What precisely is a UAE mainland company, and why is having one so crucial? A mainland company is a business that has been granted a license by the Department of Economic Development (DED) in the pertinent United Arab Emirates emirate. Here is a list of the advantages of Mainland Company Formation in Dubai as well as a guide to starting a business in Dubai.
If you're searching for mainland company formation & business setup in Dubai, United Arab Emirates, you undoubtedly need the assistance of reputable businessmen. Because of this, we are the go-to name in this area, having adjusted to the city's cutting-edge business environment. The establishment of a company in Dubai is difficult, but not for us; as Business Setup Consultants, we have the answers to all problems.
Benefits of Mainland Company Formation in Dubai
Company registration on the mainland has many advantages. Setting up a mainland company ensures success in your professional and business endeavors. Companies based in the mainland provide a wide range of trade, 100% ownership, and location flexibility. These are a few of the explanations given by businesspeople looking to start a mainland company in the UAE.
1. Location independence and no trade limitations
A Dubai mainland company has no geographical restrictions and no restrictions on trade with other companies. Anywhere in the UAE, mainland businesses can conduct business with consumers or provide services to the government. Businesses can open multiple branches and establish a strong presence across the Emirates thanks to the mainland company setup.
2. A wide range of work
Businesses on the mainland can also take on a variety of projects. Simply re-register the new business activity with the DED when you want to diversify your offerings within the mainland, and you're good to go.
3. Getting access to profitable government contracts
Government tenders are a major source of revenue for mainland businesses setting up shop in Dubai. You'll be in a good position to benefit from such lucrative government contracts as a well-established mainland business in Dubai.
4. Full control and 100% ownership of mainland business entities
In recent years, HH Sheikh Mohammed bin Rashid Al Maktoum has permitted mainland UAE companies to have 100% foreign ownership. For potential foreign investors looking to do business in the UAE, this has been a welcome change. For foreign investors new to the UAE, this is fantastic news.
Businesses with 100 percent foreign ownership can get right down to business without having to look for an Emirati company or individual to serve as a partner. Foreign investors have incredible potential to contribute to the UAE's growth-machine economy with 100% foreign ownership of mainland UAE businesses. However, some strategic industries, like the oil and gas industry, still need a local partner.
Documents required for Mainland Company Formation in Dubai
These are a few of the documents needed to open a business in Dubai. If more documentation is needed, the authority may request it. An estimated list of each document is provided below:
Attested LLC agreement
Copy of NOC for partners
Dubai Chamber of Commerce and Industry Registration
EJARI registration certificate
External departments approval
Name reservation and initial approval certificates
Required governmental forms
It is advisable to entrust the task to an experienced business consultant if you are new to Dubai or the UAE and have questions about the issuance of licenses and company incorporation. UAE Expansion can help you with every step of establishing a mainland business in Dubai and the United Arab Emirates.
Your guide to setting up a mainland business in Dubai
It's time to review your checklist for business setup. Let's start your business off on the right foot!
1. Select your business activity
Prior to forming a business on the UAE mainland, you must first choose the sector in which you will operate. The Department of Economic Development has a list of thousands of permitted business activities (DED).
Trade, agriculture, hospitality, and manufacturing are a few of these. Mainland businesses are permitted to engage in any of the more than 2000 DED-listed activities, in contrast to many free zone businesses that are limited to specific activities based on where they are located.
2. Select the best location in the UAE for your business.
The next step is to choose where you wish to operate after deciding on your business activity. There are no location restrictions for businesses operating in the UAE's continental territory. The ideal location will depend on a variety of elements, including your chosen business activity and your budget.
Setting up a shop close to one of the busy ports in the UAE, such as Jebel Ali, Mina Zayed, or Mina Khalid, makes perfect business sense if your company relies on imports and exports. The simplicity of opening branch offices is another benefit of setting up a mainland business in Dubai. This implies that companies are not constrained to a single location and can gradually establish a significant local presence.
3. Choose your company's legal structure.
Legally speaking, foreign business owners are permitted to establish a variety of businesses on the UAE mainland. A Limited Liability Company is the most typical type of business structure on the mainland (LLC). A limited liability company is a separate legal entity that has two or more shareholders.
To establish a business on the UAE mainland, a company must create an LLC if it wishes to engage in commercial or industrial activity (including manufacturing and industrial activities). You'd need a local sponsor for this. A professional service company can be established without a foreign sponsor and with 100% foreign ownership. Next, more on this!
4. Give your business name
One of the most crucial business decisions an entrepreneur can make is selecting a trade name for the company that accurately represents your brand and professional values. There are many things to keep in mind when traveling to the UAE. It is not permitted to use offensive language, make religious allusions, or imply support for other organizations. Your business's trade name may only contain full names. All names for your company's trade name in various languages must be written as they are pronounced, not translated.
5. Request a license for mainland trade.
It's time to contact the Department of Economic Development to request a mainland trade license. A trade license application requires several different documents. A few examples of these are a license application, a memo outlining sponsor agreements, the ownership split between all partners, and shareholder visas.
6. Lock up your office.
It's time to find an office space once you have a business trading license. Serviced offices on the mainland of the UAE are typically owned and maintained by a third party and come fully furnished. Typical inclusions include desks, phones, internet access, and reception services. Typically, your lease payment would include utility costs, rent, and the use of office supplies.
A "shell and core" type of office space is at the other end of the spectrum. This typically necessitates a complete fit-out and decoration, adding costs on top of the rent. There is also a middle ground with pre-fitted offices where the business owner merely supplies their own equipment and pays bills separately.
7. Fill out a visa application.
Business owners on the UAE mainland are not subject to any restrictions when applying for visas. However, the quantity of office space needed should be in line with the number of visas requested. The standard is 100 square feet of office or warehouse space per visa. There are some situations where this may not be true.
Cost of Company Formation in Mainland Dubai
Typically, the cost of setting up a mainland company in Dubai can range from AED 10,000 to AED 25,000. The type of license, the size and type of business, the type of business activity, and other factors may all affect it, though.
Start Your Mainland Business With UAE Expansion
Getting the right legal advice will speed up the process and help foreign companies understand the ideal legal structure for doing business in the UAE, even though some of the setup and license application processes can be drawn out.
Allow UAE Expansion to assist you in deciding on the most advantageous corporate structure for your business if you want to register your company on the UAE mainland in Dubai or any other Emirate. Along with offering support for visa applications, accounts & bookkeeping, and tax certification, we can assist your company with starting up and conducting business in the UAE.