Steps to Successfully Setting Up a Business in Dubai Mainland

1. Steps to Successfully Setting Up a Business in Dubai Mainland Setting up a business in Dubai mainland can be an exciting and profitable venture. With its strategic location, thriving economy, and investor-friendly policies, Dubai offers immense opportunities for entrepreneurs. However, navigating the business setup process can be complex without proper guidance. This article outlines the essential steps to successfully establish a business in Dubai mainland. Understanding the Legal Structure The first step in business set up in Dubai mainland is to choose the appropriate legal structure. Dubai offers several business structures, including Limited Liability Company (LLC), Sole Proprietorship, and Branch Office. Each structure has its own set of requirements and benefits. ● Limited Liability Company (LLC): An LLC is the most common business structure for foreign investors in Dubai mainland. It requires a local sponsor who holds 51% of the shares, while the foreign investor retains 49%. Despite this, the investor can have full control over the business operations and profits. Sole Proprietorship: This structure allows a single individual to own and operate the business. The owner has complete control but is also personally liable for any debts incurred by the business. Branch Office: A foreign company can establish a branch office in Dubai mainland to conduct business activities. The branch office is 100% owned by the parent company but requires a local agent. ● ● Choosing the right legal structure is crucial as it determines the business's legal obligations, ownership, and liability. Obtaining the Necessary Licenses and Permits Once you have decided on the legal structure, the next step is to obtain the necessary licenses and permits. The type of license required depends on the nature of your business activities. The main types of licenses in Dubai mainland are: ● ● ● Commercial License: For trading activities Industrial License: For manufacturing and industrial activities Professional License: For professional services, such as consulting, legal, and medical services To obtain a license, you need to follow these steps: 1. Trade Name Registration: Choose a unique trade name and get it approved by the Department of Economic Development (DED).

2. 2. Initial Approval: Obtain initial approval from the DED, indicating that your business can proceed with the setup process. 3. Prepare Legal Documents: Draft the Memorandum of Association (MOA) and other required documents. These documents must be notarized. 4. Lease Agreement: Secure a physical office space and obtain a tenancy contract. 5. Final Submission: Submit all documents, including the tenancy contract, MOA, and initial approval, to the DED for final approval. Opening a Corporate Bank Account After obtaining the necessary licenses, the next crucial step is to open a corporate bank account. A corporate bank account is essential for managing your business finances, receiving payments, and conducting transactions. To open a corporate bank account in Dubai, you need to provide the following documents: ● ● ● ● ● Trade license Shareholder's passport copies MOA Board resolution (for branch offices) Proof of address Different banks may have additional requirements, so it is advisable to consult with a business setup company in Dubai to facilitate the process. Final Thoughts Setting up a business in Dubai mainland involves several steps, from choosing the right legal structure to obtaining licenses and opening a corporate bank account. By following these steps and seeking assistance from professionals, you can streamline the process and ensure a successful business setup in Dubai mainland. For businesses looking for comprehensive support, Terracotta offers expert services in business setup, visa outsourcing, and corporate solutions in Dubai. Visit our website to learn more about how they can assist you in establishing your business in Dubai mainland.