Mainland Company Formation in Dubai Without a Local Sponsor

Mainland Dubai Company Formation

Dubai is home to a large market and a number of different jurisdictions that give investors the ability to work in a vibrant market with relaxed tax responsibilities. One such jurisdiction is known as Dubai’s Mainland, a region that’s attractive for entrepreneurs to trade freely in the UAE.

In the past, local sponsorship in Dubai was required for Mainland company formation. As a result, foreign investors needed a local sponsor who would own 51% of the company and have a significant say in the company's operations. However, in recent years, the government of Dubai has made it easier for foreign investors to establish their businesses in the region without needing a local sponsor.

If you’re an investor weighing the advantages of mainland company formation in Dubai, this blog may be for you. Below, we’ll explore mainland Dubai company formation and show you the steps you’ll need to take to establish your company and brand.

The Role of Local Sponsors in Dubai Mainland Company Formation

As we’ve mentioned in the past, local sponsorship has been a critical aspect of mainland Dubai company formation. The local sponsor, a UAE national, was required to hold at least 51% of the company's shares, while the foreign investor holds the remaining 49%. This requirement ensured the majority of the company's shares were owned by UAE nationals, a legal requirement in Dubai.

However, the Dubai government has recently changed its business ownership laws, making it easier for foreign investors to set up companies without a local sponsor. Under the new rules, specific categories of foreign investors are now allowed to own 100% of their companies in Dubai without needing a local sponsor.

How to Set Up a Dubai Mainland Company Without a Local Sponsor

Setting up a mainland company in Dubai can be an exciting and rewarding venture for the right investor, but the process can be overwhelming, especially if you are unfamiliar with Dubai's legal requirements and regulations. Here are the steps to follow to set up a mainland company in Dubai without a local sponsor:

Find a Location

The first step in setting up a mainland company in Dubai is to find a suitable location. You can set up your company in one of Dubai's free zones or on the mainland. If you choose to set up on the mainland, you will need to find a suitable location for your business activities.

Meet Requirements

You must meet certain requirements to establish a mainland company in Dubai without a local sponsor. For example, your business must be in one of the approved sectors, such as manufacturing, renewable energy, and technology. You must also have a minimum share capital of AED 2 million.

Choose Legal Structure Options

Your next step will be to determine the legal structure of your company. In Dubai, you can choose from several legal structures, including a limited liability company (LLC), a sole proprietorship, or a partnership.

Determine Business Activities

You will also need to determine your company's business activities. This will determine the type of license that you need to obtain.

Draft and Notarize Legal Documents

You will be required to draft and notarize legal documents, such as the company's articles of association and memorandum of association.

Obtain Licenses and Permits

For this step, you’ll want to obtain the necessary licenses and permits to operate your business, including a trade license, a commercial license, and any other permits required for your business activities.

Register for Taxes

You’ll need to register your company for taxes with the Dubai government. This includes obtaining a tax registration number (TRN) and registering for value-added tax (VAT).

Open a Corporate Bank Account

If you expect to conduct business in the UAE, you'll need to establish a corporate bank account. Luckily, the UAE is home to many nationally recognized banking institutions that can help you.

Hire Employees

Finally, you will need to hire employees to operate your business. To do this properly, you will want to follow the labor laws in Dubai and obtain the necessary work permits and visas for your employees.

Forming Your Business in Dubai’s Mainland? MSZ Consultancy Can Make Your Business a Reality!

With years of experience assisting investors in business formation, managing Dubai mainland company formation cost, handling legal functions, and licensing, we have the expertise to deliver accurate, lasting results. Whether you're searching for local sponsorship in Dubai or securing visas for yourself and your employees, our consultant experts can help make owning and operating a business easy and straightforward.

So, if you're ready to establish your business and take advantage of UAE's many lucrative opportunities, call MSZ Consultancy at +971 52 544 1248. Our specialists are waiting to provide you with a free quote and a personalized business roadmap of how we can help your business find the success it deserves.