Today, Dubai has emerged as one of the top destinations for business in the UAE. Apart from the other factors, it is mainly because of its geographical location. It lies at the center of Africa, India, and Asia triangle, which facilitates easy connections, business networking, and trade access. The other reasons are.
But many pro or budding entrepreneurs have a question about where in Dubai should they start their business to reap maximum benefit. Business establishments and foreign investors who want to start a business in Dubai have three options to register themselves to carry out their commercial activities- Mainland, Free zone, and offshore. Your decision about the location of your business will depend upon the nature and type of your business activities. If you are looking to trade in UAE's local market as well as abroad and take advantage of lucrative government contracts, the best place to start your business in Dubai is its mainland.
A Mainland company in Dubai will be an onshore company that can carry out business activities in local markets, other areas of the UAE, and even outside the UAE. Dubai Department of Economic Development (DED) is responsible for the setup of mainland companies. They oversee the registration, license, and commercial compliances and ensure that consumer protection laws are followed.
Earlier, it was mandatory to have a UAE Local Sponsor as a local partner. But, from June 2021, this criterion has been scrapped by a historical decision of the government administration. The government took a decisive step towards its commitment to ensuring a diversified economy with enhanced participation of foreign investors. Hence, foreign investors can now have 100 % ownership of the business. Therefore, more than 1000 commercial and industrial units have been included in the 100% ownership list.
Why a mainland company formation is the best choice in Dubai?
Setting up a mainland company is a lucrative proposition because:
Determining an appropriate legal form is another significant requirement to set up a business in Dubai mainland. The legal structure you will select will determine the personal liability you will face, your ability to raise funds, ownership arrangements, and the documents required to be submitted.
The legal structure of a Mainland company setup in Dubai, UAE is determined by the nature of the activity, and the number of shareholders extra.
Each legal structure has its advantages and disadvantages. Take advice from experienced business consultants before selecting the legal structure.
You have to consider your nature of business, growth prospects, financial requirements, and risk factors before considering the legal structure. After you are sure about the legal structure, it is time to register for the business license. The trade license will validate your company as a legal entity. DED issues the license for mainland companies in Dubai. You must submit a fee and all necessary documents for company incorporation to get the license.
Such company is recommended to customers who are willing to trade in the whole region because it has the freedom of operation and provides more opportunities for growth.
A Sole Establishment Company is a foreign-owned entity. It provides 100% ownership to the owner and no local partner or shareholder is needed, who can act as an agent. There are no established rules for this type of company, except for having one owner. Also, there are no corporate taxes or income taxes.
The business commercial license is for services, sales, and activities that require government-related requirements such as filling up forms and getting licenses.
Understanding different types of licenses and which one will fit you is also a tough job. On the more, you will need to complete the necessary documentation and fill out all the forms before you submit your requisition for the license. There are experts to guide you in this regard. You must seek help from them.
Here are the steps an individual must undertake for a successful mainland company formation in Dubai
Setting up a business in the UAE can be challenging, and we know this. That’s why we offer a wide range of services to help foreign companies, including start-ups and big businesses alike, understand the most effective corporate structure for conducting business in the Emirates. We can handle everything from registering your company at its headquarters to obtaining a license, helping your company make an impact on this growing market. We are one of the leading business setup consultants in Dubai. We assist businesses interested in setting up their ventures in Dubai. If you are a first-time investor in the UAE and looking for a team of professionals, we can help you set up a business in an economical and hassle-free manner.
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The Mainland Commercial License is the recommended license for most of your business needs. This license gives you the flexibility to set up an unlimited number of branches and provides 100% repatriation at the end of your investment period. It also allows you to trade directly with a mainland market, which opens doors to an expansive range of business activities.
ome professional activities are excluded as per DED's business regulations and others require approvals of authorities that regulate these activities. Foreign investors can start their business in a partnership where 51% ownership of the company belongs to UAE nationals or choose a Sole Establishment company formation to own 100% of shares. However, some business activities are reserved for UAE nationals only.