Mainland company formation in Dubai
Dubai has seen an unprecedented commercial growth over the last few years as countless new companies and organizations have made firm establishments in this prosperous city. More and more businesses are hustling to initiate a corporate presence in Dubai courtesy of the lenient and convenient regulations, imposed by the DED, the department of economic development of Dubai for setting up a new business in this emirate. Dubai has been at the nucleus of economic growth and development in the UAE. It has been attracting entrepreneurs from all around the globe to forge a business presence in the market. It offers all the fundamental features that are conducive to progress for modern day businesses. From offering low tax rates and access to the world’s biggest and fastest growing markets to the unwavering support by the government for seamless trade around the world, it is very reassuring when it comes to trade restrictions and regulations. While these features may be the prime reason why more and more businesses are yearning to initiate their name in the Dubai market, there is another underlying reason which can be attributed to it’s growing fame as an auspicious platform for unbridled commercial advancement. That is, the free zones scattered across Dubai.
Free zones are economical areas where business dealings and transactions can happen at preferential tax and duty rates. They were initiated with the goal of promoting international business in the emirate. Over the time, the free zones have advanced greatly by offering ever-so beneficial features to the businesses operating within them. Setting up a business in any free zone is fairly easy and quick. There is minimal paperwork needed to get the ball rolling out and commence the day-to-day operations. There are mainly two types of business set ups you can opt for to establish your company in Dubai. Those are, mainland and free zones. Mainland setups allow more commercial and trade freedom than free zones and are a viable choice for large scale organizations looking to multiply their growth.
Why choose mainland business?
If your business priorities and preferences include unrestricted dealing and trade within and outside UAE, you should proceed with the mainland business type. The mainland jurisdiction also permits you to have an office space anywhere in Dubai or UAE meaning you can choose a desirable place of operation for your business. You can involve in trade with any business present within or outside UAE without any legal trouble. There is no requirement for a minimum capital to commence a mainland business and the legal regulations for registration are fairly easy to abide by. A unique benefit is that you can also take up governmental projects if you are registered under the mainland jurisdiction.
How to set up a mainland business in Dubai
There is a process you must follow to seamlessly set up a mainland business in Dubai. The first step should be getting a verified address for your business facility by the correct authority. There are several other factors that you need to fulfill before submitting your application for a mainland company set up. You would need a proper business license and necessary visas apart from a local service agent to assist you with the registration process.
To put it in a nutshell, following are the steps you will have to follow:
- Determining the nature and activity of the business and selecting an approved name.
- Selecting a local partner
- Applying for approval for mainland business setup
- Finding an office space and getting the address verified
- Submitting the final application for opening a mainland business.
An important point to note here is that while opening a new mainland business, you would need a local partner who will sign all the legal and governmental documents. They will not necessarily be involved in the business with you. As an expat partner, all the daily operations of the business will be performed under your sole guidance.
Types of business licenses for setting up a mainland business in Dubai.
A business license is of grave importance when it comes to setting up a mainland business. There are mainly two types of business licenses and the presence of a UAE national is vital when you apply for each of them. Those are:
- Professional business license- If you apply for this license, you will own 100% shares of your company while the UAE national will assist you as a local service agent.
- Commercial business license- If you apply for this licence type, 51% of the company shares will be under the UAE national and 49% will be owned by you as an expat partner.
There should not be any visa limitations for mainland business owners so they are allocated visas through the E-quota system. The number of visas you’ll get completely depends on the size of your office space. If you have a colossal office space, you can get more visas.
Setting up a new mainland business in Dubai is a surefire opportunity for unrestricted growth. There is ample fruitful business for an established company and it all gets very easy and convenient with the sundry features and benefits that a mainland company is entitled to enjoy. You can trade easily in the international market without any hindrance. Mainland companies are exempt from corporate taxes and there is no minimum capital requirement for setting up a mainland company. There are little or no limitations for doing business in Dubai for mainland companies. Also, unlike in the free zone jurisdiction, mainland businesses can engage in trade with the whole town without any restrictions. Mainland companies can opt for their office location anywhere in Dubai without any hassle. It can serve all over the town which opens doors of opportunities. Mainland companies can also open their branches all over the emirate. They can also take up governmental work and earn extra profits through it. There is also no limitation on the number of visas that mainland companies can get. The eligibility of the visas depend upon the office space as well. There are also no currency restrictions for mainland companies. There is also the allowance for 100% repatriation of profits. Registration process is also very easy and there is no requirement for submission of yearly audit.