Mainland Company setup in Dubai allows you to conduct business locally in Dubai, as well as in other parts of the UAE and internationally. Unlike in the past, you are no longer required to have a local sponsor who is a national of the United Arab Emirates in order to form a Dubai Mainland Company. This opens the door for you to have complete foreign ownership in the mainland region.
To get the process started, all you need to do is get in touch with the knowledgeable staff at Shuraa Business Setup. They will evaluate the operational activities of your company in order to establish whether or not your enterprise is eligible for full foreign ownership. Through the implementation of recent modifications to the Companies Law, the Department of Economic Development (DED) has granted permission for more than one thousand operations to be owned entirely by expatriates.
As of right now, all that is required of you is a trustworthy local service agent (LSA) who will aid you in acquiring the license that is required. They are going to demand a predetermined amount of compensation in exchange for their assistance. For further information regarding this opportunity, please get in touch with Shuraa Business Setup. Within the context of this article, we will talk about the advantages of establishing a mainland business in Dubai.
Dubai is a highly favorable city for businesses from around the world, offering numerous benefits, including excellent infrastructure, reliable connectivity, a skilled workforce, cosmopolitan workspaces, and incentives for further investment. The Dubai Mainland region is particularly attractive for businesses due to its prime location and favorable business climate, which supports growth and expansion. With 100% foreign ownership allowed in certain types of businesses, international business owners can establish and maintain control over their companies. However, it’s important to note that foreign investors are restricted to owning only up to 49% of a company in the case of a sole proprietorship or LLC, with the remaining 51% owned by a UAE national, according to the latest revisions to the country’s business incorporation laws.
Dubai offers several opportunities for mainland company formation in various jurisdictions. Here are some of the top areas to consider:
- Sheikh Zayed Road: This critical infrastructure connects Abu Dhabi and Dubai and is home to several major ventures, businesses, and international organizations.
- Bur Dubai, Al Karama, and Deira: These three areas make up one of Dubai’s largest residential centers and are well-known for their historical sites, tourist attractions, apartment buildings, real estate, gold souks, and wholesale trade.
- Business Bay: It is the primary commercial district and offers infrastructure support for businesses in the financial sector, professional consultants, retail industry, or hotel operations. Over 240 buildings, including commercial and residential infrastructure, will make up The Business Bay.
- Dubai Industrial Park: It offers industrial and warehouse alternatives close to the city and includes four sections: warehouses, industrial installations, factories, and other places. Additionally, it includes labor accommodation zones, malls, and shopping centers.
- Al-Qusais: This zone includes both residential and industrial areas, as well as educational and medical institutes, making it an ideal location for establishing a business.
- Jumeirah: It is the coastline portion of the city and a center for opulent commercial development modules. This region lends Dubai’s lodging, real estate, and hospitality industries an opulent air and is suitable for establishing a business.
Benefits of Mainland Company Formation in Dubai
Mainland company formation in Dubai offers several unique advantages that can be attractive to various types of businesses. Here are some key benefits to consider:
Flexible Business Operations
Mainland companies in Dubai enjoy location flexibility and zero trade restrictions, allowing them to operate across the UAE and globally without limitations. They can diversify their business activities and easily expand into new sectors.
Full Ownership and Control
Unlike free zones, mainland companies in Dubai allow foreign investors to have 100% ownership and full control of their businesses, providing greater autonomy and decision-making power.
Access to Lucrative Opportunities
Mainland companies can bid for and secure lucrative government contracts, which are not accessible to free zone entities. They also have direct access to the extensive local market and broader Middle East region.
Favorable Tax Structure
Mainland companies in Dubai benefit from corporate tax exemptions on income up to 375,000 AED (around $100,000), as well as the ability to repatriate capital and profits without restrictions.
Streamlined Setup Process
The process of setting up a mainland company in Dubai is straightforward, with simplified rules and direct interaction with government authorities, making it an efficient option.
Visa Flexibility
Mainland companies can obtain an unlimited number of visas based on their available office space, providing flexibility for recruiting talent.
