Dubai has fast become a trade and business center of the world with international businesspersons and investors flocking to the city. Dubai is the best place to explore business in because of its strategic geographic position, the state of the art infrastructure, business friendly policies, and a booming economy. The mainland business setup dubai is the most versatile and beneficial business structure in the UAE, and most importantly, in Dubai, where the long-term sustainability of an entrepreneur is required. The mainland of the city offers the benefit of enabling businesses to function both domestically and globally, as it is located in the UAE local market, and free zone entities are usually limited.
When choosing to have mainland company formation in Dubai, investors have the opportunity to access the entire market of consumers, government contracts and business partnership with other mainland companies. Moreover, it also offers credibility and brand awareness in the very competitive environment in the UAE. The process is facilitated by the ease of licensing process, tax incentives and transparent legal framework that is meant to encourage foreign investment. In the case of 100 percent foreign ownership (in most areas), no restrictions on business locations, and some additional opportunities in terms of scalability, entrepreneurs can enjoy the advantages of a mainland business establishment in Dubai. This article delves into details explaining why establishing a business in mainland Dubai is the most preferred choice to success in the long run considering all the relevant factors that render it a land of choice to international investors.
The Dubai Vibe of Mainland Company Formation.
A mainland company in Dubai is a legal entity registered at the Dubai Department of Economy and Tourism (DET) which was previously referred to as the Department of Economic Development (DED). The mainland businesses can operate in the local market of the UAE and even abroad. Mainland companies are not limited to geographical locations as opposed to free zone companies which are confined to their respective zones or even the outside of the UAE.
This has increased the attractiveness of mainland business formation in Dubai due to the enormous reforms made within the Ministry of Economy in the past few years, where foreign ownership of most business sectors is permitted to 100 percent. Depending on the business, entrepreneurs have available to them several types of legal entities that include the Limited Liability Companies (LLCs), sole establishments, civil companies and the private or public joint-stock companies. This creates flexibility in the way the investors can adapt their company structure according to operational and financial objectives.
Dubai Mainland Business Setup Advantages.
The option of establishing setup business in mainland Dubai offers an expansive list of benefits that translate directly into the success of the business in the long run. The significant advantages are:
1. Full Access to the UAE Market
Mainland firms are free to trade in the UAE market and this enables them to create a good customer base and thus create a presence in the emirates. The benefit is particularly vital to the company that depends on the local customers or government contracts.
2. Current Capacity to Tender Government projects.
In Dubai and the UAE at large, only the mainland firms are eligible to bid on the lucrative government contracts. Government project acquisition improves credibility, stability and growth opportunities, establishing your business as a reliable participant in the area.
3. None of the Geographical Limitations.
As opposed to free zone companies, the mainland entities are able to do business anywhere in the UAE and Dubai. This freedom enables the businesses to establish branches, showrooms and offices at strategic locations and enjoy maximum visibility and customer interaction.
4. 100% Foreign Ownership
Earlier foreign investors had to have a local sponsor who would have 51 percent ownership in companies in the mainland. Nevertheless, the recent changes in the UAE Commercial Companies Law provide the opportunity of the 100-percent foreign ownership in the majority of industries, thus, making the mainland company establishment in Dubai incredibly appealing to the foreign investors.
5. Endless Business Operations.
Mainland firms are able to conduct more business than the free zone ones and thus, they have the liberty to diversify and widen their business.
6. Agility in Workforce Recruitment.
Businesses in mainland are not as limited in hiring workers of any nationality. Also, they have the option of sponsoring as many visas as they can depending on the area of their office.
7. Tax Advantages
UAE is characterized by very favorable tax environment. Mainland companies enjoy 0 percent personal income taxes and low corporate taxes which guarantee profit maximization.
Available legal Structures to Mainland Companies.
When establishing a primary business in Dubai on the mainland, business founders would have to select an appropriate legal structure. The main options include:
- Limited Liability Company (LLC): The most widespread one, which implies liability protection and flexibility. It has at least one and not more than 50 shareholders.
