If you want to win the corporate battle in the competitive world, a business setup in Dubai Mainland can be your perfect decision to date. The Emirate’s government has made new corporate laws and approval of trade licenses more flexible and accessible than ever before. Therefore, business setup in Dubai Mainland is the new trend among entrepreneurs and investors.
As per the recent amendments in FDI regulations, you don’t need any native sponsor for company formation in Dubai Mainland. Even foreign investors can leverage total ownership of their business with reasonable trading license costs in Dubai mainland.
In this piece of writing, we will discuss the entire roadmap and remarkable perks of having a business setup in Dubai Mainland. Let’s discuss this in detail.
What is Dubai Mainland?
The geographical domain in which the corporate sector enjoys the liberty to carry out its business activities under the license of the Dubai Economic Department (DED) is called Dubai Mainland. Dubai Mainland is the primary location where offshore investors can create and continue their business. Some of the most adapted business ideas in Dubai Mainland include Food Franchises, retail businesses of luxury items, auto manufacturing, trading of exotic items, etc.
The areas that are considered Dubai Mainland corporate zones and considered the perfect location for company formation in Dubai Mainland include:
- Sheikh Zayed Road
- Al Karama
- Business Bay
- Deira
- Al Quoz
- Bur Dubai
- Al Qusais
- Jumeirah
Benefits of Company Formation in Dubai Mainland
There are numerous perks to having a company formation in Dubai Mainland. A corporate setup in Mainland is destined for long-term success. Below are some potential reasons that push offshore investors to opt for a business setup in Dubai Mainland.
- Hassle-free & quick registration process
- Freedom of local and international business activities
- A perfect territorial domain for fast-paced business activities
- No Corporate Tax
- Skyrocketing & sustainable UAE economy
- 100 percent business ownership (after the recent amendment)
Facilities Available in Dubai Mainland
Contrary to the Dubai Free Zone, the most attractive reason to have a company formation in Dubai Mainland is the absence of any geographical boundaries or limitations on your trade and corporate operations. Traditionally, the only bottleneck of company formation in Dubai Mainland was the lack of 100 percent ownership. The offshore business owners had a maximum cap of acquiring 49 percent of their business equity unless the circumstances meet the following criteria:
- Either the business setup is based in Dubai Free Zone
- Or company formation in Dubai Mainland to offer professional services
Most recently, (His Highness) Sheikh Mohammed bin Rashid Al Maktoum has granted permission (based on the provisions of Federal Decree-Law No. 26 of 2020 amending the provisions) for 100% ownership of mainland business in Dubai by offshore investors. 100% ownership of an offshore business in Dubai mainland opens new opportunity corridors for your business in skyrocketing UAE economy.
Dubai Free Zone is an ideal choice for most entry-level SMBs. Whereas, after an amendment to the ownership law, it is recommended to shift your company to Dubai Mainland.
Note: Some strategic business areas like the oil and gas industry, still restrict you to partner with local investors.
Best Businesses to Start in Dubai Mainland
If you are gearing up to launch your company formation in Dubai Mainland, below are fruitful recommendations that you must consider as potential niches for your new business.
- AEC Industry
- eCommerce business
- Travel Agency
- Food Industry
- Real Estate
- Healthcare
- Lifestyle & Cosmetics
- House/Office cleaning
How to Setup Business in Dubai Mainland?
Below is the entire roadmap to setting up business in Dubai Mainland without any hassle and roadblocks.
1. Choose your Business Industry
The foremost factor to finalize is to choose a industry for your company formation in Dubai Mainland. You can go through the list of full-ownership business activities declared by Dubai’s Department of Economic Development. Contrary to the free zone companies that are abstained from particular business and trade activities, Dubai Mainland companies can leverage the liberty to trade in more DED-recognized niches with 100 percent offshore ownership.
