Mainland Business Setup

Choosing the right business name is one of the most crucial steps in building a strong and memorable brand. Begin by brainstorming a name that reflects your brand’s identity, values, and target market. A catchy, relevant, and unique name will help you stand out in a competitive landscape and leave a lasting impression on your audience. To ensure the name is not already in use or trademarked, it’s wise to consult business service experts who can assist with trademark searches, domain availability checks, and company name registration. This strategic step helps avoid legal complications and ensures a smooth business setup process.

Clearly outlining the business activities your company will undertake is essential for obtaining the correct trade license in the UAE. Each activity must align with one of the recognized categories—commercial, professional, or industrial—as defined by the relevant licensing authority. Accurately defining your scope of operations not only ensures compliance but also prevents delays during the application process. At Dahhan Business Services, we assist in identifying and classifying your business activities, ensuring they match the appropriate license type. We also assess whether any external approvals from regulatory bodies or government departments are required, helping you navigate the process smoothly and efficiently.

In certain business sectors, obtaining a trade license alone may not be sufficient to begin operations. Depending on the nature of your business activities, you might require additional approvals or permits from specific government entities or regulatory authorities in the UAE. For example, activities related to health, education, media, food, or legal services often involve oversight by dedicated ministries or departments. These approvals ensure that your operations comply with industry standards and legal frameworks. At Dahhan Business Services, we guide you through the entire process—identifying which approvals are necessary, preparing the required documents, and coordinating with the relevant authorities to avoid delays.

Deciding how many partners will be involved in your company is a critical step in determining your business’s legal structure and operational dynamics. Whether you’re setting up as a sole proprietorship, partnership, or Limited Liability Company (LLC), the number of shareholders or partners affects ownership distribution, liability, and decision-making authority. In the UAE, an LLC can have between 2 to 50 shareholders, each contributing to the capital and sharing profits and responsibilities. Clearly defining the number of partners from the beginning helps avoid legal complications and ensures smoother registration. At Dahhan Business Services, we assist in structuring partnerships that align with your business goals.

Choosing the right legal structure is essential when setting up a business in the UAE, as it determines your company’s operational framework, ownership rights, and legal responsibilities. Options include sole proprietorship, civil company, limited liability company (LLC), and a branch of a foreign company. Each structure has unique requirements regarding the number of partners, shareholding patterns, liability distribution, and permissible activities. For instance, an LLC offers limited liability and is ideal for most commercial activities, while a branch of a foreign company allows expansion without forming a separate legal entity. Dahhan Business Services helps you evaluate each option to select the structure that aligns with your objective

Ejari registration, which formalizes your office lease through the Dubai Land Department, is a key requirement for many businesses operating in Dubai. However, not all companies are obligated to complete Ejari registration in their first year—eligibility largely depends on your business activity and license type. Some activities, especially those that are service-based or virtual, may be exempt initially. Still, failing to comply when required can delay license issuance or renewal. Consulting a business setup professional is crucial to understanding whether Ejari applies to your case. At Dahhan Business Services, we assess your situation and guide you through all regulatory requirements, including Ejari.

In a major step toward enhancing the UAE’s global competitiveness, the government announced in June 2021 that select business activities are now eligible for 100% foreign ownership on the mainland. This reform applies across various sectors such as trading, manufacturing, services, production, and transportation, eliminating the traditional requirement for a local Emirati partner or sponsor. This groundbreaking update empowers foreign investors to retain full control of their business operations while enjoying the benefits of a mainland license, such as unrestricted access to the local market. At Dahhan Business Services, we help you determine if your chosen activity qualifies and guide you through the full setup process.

Mainland Business Setup in Dubai needs a local sponsor or a UAE national, and the general shareholding arrangement of Dubai Mainland Company is that the UAE national sponsor holds 51% of the company and the foreign shareholder(s) holds 49% of the company. The mainland company provides flexible legal contracts between foreign investors and local sponsors, where the local sponsors receive an annual fee or a percentage of sales/profits. The foreign investor holds 100% control over the company and the local partner has no involvement in the day-to-day operations of the business. 

ChatGPT said:

A professional license in the UAE is specifically designed for individuals and entities offering specialized, skill-based services. This includes professions such as consultancy, accounting, auditing, engineering, management services, advertising, information technology (IT), legal advisory, and medical services. It is ideal for professionals who rely on their academic qualifications and experience to deliver services directly to clients. This license allows for 100% foreign ownership for expatriates, provided a local service agent is appointed. At Dahhan Business Services, we guide professionals through the application process, helping them choose the right license category, gather the required documentation, and ensure full compliance with UAE regulations.

ChatGPT said:

A commercial license in the UAE is issued to businesses engaged in trading activities, such as the import, export, buying, selling, and distribution of goods. This license covers a wide range of sectors, including electronics, textiles, food products, machinery, and consumer goods. It is essential for companies involved in wholesale or retail trade, whether operating locally or internationally. With a commercial license, businesses can operate a physical store or conduct e-commerce activities. At Dahhan Business Services, we assist you in identifying the right commercial activities for your business, ensure proper documentation, and streamline the licensing process to get your operations up and running efficiently.

An industrial license in the UAE is issued to businesses engaged in manufacturing, processing, fabricating, or assembling goods. This includes industries such as food production, metal fabrication, textile manufacturing, packaging, and chemical processing. Companies with an industrial license typically require a physical warehouse or factory space and must obtain additional approvals from relevant government authorities such as the Ministry of Industry and Advanced Technology. This license is ideal for businesses that transform raw materials into finished products on a commercial scale. At Dahhan Business Services, we assist with every step—from feasibility assessment to securing approvals—to ensure a smooth and compliant setup process.