07 May Benefits of Mainland Company Setup in Dubai
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 before, you no longer require a local sponsor who is a UAE national to establish a Dubai Mainland Company, granting you the opportunity for 100% foreign ownership in the mainland region.
To initiate the process, simply contact the expert team at Shuraa Business Setup. They will assess your business activities to determine if your venture qualifies for complete foreign ownership. Thanks to recent amendments to the Companies Law, the Department of Economic Development (DED) has approved over 1000 activities for full expatriate ownership.
All you need now is a reliable local service agent (LSA) who will assist you in securing the necessary license. In return for their support, they will charge a fixed compensation. Reach out to Shuraa Business Setup to explore this opportunity further. In this blog, we will discuss the benefits of a mainland business setup in Dubai.
Dubai Mainland Business Setup: A Step-by-Step Guide
Mainland company setup in Dubai involves a straightforward process. Here’s a step-by-step guide to setting up your business:
- Choose your business activity: Determine the type of business you want to operate in Dubai.
- Secure a Local Service Agent: Acquire a Local Service Agent who will act as the Local Sponsor for your business.
- Evaluate location suitability: Assess the suitability, accessibility, and cost-effectiveness of your chosen business location.
- Obtain initial approval: Seek initial approval from the Department of Economic Development Dubai.
- Fulfil prerequisites: Ensure that all the necessary prerequisites are met to proceed with the application process.
- Apply for a Dubai Mainland license: If all requirements are satisfied, submit your application for a Dubai Mainland license.
- Submit documents and pay fees: Provide all the relevant documents required for company incorporation to the Department of Economic Development (DED) and pay the applicable license fee.
Following these steps, you can successfully establish your business in Dubai Mainland.
Why Mainland Dubai Stands Out for Company Setup
Dubai, renowned as a global hub for tourism and business, offers unparalleled opportunities for entrepreneurs. Choosing the mainland for your company setup in Dubai proves to be the wisest decision for several reasons:
- Tax Exemption: Mainland company setup in Dubai is exempt from corporate tax, providing a lucrative advantage for business owners.
- Versatile Trading: Mainland companies can freely trade with other entities within the UAE and internationally, unlike their counterparts in free zones restricted to specific zones.
- Diverse Business Activities: Mainland businesses enjoy a broader spectrum of permissible activities than their free zone counterparts. Unlike limited scope in free zones, mainland companies can explore a wide range of opportunities across the UAE.
- Flexible Office Locations: Mainland companies can select office locations anywhere in Dubai, facilitating easy access to the local market and establishing multiple branches for a strong UAE presence.
- Government Contracts: Mainland companies are privileged to work with the government, a prospect not available to free zone entities limited to private commercial ventures.
- Visa Flexibility: Mainland companies can obtain an unrestricted number of visas, depending on available office space—the more space, the more visas, providing flexibility for employee recruitment.
- No Currency Restrictions: Mainland businesses face no currency restrictions, ensuring seamless financial transactions locally and internationally.
- Repatriation of Funds: Mainland companies can repatriate capital and profits entirely, offering financial flexibility to business owners.
- Straightforward Registration: The registration process for mainland businesses is streamlined and efficient, eliminating unnecessary bureaucratic hurdles. Additionally, there’s no mandatory yearly audit requirement, simplifying the operational process.
With these advantages, establishing your business in Dubai mainland opens doors to opportunities and growth.
What does a Dubai mainland license entail?
A Dubai mainland license also called an onshore license, allows individuals to conduct business within and internationally without any constraints. The issuance of these licenses falls under the jurisdiction of the Department of Economic Development (DED) in the UAE. According to UAE company law, any mainland business operating in Dubai or elsewhere must appoint a local service agent.
The local service agent holds no shares in the company and serves as the corporation’s representative in all regulatory interactions with government authorities. Entrepreneurs can enter into a contractual arrangement with the local service agent, who assists with company incorporation in exchange for a fixed annual fee.
Benefits of Mainland Business Setup in Dubai
When setting up your business, the Benefits of Mainland Business Setup in Dubai are many advantages, ensuring a future for your entrepreneurial ventures. Here are the key benefits that make mainland company setup an attractive choice:
Unrestricted Trade and Location Freedom:
Mainland companies enjoy free trade without constraints and can operate anywhere in Dubai. There are no limitations on business interactions with other companies, government entities, or consumers across the UAE. Additionally, the flexibility to establish multiple branches strengthens market presence significantly.
Diverse Business Opportunities:
Mainland businesses can diversify their offerings extensively. Should you wish to expand your business activities, registering new ventures with the Department of Economic Development (DED) is a seamless process. This flexibility allows for effortless entry into various sectors and markets.
