Industry

Company Formation

Mainland Company Formation

Mainland company establishment in Dubai is an excellent investment opportunity for both businesses and investors. Mainland companies are business entities that operate within Emirati territory, providing the benefits of commercial law. Mainland companies in Dubai operate under the jurisdiction of the DED. The laws governing their activities can be found in Article No. 38 of Law No. (19) of 2004 on Licensing of Business Entities. The government of the United Arab Emirates will allow for 100% foreign ownership for businesses on the mainland of the country starting in June 2021. Earlier, expat business owners were only allowed to own a maximum of 49% shares in their businesses, while Emirati sponsors owned the remaining 51%.

Velox provides consultation for obtaining a Dubai mainland license and starting a business in the most popular locations of the UAE. We ensure your business license meets Dubai Economic Department requirements.

Our experienced consultants will guide you through each step for a successful corporate setup.

As a result of their exposure to, and relationships with numerous organizations, consulting firms are typically aware of industry “best practices”. However, the specific nature of situations under consideration may limit the ability or appropriateness of transferring such practices from one organization to another.

Consultancies may provide organizational change-management assistance, development of coaching skills, process analysis, technology implementation, strategy development, or operational improvement services. Management consultants often bring their own proprietary methodologies or frameworks to guide the identification of problems, and to serve as the basis for recommendations with a view to more effective or efficient ways of performing work tasks.

Process to start a mainland business in Dubai

Step 01: Memorandum of Association (MOA) Draft a Memorandum of Association (MOA) that outlines the guidelines for your new company, including its purpose and capital structure.

Step 02: Initial Approval from the Department of Economic Development (DED) Obtain initial approval from the DED by submitting your finalized Memorandum of Association (MOA). The DED will notarize the MOA and issue an approval letter. Business consultants can assist you with this step.

Step 03: Trade Name Registration Choose a suitable trade name for your company and register it with the DED. Ensure that the trade name is unique and not already in use by another company to avoid rejection of your application.

Step 04: Mainland Commercial Office Space Secure office space for your business in Dubai or the UAE. A registered office address is required to obtain a trade license. You can provide an ownership agreement or tenancy agreement as proof of the registered office address.

Step 05: Apply for Trade License To apply for a trade license from the DED, you must meet the eligibility criteria mentioned above. Determine the appropriate legal form for your business, gather the required documents, and submit the application along with any applicable fees. Additional approvals or permits may be necessary depending on your business activity.

Please note that the specific requirements and processes may vary depending on the type of business and applicable regulations. It is recommended to seek guidance from business consultants or legal experts to ensure compliance with all necessary steps and requirements

Mainland Business License Types

Professional

A professional license is required for professionals who take part in any professional activity like consulting. Compared to other licenses, the cost involved in the issuance of a professional license is less.

Commercial

A commercial license is necessary for businesses engaged in buying, selling, or providing services to customers. In Dubai and the UAE mainland, obtaining a general trading license is a common practice for individuals seeking to conduct multiple business endeavors under a single license. Commercial licenses are widely sought-after in these regions.

Industrial

Businesses involved in manufacturing goods often require an Industrial License, which can be obtained from state and national governments, depending on the specific industrial activity.

Tourism

A valid tourism license is essential for all activities related to tourism. The issuance of these licenses falls under the responsibility of the Department of Tourism and Commerce Marketing (DTCM). It is mandatory to possess a valid tourism license in order to engage in inbound or outbound tour-related activities.

Offshore Company formation in Dubai

Some reasons to form an offshore company in the UAE include:

Citizens can derive personal advantages from a nation’s tax exemptions, while the key impetus for establishing enterprises in an offshore jurisdiction lies in accessing investor-friendly legislations, regulations, and global business prospects.

There are two different jurisdictions for setting up an Offshore business in the UAE. These are:

1. Jebel Ali Free Zone (JAFZA)

2. Ras Al Khaimah (RAK)

Documents Required for Offshore Company Formation in UAE:

1. Address proof

2. Copies of passports of owner and shareholders

3. Notarized Memorandum of Association (MOA)

4. Business plan

Our experienced consultants will guide you through each step for a successful corporate setup.

Freezone Company Formation

Velox, a company providing services in the United Arab Emirates (UAE), facilitates the establishment of business activities in Free Zones. The process of setting up a business in the Dubai Freezone requires obtaining a license from the UAE Free Zone Authority (FZA), which is facilitated by Velox. The FZA issues licenses based on the nature of the company’s business activity, taking into account factors such as the projected number of employees to be hired within a specified timeframe and the total capital investment required for the free zone operation.

Companies operating in Dubai Free Zones enjoy distinct advantages as they are not bound by the same commercial laws applicable to mainland UAE companies. To fully benefit from advantages like 100% ownership and financial benefits such as tax exemptions, repatriation, and foreign exchange controls, foreign investors must secure a free zone license by establishing a company in one of the Dubai free zones. Velox’s experienced consultants are available to provide comprehensive guidance and support throughout the entire process of setting up a successful corporate presence in the UAE.

Process to start a Freezone Business in Dubai

1. Type of business

When embarking on a business venture in the Dubai Free Zone, investors face the crucial task of selecting the appropriate business type and identifying the most suitable free zone that aligns with their goals. It is important to note that each free zone has distinct permitting requirements, necessitating careful consideration and decision-making from the investor.

2. Trade name

After determining the business type for the Dubai free zone, investors will proceed to select a suitable name for their company. It is imperative to adhere to the government’s prescribed company-naming conventions during this process.

3. Apply for a license

Once the business name has been finalized, the proprietor must initiate the registration process with the relevant local agency responsible for overseeing business authorizations within the Free zones. It is essential to note that each Free zone has the authority to issue distinct types of licenses.

4. Rental Space

Upon obtaining your business license in Dubai’s free zone, you can commence the search for office space, with the option to either purchase or lease the premises.

6. Initial Approvals and license

Before granting a license, it is essential to obtain all necessary approvals from the investors. Once the approval process is finalized, the investor can initiate business operations. The approval process is streamlined and typically takes no longer than two to four weeks. Our team of experienced consultants is dedicated to guiding you through each step, ensuring a seamless and successful corporate setup.