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:
Market Access and Location:
- Strategic location: Dubai sits at the crossroads of East and West, opening doors to a vast regional and global market.
- Unrestricted trade: Mainland companies can trade freely within the UAE and internationally, unlike free zones with limitations.
- Government contracts: Mainland companies are eligible to bid on and win government contracts, a lucrative business opportunity.
Business Freedom and Flexibility:
- 100% ownership: Foreign investors can have full ownership and control of their mainland companies.
- Wide range of activities: Mainland companies can engage in a diverse range of business activities, unlike the restricted scope in free zones.
- Multiple branches: Setting up multiple branches across the UAE is allowed, expanding your reach and market presence.
- No minimum capital: Unlike some jurisdictions, there is no minimum capital requirement for mainland company formation.
Financial Advantages:
- No currency restrictions: You can freely conduct transactions in any currency, offering financial flexibility.
- 100% profit and capital repatriation: You can fully repatriate your profits and invested capital back to your home country.
- Straightforward registration: The registration process is streamlined and efficient, minimizing bureaucratic hurdles.
- No mandatory annual audit: This simplifies operational requirements for smaller businesses.
Additional Benefits:
- Strong legal system and infrastructure: Dubai boasts a robust legal system and world-class infrastructure, fostering a stable business environment.
- Tax benefits: Mainland companies may enjoy certain tax benefits depending on their specific activities and location.
- Talented workforce: Dubai attracts a diverse and skilled workforce from across the globe, offering a wider talent pool.
However, it’s important to remember that mainland company formation also comes with some potential drawbacks:
- Higher setup costs: Compared to free zones, mainland company setup can involve higher initial costs.
- Local sponsor requirement: Depending on your chosen activity, you may need a local sponsor to act as your legal representative.
- Corporate income tax: Mainland companies are subject to corporate income tax, although specific rates vary.
Ultimately, the decision between mainland and free zone depends on your specific business needs and goals. Carefully consider the benefits and drawbacks of each option before making a decision.
To create a Dubai Mainland Company, you can follow these relatively simple steps:
- Determine the type of business: First, you need to decide on the type of business you want to start in Dubai.
- Hire a local service agent (if required): If you are setting up a sole proprietorship or LLC business, you must hire a local service agent who will hold 51% of the company’s shares. However, 100% foreign ownership is allowed for certain activities such as trading, manufacturing, contracting, and packaging.
- Choose a good location: Make sure your business is located in a convenient and easily accessible area for customers.
- Obtain preliminary approval: To ensure smooth operations, obtain preliminary approval from the Department of Economic Development Dubai (DED).
- Acquire office space: You must have a registered office address in Dubai mainland to obtain a trade license. Evidence of registered residency can be provided by an ownership agreement or tenancy.
- Apply for a mainland license: If you meet the above requirements, you can apply for a Dubai mainland license. The DED is responsible for issuing mainland licenses in Dubai, UAE.
- Submit all required documents: Finally, submit all necessary documents related to the incorporation of the company and payment for the required licensing to the Commercial Registration Department and DED.
To form a mainland company in Dubai, several documents are required, including:
- Attested License Application LLC Agreement
- Necessary government paperwork
- Certificates for first approval and name reservation
- Permission from external departments
- Tenancy agreement EJARI registration document
- NOC for partners copy
- Registration with the Dubai Chamber of Commerce and Industry
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.
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.
