Dubai is one of the fastest-growing business hubs. The tourist attraction, business opportunities, tax incentives, and access to investors make it one of the best places to expand your business. However, launching a business in a new country comes with a set of legal complexities. That’s why we have created this post to help you understand how you can start your Mainland company in Dubai.
We will walk you through who can start a business in the Mainland, its benefits, and the process. If you need assistance with Dubai business setup, we are here to help.
What Is A Mainland Company In Dubai?
With a Dubai mainland license, you can do business with clients from across the UAE and abroad. Unlike Free Zones, you get business opportunities without any restrictions on business activities or access to clients.
You have get registered with the Department of Economic Development in Dubai, UAE to operate. After you get the Dubai trade license for your business in the mainland, you can freely operate in the local and global markets.
What Are The Benefits Of A Mainland Company Formation In Dubai?
Let’s discuss a few features and benefits of starting a Mainland Company in Dubai.
Foreign Ownership
Traditionally, the foreign companies didn’t have complete ownership of their businesses in Dubai. However, that’s not the case anymore.
The Dubai government passed an amendment to the previous Federal Law No. 2 of 2015 on Commercial Companies in 2020. Under this new law, businesses can have 100% ownership without any local sponsor. Under this law, 1000+ commercial and industrial activities in Dubai have been approved (source). However, a few sectors, such as security, still need you to partner with a local business.
This facilitates the Mainland Company in Dubai attracting more companies to the UAE.
No Trading Restriction
One of the most critical benefits of the Dubai business setup in the Mainland is the lack of restrictions on access to the local market. These companies can trade in all the Emirates without any restrictions. Therefore, businesses that want to tap into the Dubai market must opt for the Mainland.
Get Government Contracts
Yet another business opportunity that awaits Mainland companies in Dubai is the opportunity to secure government contracts. Any Dubai Mainland company can apply for a government contract if they have the necessary documents.
Visa Quotas
Having a physical office is a necessity for a Dubai business setup. This comes with the benefit of getting visas for your team. You will be assigned a visa quota based on office size. Furthermore, you can also get a family visa based on your mainland company in Dubai.
You can hire highly skilled team members in Dubai. You can increase the visa quota when your business grows.
Networking Opportunities
With Mainland company formation in Dubai, you can connect with businesses, government officials, investors, and industry experts in the UAE. Participate in local exhibitions, seminars, summits, and conferences to build your network and grow your business.
Process Of Dubai Business Setup In The Mainland
We have listed the process of Mainland company formation in Dubai to help you navigate it better.
Define Your Business Activities, Name, And Legal Structure
The first step to starting your business in Dubai is to define your business activities and legal structure. This step helps you get a Dubai trade license and understand the rules and regulations. The popular categories of business licenses are industrial, commercial, professional, tourism, agricultural, and occupational.
When choosing a name, ensure that you adhere to the Dubai laws. A few things to remember are:
- Shouldn’t be offensive
- Shouldn’t have any religious symbolism
- Shouldn’t violate public morals
- Must be followed by the business structure acronym
Choosing a legal structure is critical for your business. This legal structure affects your operation, tax obligations, and legal liabilities. Foreign businesses can choose from various legal structures such as sole establishment, Limited Liability Companies (LLC), civil company, and more. Connect with a PRO company, like 365 Day PRO Services, to help you choose the right structure for smooth business operations.
Find A Local Sponsor (If Applicable)
Foreign businesses can have a sole owner in most sectors in Dubai. However, some sensitive sectors still have the requirement of a local sponsor. This local sponsor mostly needs to own 51% share of the company. In case you are setting up a professional service business, you’ll have to partner with a local service agent.
Therefore, if your business falls in a specialized category, you need to find the right partners who can guide you through the process and grow your business.
Apply For The Dubai Trade License In The Mainland
Now that you have all the basic information sorted, it’s time to apply for the Dubai mainland license. The Department of Economic Development (DED) is responsible for issuing a trade licence after verifying the application and supporting documents.
A few important documents for this process are:
- License Application
- Memorandum of Sponsor Arrangements
- Ownership Details
- Business structure information
- Shareholder Visas
The other documents and application details vary based on your business activity and sector. Fill out all the details accurately and provide the necessary documents to secure the licence.
Secure An Office For Your Business
Once you have the Dubai trade license, you need to set up an office.
You can choose a:
- Serviced office: an office that is set up and run by a third party.
- Shell and core office: an empty space that you need to fill from scratch.
- Pre-fitted office: a space with basic furniture, but you need to bring your own equipment.
You need to make an Ejari rental agreement once you have finalized the office. The Dubai Land Department says that this is a must-do to protect the rights of both landlords and tenants.
Apply For Relevant Visas
Dubai federal laws allow you to apply for visas for yourself, your team, and your family who depend on you. However, the work visa quota depends on your office’s area. You have the right to secure visas for family members and domestic help staff, apart from business visas.
Register Yourself With The Legal Entities Relevant To Your Business
Once your business is ready for operations, you need to register with a bank to create a UAE-based business account. This account is critical to manage your business finances transparently.
If your business’s taxable income exceeds the threshold set for your business activity or sector, you must register for Value Added Tax (VAT) in the UAE. Once registered, you’ll have to file the VAT returns regularly.
Complying with the legal requirements in Dubai can help you do business freely and build a reputation. However, the registration process isn’t just lengthy but also complex. That’s where we can help you!
Set Up Your Mainland Company In Dubai With 365 Day Pro Services!
365 Day PRO Services has been helping businesses with Mainland company setup in Dubai for more than 15 years. Our team of experts is familiar with all the nitty-gritty of the registration process. Thus, you can be stress-free while our agents handle everything. Whether you need to register your business or get visas, we aim to make your journey smooth. Contact us to know more.
Conclusion
If you want to start a Mainland Company in Dubai, this post is for you!
We discussed how mainland companies in Dubai have access to all the emirates, 100% ownership over business in most sectors, and can apply for government contracts. Furthermore, they have a better visa quota and can build their network easily.
The business registration process for Mainland company formation in Dubai includes choosing a name, legal structure, finding a sponsor (if applicable), getting trade licence, setup physical office, and registration with relevant legal entities. You can also get visas for yourself, your team, and family members.
365 Day PRO Services is a dedicated agency that helps you navigate the registration process. We are here to make your journey to Dubai business setup easier. Contact us to know more.
FAQ
Who Should Start A Mainland Business In Dubai?
Mainland businesses can also apply for government contracts and freely work with the local and global businesses. A company who wants to tap into the UAE market needs to operate in the Mainland.
What Is The Difference Between A Mainland And A Free Zone Company In Dubai?
One of the primary differences between the mainland and free zone companies is the freedom to operate and tax benefits. In the Mainland, you can work with any company within and outside the UAE while paying standard taxes. However, with Free Zone business, you can only operate in a designated economic (free) zone or with a global business with 0% corporate tax. Get guidance to choose between the two by contacting us now.
How To Start A Mainland Company In Dubai?
To start a Dubai Mainland business, you need to register with the Department of Economic Development in Dubai, UAE, to get a trade licence. Once you have the licence, you need to secure an office and get an Ejari rental contract registered with the Dubai Land Department. Once you have all this sorted, you must open a bank account for transparent financial management. If your business is qualified, you must pay the VAT.
Is Working With A Local Sponsor Or Agency Mandatory For Mainland Businesses In Dubai?
There is no requirement of a local sponsor in most business sectors in the Dubai Mainland. However, a few critical or sensitive sectors, including security or strategic impact, need you to work with sponsors or agency who own 51% share of your company. Contact us to know more.