Benefits of Setting up a Mainland Company in Dubai
From a small commercial town to one of the world’s most successful and wealthy cities, Dubai has come a long way in the last three decades. As the Emirate is gaining more popularity as the most attractive tourist and business location, investors are swarming into the country to fulfill their potential, and the best setting to diversify and excel in their endeavors would be the Mainland business setup in Dubai.
It offers a plethora of commercial prospects. In this article, we will look into some of the most profitable grounds and benefits of mainland business setup Dubai.
Benefits of Mainland Business Setup Dubai
Dubai mainland company formation provides more flexibility to business owners in terms of rules and regulations. There are fewer restrictions on business activities. In addition, there are many other compelling reasons to consider a mainland company setup Dubai.
Zero restrictions on currency exchange
One of the key benefits of mainland business setup Dubai is that there are no currency exchange limits. Since the Emirates thrives on international trade, any business owner or organization operating in the UAE can benefit from this facility. This provides them additional freedom, concessions, and incentives.
Freedom to trade anywhere in the UAE
Dubai mainland business setup is ideal for those investors who are seeking more market access. Mainland business allows them to trade directly with consumers anywhere in the UAE market. Moreover, if the organization intends to work on government projects or provide government services, then Mainland is the best option.
No minimum capital requirement
Although the UAE Companies Law does not specify the requirement of minimum share capital, companies still need to have adequate cash to meet the requirements of incorporation. The high point is that business owners do not need to deposit their share capital in any UAE-registered bank.
Company formation advisors at UAE Expansion will clarify the minimum share capital requirements for you.
Freedom to open an office anywhere in the country
One of the significant benefits of mainland business setup Dubai is the liberty to set up an office anywhere in the country. This gives the company a more robust presence across the UAE.
On the other hand, companies operating in the free zone cannot trade outside of the registered zone. However, if they intend to do so, they would require a distributor to carry out their services, which can be a major expense.
Hence, a mainland structure is the better option for those looking for a significant presence and a long-term future in the industry.
100% ownership
Previously, foreign investors with mainland businesses had restricted ownership. They were required to find a local sponsor and allot them with 51% of the company shares. This feature discouraged many entrepreneurs from forming a business in the Mainland region.
However, with the amendments in the regulations, foreign investors were offered 100% ownership of their mainland company. This facilitated higher profit generation, encouraging more investors to open mainland company in Dubai.
Flexibility and diversity
If you looking for a broader range of opportunities for your business to grow and evolve, then a mainland company formation is the best alternative. Besides, the administrative process is more streamlined with fewer constraints compared to free zone businesses.
No stress of annual audits
Companies incorporated in the Mainland region do not require annual audits. Although the management voluntarily performs financial audits to satisfy creditors, investors, and other shareholders.
Additionally, maintaining a proper book of accounts and conducting annual audits regularly is good for the company’s health.
Excellent infrastructure
Dubai, with a booming economy, serves as a breeding ground for a diverse range of commercial and industrial operations. These advantages combined with the lavish lifestyle and the robust infrastructure of Dubai lure foreign investors to establish a business on the Dubai Mainland ground.
Administrative process control
The administrative process to obtain a Dubai mainland license is smoother, faster, and less restricted. In addition, if you bid on large-scale projects, you can ally with the government. Every year, the UAE government spends billions of dollars in contract work with private companies.
Businesses that stand a chance can win these contracts and establish long-term business relationships with the government. Moreover, this would be a great opportunity to increase the company’s reputation worldwide.
Legal system
The UAE government constantly improves the investment regulations, statutes, and incentive packages to attract international investment. In fact, Dubai allows foreign investors to own real estate and equities. According to the research, the United Arab Emirates serves as a member of the World Intellectual Property Organization, the WIPO Copyright Treaty, and the Rome Convention, which protects intellectual property.
Ability to communicate with GCC government officials
Dubai mainland enterprises are authorized to do business with the government and semi-government organizations in the UAE and the GCC. They can compete for government tenders and contracts in industries like construction, real estate, transportation, and tourism. Winning such contracts can help the organization gain credibility, reputation, and visibility, not just in Dubai but worldwide.
Access to banking facilities
The UAE is well-known for its strong and stable banking sector. Both local and international banks situated in the country offer a variety of services to businesses. Therefore, when you form a Mainland business in Dubai, you can have access to a wide range of banking facilities, including loans, credit cards, and online banking services.
Types of licenses in Dubai Mainland
The Department of Economic Development issues licenses for Mainland entities. Before initiating their activities legally, business owners need to obtain their respective licenses in accordance with the proposed activity. The different categories of licenses available in Dubai are –
Commercial license - Adequate for businesses involved in trading activities such as buying and selling of goods, import, and export, real estate, logistics, travel & tourism, etc.)
Industrial license – Ideal for manufacturing enterprises and industrial companies. The holder of this license has to lease or own a physical warehouse inside the country for manufacturing activities.
Professional license – Applicable to companies and individuals engaged in service activities such as training, teaching, consultancy etc.
Need more assistance regarding Dubai Mainland licenses, reach out to UAE Expansion.
Legal entities permissible in Dubai Mainland
The legal form of the company mainly depends on the business requirements. Besides, it is a mandatory step as the selected structure helps to identify the laws and regulations the entity has to abide by. The different forms of structure available in the Mainland for selection are as follows –
- Sole Establishment
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company/Private joint stock company
- Civil Company
- Branch Office
Checklist for Mainland Company Formation
The administrative process and specific requirements for business setup may vary depending on the business activity, location, and other factors.
Partner with UAE Expansion and establish a Mainland business
A Mainland business setting requires a deep understanding of the legal and company formation process. Working with a business setup consultant like UAE Expansion can help take this stress out of overseas entrepreneurs. They will understand your business goals, explain the benefits of mainland business setup Dubai, and further assist you in starting a successful business as desired by you.