Company Setup in Dubai Mainland
Mainland companies in Dubai refer to businesses that are established and registered within the boundaries of the Dubai mainland. The United Arab Emirates categorises its area as mainland, free zone, and offshore to provide legal, tax, and regulatory advantages to businesses depending on their specific needs.
Mainland companies operate within the UAE’s local market and are subject to federal laws and taxes. Freezone companies get the advantages of tax exemption and 100% foreign ownership. Whereas offshore companies are designed for international investment and asset protection, offering confidentiality, low taxation, and minimal reporting requirements. This categorisation allows businesses to select an ideal place to set up and operate their business.
Advantages of Mainland Company
Among the various business structures available in Dubai, setting up a mainland company holds significant appeal due to its flexibility and opportunities. Here are some reasons why you must set up your business on the mainland –
- Mainland companies are allowed to operate within the local UAE market as compared to free zone companies, which are generally limited to their specific free zone area.
- Companies here are free to trade in any currency without restriction, which means they can be involved in international trade by having this plus point.
- The mainland has evolved creating trust among their clients. Therefore, By getting a mainland company licence you increase your business’s credibility and trust in the UAE market.
Earlier it was mandatory to have a local sponsor in UAE that would hold 51% of the company share. However, a foreign investor can now hold 100% of the company’s ownership for 2000+ commercial activities in the UAE. The local sponsorship can be assigned to the company setup service providers and Dubai mainland offers flexible legal arrangements for the profit sharing among them. For instance, they have the option to pay a fixed annual fee instead of making them a shareholder of the company.
In 2018, the Dubai Department of Economic Development (DED) witnessed a significant increase in business-related activities, with a total of 248,769 transactions recorded. Among these, 20,467 new licenses were issued, marking a 4.6% growth compared to the previous year.
Recent statistics from the Dubai Department of Economic Development (DED) show that in 2020, the department processed 312,000 business registration and licensing transactions, an impressive 22% increase compared to the previous year. In 2018, the Dubai Department of Economic Development (DED) witnessed a significant increase in business-related activities, with a total of 248,769 transactions recorded. Among these, 20,467 new licenses were issued, marking a 4.6% growth compared to the previous year.
Frequently Asked Question
You can obtain a trade license by following these steps -
- Choose the type of your business. (Private joint stock company, Limited Liability Company, Limited Partnership, etc.)
- Register a trade name for your business.
- Rent an office space anywhere in the UAE, as there is no restriction on location to set up a mainland company.
- Prepare all the necessary documents
- Submit your application to the Department of Economic Development (DED)
- Wait for the approval and receive your trade license.
Dubai Economic Department (DED), the Ministry of Economy, the Department of Tourism and Commerce Marketing (DTCM), and various other government departments and authorities depending on the nature of the business.
Legal structures for mainland companies include Sole Proprietorship, Limited Liability Company (LLC), Public Joint Stock Company (PJSC), Private Joint Stock Company (PrJSC), and Civil Company.
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