October 6, 2024

Guide to setting up a mainland company in Dubai without an agency: A nerve-wracking path to self-employment

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Reading time 9 minutes

Setting up a Mainland Company in Dubai offers entrepreneurs many benefits, including access to local and international markets, the ability to do business with government entities, and 100 % ownership in certain forms of business. But if you think it's an easy process, you'll soon realize that starting your own business without an agency can be an exhausting and nerve-wracking challenge. Here's a step-by-step guide to help you through the process - but be prepared for patience, perseverance and a good dose of frustration.

1. research and choice of company form

Before you even get into the actual company formation process, you need to figure out which business form is best suited to your business needs. There are various options, from Limited Liability Company (LLC) to sole proprietorship. The problem: There is a lot of information and conflicting information from different sources. You'll spend a lot of time trying to figure out the right legal form, which is the first nerve-wracking step.

2. search for a local sponsor

If you do not meet the criteria for 100 % foreign ownership (which is only possible for certain industries), you will need to find a local sponsor who holds 51 % of your company's shares. This can be extremely complicated and time consuming as you need to find someone you trust and who shares the business interests with you. Without an agency, you are responsible for this yourself, which is a tough and nerve-wracking task, especially if you are new to Dubai and don't have a network.

3. application for a business license

The next step is to apply for a business license from the Department of Economic Development (DED). The process is complex and requires the submission of several documents. Patience is required here, as the bureaucratic effort can be overwhelming. Documents may be missing, forms may be filled out incorrectly or additional approvals may be required. Every mistake leads to delays and causes stress, as you may have to go to the authorities several times to clarify the formalities.

4. obtaining approvals

Depending on the nature of your business, you will need additional permits from various government authorities. For example, if you work in the construction or medical sector, you will need special approvals. Getting these permits can be extremely frustrating, as communication with the authorities is often slow. Long waiting times, unclear requirements and additional visits to the authorities can drag out the process.

5. rental agreement for business premises

You need to rent a physical office as this is a requirement for a Mainland Company in Dubai. Here come the next challenges: finding a suitable office that meets DED requirements and negotiating a lease. The whole process can be stressful as not all properties meet the regulatory requirements and you often have to conduct multiple viewings and negotiations. In addition, the landlord may require specific documents that you don't yet have, further delaying the process.

6. opening a business account

One of the most complicated steps in setting up a company in Dubai is opening a business bank account with a local bank. The process can be tedious and time-consuming. Banks in Dubai have strict compliance rules, and it can take weeks before your account is finally approved. They will ask for detailed information about your business, and there are often lots of queries and feedback. Without the support of an agency, you will have to navigate this complicated process on your own, which takes a lot of time and patience.

7. visa process for you and your employees

To work and run your business in Dubai, you need a visa - as do your employees. The visa application process involves considerable paperwork and waiting times. Again, you will find that there are numerous hurdles and potential setbacks. Incorrect or incomplete documents can lead to rejections, and you will have to keep returning to immigration or other offices to resolve any outstanding issues.

8. constant tracking and bureaucracy

Throughout the process, you will be faced with the need to constantly track the status of your applications. This often means waiting in long queues at government offices only to be told that yet another document is required or that your application is being processed. The lines of communication are often lengthy and frustrating, putting your patience to the test.

Setting up a mainland company in Dubai without the help of an agency is an extremely stressful and nerve-wracking process. Between finding a local sponsor, dealing with the red tape, obtaining permits and the constant back and forth with the authorities, you will face many challenges. Patience, determination and a good dose of stress resistance are necessary to master this path on your own.

Going through the whole process yourself may save you money, but be aware that it will take a lot of time, nerves and energy. If you embark on this journey, you should be prepared to face the numerous bureaucratic challenges and have the patience to ensure the success of your business in Dubai.

9. official requirements and language barriers

Another challenge you will face is communicating with the various authorities. Many of the forms, regulations and instructions are written in Arabic, and even though English is widely spoken, misunderstandings can easily arise due to language barriers. It is not uncommon to have to go to the authorities several times because a document has been filled out incorrectly or a regulation has been misunderstood. Without the help of an agency or translator, you will have to overcome these challenges yourself, which can be extremely time-consuming and frustrating.