Access to Lucrative Government Contracts:
Dubai and the UAE invest substantially in government projects, offering substantial business opportunities. By establishing your company on the mainland, you position yourself to bid for and secure lucrative government tenders. This access can be a game-changer for business growth and sustainability.
Complete Ownership Control:
Mainland company formation grants entrepreneurs the unique advantage of complete ownership control. This level of ownership was traditionally available only in free zones or specific professional services companies. Now, with the mainland set up, entrepreneurs can exercise complete control over their business entities, enhancing decision-making autonomy and strategic planning.
Versatility in Business Activities:
Mainland companies have the flexibility to engage in a wide array of business activities. Whether manufacturing, trading, or providing services, the scope is vast. Adjusting or expanding your offerings to meet market demands is hassle-free, promoting adaptability and innovation within your business.
Choosing a mainland company setup in Dubai provides an open gateway to a dynamic business landscape, empowering entrepreneurs with unparalleled freedom and opportunities for growth and success.
Transitioning from Free Zone to Mainland Company Setup in Dubai
Suppose your business currently operates within the confines of a free zone structure, and you’re contemplating the shift to establishing a mainland company. In that case, we’re here to guide you through the process. Presently, more than 30,000 companies conduct business within the three largest UAE-free zones. Foreign entrepreneurs often choose free zones due to the convenience of pre-packaged business solutions. However, as your business matures, these models come with limitations.
While free zone setups serve as an excellent starting point for UAE businesses, the strategic move towards expansion necessitates transitioning to a mainland company. This shift is pivotal for ensuring sustained business prosperity. With the assistance of the right UAE national sponsor like Shuraa business setup, transitioning from a free zone setup to the UAE mainland represents a savvy and manageable step toward your business’s growth and success.
Comprehensive Checklist for Successful Mainland Company Setup in Dubai
Undertaking the journey of establishing a mainland company setup in Dubai, here’s your comprehensive checklist, broken down into essential sub-points, to ensure a seamless and prosperous setup:
Define Your Business Activity:
- Choose from the extensive list of permitted business activities outlined by the Department of Economic Development (DED).
- Consider trading, agriculture, hospitality, and manufacturing, among others, ensuring alignment with your business vision and goals.
Select the Ideal Business Location:
- Assess your operational needs and budget constraints.
- Evaluate locations near busy ports like Jebel Ali, Mina Zayed, or Mina Khalid for import-export businesses.
- Enjoy the flexibility of setting up multiple branches, and establishing a strong local presence over time.
Determine Your Legal Structure:
- Opt for a Limited Liability Company (LLC) for most business types, allowing ownership by two or more shareholders.
- For commercial or industrial activities, a local sponsor is required, holding 51% ownership.
- Explore the option of a 100% foreign-owned professional service company, eliminating the need for a local sponsor.
Secure Your Local Sponsor or Local Service Agent:
- Choose between a local sponsor (for LLC) or a local service agent (for professional service companies).
- Explore services like Shuraa Business Setup’s Corporate Nominee, ensuring 100% operational control while complying with local regulations.
Choose a Suitable Company Name:
- Adhere to UAE regulations, avoiding offensive language, and religious references, and ensuring the use of full personal names.
- Follow phonetic guidelines for names in different languages, referencing the Choosing a Company Name in the UAE guide.
Apply for Your Mainland Trade License:
- Gather necessary documents, including the license application, memorandum of sponsor arrangements, and ownership details.
- Submit your application to the Department of Economic Development for approval.
Secure Your Office Space:
- Choose from various office options, including serviced offices (fully equipped), ‘shell and core’ offices (requiring fit-out), or pre-fitted spaces (owner provides equipment).
- Consider lease costs, utility bills, and included amenities before finalizing your office space.
Apply for Relevant Visas:
- Apply for visas corresponding to your office space requirements (usually 100 sq. ft. per visa).
- Utilize the opportunity to sponsor dependents and obtain an investment visa for extended residency.
Collaborate with a Professional Company Setup Consultant:
- Partner with reputable UAE-based business setup consultants like Shuraa Business Setup.
- Benefit from their expertise, gaining valuable insights and guidance throughout the setup process.
- Ensure a stress-free and successful venture in Dubai’s mainland by leveraging their experience and industry knowledge.
With this detailed checklist and its sub-points, your mainland business setup in Dubai is not just a venture; it’s a meticulously planned pathway to success and sustainable growth.
Shuraa Business Setup stands as your reliable partner throughout the entire process, guiding you through the numerous benefits of establishing a Mainland Company in Dubai and the complexities of setting up a business in the UAE. With our expert assistance, you can navigate the journey seamlessly. Contact us today to ensure a smooth and hassle-free experience, allowing you to focus on building and growing your business confidently.