IFZA Company Formation: Key Benefits and Process Explained
The booming economy, investor-friendly policies, and strategic location of Dubai attract entrepreneurs from around the world. Opening a mainland company offers numerous benefits. For detailed information, refer to our blog on mainland vs. freezone, link- https://bcl.ae/setting-up-a-business-in-uae-mainland-vs-free-zone/.
Why choose any consultant?
Starting a business in Mainland Dubai provides the business with immense opportunities but also requires careful planning and adherence to various local regulations. Partnering with a business setup consultant can simplify the process, ensuring compliance and timely approvals.
Why choose BCL Globiz?
We at BCL Globiz offer you unmatched assistance with incorporation. To make sure you pick the best business structure that satisfies your unique needs and goals, we undertake research and offer you competent assistance.
Therefore, in our blog today, we bring to you the comprehensive steps involved in setting up a business in Mainland Dubai.
What is the cost for all these activities?
| Particulars | 1 Visa |
2 Visa |
| Initial Approval + Name reservation + MOA + Immigration Card + Labour File + E Signature Card |
3,000 |
3,000 |
| License cost (Ranges from 13,000 to 17,000) |
15,000 |
15,000 |
| Residence Visa 2 years validity |
3,300 |
6,600 |
| Fast track Medical Testing + Emirates ID |
1,000 |
1,500 |
| Professional fees (Including VAT) |
5,250 |
6,300 |
|
Grand Total |
27,550 |
32,400 |
* The quoted fees are when the shareholders are individuals. The fees shall be different in case of Corporate Shareholders (i.e. Subsidiary Company).
For insights into VAT compliance, explore our FAQs on UAE VAT
What steps are involved in setting up a Dubai Mainland company?
Step 1: Finalize number of Visas:
Once you finalize the number of visas required, the respective payment as per above table has to be processed.
Step 2: Choose the legal structure:
Dubai offers various structures for mainland businesses, such as Limited Liability Company (LLC), Sole Establishment Company etc. The one suitable for your businesses has to be opted in.
Step 3: Prepare a detailed information on business activities:
You have to choose a specific business activities, which shall reflect in the trade license. The company is allowed to engage only in these activities.
Pro-tip: We suggest choosing one business activity, which is the primary activity, which also helps in opening the bank account. However, in case you wish to have more than one business activities, then it could be related. For example, having the first business activity as professional services and the second as real estate or commercial activity will increase the chance of rejection.
Step 4: Initial Approval and Trade Name Reservation:
Choose three unique trade names for your business. Ensure that it complies with Department of Economic Development (DED) guidelines and also try to avoid Arabic/Islamic names, as the chance of rejection is high. Choose non-offensive, non-religious, non-political names. Once approved, the name is reserved for your company.
Pro-tip: If the investor had visited Dubai previously, then this could be completed without the physical presence of the shareholder. This process will take approximately 2 to 3 weeks. If not, then physical presence is required for all steps. The whole process could take approximately 3 to 4 weeks.
Step 5: Real-estate – A dedicated office space:
Mainland companies must have a physical office. A tenancy/lease contract (commonly called Ejari in UAE) is required, which is registered with Dubai’s tenancy registration system. Post this, the Dubai authorities shall also physically inspect the office location before issuing a license.
Step 6: Preparation of documents:
Prepare the below set of documents:
- All shareholders passport having at least 6 months validity
Pro-tip: To increase chances of acceptance, keep a validity of at least 2 years in the passport copies.
- A digital copy of the clear passport-size photo of all shareholders
- If the shareholders have visited the UAE earlier, then that visa copy. If not, latest visa copy visiting to the UAE.
Step 7: Memorandum Of Association and License:
For LLCs, the MOA outlines the company’s structure, activities, and share distribution. You must select the other terms that align with best practices in the UAE.
Pro-tip: Make the Manager and authorize him in MOA, who can stay in UAE to complete the Bank account opening process.
Step 8: Trade license and visa:
After submitting all the documents, the trade license will be approved. Post approval, you will have to visit Dubai for the purposes of visa processing. The below set of activities will be performed:
- Medical examinations
- Biometrics for Emirates ID
- Visa Stamping
Post visa stamping, you may leave to your country. The Emirates ID will be delivered to the registered address within 5 working days.
Pro-tip: You may choose the VIP Plan to fasten the process.
Pro-tip: We would suggest you avoid coming on Thursday and Friday as it is an Islamic country and most of the places are off on Fridays. The best time is Monday to Thursday.
Step 9: Bank account opening, Registrations and Accounting:
Experts at BCL Globiz will guide you on the opening of the bank account in simple ways and assist you in obtaining the account. Post this, you may choose our affordable accounting packages along with registration services.
You can reach out to our experts at punith@bclglobiz.com for a hassle-free setting up of your business and that too, at an affordable cost.
Also, discover the benefits of outsourcing accounting with our detailed guide on Outsourcing Accounting in Dubai.