In addition, regulatory requirements in Dubai change regularly and it can be difficult to keep track of them. You need to continuously check the latest requirements and make sure you are always up to date to avoid delays. Missing information or old regulations that no longer apply can further hinder your incorporation process.

10. numerous payment requirements and fees

Another point that is often underestimated is the many different fees that are incurred during the start-up process. From company registration to license fees to visa costs - the list of payments is long. Without an agency, you are responsible for making these payments on time and calculating the right fees.

Unexpected surprises can also occur here: Sometimes additional costs pop up that you hadn't previously factored in, and you'll find that the total cost of setting up the company can quickly mount up. It is important that you draw up a budget in advance that also leaves room for unforeseen fees. However, even this will not always be enough to protect you from surprises, as there can always be unexpected expenses that unnecessarily drag out the start-up process and put additional strain on your nerves.

11. receipt of the final approvals

After you have gone through all the necessary steps, the moment you have been working towards for so long arrives: the final approval of your company. But this moment can also prove to be nerve-wracking. Sometimes the approval process drags on for no apparent reason, or it turns out that yet another document is needed that you didn't know about. In such cases, you have to go back to the authorities and submit what is required. This process requires a lot of patience and persistence, as it can take weeks or even months until everything has been submitted completely and correctly.

Communication with the authorities is crucial at this stage and you will find that it is often difficult to track the processing status of your applications. Waiting to hear back without knowing exactly whether everything is in order can test your patience.

12. building a network without support

Another important aspect that plays a role when setting up a mainland company in Dubai is building a network. While agencies usually offer you access to an already established network, you are on your own if you go the self-founded route. This means that you will need to build relationships with local authorities, business partners and service providers from the ground up. Especially if you are new to Dubai, this can be extremely difficult.

It will take a lot of time and energy to make the right contacts that can help you. Without a good network in Dubai, finding solutions to problems that arise can prove to be an additional hurdle. Experience shows that local contacts often make the difference when it comes to speeding up processes or obtaining valuable information.

13 Ongoing administration and compliance

The work does not end with the successful establishment of your company. Once your company has been founded, you still have to complete a variety of administrative tasks and ensure that your company always complies with current legal requirements. This means that you have to regularly renew licenses, submit tax returns and comply with other official requirements.

Here too, without the support of an agency, this ongoing administrative work can quickly become a burden. You must always be careful not to miss any deadlines in order to avoid fines or other negative consequences. Managing your company will continue to cost you a lot of time and patience in the future, as Dubai has strict requirements for business activities and reporting.

14 Conclusion: The arduous path to self-employment

Setting up a mainland company in Dubai without the help of an agency is a Herculean task that requires a lot of patience, perseverance and nerves. From start to finish, you will be faced with a multitude of challenges, be it the search for a local sponsor, the bureaucratic hassle with the authorities, the lengthy wait for permits or the endless forms and fees.

If you go this route alone, you must be prepared to invest a lot of time and effort and be prepared for numerous setbacks. The advantage: you save the costs of an agency and get to know the process first-hand. But the price is many sleepless nights, frustration and a lengthy start-up process.

If you are determined enough and have the necessary patience, you can do it, but be aware that the path to getting there is anything but easy. Setting up a company in Dubai requires not only capital, but also perseverance and the willingness to fight your way through the bureaucratic jungle.

15 The relaxed way to start a company: With the support of SetupCo

In contrast to the nerve-wracking experience of going it alone, working with SetupCo a much less stressful and more efficient alternative to achieve a Mainland Company in Dubai to found a company. While the DIY approach is characterized by countless visits to the authorities, countless forms and an overwhelming jungle of bureaucracy, the SetupCo all these tedious tasks for you. Here you can find out how the start-up process works with professional support from SetupCo and why it's worth relying on experts.

