If you plan to establish your business in the UAE, the best option could be a mainland company. Otherwise referred to as an onshore company, this is an option with a license from an emirate's Department of Economic Development (DED) upon setting up. With a Dubai mainland license and across the Emirates, your business can move freely within local markets and even globally with no restrictions. Best benefit? The direct interaction with government agencies and the acquisition of government contracts is a perfect way to expand your business.
If you are going for a mainland business setup in Dubai, keep in mind that from June 1st, 2023, companies with over AED 375,000 in net annual profits are required to pay a 9% corporate tax - something to keep in mind when budgeting.
By opting for a mainland setup of the business in Dubai, you can trade with UAE customers as well as businesses without any restrictions. You also have a wide array of options to place your office in mainland Dubai according to your business needs. You get to have direct dealings with customers, engage in government tenders, and even open multiple branches to enhance coverage in the nation. Mainland company set up Dubai are, therefore, most appropriate for scale-up businesses.
To officially obtain your Dubai mainland license, you will require a few government approvals from the Department of Economic Development (DED), Dubai Municipality (DM), the Ministry of Labor (MOL), and the Department of Naturalization and Residency Affairs of the Ministry of Interior (MOI).
The mainland company had a local Emirati sponsor, who owned 51% of the business shares, while the foreign investor owned the remaining 49%. But now, that is history. With the latest updates to the law, it is now feasible to have 100% foreign ownership in the majority of business types, and company registration in Dubai is now more appealing and affordable for foreign entrepreneurs than ever.
After you have established your mainland business, it receives an electronic labor quota (E-quota) from the Ministry of Labor. This determines how many employee visas your business can provide. The larger your office is, the more employee visas you can typically receive. And then there's the added benefit of family sponsorship, you, the business owner or worker, can sponsor your spouse, dependents, and children.
Having knowledge of the correlation between this office space and visa eligibility is essential when designing your mainland business setup in Dubai.
Choosing to open a mainland company in Dubai offers a whole world of opportunity. With unlimited potential for trading, access to government contracts, and full ownership opportunities, it's an excellent choice for businesses wishing to grow in the UAE. With WeSetupBusiness, we take the hassle out of it for you, arranging approvals, licenses, and all steps in between.
Let us assist you in turning your business vision into a reality, the right way, from day one.
It is simpler to establish a foreign business in Dubai than people typically anticipate. Because the UAE is business-friendly, it is efficient, well-organized, and fast. If you intend to establish a mainland company in Dubai, this is a step-by-step guide to help you establish it easily.
The initial and most important step in the process is defining what your company will be. The Dubai Department of Economic Development (DED) has a list of over 2,000 approved business activities across various sectors. Based on the activity that you choose, your business will need to acquire a particular Dubai mainland license for trading and follow specific rules and regulations.
When you're establishing your company in Dubai mainland, you're not limited to geographical locations such as Free Zones. You may establish your company at any location within the emirate. Your choice will be based on your cost, customers, and business objectives. Whether commercial center or low-cost zone, make sure your location suits your long-term objectives.
You will next be asked to select the legal structure that best fits your business. The most popular of the mainland business setup structures is the Limited Liability Company (LLC) with two or more shareholders. Other legal structures are Sole Proprietorship, Civil Company, Private Limited Company (PLC), Public Joint Stock Company (PJSC), and Branch of a Foreign Company.
Once you have finalized the legal form, you will have to choose a distinctive company name. It should be descriptive of your business activity, be in accordance with the UAE naming rules, and should not contain any objectionable, religious, or political terms. You may even incorporate your own name in the company name. Once you have chosen the name, you will have to apply for its endorsement with the DED before going any further.
Once your name is authorized, the second step is applying for your mainland trade license UAE. This is issued by the DED and will have the legal authority for your business to operate. While most business activities are permitted, there are some that are restricted and will be subject to further approvals. You will be asked to submit a number of documents during this step, so having a professional service like WeSetupBusiness will prevent you from experiencing any delay and make the process easier for you.
Physical location is among the most significant license requirements in the Dubai mainland. You must rent an office with a minimum size of 200 square feet, with the rental done on a yearly term. Your trade license will only be issued by the DED after checking the Ejari certificate, ensuring that the tenancy agreement has been registered legally. Co-working offices that meet the space requirements can also be utilized.
After obtaining your mainland trade license UAE, you can go ahead and open a corporate bank account within the UAE. This will allow you to keep your business money apart from your personal money. Dubai has a vast array of banking facilities to select from. Whatever your preference is, whether you happen to favor a local bank, an international bank, or an internet banking facility, you'll find services that cater to foreign companies, start-ups, and entrepreneurs.
Mainland company registration in Dubai provides many advantages that give your business the freedom, flexibility, and room for local and international growth. The following are the most significant advantages of mainland company registration in Dubai:
Mainland companies have the sole privilege of bidding and securing government contracts in the UAE. Government contracts can do much to boost credibility and incomes for construction, logistics, technology, and consultancy companies.
In contrast to free zone companies, mainland companies have no geographical limitation and are allowed to operate anywhere in the UAE. This exposure provides you with the ability to reach a broader customer base and expand your business to all seven emirates.
One of our most impressive advantages of mainland business setup in Dubai is that you can sponsor as many employee visas as you wish, subject to your office location. This allows you to scale your employees in an easy manner as your business grows without red tape restrictions.
Mainland businesses receive generous tax relief. Companies can receive up to 91% relief of corporation tax and complete relief of private income tax. That's more of your profits that you retain and reinvest to grow.
You are also free to locate your office wherever you prefer in the emirate where your business is licensed. You can also have multiple branches under a single trade license, and this helps in the spread and serving of different markets in a better way.
All profit and capital earned by your business can be repatriated to your country as a whole. There is no repatriation tax or currency restriction, and foreign investors enjoy full control over their earnings.
A mainland business license gives you unrestricted access to foreign as well as domestic markets. The liberty gives you the freedom to expand outside the UAE and capitalize on international trade opportunities without needing to secure separate licenses.
With recent changes and reforms, foreign entrepreneurs can own 100% of their mainland business in approved sectors without a local sponsor. It provides you with total operational and financial control right from the start.
Begin your entrepreneurial journey with a strong foundation, guided by our expert team.
At WeSetupBusiness, we redefine company formation. With seamless efficiency and a commitment to simplicity, we make your entrepreneurial journey effortless from start to finish. Begin your success story with us today.
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