- Sole Establishment: It is owned by one person and he bears the full liability. Also suitable to small business or professionals.
- Civil Company: Apposite to professional business like law, medicine or even engineering practice. Ownership can be 100% foreign.
- Private Joint-Stock Company (PJSC): It must hire at minimum three shareholders and is allowed to raise capital by the means of private share offerings.
- Public Joint-Stock Company (PJSC): It is appropriate when a large company is to be listed on the stock market.
- The requirements, liability and licensing procedures of the structures are different, and they must be carefully considered before going any further.
How to establish business in the mainland of Dubai.
The process of setting up business in mainland Dubai is very straightforward and controlled by the Dubai DET. The following is a stepwise description:
Step 1: Selecting a Business Activity.
Determine the nature of business activity (commercial, industrial, professional etc.) because it defines the licensing requirements and legal structure.
Step 2: Choose a Legal structure.
Select the right legal structure which could be LLC, sole establishment, or civil company.
Step 3: Register a Trade Name
Register and book a distinctive trade name in the Dubai DET portal. The name has to be in accordance with the UAE naming conventions.
Step 4: Secure Preliminary Sanction.
Apply to DET to have the initial approval to submit the necessary documents required to start a business, which means that the government does not mind your business.
Step 5: prepare Memorandum of Association (MOA).
Write and sign MOA and local service agent agreement (where applicable).
Step 6: Select a Business Location.
Get a physical office and rent contract and Ejari certificate.
Step 7: Obtaining a Business License.
Hand in all your documents to DET and acquire your commercial, professional, or industrial license.
Step 8: Registration with Dubai Chamber and ministry of labor.
Full registration with the government departments to allow hiring of employees and opening of corporate bank account.
The Important Things to Keep in mind to be successful in the long run.
Although the establishment of a company in Dubai on the mainland has many advantages, it is recommended that an entrepreneur consider the long term sustainability by keeping in mind the following:
- Market Research: Learn the local market dynamics, competition and consumer preferences.
- Compliance: Keep abreast with laws and visa policies of the UAE and taxes.
- Scalability: Select a business model and location to be able to expand in the future.
- Branding & Marketing: Spend on marketing to create brand recognition in the competitive UAE market.
- Financial Planning: Make sure there is adequate capital and develop a long-term financial plan that will manage the cost of operations and expansion.
- Professional Assistance: Use the services of the reputable business consultants or PRO that can facilitate documentation and legalities.
The best choice is to set up Mainland Company in Dubai.
Dubai has one of the best business destinations across the globe due to the constant revision of policies by the UAE government to ensure that the country is an investor friendly place to operate. When deciding on a mainland business establishment in Dubai, the entrepreneurs are granted the rights to full access to the booming economy of the UAE and the freedom to operate at full capacity and creditworthiness. The strategic positioning combined with the infrastructure of the world with the favorable business laws is the ideal environment to thrive over the long-term.
Contrary to free zone organizations, the mainland firms have an opportunity to access both local and international market with the intent of having diversified revenues. This capability to work with other businesses in the mainland and also be able to take part in government tenders is an added competitive advantage. Moreover, the abolition of the local sponsorship provisions has erased past ownership limitations and, therefore, international investors can now find it easy to stamp their presence in Dubai.
Conclusion
In a current competitive business world, business structure is an important decision in the long-term success. The mainland of Dubai provides an unrivaled growth, innovation and profitability platform. Choosing to establish companies in the mainland of Dubai not only makes companies have an open access to the UAE market but also enjoys the strategic benefits of eligibility to government contracts, flexibility to expand and a good taxation policy. Having smoother business set-up processes, high-level infrastructure, and an enabling business environment, Dubai remains the preferred destination of ambitious entrepreneurs.
As a founder of a startup or an established business planning to expand, investing in a mainland business establishment in Dubai is a great investment to make in the future. It provides the best blend of both freedom to operate and legal predictability and entry to a booming market, leading to a long-term prosperous growth. Today, with the right actions, your company can achieve success and prosperity over the decades in the dynamic business environment in Dubai.
