Dubai has emerged as one of the top global business hubs, offering entrepreneurs and corporations the opportunity to establish a presence in the region through various business setup options. Among these options, mainland business setup Dubai is one of the most sought-after due to its numerous advantages. This guide will explore the key aspects of setting up a mainland business, including the benefits, process, and requirements.
What is Mainland Business Setup?
A mainland business in Dubai refers to a company licensed by the Department of Economic Development (DED) in Dubai. Unlike businesses in free zones, which have restrictions on trading within the UAE, mainland companies are free to operate anywhere in the UAE and internationally. They can do business with government entities and enjoy unrestricted market access within the UAE.
Benefits of Mainland Business Setup in Dubai
Access to the Local Market: One of the major advantages of mainland business setup is the ability to trade freely within Dubai and across the UAE. This unrestricted access makes it ideal for businesses that want to engage directly with the local market.
Government Contracts: Mainland companies are eligible to bid for lucrative government contracts, which are not accessible to free zone entities.
No Restrictions on Business Activities: Mainland companies have the flexibility to engage in various business activities, allowing for more diversified business models. This includes sectors such as trading, manufacturing, and professional services.
Office Location Flexibility: Mainland businesses can choose their office location anywhere in Dubai or the UAE, providing greater flexibility in terms of business operations.
Ease of Sponsorship: Mainland businesses can offer employment visas and sponsor employees, making it easier for companies to recruit staff from around the world.
Unlimited Workforce: Unlike free zone companies, mainland businesses can hire an unlimited number of employees, which is ideal for large-scale enterprises.
Steps to Mainland Business Setup in Dubai
Determine Business Activity: The first step is to decide the type of business activity you wish to undertake. Dubai’s DED has an extensive list of permissible activities, and it’s important to select the appropriate one.
Choose a Legal Structure: The next step involves selecting the right legal structure for your business. Common structures include Limited Liability Company (LLC), sole proprietorship, branch office, and civil company.
Register Trade Name: You must choose and register a unique trade name for your business. The trade name should comply with Dubai’s naming guidelines and should not infringe on existing business names.
Apply for Initial Approval: The initial approval process involves submitting your business plan and documents to the DED for approval. This step confirms that your business complies with the regulatory requirements in Dubai.
Prepare a Memorandum of Association (MOA): If you are setting up an LLC, you will need to draft a Memorandum of Association (MOA) with a local Emirati sponsor. The MOA outlines the ownership structure and key details of your company.
Secure Office Space: A mainland business setup requires a physical office space. You will need to secure a location and provide a tenancy contract as part of the registration process.
Obtain Business License: Once all documents are submitted and the requirements met, the DED will issue your business license, allowing you to legally operate in Dubai.
Local Sponsorship Requirement for Mainland Business
One of the unique aspects of mainland business setup is the need for a local sponsor. In most cases, foreign investors are required to partner with a UAE national who holds 51% of the company’s shares. However, with recent changes in UAE business laws, foreign investors can now hold 100% ownership in certain sectors, eliminating the need for local sponsorship in those cases.
Cost of Mainland Business Setup
The cost of business setup in mainland Dubai varies depending on several factors, including the type of business activity, the size of the business, and the office location. Typically, the setup cost includes licensing fees, sponsorship fees, office rental, and other administrative expenses. It is advisable to work with a business setup consultant to ensure you have a clear understanding of the costs involved.
Conclusion
Mainland business setup in Dubai is an attractive option for entrepreneurs and companies looking to tap into the UAE’s dynamic market. With the ability to operate freely within the UAE, access government contracts, and enjoy a flexible business environment, setting up a mainland company offers tremendous growth potential. For expert guidance and assistance in navigating the setup process, Flyingcolour Business Setup provides comprehensive services, ensuring a smooth and efficient journey toward establishing your business in Dubai.
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