2. Choosing the Mainland Location in Dubai
Once you have finalized your industry, the leading step is to opt for the right jurisdiction for your company formation in Dubai Mainland. The laws and regulations are absolute in all Dubai mainland territories that we discussed in the first section of this blog. The perfect location for your business is based on your budget and target market. For instance, if your business relies mainly on imports/exports of goods, try setting up your business near a port area like Jebel Ali. You can also have the freedom to open branches in several Mainland territories by company formation in Dubai Mainland.
3. Choose your Business Name
Opting for the right business name that aligns with your mission and vision is of utmost importance. You need to keep note of some reservations in this regard. For instance, double-meaning phrases, religious or sectarian inclinations, or similarities with other brand names are strictly prohibited. Therefore, it is recommended to opt for unique labels to use as your brand identity.
4. Application for Trade License in Dubai Mainland
The next step is to apply for a Trade license in Dubai Mainland to DED. Before jumping on a bandwagon, check out the following documents required for business setup in Dubai Mainland.
- License Application
- Attested LLC agreement
- Business Name reservation & initial approval documents
- Tenancy agreement
- EJARI certificate
- Copy of Passport with a valid visa for all stakeholders
- Dubai Chamber of Commerce & Industry Registration
5. Finalize your office location
After getting your Dubai Mainland trade license, the next step is to finalize your office space. It is recommended to opt for serviced offices as they are furnished and maintained by a 3rd party with the necessary furniture and equipment. If you have enough budget to maintain and decorate your office according to your wishlist, you can also choose unfurnished office spaces for rent.
6. Visa Applications
There’s no upper or lower cap on Dubai mainland visa applications for foreign investors. But you are allowed to submit visa applications for your employees that must match your office space. As a rule of thumb, 100 square feet of space in an office or inventory location per employee application is allowed. There is flexibility for companies with remote employees working from their homes or different cities.
License Options & Cost in Dubai Mainland
Depending on your industry or business niche, you can choose from three different types of licenses to register your company in Sharjah:
- Commercial license – For businesses involved in frequent import/export of goods
- Professional license – For businesses offering professional services like cleaning services, decoration services, wedding planning, consultancy, etc.
- Industrial license – For businesses involved in small or large-scale manufacturing of goods
Cost to Setup Business in Dubai Mainland
There’s no absolute trading license cost in Dubai Mainland. It solely depends on the scale and nature of your business. For an idea, the range varies from AED 15000 to AED 35,000 for mid-sized businesses, which is comparatively higher than the cost of getting a license in the Dubai Free Zone. Some additional expenses include maintenance costs, office rent, visa fees, etc. To keep your budget expenditure under control it is recommended to opt for any renowned business formation service in Dubai.
How Airzone can help you set up a business in Dubai Mainland
Company formation in Dubai Mainland demands an in-depth understanding of the UAE’s corporate laws and regulations. To make your business setup drive in Dubai Mainland it is recommended to opt for business formation services to make your venture seamless and quick. An experienced and well-reputed business formation service can help you with all liabilities of having a company formation in Dubai Mainland.
Airzone offers valuable resources to equip SMBs and Enterprise-grade businesses with the necessary knowledge and information necessary for Company formation in Dubai Mainland. Airzone can help you find the right business formation service in Dubai.
Whether you want to start a new company in Dubai Mainland or shift your company from Dubai Freezone to Dubai Mailnad, we can help you choose the right service from our dedicated portfolio.
Conclusion
Business setup in Dubai Mainland is attracting more offshore investors after the amendment in ownership laws. With zero income tax and 100 percent business ownership, Dubai Mainland has emerged as a parallel twin of Free Zones in Dubai with more flexibility in business activities. Based on your target market, you can choose to set up your Mainland company in the most attractive business avenues including Jabel Ali, Sheikh Zayed Road, Deira, and Bur Dubai.
If you want to learn more about Business Setup in Dubai, we have a comprehensive guide for you. With a thorough understanding of the UAE’s business scene, you should be well prepared to establish a company in the country.