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An overview of the business environment in Abu Dubai mainland

Abu Dhabi Mainland: Dubai’s business environment has a unique structure that meets the diverse needs of entrepreneurs. Companies established in the “Abu Dubai mainland” of the UAE compete with companies established in free zones which, despite the advantages offered, come with specific restrictions on business activities. Determining the right company location in Dubai requires careful attention to the strict laws and regulations that govern the business setup process. The success of company registration lies in compliance with government standards, so choosing the appropriate jurisdiction is a vital strategic decision for every entrepreneur in Dubai, as this choice contributes to facilitating registration procedures and ensuring comprehensive compliance with government controls and guidelines, thus contributing to building lasting success in the business market.

View of Abu Dhabi's skyline showing the modern architecture of the mainland area, with several prominent skyscrapers and a well-maintained public space featuring palm trees and fountains. This image highlights the city's dynamic business environment, suitable for discussions on Abu Dhabi business setup, trade licensing, and economic development.

Benefits of establishing a company in Abu Dubai Mainland:

  • There is no strict minimum capital required for setting up a business on the Abu Dubai mainland.
  • There is no strict minimum capital required to establish a company on the Abu Dubai mainland.
  • Abu Dubai Mainland business owners have the flexibility to open offices anywhere in Dubai.
  • Establishing a company in Abu Dubai Mainland
  • allows 100% repatriation of capital and profits, and is exempt from corporate tax.

Legal forms for business establishments within Abu Dubai mainland:

Determining the appropriate legal framework is a vital decision for an investor when setting up a company in Abu Dubai mainland. The legal structure of such a company is determined based on the number of partners, as the Dubai Economic Development Department (DED) allows choosing from the following legal structures:

Civil works company:

A civil business company is a company in which there are two or more business partners who practice only professional activities such as clothing tailoring, beauty salons, consulting or training, etc.

Limited Liability Company:

The Limited Liability Company is emerging as a popular legal structure in Abu Dubai Mainland for foreign investors to establish a limited liability company with between 2 and 50 partners, and each partner’s liability is limited to his or her share in the company. Foreign investors are permitted to own 100% in LLCs for specific activities determined by the Abu Dubai  DED, such as general trading licenses.

One person limited liability company:

A single person limited liability company allows Emirati or Gulf citizens, whether natural or legal individuals, to create and own a company. The company name must be linked to the owner’s name, followed by the designation “Single Person Limited Liability Company.” However, citizens of other countries do not have the right to create such entities. A single person limited liability company is subject to all laws governing limited liability companies, and interested parties should refer to the requirements and regulations of such entities to ensure compliance.

Branches of foreign companies:

A branch of a foreign company carries out the activity related to the parent company, provided that direct commercial and industrial activities are not carried out unless approved by the competent authority.

Free zone branches:

Free zone branches are branches of companies located in free zones in all emirates of the country.

Types of business licenses in Abu Dubai Mainland:

Entrepreneurs must first obtain a license to engage in any business activities in Dubai. Conducting business on Abu mainland Dubai without a commercial license is considered a punishable offense. The Department of Economic Development acts as a regulatory body that oversees the issuance of business licenses in mainland Dubai. The Department of Economic Development issues several types of licenses to establish companies in the Abu Dubai mainland, including:

Commercial license:

This license is granted to companies whose activities include trade in goods, including import, re-export and permitted trade in goods. Permitted activities range from wholesale and retail trade, construction, transportation, warehousing, communications, financial intermediation, real estate, and leasing. Foreign investors are entitled to obtain a business license in Abu mainland Dubai with the right to fully own their company.

Professional licensing:

This license is specifically designed for individuals who provide professional services based on their intellectual or technical abilities.

Industrial license:

The industrial production license includes all types of work related to manufacturing, production, packing, separation or assembly, in various fields such as manufacturing food, clothing, paper, petroleum products, equipment and devices.

A step-by-step guide to the company formation process in Abu Dubai Mainland:

  1. Determine the nature of your company’s economic activity
  2. Choose the legal form of your company
  3. Register the trade name
  4. Apply for initial approval
  5. Prepare the Company Articles of Association/Local Service Agent Agreement (LSA/MOA).
  6. Choose a location to conduct your business – the company address
  7. Apply for additional government approvals
  8. Submit the required documents
  9. Pay the fees and receive the license
  10. 10.Register your company with the Chamber of Commerce and Industry

 

Registration of a company in Abu Dubai Mainland:

Company registration with the Chamber of Commerce and Industry is the final step to establishing a company in mainland Dubai, and this final step ensures that your company is officially recognized and ready to operate in Dubai.

Cost of registering a company in Abu Dubai Mainland:

The cost of registering a company in Abu Dubai Mainland varies and is affected by several factors, including the different fees associated with different types of licenses, additional fees for specific activities within each type of license, the number of visas required for employees and sponsors, the choice between a physical or virtual office, and the inclusion of additional services such as administrative support services. Accounting support and marketing assistance.

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