Top Benefits of Establishing a Business in Mainland Dubai

Mainland Company formation

The Mainland Company is licensed by the appropriate Department of Economic Development of the United Arab Emirates (UAE). A free zone company, on the opposite side, is licensed by a free zone authority and comprises a restricted geographic region. The key components to examine when determining which kind of firm structure is best suited are:

  • Specific business activity
  • Your customers’ location
  • Customer Type (Personal, Business, Government, etc.)
  • The specific physical position
  • Number of employees required

Let us examine the benefits of Mainland company formation in Dubai:

No Limitations

A mainland business has no limitations on who you can trade with or wherever you can trade in Dubai. If you want to give services to the government or make business directly with customers, you require to set up a major company. This is because free zone companies are limited to working within their free zone, so users outside their control are not permitted to offer their help directly.

A mainland company cannot limit the number of visas. Visa quota allowed based on your commercial left. The larger the office space in Dubai you have, the higher visas you can arise to an unlimited number.

Position Flexibility

By a mainland company, you can be located anywhere in the main area of ​​Dubai, while there are limited options for commercial space with a free zone. If you do not want it in the origin, you can start a mainland company without physical space.

Extensive functional offering

Mainland companies have more business ventures on the proposal, while Free Zones have limited activity suggestions, which are often linked with the theme section of that appropriate Free Zone.

Adaptability in Future

A mainland company can develop well with your business and you can begin branches in various locations in the mainland while being given additional visas if needed.

100% ownership power

It is a popular misunderstanding that all mainland companies must possess a local partner who owns shares in their company, and often, for this idea, investors prefer a free zone company. If you set up a major company with a professional function (e.g. project management, accounting, or professional services), the company can be owned by a sole proprietorship (a shareholder) or a civil company (more) in 100% legal form, which is more than a shareholder.

Dubai Mainland Business Setup Process

The method one has to follow to start a business in the Dubai mainland is simple and straightforward. Here is a step-by-step guide on how you can begin a business in the Dubai Mainland:

  • Select on the business activity you would like to do in Dubai
  • Obtain local service agent who is a local sponsor
  • Location Check – location adaptability, convenience, and cost
  • Obtain preliminary permission from the Dubai Department of Economic Development
  • If all of the above requirements are met, you can apply for a Dubai Main Land License.
  • Submit all important documents wanted for the company merger to DED and pay the needed license fee.

Dubai Mainland License

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A mainland license, further recognized as an onshore license, permits individuals to perform business in and out of the UAE without limitations. In the UAE, the Department of Economic Development (DED) is responsible for distributing these licenses. Must have a major business headquartered in Dubai or a local partner or service agency in the UAE under UAE Company rule.

Whether you require a local sponsor or local assistance agent depends on the business you begin in the Dubai Main Land. A local sponsor will have 51 percent of the company’s stock, but as the owner, will keep the company’s ownership as a set annual fee.

A local service agent has no shareholding power and preferably represents the corporation in all regulatory relationships with government agencies. You however require to be called a local service agent, but the local service agency does the same thing as the Free Zone Authority, which is to provide your company access to employment and immigration.

For business activities, a local partner is needed and the company must be a limited liability company you can afford a corporate nominee to act as your local partner, enabling you to retain all ownership control of your company. Protects you from the hazards of an individual local partner. With proper risk mitigation documentation, you can maintain full ownership of your company.   

If the process of business setup in Dubai looks complex to you, get in touch with experts in the field to establish your dream company on behalf of you.

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