial developments along the coastline, it supports the lodging, real estate, and hospitality industries.
These areas are strategically advantageous for various business activities, making them ideal for establishing a company on Dubai’s mainland.
Choose a Reliable Consultancy Partner in Dubai:
The legal and bureaucratic landscape in Dubai can be challenging. Hiring experienced consultants can help streamline the process. Ignite Zone is here to help with its consultancy services, verified track record, apparent pricing, and expert knowledge of UAE business laws.
