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PAKISTAN TO DUBAI / MAINLAND COMPANY FORMATION

Setting Up in Business Bay Dubai - A Practical Location for Mainland Businesses

Business Bay is one of Dubai's most well-known commercial hubs, and its central location can make it a pretty practical choice for companies setting up shop in the city. For Pakistani entrepreneurs, establishing a mainland company in Business Bay can provide a way to conduct permitted business activities in Dubai, all while maintaining a real physical presence.

Plan your Business Bay company
Business Bay towers along the Dubai waterfront
THE ADDRESSBusiness BayTHE JURISDICTIONDubai mainland

However, setting up a company in Business Bay is not as simple as just finding a nice office address. The business activity, legal structure, licensing requirements, premises, and future plans all need to tie together neatly.

Flyingcolour Business Setup helps Pakistani entrepreneurs with setting up their mainland businesses in Dubai, from picking the right company setup route through to licensing and all the related requirements.

Why Choose Business Bay for Your Business?

Business Bay is right in the heart of Dubai, close to Downtown Dubai and all the major business districts. The office buildings in Business Bay are home to all sorts of businesses - from the professional to the commercial and service sectors.

When considering setting up a company in Business Bay, some of the practical factors to consider include:

  • How easy it will be for clients and employees to get to your office
  • What type of commercial premises are available, and where they are located
  • What kind of office space your business needs
  • Where your customers and suppliers are
  • How much the operating costs will be
  • How close you are to other business districts
  • How much room you'll have to grow and expand in the future

Business Bay may be a great choice for a business that needs to be right in the heart of Dubai, but it depends on a lot of things - including what your business does, how much money you have, and what your operational needs are.

What Does Setting Up a Mainland Business in Business Bay Actually Mean?

A mainland company is licensed to do the business activities your company is approved to do, under Dubai's mainland licensing framework.

Business Bay is the location of your company's office premises, while mainland refers to the jurisdiction where your business is licensed. These are two different things.

So, your company needs to think about both the business activity and mainland licence requirements, and the premises and location requirements applicable to that business.

The right setup route depends on what your business does, how it's owned, and what other requirements apply.

Is Business Bay a Free Zone?

No, it's not. Business Bay is a commercial area within Dubai - it's not a free zone.

You can set up a mainland business in Business Bay if your licensing and premises arrangements meet the requirements. This is an important distinction because some people get confused about whether a Dubai business location is the same as the jurisdiction your company is registered under.

Who Can Set Up a Mainland Business in Business Bay?

Pakistani entrepreneurs and companies can set up a mainland business in Dubai, subject to the UAE regulations and requirements.

A mainland setup might be right for:

  • Pakistani entrepreneurs looking to get into the UAE market
  • Existing Pakistani companies that want to expand into Dubai
  • Consultants and other service providers
  • Trading and commercial businesses
  • Companies setting up an operating base in the UAE
  • Businesses that need to serve customers in Dubai and elsewhere in the UAE
  • Entrepreneurs who need a physical commercial presence

The right licence and legal structure will depend on the activity your business wants to do, not just who owns it.

Choosing the Right Business Activity

The business activity is one of the first decisions you need to make because it affects the licensing route and any other requirements.

Depending on what your business does, it might fall into areas like:

  • Professional services
  • Consultancy
  • Trading
  • Marketing
  • Management services
  • Tech services
  • Commercial activities
  • Other permitted activities

You need to pick the activity you want to put on the licence carefully, because it needs to accurately reflect what your company does.

If your business plans to do several activities, you should review them all before you submit your application. Some of these activities may need extra approval from the relevant authorities.

Selecting the Right Legal Structure

The right legal structure will depend on the nature and ownership of your business.

You'll need to think about things like:

  • How many shareholders you have
  • What kind of business activity you do
  • How your business is owned and run
  • What level of liability you're prepared to take on
  • How you'll manage your business
  • Whether you have plans to expand in the future
  • Any specific requirements of the activity your business does

For many businesses, an LLC structure might be a good choice, but it's not the right one for every company. You should only choose a legal structure after you've really understood the activity and business model of your company.

What's Involved in Setting Up a Business in Business Bay?

Setting up a mainland business in Business Bay usually involves several stages that all tie together.

01

Define your business activity

Start by working out exactly what your company will do, sell, manufacture or trade.