16. comprehensive advice - the first step to a successful start-up

The first step in working with SetupCo is individual advice tailored to your needs. While you have to spend a lot of time researching when setting up your own business, SetupCo helps you make the right decisions right from the start. Our experts analyze your business model and recommend the right type of company for you, be it a Limited Liability Company (LLC) or another legal form.

Thanks to our years of experience in start-up consulting, we can warn you of the most common pitfalls and show you the best way to set up your company successfully and, above all, legally compliant in Dubai. You will receive tailor-made solutions that fit your requirements exactly - without having to spend hours searching forums and websites for reliable information.

17th local sponsor - No more headaches

One of the biggest stumbling blocks when setting up a Mainland company without an agency is finding a local sponsorwhich is required by law if you cannot operate in a 100 % foreign ownership structure. SetupCo has an established network of trusted local sponsors who will do this part for you. We will help you find a sponsor you can trust and ensure that all agreements are transparent and legally compliant.

While you might spend months looking for the right person when searching for a sponsor on your own, SetupCo significantly shortens this process and ensures that you can focus on what's important: building your business.

18. fast and smooth application for a business license

One of the biggest hurdles when setting up a company in Dubai is the Applying for a business license with the Department of Economic Development (DED). Without an agency, you are solely responsible for submitting all the required documents, which can lead to countless queries and frustration. With SetupCo On the other hand, this process will be uncomplicated and stress-free for you.

Our experts take care of the entire processing of license applications, ensure that all documents are complete and correct, and accompany you every step of the way. We know exactly what the authorities require and how we can speed up the process so that you receive your license quickly and without unnecessary delays.

19. legal support from Kanzlei.ae

In addition to the bureaucratic hurdles, there are numerous legal requirements that you must observe when setting up a company in Dubai. Thanks to our own Law firm in Dubai, Kanzlei.aeyou will receive comprehensive legal support. Our experienced lawyers take care of all legal aspects of setting up a company, from drafting contracts to tax advice.

This service ensures that you comply with all local laws and regulations while taking advantage of tax benefits available to foreign entrepreneurs in Dubai. Instead of having to deal with complicated legal issues, you can rest assured that Kanzlei.ae masters all legal challenges for you.

20. help with renting an office and opening a bank account

The rental of a Offices and the Opening a business account are two further hurdles that can make the start-up process in Dubai difficult. Without an agency, you have to look for suitable office space yourself that meets the official requirements and conduct lengthy negotiations with banks. SetupCo also relieves you of these burdens.

We have a network of real estate providers who offer offices that comply exactly with the official requirements for Mainland companies. Also the Opening a bank account is made considerably easier thanks to our close contacts with local banks. We support you in compiling the necessary documents and ensure that you can open a business account quickly - without weeks of delays and complicated application procedures.

21 The visa process - fast and uncomplicated

The application for a work visa is essential for you and your employees. But the visa process can be time-consuming and confusing, especially for newcomers to Dubai. SetupCo takes care of this entire process for you. We prepare the visa applications, take care of all the formalities and ensure that you receive your visa quickly and easily.

You don't have to struggle through long forms or unclear regulatory requirements - our team takes care of everything so you can focus on building your business.

22. sustainable support and compliance

The service from SetupCo does not end when the company is founded. We offer you ongoing support to ensure that your company always complies with legal requirements. From the License renewal to tax obligations and other official requirements, we are always at your side.

Our aim is to provide you with long-term support and take the burden of administrative tasks off your shoulders so that you can focus on growing your business. Thanks to our ongoing support, you don't have to worry about missing important deadlines or making costly mistakes.

23 Conclusion: Company formation made easy with SetupCo

While setting up a mainland company in Dubai without an agency is a tedious and stressful process, with the support of SetupCo make the entire process much easier. From the initial consultation to the opening of your business account, we accompany you step by step and take care of all the bureaucratic and legal hurdles for you.

With SetupCo by your side, you save time, nerves and avoid costly mistakes. We make sure that you can get started quickly and easily in Dubai without having to go through the entire process alone. Rely on our expertise and network to make your company formation in Dubai a successful and stress-free experience.

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