How to setup a company in Dubai Mainland
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Mainland Company Formation in Dubai: What does it mean to have a mainland corporation in the United Arab Emirates, and what are its benefits? Companies operating in the mainland of the United Arab Emirates must get a license from the Department of Economic Development (DED) in the appropriate Emirate.
Setting up a company in Dubai Mainland
Find out what it takes to set up a company in Dubai, as well as the advantages of forming a corporation in the United Arab Emirates proper.
Benefits of mainland company formation in Dubai
Company registration on the mainland has several advantages. Establishing a company on the Mainland is a step toward a fruitful professional and economic future.
The commercial opportunities, ownership structure, and geographic mobility of mainland businesses are extensive. These are just some of the reasons why many business owners consider setting up a company in the UAE’s mainland.
No Trade Restrictions & Flexibility of Business Location
Trading with foreign companies is permitted at any time and from any location for a Dubai mainland company.
Businesses based on the mainland can provide government agencies with services or engage in consumer-to-consumer transactions anywhere in the United Arab Emirates. Opening multiple locations in the Emirates is made possible by establishing a firm on the mainland.
Wide Scope of Work
Companies on the mainland can do a wide variety of tasks as well. Simply re-registering your business with the DED for the new line of work will allow you to start doing business anywhere on the continent.
Access to Government Contracts
Government tenders are a major source of revenue in the UAE, which is good news for mainland companies looking to set up a company in Dubai. Over AED 4 billion was allocated for infrastructure projects in recent years, with AED 17.5 billion approved by the Abu Dhabi Executive Council.
Education received about AED 2 billion, while government and social infrastructure improvements received about AED 1.2 billion. You’ll be in a great position to take advantage of these lucrative government contracts as a mainland firm in Dubai.
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100% Ownership of Mainland Business
Free zone establishments and mainland (Sole Establishment or Civil Company) professional services companies were historically the only types of UAE corporate entities that allowed for full foreign ownership.
Recent years have seen 100% foreign ownership of mainland UAE enterprises, thanks to HH Sheikh Mohammed bin Rashid Al Maktoum. Foreign investors who were previously discouraged from doing business in the Emirates now see this as an opportunity.
Foreign investors who are just venturing into the Emirates will be thrilled to hear this. With no need to find an Emirati company or individual to act as a partner, entrepreneurs in a 100% foreign-owned company can get right to work.
The immense potential of the UAE’s growth-machine economy is available to global investors because to the country’s policy of allowing 100% foreign ownership of mainland UAE businesses. Oil and gas, for example, is a critical industry that still needs a local partner.
Switching from free zone to mainland company formation in Dubai
We can assist you in transitioning from your present free zone business structure to one on the mainland. The three largest free zones in the UAE are home to around 30,000 firms. Establishing a firm in a free zone provides foreign entrepreneurs with a number of benefits.
There are, however, constraints for business owners using this strategy. While free zone firms are great for getting started, UAE enterprises should move to mainland companies once they’re ready to grow.
The success of your company depends on making the switch to a mainland firm. Moving from a free zone to the UAE mainland is a smart and manageable move with the proper UAE national sponsor or company formation professional.
Mainland Business Setup in Dubai – The Checklist
It’s time to start making plans for your company. Let’s make a good beginning for your business!
- Selection of Business Activity
Before establishing a firm in the UAE mainland, you must first choose an economic sector in which to engage. The Department of Economic Development (DED) has a list of hundreds of legal ways to conduct business.
Among these are commerce, farming, hospitality, and production. Businesses on the mainland can engage in any of the 2,000+ DED-listed activities, which is a significant difference from the situation in free zones.
- Find a Perfect Location for your Business in Dubai
After settling on a line of work, you must then select a geographic area in which to set up a company. On the UAE mainland, there are no regulations limiting the location of businesses. Many aspects, including finances and the type of business pursued, must be considered while determining the optimal location.
Setting up a company close to one of the UAE’s busy ports (such Jebel Ali, Mina Zayed, or Mina Khalid) makes perfect sense if your company relies on importing or exporting goods. Opening satellite offices in Dubai is a breeze for companies with a mainland structure. This allows companies to expand their reach beyond a single site and into surrounding communities.
- Determine your business legal structure
Legally, foreign entrepreneurs in the UAE can establish a wide variety of different types of companies throughout the country’s major landmass. On the mainland, Limited Liability Companies (LLCs) are the most frequent type of business entity. LLCs are separate legal entities that might have two or more stockholders.
A limited liability corporation (LLC) is required to establish a firm in the emirate of the United Arab Emirates (UAE) if the company will engage in commercial or industrial operations. For this to happen, a local sponsor is required. Establishing a professional services firm, on the other hand, does not necessitate a foreign sponsor and can be owned entirely by a foreign entity. Coming up, more on this!
- Company Name / Trade Name
Choosing a trade name for your company that effectively represents your brand and core professional values is a crucial step in building a successful enterprise. There are several things to think about when traveling to the UAE.
Offensive language, references to religion, and insinuations against other groups are all strictly prohibited. Your company’s trade name may only consist of a single full name. Names in other languages should be written phonetically rather than translated when used as trade names. Check out our Choosing a Company Name in the UAE guide for all the rules and regulations regarding the naming of your business.
- Applying for a Trade License in the Mainland
The next step is to submit an application for a trading license from the Department of Economic Development on the mainland. A business license application requires a number of supporting documents.
Among these documents are an application for a license, a memorandum of sponsor agreements, and a breakdown of ownership interests among partners and shareholder visas.
- Renting an Office Space
After launching a firm and receiving a trade license, the next step is to rent an office. On the UAE mainland, serviced offices are often managed by a separate entity and feature an already-stocked interior. In most cases, this will consist of a desk, a phone, internet, and reception services.
Most office leases include the cost of rent, use of office equipment, and utilities in a single monthly payment. A ‘shell and core’ workplace is on the other extreme of the spectrum. Besides the monthly rent, you’ll likely also have to pay for a full fit-out and decorating.
There is also a middle ground option of pre-fitted office spaces, where the business owner only needs to provide their own equipment and pay their own utilities.
- Apply for Visas
The number of mainland UAE business visas that can be applied for is unlimited. There should be a correlation between the number of visas requested and the square footage of the necessary administrative building.
The standard is 100 square feet of warehouse or office space per visa. In other cases, this might not be relevant. Office space requirements for a household cleaning company with 500+ remote workers would be much lower than those of a textiles or manufacturing firm. When you operate a company on the UAE mainland, you can apply to sponsor visas for your family members and domestic workers (maids, drivers, etc.).
Business owners from outside the UAE who set up a company in the country’s main landmass are eligible for an investment visa that allows them and their families to stay for up to three years.
- Setup your Company in Dubai Mainland with ReCorporate
Understanding the laws and procedures involved in forming a corporation on UAE mainland is essential. Working with consultants headquartered in the UAE might ease the burden of starting a firm for entrepreneurs from other countries.
A consultant can work with you to identify and achieve your company’s objectives. Feel more prepared to launch a profitable enterprise on the mainland of Dubai.
If you want to set up your own company in Dubai mainland then it is going to be literally a vital decision to seek help from professional experts or business setup consultants in Dubai.
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We at ReCorporate can help you in setting up your own business in Dubai mainland and we can ease down the process for you and you can form your own company in the UAE mainland with the help of our business setup experts.
Please feel free to contact us and book your free business consultation.