02

Choose your legal structure

Pick a structure that fits with the ownership and activity of your business.

03

Reserve your company name

The name of your company needs to comply with the naming requirements and be available for registration.

04

Get initial approvals

Depending on the activity and structure of your business, you may need to get some approvals before you can move to the licensing stage.

05

Prepare company documents

Get all the necessary paperwork in order, according to the chosen structure.

06

Find suitable premises

Business Bay office requirements should be thought about at the same time as licensing requirements, rather than after everything else has been decided.

07

Get the mainland licence

Once you've met all the requirements, you can go ahead with the mainland licensing process.

08

Complete any post-licence requirements

Depending on your company and its employees, further steps may include establishment and immigration formalities, visas, corporate banking, tax registration and ongoing compliance.

Business Bay Office Requirements

The office is an important component of the planning process.

The suitable premises can depend on :

  • Business activity and how it will operate
  • Licence requirements and any specific rules that apply
  • Number of employees and the overheads that come with them
  • Visa requirements and the associated costs
  • Operational needs and any specialist facilities required
  • Budget and what you can afford to spend
  • Space requirements and how much room you need to operate

A business should avoid signing a long-term lease simply because a property is available. You should first check that the premises meet the requirements of your business activity and any necessary licensing arrangements.

Business Bay has a whole range of commercial properties on offer, so entrepreneurs can get a clear idea of their options based on the actual needs of their company.

Documents You May Need

The type of documents you’ll need will depend on the company structure, business activity and exact circumstances of your business.

The documentation may well include:

  • Copies of your manager or director's passports
  • Copies of all shareholder passports
  • Proposed company name and business plan
  • Details of your business activity
  • Shareholding information
  • Application forms
  • Corporate documents
  • Business plan or supporting information where necessary
  • Office or tenancy documentation
  • Additional approvals for regulated activities

You may find that the relevant authority request additional documents depending on the proposed activity and structure of your business.

Mainland vs Free Zone for a Business in Dubai

When it comes to choosing between a mainland and free zone setup, you should be thinking about your business model rather than just comparing costs.

ConsiderationMainlandFree Zone
Licensing jurisdictionDubai mainlandA specific free zone
Business locationDubai mainland premisesSubject to the rules of the relevant free zone
ActivitiesDepends on mainland licensing requirementsDepends on the free zone and package
Office requirementsDepend on activity and licenceDepend on free zone and package
Local market activitySubject to applicable regulationsSubject to applicable regulations

Would a mainland setup suit your business? If so, consider if it's the right model for you to work towards.

There's no one-size-fits-all answer for every Pakistani entrepreneur. You need to consider a whole range of factors including your activity, customers, premises, ownership and long-term plans before deciding on a jurisdiction.

Costs to Plan For

The cost of setting up a mainland company in Business Bay will depend on a whole host of variables, so its not possible to give a single price that will cover every eventuality.

You’ll need to consider a range of costs including:

  • Licence and government fees
  • Trade name and application charges
  • Company documentation
  • Office rent and associated costs
  • External approvals and visas
  • Establishment-related charges
  • Professional service fees
  • Corporate banking and accounting requirements
  • Annual renewal and compliance expenses

Office costs can be a major expense when Business Bay is your chosen location. So its worth factoring in not just the initial set-up costs but also all your ongoing expenses.

What Happens After the Licence Is Issued?

Getting your trade licence is a major milestone but it's not the end of the setup process.

Depending on your business, your next steps may be to:

  • Apply for residence visas
  • Complete any other establishment and immigration requirements
  • Open a corporate bank account
  • Set up your accounting systems
  • Review your UAE Corporate Tax obligations
  • Assess if you need to register for VAT
  • Hire any employees you need
  • Keep on top of corporate records
  • Renew your business licence
  • Meet any ongoing regulatory requirements

Planning ahead can make the transition from incorporation to actual operations a whole lot smoother.

Common Mistakes to Avoid

Choosing the office before you’ve actually established the business activity

First you need to set up your business activity before choosing any premises.

Choosing a licence just because the price is right

Cheap is not always best when it comes to setting up your business. Look for a setup that will actually meet your needs.

Using a business description that is too vague

You need a clear idea of what’s involved in your business and how you generate revenue.

Underestimating office expenses

When budgeting for your setup, don’t just think about the initial costs - think about all the ongoing expenses as well.

