Thinking about whether a mainland Dubai company is right for your business? You can conduct trade throughout the UAE and around the world with a selection over 3,00 main business activities to choose from. Choosing a mainland company is your best choice! Perform business domestically and abroad, in the spirit of freedom to be.

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Importance Of A Uae Mainland Company Formation

Mainland Company Formation in Dubai

For entrepreneurs, understanding the importance of a UAE mainland company is crucial. The Department of Economic Development (DED) in the Emirate, United Arab Emirates, issued a license to this mainland company. The value of such registration lies in its various advantages to businesses.
This brief overview of the benefits of company Setup in mainland UAE is complemented with a detailed guide on how best to set up your business on Dubai’s mainland.

Why Business Legal Services Are Important for Dubai Businesses

Having a mainland company in Dubai has all the advantages to give your business a prosperous future. The advantages of mainland company setup include:

Location Flexibility and Trade Freedom

A free man, A company on Dubai’s mainland, faces no trade restrictions and has unparalleled flexibility. There are no restrictions on engaging in business with other companies. The company can operate and provide services anywhere within the UAE. Apart from this, the mainland companies are also entitled to sell directly into consumers ‘hands, giving them a broad market. Flexibility includes multiple branches, which help establish a substantial presence throughout the Emirates.

Broad Working Scope

The mainland businesses also have the advantage of doing all kinds of work. When there is a need to expand the range of choices inside the mainland, procedures are simplified: you only have to register any new business activity with DED. Then, you can move freely across all fields and invest anywhere in trade activities throughout society.

Access to Lucrative Government Contracts

A main attraction to setting up shop in Dubai is access to lucrative government contracts. Dubai and Abu Dhabi Government tenders represent significant business opportunities in the UAE. Big spenders Major infrastructures, education and social facilities have been recently approved for considerable sums of money. These provide opportunities for mainland companies to dive into the projects and become beneficiaries of large-scale contracts.

100 % control of mainland business entities

Gaining 100% ownership control of mainland business entities in the UAE was traditionally limited to two scenarios: setting up in a free zone can also create a professional service company on the mainland, such as a sole establishment or civil company.

Over the last several years, under HH Sheikh Mohammed bin Rashid Al Maktoum’s leadership, it has been possible to own fully 100% of mainland companies in the UAE. Overseas investors looking for business opportunities in the Emirates have warmly welcomed this progressive metamorphosis.

This is especially beneficial for international investors coming to the Emirates, who will not have to find an Emirati company or individual as a transitional partner organization under 100 % foreign ownership. This new freedom means business owners can plunge right into operations without the complexities of partnerships.

This presents a tremendous opportunity for the growth-oriented economy to attract foreign investment to the UAE. But it’s also important to note that specific strategic sectors, such as oil and gas, still require a local partner according to regulations.

Switching from free zone to mainland company formation in Dubai

We are here to help you if you are running under the free zone business structure and have considered setting up a mainland company. More than 30,00 countries are currently engaged in trade within the three biggest UAE-free zones. Although foreign entrepreneurs enjoy the conveniences and package business add-ons offered by free zones, there are some limitations to such a design.
The free zone companies are just great accelerators for businesses in the UAE, and those who get out of this environment will often find that they have to transfer their company to the mainland. Becoming a mainland company is an important step toward long-term business prosperity. With the assistance of a UAE national sponsor or company formator, relocating from a free zone to the mainland is no longer an unwieldy choice but part of another well-considered step.

Your checklist for mainland business setup in Dubai

Here’s your comprehensive checklist for mainland business setup in Dubai, ensuring a successful start to your venture:

1. Choose your business activity

Proceed to your business setup in the UAE mainland only after carefully choosing an industry you plan to trade. The Department of Economic Development (DEED) has listed thousands of activities allowed for businesses, ranging from trading and agriculture to hospitality and manufacturing. Mainland business enterprises can choose any DED-listed activity among the more than 2000 on offer as their own.

2. Find the ideal location

After deciding what kind of business you’re in, the next question is where you want to go. Unlike businesses in free zones, where restrictions are based on the location of the establishment, mainland firms have no such limitations. Many factors are involved, not the least of which are your budget considerations and the nature of the business you have chosen to do. Proximity to major ports such as Jebel Ali, Mina Zayed, or Mina Khalid is strategically advantageous for businesses involved in imports and exports. Furthermore, setting up businesses in Dubai makes it easy for mainland firms to open branch offices quickly and gradually become established locally.

3. Determine your business legal structure

As far as the law is concerned, foreign entrepreneurs can establish different types of business structures on the UAE mainland. A Limited Liability Company (LLC) is the most common form, which needs a local sponsor, particularly for commercial or industrial activities. An LLC is a separate legal person consisting of two or more shareholders. But for professional service companies 100 % foreign ownership is possible without the need of a local sponsor.

4. Getting yourself a local sponsor or service agent is one thing you’ve got to do.

In the past, foreign entrepreneurs wanting to open a business on the UAE mainland had to find a local sponsor or use a local service agent. An LLC requires a local sponsor, either an UAE national or locally based company owning 51 % of the business, for commercial and industrial undertakings. The GCS Group designates a Corporate Nominee to assume Local Partner duties and retain 100 % control. As for professional service companies need only a local service agent (LSA), and they have no stake in ownership.

5. Name your company

Choosing a fitting name for your trade conveys the brand and value of you as an entity and yourself as a person. The UAE has specific rules governing the terms of companies, and they must not contain obscene language, religious references, or imply references to other organizations. All owners must give their full personal names; in any case, if the name is of a foreign (non-Chinese) form, it should be written phonetically.

6. Obtain a mainland trade license application

With your business activity and legal structure decided you must apply for a mainland trade license from the Department of Economic Development. The procedures entail making several submissions, such as a license application, memorandum of sponsor arrangements, and details about ownership percentages among partners or shareholder visas.

7. Secure your office space

With the business trading license, attention is turned to finding suitable office space. Businesses can choose to take fully equipped serviced offices or a ‘shell and core’ space that needs all fitting out on the mainland of the UAE. There’s also a compromise solution that involves pre-fitted office spaces in which the business owner provides his equipment.

8. Apply for relevant visas

Mainland visa applications are flexible. The number of visas is determined by the amount of office space required. The usual rule is 100 sq. ft of office or warehouse space per visa, but exceptions are made depending on the nature of the business. Business owners can also sponsor dependents, such as family members or domestic staff, for their visas. In addition, foreign entrepreneurs can apply for an investment visa once they establish a UAE mainland company. The people and families of such emigres can stay in the nation and earn their keep for up to three years.

9. Choose a Company Setup Consultant.

Establishing a mainland company in the UAE requires detailed knowledge of legal and formation procedures. Overseas entrepreneurs find it much less stressful when they can rely on business setup consultants in the UAE. These consultants will work with you to understand your business objectives and give you peace of mind that beginning a new journey in Dubai is the right way. With their expertise, they can easily guide you through the maze of founding a company in Dubai mainland.

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