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Starting A Business in Dubai Mainland and Free Zones

business set up in Dubai

Starting A Business in Dubai Mainland and Free Zones

Setting up a business in the mainland is quite different from that of the free zone. Before going for company formation in Dubai, the businessmen must first get an idea about all the legal processes in order to run a successful business.

Company formation in Dubai mainland

Here is what you need to start a business in Dubai mainland

A local sponsor

A local sponsor with UAE nationality is required for the company formation in Dubai mainland. The local sponsor will have ownership of 51% of the business. The remaining 49% will be that of the expat. It is not necessary for the local sponsor to invest in your business but they will still have the ownership of your business. Also, the local sponsors will not have any involvement in the day to day activities of the companies. If the company wants anything another way around, it can be negotiated with the sponsor beforehand.

Registration with the DED

Department of Economic Development, commonly known as DED, is the main regulatory body for the mainland company formation in Dubai. DED is responsible for the growth and achievement in Dubai. This is the reason, why there are great and efficient services provided to the investors looking forward to the business formation in Dubai.

Business verification

Verify your business by the Dubai Municipality.  Verification is required for ensuring the tenancy record and Ejari.


Get the required approvals from the authorities so that you may get permission for carrying out your business activities in Dubai. After getting the approvals, you must get your MOA agreement notarized by the notary public.


You would be needing office space to have a physical location for your business. The number of visas you can acquire also depends on the space occupied by your business.


Finally, you would need to submit the fees to get the required license.

The above-mentioned steps may feel a little difficult but if you take the help of business consultants in Dubai, things will start to get going easily.

Company formation in Dubai free zone

Although the company formation in free zones is easier you would still have to be extra careful while going through the startup processes. Mistakes can delay the business set up process. So, it would be better if you do everything accurately to save more time.

Decide a business activity

You need to be clear about your business activity right from the start. This is important to apply for the correct license type. There are many business activities that you can choose from. So, pick out the one that best suits your business.

Pick a free zone

There are many free zones in Dubai and all of them have their own different qualities. All you need is to pick the one which has all the qualities and facilities you need for your business. You will also have to consider the company formation type and business activity allowed in a certain free zone before you choose one.

Choose your company name

Make sure that you choose the most unique name for your business. For this purpose, there are different websites you can get help from. There are different standards for choosing the best name as well to ease the problem.

License application

You need to apply for the particular license for your business activities. For that, you must gather all your legal documents and submit the application for license registration.

Create a bank account

Creating a bank account is important for you to carry out your day to day transactions easily. Gather all the required documents for bank account opening and submit with the bank you choose for your business.

Documents required for business formation in Dubai free zone

  1. Color copies of the passport and visa of the shareholders.
  2. An Application form.
  3. A proper business plan.
  4. Board resolution.
  5. Memorandum and Articles of Association (MOA & AOA).


The capital requirements here may vary depending upon the free zone authority. Also, the business you want to start will speak amply about the free zone you must choose in Dubai. All these little decisions are the ones which will make your company big. So, make sure that you choose the best decisions for your company.

Dubai free zones are very widespread. That is the reason why they are very prominent these days in the business owners. People can invest and start their businesses here quite easily and become more successful.


FAR Consulting Middle East

Every investor or an entrepreneur wants the bets for its company. If you want the same, FAR should be your one-stop solution. It offers the most superior services for business formation right from the star. It eases the problems of expats who have little or o idea about the legal procedures of business formation. FAR being an international business firm makes sure that it assists its clients in the best possible manner.

Contact us for more information or visit us for a more detailed discussion regarding business set up in Dubai.