Dubai is famous for many things: tourism, high-rise buildings, and most of all, business. This emirate is one of the most attractive spots for investors and businesses due to its strategic location and a business-first economy. Mainland business setup allows you to access all these resources without any restrictions.
But who can benefit the most from the Dubai mainland business setup? Read this blog till the end to understand more about the meaning and process to start a Dubai Mainland business.
What Is A Mainland Business Setup?
Mainland companies are treated like any other business in the UAE. You can target customers in all emirates, bid for government contracts, access local resources, and own 100% of your company (except for a few government-restricted sectors).
The Mainland business license in the UAE overcomes one major barrier of the free zone companies: direct access to local markets in the UAE. By registering your business with the Department of Economic Development (DED) for the relevant market, you get the legal authority to conduct business and offer your services.
Who Should Start A Dubai Mainland Company?
Most foreign investors and business founders are stuck between choosing a free zone or a mainland business setup. The choice is complex and depends on how you want to operate. So, we have created a list of business entities that can benefit the most from Mainland business.
Entrepreneurs Seeking Uae Startup Ecosystem
Dubai’s growth-focused startup ecosystem attracts global entrepreneurs and investors. The Mainland-enslisted startups can gain access to accelerators, venture capital firms, co-working communities, innovation programmes and industry events designed to help early-stage businesses scale.
Many free zones often find themselves restricted as they can’t directly access these opportunities. By getting a business license in the UAE, you can build a local team and partnerships to expand your business in the UAE and the international market.
Business Who Want Government Contracts
If your business strategy includes targeting government or semi-government tenders, a Mainland business setup is mandatory for you. These contracts could be from diverse sectors such as IT infrastructure, construction, facilities management, consulting, logistics, security, food supply, healthcare services, and much more.
As Dubai focuses on improving its infrastructure, businesses and startups can get investment for smart city development, public services, and social programmes. If you want to secure deals worth thousands and millions, you should go for a Mainland business setup.
Service Providers Who Need Face-To-Face Interaction
Many services need face-to-face interaction and the ability to work at the client’s location. Some examples are Lawyers, management consultants, accountants, marketing agencies, architects, engineers, and IT consultants.
These service-based companies might benefit more from a Mainland setup as they can freely move across all emirates to offer their services and grow their business. You can set up your office in a prime area to build credibility.
Companies Targeting UAE Locals
If your business depends on targeting the UAE locals through a retail outlet, an e-commerce operation, a food and beverage concept, a salon, a fitness studio, or any consumer-facing service, you need a mainland business setup. This is one of the major limitations of the free zone company.
While the upfront cost of Dubai Mainland business setup is high, it can help you target customers across the UAE to grow and increase your revenue. Starting a Mainland business also helps you build credibility and streamline the banking and management processes.
Investors Looking For UAE-Based Opportunities
Dubai is one of the top destinations in the world for real estate investment, private equity, and venture activity. Investors who want to establish a holding company, a real estate brokerage, a family office, or a wealth management entity in the UAE will benefit from a mainland structure.
What Is The Dubai Mainland Business Setup Process?
When registering your Mainland company, you must be well aware of the process to avoid any mistakes that might delay your business launch. Therefore, we have created a simple guide for the Mainland business setup process in Dubai:
Choose Your Business Activity & Structure
The first and most important part of this process is choosing the right business activity and structure. This structure helps you get relevant licenses. Choose wisely as this step ties you to a legal structure that defines what you are permitted to do and what is illegal activity. Based on business activity, you might need to seek approval from relevant authorities.
Register Your Trade Name
You need to select a trade name for your business such that it aligns with the rules of DED. A few of these rules are:
- No offensive language
- No references to religion or ruling families
- Not represent the other country
- Shouldn’t be a name already registered in the system.
Apply For Initial Approval
Submit your initial approval application to the DED to ensure that your business meets all requirements and can proceed with the setup process.
Obtain Other Necessary Approvals (If Applicable)
Certain business activities require approvals from external authorities before a licence can be issued. Healthcare, finance, and education are a few sectors that might need approval from the relevant external authority.
Secure An Office Space
A mainland company requires a physical office address registered under an Ejari tenancy contract. Finding the right office is important, as the size of your space also determines how many residence visas your company can sponsor.
Pay Fees To Get The Licence
Once all approvals are in place and your office lease is registered, submit the final documentation package to the DED. Upon approval and payment of applicable fees, your business license in the UAE will be issued.
Open A Bank Account
Once you have a registered business licence, you need to open a bank account to manage all your business transactions and taxes. Choose a bank that fits your business and offers relevant financial services.
Get Visas For Team And Family
Once your business licence and office are all set, you can apply for visas for your team and family members. For employees, you can get 1 visa per 9 9 square metres. So, hire carefully.
If you want assistance in Mainland business setup, connect with 365 Days PRO Services. We offer services for business setup, visa approvals, banking, and more. We help you from the initial approvals to the final setup and more. Contact us to know more.
Conclusion
Dubai Mainland business setup allows you to access the rich business and startup ecosystem. Therefore, businesses involved in import and export, wholesale distribution, face-to-face interaction services, or general trading with UAE-based buyers and suppliers will benefit from Mainland business setup in the UAE. Investors who want to invest in the local business or want to set up their holding company, a real estate brokerage, or a wealth management company should also go for a Mainland setup. Contact 365 Days PRO Services for Mainland company set up and business license in the UAE.
FAQs
How To Open A Mainland Company In Dubai?
The following are a few steps to open a Mainland company in Dubai:
- Select a business activity
- Register trade name
- Obtain initial approval from DED & external authorities (if applicable)
- Secure a physical office
- Submit final documents
- Get a business licence
- Register with the bank
Contact 365 Days PRO Services for seamless business setup in the Dubai Mainland.
Dubai Mainland Vs Free Zone Company, Which Is Better?
Dubai free zones allow businesses to start their company in a specialized economic zone that offers the best infrastructure and 0% corporate tax. However, these companies can only do business in specific free zones and internationally. They might need a specialized permit and a license to access the Mainland. A Mainland company gets all the rights like a local UAE business does: 100% ownership, access to government tenders, expansion in all emirates, and more.
Your choice depends on your business model and the access you need. Contact 365 Days PRO Service to gain more insights.
How Much Does It Cost To Set Up A Mainland Company In Dubai?
The cost of a mainland business setup in Dubai varies based on your business activity, the type of licence required, the number of visa allocations you need, your office space, and whether your activity requires external approvals. If you need specific estimates, you can connect with us.
Can You Own 100% Of Your Business In Dubai?
Absolutely. Under the recent changes in the commercial laws, a foreign company can now own 100% of its Mainland business in almost all sectors. A few highly sensitive and critical sectors might need local partnership. Your setup consultant will confirm the exact ownership structure applicable to your chosen activity.