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Dubai is undoubtedly one of the most popular cities in the world, especially for establishing businesses. It has a stable economy, low poverty rate and a high percentage of individuals who consider themselves financially stable. Due to Dubai’s liberal labor laws, hiring employees is easy and affordable. If you’re planning a business setup in Dubai, you can consider registering a Dubai Mainland company. Having a mainland business license will enable you to open an office anywhere in the UAE, and give you access to the entire UAE market. Moreover, the city allows foreign investors to have complete ownership of their mainland business, without requiring local partners. To top it off, the mainland companies in Dubai are exempt from corporate tax. What’s not to like?
If you want Dubai mainland business incorporation, then it’s recommended that you connect with Registrationwala Dubai consultants. We’re one of the leading Dubai business incorporation service providers!
Mainland companies refer to companies which are licensed by the Department of Economic Development (DED) in the respective emirates of UAE. Such companies can operate across the UAE restriction-free. Generally, mainland companies tend to participate in activities which are, in their nature, commercial, industrial, trading, tourism-related or professional.
Setting up a business in Dubai mainland offers a multitude of benefits, such as the following:
Mainland companies in Dubai are exempted from corporate tax. This makes business setup in the Dubai mainland a lucrative business opportunity.
Mainland companies are permitted to trade freely with entities within UAE and at international level, as opposed to free zones which are restricted to specific zones.
A broad spectrum of permissible activities are enjoyed by mainland companies in contrast to free zone companies.
The mainland companies get 100% foreign ownership, allowing the owners to have full control over their business.
These companies have 100% corporate tax exemption.
The mainland company license is globally recognized, and a business having this license has a better reputation and is considered more reliable and trustworthy.
Let’s check out the eligibility criteria for company formation in Dubai Mainland:
Previously, a local sponsor or shareholder who was a citizen of the United Arab Emirates had to own at least 51% of the mainland business. This is no longer necessary.
A mainland corporation must obtain a mainland license from DED.
A mainland business needs physical office space.
The business must have the least amount of capital needed for the particular economic activity.
A valid UAE Visa must be obtained by the business owner.
A corporate bank account has to be opened in Dubai.
Permission from relevant government agencies depending on the nature of the company’s operations.
The following documents are required for mainland company registration in Dubai:
Certified Passport Copy and UAE Visa of Partners and Shareholders.
Business plan outlay.
Memorandum of Association and Articles of Association.
Address Proof.
Bank or Professional Reference Letter.
Curriculum Vitae (CV) summarizing professional history.
Company Application Form.
Shareholder details.
Business card.
Several key steps are involved in the Dubai company incorporation process. Let’s understand each step one-by-one:
Before you establish a company in the Dubai mainland, you need to carefully decide the industry you want to trade in. The Department of Economic Development (DED) has listed thousands of permitted business activities to choose from.
Some of them are accounting and finance consultancy, agriculture and soil consultancy, animal welfare societies, business forums and advisory councils, management consultancy, marketing and information services, hospitals and rehabilitation facilities, insurance consultancy, beauty salons, legal assistance and manufacturing.
After choosing your business activity, search for an appropriate location where you can establish your business. UAE mainland businesses have no restrictions on where they can be established, unlike freezone companies.
To choose an ideal location, take into account factors such as your budget and your chosen business activity/operation. After establishing your office location, you can build your local presence with time by setting up branch offices.
A foreign entrepreneur can choose to establish a mainland company as a Limited Liability Company (LLC), civil company, sole proprietorship, etc. LLC refers to a type of independent legal entity owned by two or more shareholders. A sole proprietorship is a business owned and run by a single individual and is ideal for professionals who want full control over their business.
In the case of a civil company, it is fully owned by professionals like lawyers, engineers, lawyers and accountants and is ideal for service-oriented business offering professional expertise. There are other legal structures as well. You must choose the one that you believe is most suitable for your business activities.
You need to choose a name for your company that reflects your scope of business and professional values. While choosing a name for your business in Dubai Mainland, you need to keep certain things in mind.
Make sure that the company name doesn’t contain any offensive words, religious references or inferences to other names. The name should be unique in nature and not already trademarked by another business or individual. Your company's trade name may only contain complete personal names.
After completing the following steps, you must now obtain a mainland trade license from the Department of Economic Development (DED). The license will serve as a permit to allow you to run a mainland business in Dubai.
To apply for a mainland license, you need to submit certain documents with the license application, including ownership details, visas of partners and shareholders, memorandum of association, articles of association, address proof, etc.
After you have been issued a mainland trade license by DED, you must establish an office. Generally, the serviced offices in Dubai mainland are owned and maintained by third parties. They’re furnished and contain all the facilities required for moving in immediately.
There isn’t any limit on mainland visa applications for business owners in Dubai mainland. However, the number of visas applied must correspond to the amount of office space needed.
Generally, 100 sq. ft. of office space per visa is required. However, this is not applicable in some circumstances. For instance, in contrast to a textile or manufacturing company, the office space requirements would be significantly lower for a domestic cleaning company with more than 500 remote workers.
The foreign business owners who set up business in the Dubai mainland are entitled to investment visas which enable them and their families to live and work in the UAE for up to 3 years.
Setting up a mainland business in Dubai can be a profitable venture. Dubai is a land filled with endless possibilities and offers state-of-the-art infrastructure for businesses. Mainland companies in Dubai are exempted from corporate tax and can choose to undertake activities from thousands from authorized activities listed by the DED. If you want Dubai mainland company formation to take place smoothly without any hassle, then connect with Registrationwala Dubai company incorporation consultants! We’ll help you with all the paperwork and make sure you receive a mainland trade license with ease.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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