To Create a Dubai Mainland Company, you can follow these relatively simple steps
- Identify the Business Activity: Determine the specific commercial, professional, or industrial activity you want to engage in. This will dictate the required licenses and approvals.
- Choose the Legal Structure: Select the appropriate legal structure for your company, such as Limited Liability Company (LLC), Sole Establishment, Civil Company, or Joint Stock Company.
- Obtain Trade Name Approval: Apply for and receive approval for your company’s trade name from the Department of Economic Development (DED).
- Secure Initial Approvals: Submit the required documents to the DED to obtain initial approval for your mainland company setup.
- Acquire External Approvals: If necessary, obtain additional approvals from relevant authorities based on your business activity (e.g., tourism, manufacturing).
- Sign the Memorandum of Association: Finalize the Memorandum of Association document with your shareholders or partners.
- Secure Office Space: Rent an appropriate office space for your business operations.
- Obtain the Mainland License: Complete the application process and receive the final business license from the DED.
- Apply for Visas: Obtain visas for your employees based on the available office space.
- Comply with Regulations: Ensure compliance with various legal requirements, such as registering for VAT and obtaining necessary permits.
The overall process is designed to be straightforward, with simplified rules and direct interaction with government authorities, making mainland company formation an efficient option for businesses in Dubai.
Requirements for Mainland Company Formation in Dubai
Documents Required:
- Registration and licensing application.
- Proof of reserved trade name.
- Passport copy of shareholders.
- Entry stamp or visa page.
- Passport-size photograph.
- Memorandum of Association.
- Lease agreement.
- No Objection Certificate (NOC).
Legal Structure:
- Determine the nature of your business activity.
- Choose the appropriate legal structure based on ownership, number of shareholders, and other factors.
Initial Approval:
Obtain initial approval from the Dubai Department of Economic Development (DED) by submitting the required documents.
Business License:
- Acquire a trading name.
- Rent an office space.
- Obtain approvals from relevant authorities.
- Obtain the business license from the DED.
Compliance:
Comply with specific legal requirements, such as registering for VAT and obtaining necessary permits.
Coclusion
It is recommended to seek the assistance of an experienced business advisor if you are unfamiliar with the process of obtaining licenses and establishing a company in Dubai. KGRN’s Business Setup Services can assist you in every aspect of setting up a mainland business in Dubai and the UAE. They offer full-service packages for company registration, setup, and other related issues. Contact KGRN for additional information about their services or to begin the process of establishing your mainland business in Dubai.
FAQ’s: Mainland Company Formation in Dubai
What is a mainland company in Dubai?
A mainland company is a business entity that is licensed to operate within the mainland of Dubai, which is the area outside the free zones. Mainland companies can conduct business with other mainland companies, as well as with companies located in free zones or outside of the UAE.
What are the requirements for forming a mainland company in Dubai?
To form a mainland company in Dubai, you will need to have a local sponsor, also known as a UAE national, who will own 51% of the company’s shares. You will also need to obtain a trade license, register with the Department of Economic Development (DED), and fulfill any other requirements related to your specific business activity.
How long does it take to form a mainland company in Dubai?
The timeline for forming a mainland company in Dubai varies depending on the specific business activity and the complexity of the company structure. Generally, it can take anywhere from a few weeks to a few months to complete the entire process.
What are the benefits of forming a mainland company in Dubai?
Forming a mainland company in Dubai allows you to conduct business with other mainland companies, as well as with companies located in free zones or outside of the UAE. It also gives you access to the local market and government contracts, as well as the ability to open bank accounts and hire employees without any restrictions.
Can I own 100% of a mainland company in Dubai?
No, as per the UAE Commercial Companies Law, a mainland company must have a local sponsor who owns at least 51% of the company’s shares. However, there are ways to structure the company’s ownership in a way that provides you with a greater degree of control and protection, such as through a shareholders’ agreement or a side agreement with the local sponsor.
