The United Arab Emirates (UAE) has emerged as an economic hub, offering a multitude of business opportunities and investment prospects. With its rapid economic growth and strategic location, the UAE has become an attractive destination for entrepreneurs and investors from around the world. When setting up a business in the Mainland UAE, businesses can select from various jurisdictions, including mainland, free zone and off-shore. Also, a comprehensive guide on the process and pricing is crucial for entrepreneurs considering the UAE as their business destination.
A mainland company, registered under the government authority of the concerned emirate, follows guidelines provided by the DED. The trade licence is issued by the Department of Economic Development (DED) of the respective emirate, offering unrestricted trading opportunities. When an investor invests in a mainland company in the UAE, the company is authorised to trade in the UAE local market as well as outside the UAE. Moreover, the mainland business set-up in the UAE offers investors transparent pricing, ensuring clarity during the establishment process.
Setting up a mainland business in the UAE involves the following series of steps, including: 1. Identify the business activity There are more than 2,000 business activities to choose from in the UAE. Based on the business activity of your choice, you can select the legal form and type of licence. There are six types of licences. They are: industrial, commercial, professional, tourism, agricultural and occupational. 2. Select the legal form The legal form is the basis for identifying applicable laws and regulations. In the UAE, an investor can select one of the following popular legal forms: ● Sole establishment ● Limited Liability Company (LLC) ● Local company branch ● GCC company branch ● Foreign company branch ● Free zone company branch ●Holding companies 3. Register the trade name A trade name sets a business apart and shows what it does. To get one, an investor can apply through the economic department in their emirate, using the website or app. When applying, they'll get a payment voucher or transaction number, which they'll need for future payments. 4. Get initial approval An initial approval from the UAE government indicates no objection to establishing the business in the country. It permits investors to proceed with mainland business set-up in UAE but doesn't authorise business activities. Foreign investors must also obtain approval from the General Directorate of Residency and Foreigners’ Affairs beforehand. 5. Drafting a Memorandum of Association and local service agent agreement if required Depending on the legal form of a business, a completed and signed Memorandum of Association (MoA) or a local service agent agreement (LSA) of the business may be required. The Memorandum of Association is required for the following business legal forms: ● Limited partnership ● Limited Liability Company (LLC) 6. Select a business location Choosing a business location in the UAE mainland is a crucial step in the business set-up process since all businesses operating in the UAE must have a physical address. The business premises and location must comply with the requirements defined by the respective emirate’s DED, as well as the land planning regulations of the local municipalities. Additionally, office and warehouse rental agreements must be provided. Some emirates require the agreements to be attested. 7. Get additional government approvals In some cases, additional approvals from government entities governing certain business activities are required. The following are examples of such activities sorted by ministry: ● Ministry of Interior The Ministry of Interior issues approvals for activities related to general transport - driving schools, fire equipment, alarm and safety systems, used-car dealers, used auto parts, and car rental. ● Ministry of Justice Legal activities and legal consultancy ● Local municipal department Architectural and engineering affairs ● Telecommunications and Digital Government Regulatory Authority (TDRA) Telecommunication activities ● Executive Council Travel and tourism, general services, charter trading, ship and maritime agencies, car clubs, charter air transport and foreign company branches ● Ministry of Economy Insurance activities and insurance consultancy ● Local health departments Health-related activities ● Supreme Petroleum Council On-shore and off-shore gas, oil-field and drilling services 8.Collect the business licence After completing the above steps, investors can collect the business licence from service centres of the economic departments or through their websites. The following documents are required for getting a licence for all legal forms: ● Initial approval receipt and all the previously submitted documents ● Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in the emirate ● Duly attested memorandum of association (for all types of companies) ● Approvals from other government ● Duly attested service agent contract (for civil establishments and companies that are 100% owned by non-GCC nationals), the UAE involving a local service agent. Basher: Introduced to enhance the ease of doing business in the mainland UAE, Basher is an integrated e-service, which streamlines the process of business set-up, enabling investors to establish their company within fifteen minutes through a unified online platform. This platform is connected with federal and local government entities which provide commercial licence services. For getting a business licence through Basher, the same standard fees apply as defined by the relevant DED and other respective local and federal entities involved in business licensing. This price remains consistent regardless of the emirate or mainland location within the UAE. RAKEZ: The ultimate destination for UAE Mainland Business Set-Up Established by the Government of Ras Al Khaimah, RAKEZ is one of the largest economic zones in the region supporting startups, entrepreneurs, SMEs and industrialists with their UAE Mainland business set-up processes and requirements. Book a free UAE mainland business set-up consultation with experts at RAKEZ. You can reach us on +971 7 204 111 or drop an email with your query to info@rakez.com
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