Assuming every activity has the same requirements

Licensing and approval requirements can vary significantly between activities.

Forgetting about post-setup compliance

Accounting, tax, licence renewal, visa administration and corporate records are all things you need to consider after you’ve set up your business.

Treating mainland and free zone as interchangeable

They are two very different options with different rules and practical considerations. Choose the right one for your business.

Why Pakistani Entrepreneurs May Consider Dubai Mainland

Dubai can be a great place for Pakistani businesses to set up shop because of its business friendly environment and excellent connectivity.

A mainland structure may be worth exploring if you plan to:

  • Establish operations in Dubai
  • Have a physical commercial presence
  • Serve customers in the UAE
  • Build a local team
  • Expand your operations over time
  • Operate from a central Dubai business district

But still check that a mainland setup is actually right for your business.

How Flyingcolour Business Setup Can Help

Setting up a mainland company can involve a whole range of decisions, some of which can be tricky to navigate on your own. This is where Flyingcolour Business Setup comes in - we can help you:

  • Get clear on your proposed business activity
  • Evaluate whether a mainland setup is right for your business
  • Choose the right legal structure for your business
  • Manage the documentation process
  • Support the licence application process
  • Help you make sense of all your office requirements
  • Helping out with visa and immigration needs when they come up
  • Handling corporate banking needs for our clients
  • Providing ongoing accounting, tax and compliance support to make sure our clients are on top of everything

The actual requirements and government approvals will depend on what kind of business you're planning to start and where your business is at.

Plan your Business Bay company

Frequently Asked Questions

Can a Pakistani citizen set up a mainland company in Business Bay?

Yes - Pakistani entrepreneurs can actually establish businesses in Dubai, it just depends on fitting in with the licensing, ownership and regulatory hoops they have to jump through.

Is Business Bay the right place for a company?

Business Bay can be a decent spot for businesses that need to be in the middle of Dubai for commercial purposes. But ultimately, it's all about what's best for your business - and that means thinking about all sorts of things, like what you do, how big your office is going to be, what your budget is like, who your employees will be and who your customers are.

Is Business Bay a free zone?

No way - Business Bay is just a commercial district in Dubai, not some sort of free zone area. Companies that are set up there can operate with a mainland licence if they can meet all the relevant requirements.

Do I need an office in Business Bay to get a mainland licence?

Not necessarily, but if you do want to have your office there, you'll need to check if your plans match up with the rules for the area before you sign on the dotted line.

How much does it cost to set up a mainland company in Business Bay?

There's no one-size-fits-all answer to that question. The actual cost will depend on what you're doing, what kind of business structure you choose, where your office is, what kind of visas you need, what kind of approvals you'll need and how much in the way of professional services you'll need.

Can a Pakistani-owned business have foreign ownership in Dubai mainland?

For a lot of mainland activities, foreign ownership is allowed. But the rules can vary depending on what you're doing and what the government says, so it's worth checking before you start incorporating.

Can I get corporate banking after setting up my company?

Yes, you can apply for corporate banking in the UAE. But getting approved for a bank account is a separate process from setting up your company. The bank will be doing its own checks on who you are, what you're doing and how much risk you pose, so they might ask for more information from you.

Do I need a visa if I set up a mainland company?

It all depends on your role and the business you've set up. You should probably think about the visa requirements for the UAE as part of your setup plan.

Does a mainland company need to register for Corporate Tax?

That depends on the specific situation with your company and the tax rules in the UAE. It's hard to say for sure whether you'll have to pay corporate tax just because you've got a mainland company, so it's worth figuring out your tax obligations.

When should I choose my office location?

It makes sense to figure out your office needs before you pick a location. You don't want to commit to anything if you're not sure if it's the right fit for your business.

Can Flyingcolour Business Setup guarantee my company licence or bank account?

No, we can't. We can help out with setting things up and applying for things, but it's ultimately up to the government and the bank to decide whether or not to approve things.

Getting Started in Business Bay

To choose the right mainland setup for your business, you really need to understand what your business needs to do in Dubai.

If you're a Pakistani entrepreneur looking to set up a company in Business Bay, we'd be happy to help you think through what you need to do to get up and running. Let's have a chat and take the first step in setting up your Dubai mainland business.

Plan your Business Bay company