THE PATHETIC STORY OF MR MOHAMMED IN DUBAI!

Mr Mohammed was a successful businessman in Pakistan, who gave it a thought of setting up a Restaurant business in Dubai. On getting to Dubai, his hesitation to commence business made him take up a space in Al Satwa, invested in the acquisition of all materials required and even proceeded to recruiting staff members without further consultation.

Alas!, the Dubai authorities came and closed down his 500, 000 Dirhams business.

this crippled Mr Mohammed and all efforts to recuperate failed, until he approached us to assist him.

We made him understand that setting up your company in Mainland Dubai, require a local sponsor (UAE National), who is required to own at least 51% of his mainland company. However, he benefits from a business license that allows him to operate anywhere across Dubai. The Emirate offers a variety of low-cost as well as high-end locations that are suitable for all budgets and business activities.

STARTING A BUSINESS IN DUBAI MAINLAND

1. LOCAL SPONSOR:

You must decide on Local sponsors who would take a passive management role and receive a fixed salary as determined by both partners. These partners can assist with any future issues with government authorities. It is best to maintain a healthy and positive relationship with him or her for a stress free business in Dubai.

2. The next thing after getting a sponsor, is to DETERMINE YOUR BUSINESS TYPE, FORM AND ACTIVITIES

Before approaching the business license-issuing authority, the Department of Economic Development (DED) of Dubai, you must have decided whether your company will be a commercial, professional or industrial business.

The type of company to be formed in the Mainland is determined by the ownership structure (Shareholders or Sole ownership) as well as activities (businesses to be conducted).

You could decide to register a LIMITED LIABILTY COMPANY, which gives room for varying number of shareholders commencing from 2, or a JOINT LIABILITY COMPANY which allows you to conduct both commercial and industrial activities.

You could also decide to register a Private Joint Stock Company which allows only commercial and industrial activities or a Public Joint Stock Company allowed to conduct all types of activities.

Finally, you could also register a Civil Company allowed to conduct professional activities such as accountancy, engineering, law, and medicine.

3. Apply to the Department of Economic Development (DED) with a proposed company name, which must not 

be similar to an existing name, must also not be a prohibited name i.e an offensive name to the public.

4. Receive initial approval: Foreign investors require the approval of the General Directorate of Residency and Foreigners’ Affairs for this approval (the initial approval is not to be mistaken for a full license).

5. Receive external approvals based on your business activity from various ministries, agencies and governing bodies. E.g transportation, legal consultancy, and trading specialized equipment requires approvals from various ministries and other governing bodies.

6. Choose and rent a location for your business

Mainland firms require a physical presence (however, some entrepreneurs operate Home-based businesses and those outside of the UAE can operate an online Business in Dubai). The premises must comply with DED and Dubai Municipality requirements upon inspection by the Municipality officials. It is also required to provide a tenancy contract (Ejari) to proceed with your company registration.

7. Obtain location and inspection approval from the Municipality

8. Sign the Memorandum Of Association and lease agreement before a public notary

9. Obtain a trade license by submitting the company’s documents to the Department of Economic Development (DED) or the Chamber of Commerce and Industry as the case may be.

10. Get document processing done to get a payment voucher issued

12. Pay the license fee to get a trade license issued

13. Obtain your license

13. For hiring employees, we would advice as to how you could process the visa for your employees, we would also advise as to  getting

approval from the Name Board and Ministry of Labour.

Note finally, that the above explained process and requirements is for a business set up in the Dubai mainland. You also enjoy registering and obtaining up to10 license for the same location if it aligns with the requirement of the municipality officials.

For more inquiries and registration, kindly get in touch:

Email: angoldbiz@gmail.com

Calls and Whatsapp: +971568225948