All You Want To Know About Business Setup in Dubai Mainland

The business friendly facilities and infrastructure offered by Dubai mainland is very popular. Several advantages are there of a highly developed economy that could be enjoyed by the business setup.

Utmost international standards are matched by the services and infrastructures that expedite quality, efficiency and services for business setup in Dubai Mainland.

 Some of the benefits for business setup in Dubai Mainland are: 

• Best quality options for residential  and office accommodation
• Advanced arrangement of transportation
• Top venues for international conference and exhibitions
• Simple recruitment process
• Reasonable workforce
• Open enterprise system
• Reliable utilities, power etc.

For relishing all these benefits, the task of company formation in Dubai has to be accomplished. This is challenging as well as time consuming. Business Link UAE is there as your reliable partner making this task hassle free and opportune for you.

Process of business setup in Mainland:

For company formation in Dubai Mainland, a UAE national has to be appointed as your business’s local sponsor. However, an agreement will be signed by the local sponsor of not having any profit sharing or involvement in operations of the company. Therefore, no active participation is there of the local agent in company’s profit sharing, operations and business management. Instead, their role will be of a figurehead characteristic at the time of required documentation and enlisting of legal settlements in Dubai.

 Necessities for business setup in Dubai Mainland:

For a business setup in Dubai Mainland, it is required to have the office address verified from the Dubai Municipality. This requirement varies on the basis of license type that is required by the investor. For the business setup in Dubai mainland, 6 steps are involved. These are:

• Selection of the business activity and approval of name for the same
• Selection of the service agent or the local partner
• Application for getting the preliminary approval for business setup in mainland
• Provision of MOA and notarization from court
• Getting the occupancy contact as well as space for office
• Final proposal for business setup in Dubai mainland

The skilled Dubai company formation consultant at Business Link UAE are there to provide best services and support to the clients for business setup in mainland.

All You Need to Know About Local Partner and Services Agent in Dubai

There has been a repeated confusion concerning the terms used in connection with the Local (Emirati) Sponsor, a mandatory requirement when establishing a business outside the free zones in the United Arab Emirates.

The mix-up merges two expressions into one (“sponsor”) without a proper distinction, which creates the impression that there is always an Emirati in full control of the business.

In fact the word “sponsor” is neither a job title or position nor a job description of the involved Emirati. However, it can be considered a status that a Local Partner or Local Service Agent gains after forming a company or after being appointed as a Service Agent for a certain entity.

Whether a Local Partner or a Local Service Agent is required depends on the kind of activity and the company structure that the entity will have.

In Dubai, trading and industrial activities require a Local Partner (who holds 51% of the company shares) and are usually structured as a Limited Liability Company (LLC).

However, a professional license in Dubai can’t use the LLC structure and can only be a civil company. In Dubai, all sorts of commercial activities can use the LLC structure.

The main difference between the entities under the CCL (Commercial Companies Law) and those under the Civil Code is that the activities which may be practiced in the CCL are of a commercial nature, whereas in the Civil Code they involve the use of intellectual faculties, acquired information or the use of skills.

Civil activities may not use the Limited Liability Company structure. Moreover, as mentioned earlier, the activities civil entities may be engaged in will be restricted to all those of a civil nature alone.
Professional companies may be 100% foreign owned. However, it is necessary to appoint a local Emirati Service Agent from the same Emirate.

Under the Civil Code, service or professional companies are de-fined as companies where two or more agree to be bound to carry out work and to be liable to third parties against payment of consideration, whether they share their work equally or unequally.

According to Dubai rules on licensing professionals and trader and in order to establish a business which practices services or professional activities, the business will be formed as a “Business Partnership”. Most of the services related to professional activities require a professional license.

A Local Service Agent has to be appointed while 100% of the company shares can be owned by foreigners. The Local Service Agent will deal with the government officials and Ministries on behalf of the company and facilitates the renewal process.

With a Dubai local Sponsor/Local Service Agent, it is common to arrange side agreements that redefine the conditions between the parties in favor of the actual owners/managers of the company.
For the last few years, there has been a discussion whether or not certain activities should be exempt from the requirement to have a Local Partner and a correspondent law is in the pipeline.