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Mainland Business Setup in Dubai, UAE

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Mainland Company Formation in Dubai

Dubai has always been the top choice for international investors who are looking to start a new business or expand an existing one. This is because of its prime location and connectivity to all the major countries worldwide. Furthermore, Dubai mainland is a very popular location throughout the UAE, when it comes to setting up a business in the Emirates. Business setup in Dubai Mainland should be at the top of your list if you are a budding entrepreneur because it offers a flexible legal system as per the UAE government policies.

The Dubai mainland symbolizes the most developed economies that are efficient at offering resources needed to carry out smooth business activities. However, you need to obtain a license to begin with the Mainland Company formation in Dubai. The license can be acquired from the Department of Economic Development (DED), Dubai.

Mainland Company Formation in Dubai

Submitting the right documents is essential to ensure that you get your business setup license for setting up in the mainland. Here is the list of documents needed.

  • Application for license 
  • LLC Agreement (attested)
  • Government forms (if needed)
  • Trade name reservation 
  • Initial approvals
  • External department approvals
  • Tenancy agreement
  • EJARI Registration certificate
  • Copy of NOC for partners
  • Dubai Chamber of Commerce and Industry Registration

Benefits of mainland company formation in Dubai

Get the benefits of owning a mainland business license in Dubai. One of the key benefits of forming a mainland company in the UAE is that it allows for 100% foreign ownership. This means that non-UAE citizens or entities can fully own and operate the company without the need for a local sponsor or partner.

100% Ownership

HH Sheikh Mohammed bin Rashid Al Maktoum has lately permitted 100% foreign ownership of mainland UAE companies.

Strategic Location

With mainland license business investors can enter other GCC nations, this advantage will help in the growth of business.

Easy Import & Export

Easy access to neighbouring and global markets by land, sea and air to help with the business

No Limit on Visa

Unlike other activities, there is no limit on visa applications for business owners in Dubai Mainland.

Tax exemptions

100% tax exemption on personal or corporate income or gains.100% repatriation of capital and profits.

Eligibility for UAE Govt. Contracts

Companies with mainland licenses can apply for UAE government contracts & can work on Government projects.

How to register for mainland company in Dubai?

if you are looking for the steps to start a business in Mainland, follow the ones given below: A business setup in Dubai Mainland is one of the most famous choices for people all over the world. Trade freedom is what attracts people to set up here. Furthermore ,the amendment allowing 100% ownership of Dubai mainland business for an expat is a plus point. If you are looking for steps to start a business in Mainland, follow the ones given below:

01

Select business activities

02

Choose an appropriate legal form

03

Register your trade name and request for initial approval

04

Drafting a MOA and local service agent agreement.

05

Choose preferred business location.

06

Acquire all the necessary government approvals.

07

Submit your paperwork/document to the respective authorities.

08

Pay the license fee for company formation in Dubai mainland

09

Get trade license from Department of Economic Development (Dubai) within 24 hours.

Amendment in mainland license in Dubai

With the new amendments issued by the UAE government, we can conclude that the emerging companies can now hold a 100% Ownership in Dubai Mainland. Therefore, any foreign or local individual can now fully own a mainland business setup in Dubai.

As per new law, no foreigners are required a local emirati to form their company under mainland license.

Now any joint stock business can sell 70% of its shares in an IPO (Initial Public Offering). This was 30% earlier.

Shareholders now have the right to take legal action if the enterprise participates in an activity that causes the company to lose money.

All the company meetings are now no longer necessary to be officiated by an Emirati. Hence it is open to all expatriates.

The annual general meetings can now include a new way of voting, i.e. the electronic voting (due to the pandemic).

If leading officers or company chairpersons abuse their power, they can be removed from their positions.

Important points to remember while setting up business in Dubai mainland

There are various things that a person should keep in mind while they are opting for their Business setup in Dubai mainland. Since the company decides the future of your business and even yours in the emirates, keeping in mind a few factors would be beneficial.

  • The law issued by the UAE cabinet now permits 100% foreign ownership of the onshore companies located on the UAE mainland.
  • Now any joint stock business can sell 70% of its shares in an IPO (Initial Public Offering). This was 30% earlier.
  • Shareholders now have the right to take legal action in the court if the enterprise participates in an activity that causes the company to lose money.
  • All the company meetings are now no longer necessary to be officiated by an Emirati. Hence it is open to all expatriates.
  • The annual general meetings can now include a new way of voting, i.e. the electronic voting.
  • If leading officers or company chairpersons abuse their power, they can be removed from their positions.
  • Building a favorable legal environment for business establishment in the UAE , so that it may aid in the ease of doing business and the overall economy of the country
  • The UAE aims to put a positive spin on its already established appeal as a global market for foreign investment firms, businesses, startups from around the world by eliminating the existing obstacles and widening the economy.
  • Making sure that the future of the economy is safe and secure by increasing investment and commercial opportunities for foreign investors.
  • Meeting the demands of the UAE business community as they uplift the country’s appeal to expat investors, businesses, startups, and other entities.

Types of company formation Dubai mainland?

Selecting the legal form your company can be challenging and demanding. Owning the sole proprietorship is a necessity that can help the business setup in the long run.

  1. Sole proprietorship: Only one individual may own a sole proprietorship. When it comes to the business, the owner has all control and ownership. Any person of any nationality may own a sole proprietorship of any professional kind; however, only UAE or GCC citizens may own a sole proprietorship of any industrial or commercial sort.
  2. General Partnership: A general partnership is formed when two or more UAE citizens come together and assume joint responsibility for the partnership’s debts. Transferring a partnership stake requires the consent of all partners.
  3. Limited  Liability Company: Up to 50 shareholders may be part of a limited liability company (LLC). Besides this, each shareholder is accountable for their respective firm shares. Following death, the shares are given to the heir. They have to choose 1–5 managers.
  4. Representative Office: Branch offices share the same name as their parent company and are affiliated with it. The representative office is not the same as a branch office. Foreign businesses can establish representative offices in the UAE to spread the word about their products, but they are not allowed to conduct business here.
  5. Public Joint Stock Company: Those involved in banking, insurance, or financial activities are considered public joint stock firms. They are suitable for significant operations or projects. The public must have access to at least 25% of the shares. A board of directors with a term limit of three years should be in charge of managing the organization, and a minimum of ten founding members are necessary.
  6. Private Shareholding Company: Any type of business or sector may incorporate a private shareholding company. It must have at least three GCC or UAE citizens present in order to form. Two years or more after their formation, they may go public. 
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