Mainland Company Formation in UAE

Mainland Company Formation in UAE involves a series of steps, including:

1. Identifying a business activity
2. Registering the trade name
3. Applying for an initial approval
4. Drafting a Memorandum of Association and local service agent agreement
5. Select a business location
6. Get additional government approvals
7. Submit documents and pay fees

Identify business activity for business in Dubai Mainland 

Business activity is the basis for selecting the legal form and type of license, whether commercial, industrial or professional, etc. There are six types of licenses. They are: industrial, commercial, professional, tourism, agricultural and occupational.

 Notes:

• An investment/business can have more than one business activity.
• There are more than 2,000 business activities to choose from in the UAE.

Register the trade name

A trade name distinguishes one business from another. It also reflects the nature and the form of the business. An investor can apply for the trade name through the economic department in each emirate, through its website or mobile application.

 Provisions for selecting the trade name:

The trade name must:

• be followed by the business structure acronym (legal form of the company) such as: LLC, EST, PJSC, PrJSC
• not violate the public morals or the public order of the country
• be compatible with the required type of activity and the legal status of the company or business entity
• not contain names of any religion, or governing authority, nor names or logos of any external bodies
• not have been previously registered.

During the application process, you will be issued a payment voucher or a transaction number, which you will need to use as a reference when you pay.

 Notes

• The local department of economic development registers the trade name, while Ministry of Economy registers the trademark.
• Trade name certificates are renewable.

Initial approval

An initial approval means that the UAE Government has no objection for the business to be established in the country. It also allows the investor to proceed with the next steps in setting up a business. It does not, however, grant the authority to run or practice the business activity.

Foreign investors must obtain the approval of the General Directorate of Residency and Foreigners’ Affairs before getting the initial approval.

Some activities require additional approvals from government entities related to that particular business before applying for the initial approval. These include activities related to legal affairs, security affairs and financial securities and commodities.

MOA and LSA

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 is required. The memorandum of association is required for the following business legal forms:

• Limited partnership
• Limited liability company (LLC)
• Public joint stock company (PJSC)
• Private joint stock company (PrJSC).

Notes:

• UAE-based law firms, courts and notary public prepare and attest MoAs and agreements.
• Businesses owned completely by non-GCC residents require a local service agent from the UAE. Appointing the local service agent will be under an agreement attested by the notary public or the court.

 Select a business location

All businesses in the UAE must have a physical address to operate. The business premises and location must comply with the requirements defined by the respective emirate’s Department of Economic Development, as well as the land planning regulations of the local municipalities.

 Office and warehouse rental agreement must be provided. Some emirates require the agreements to be attested. In Dubai, the agreement must be registered with Ejari.

 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

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, 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

Onshore and offshore gas and oil-field services and onshore and offshore oil drilling operations

Collect the business license in Dubai Mainland 

After completing the above steps, investor can collect the business licence from service centres of the economic departments or through their websites.

 Documents required for getting a license for all legal forms

The following documents are required for getting a license 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 Dubai
• Duly attested memorandum of association (for all types of companies)
• Approvals from other government entities concerned, as may be required
• 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.

Notes

• You have to pay for your trade license within 30 days of receiving the payment voucher.
• In the event of non-payment in a specific period, the application will be cancelled.

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