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Is company formation in Dubai mainland beneficial for your business?

Making a decision to start a business in the Emirates and then deciding on the economic zone is one of the most important decisions. Let me give you clarity on how beneficial it would be for you if you choose to start your own business on the Dubai mainland. 

Dubai mainland is one of the most preferred zones to start a business in the UAE. With the introduction of the recent 100% ownership in Dubai mainland, foreign investors are majorly attracted to the scenario of starting their business on the mainland. However, the regulation is entirely dependent on the type of business you intend to establish in the UAE. Some businesses can have 100% foreign ownership, while others require a local sponsor to obtain 51% local and 49% foreign ownership.

Establishing a mainland entity on the Dubai mainland can be a very profitable investment opportunity. So what are mainland companies like in Dubai? Mainland entities are businesses that are permitted to operate and function anywhere within the geographical area of the UAE. Dubai mainland allows you to select from the following business structures- 

  1. Limited partnership
  2. Limited Liability Company (LLC)
  3. Public joint stock company (PJSC)
  4. Private joint stock company (PrJSC). 

To conduct your business activity in Dubai mainland you will need to apply for a mainland business license which is issued by the DED (Department of Economic Development). Having a Dubai mainland license gives you the freedom and flexibility to expand your business in the UAE and beyond. 

Major benefits of starting a business on Dubai’s mainland

  • 100% Ownership

Foreign investors can hold 100% ownership of their companies in Dubai Mainland. This means that no local UAE national is mandatory for business registration.

  • Strategic Positioning

When it comes to the Middle East, the UAE plays an important role. It permits business investors to enter other GCC countries and helps to expand commercial activities. This is possible when you have a business setup in Dubai mainland. 

  • Easy to import and export

Easy access to neighboring and global markets by land, sea, and air to help with business. 

  • No restrictions on the number of visas 

In contrast to other activities, there are no restrictions on visa applications for business owners in Dubai Mainland. 

  • Exemptions from taxes

Corporate and income tax exemption is a major benefit for investors looking to set up their business on the Dubai mainland.  

  • 100% capital and profit repatriation

With a business setup on the Dubai mainland, you are allowed to easily transfer your share of capital or company profit to your home country. 

What is 100% ownership in Dubai mainland?

Previously, you needed a local sponsor, better known as an Emirati national who would hold 51 percent of the company’s shares. Applicants had to meet a number of stringent standards in order to qualify for foreign ownership exemptions. It comprises substantial share capital as well as UAE national employment.

However, this regulation was amended in June 2021, according to the UAE Ministry of Economy. International investors can now have 100% ownership in Dubai mainland and incorporate their onshore corporations. This is beneficial for all SMEs and budding entrepreneurs who want to own firms on the Dubai mainland.

Benefits of 100% ownership in Dubai Mainland

With the amendment of the 100% ownership law by the government, it has become easier for business owners to establish their business in Dubai mainland. Some  benefits are listed below-

  • 100% ownership is particularly enticing to business owners. This will eliminate the need to look out for a local sponsor in the UAE, thus making the process simpler.
  • Investors who were affected by the covid-19 epidemic stand to benefit greatly from the establishment of 100% ownership in Dubai mainland.
  • Currently, no firm formation, resident visa, or local sponsor is required. 

Steps for a business setup in Dubai mainland

Starting a business on the Dubai mainland involves the following steps-

  • Identifying desired business activity
  • Choose an appropriate legal structure
  • Register your business name
  • Requesting for initial approval
  • Creating a Memorandum of Association (MoA) and a contract with a local service agent
  • Choose a company location and get the agreement registered with Ejari.  
  • Obtain additional government approvals
  • Documents must be submitted and fees must be paid.

Ready to start a business in Dubai? Let RadiantBiz assist you

RadiantBiz is among the leading business setup consultants in Dubai. All of our clients benefit from our skilled and expert advisors’ extensive industry knowledge and experience. If you wish to have 100% ownership in Dubai mainland, we are the best business consultant to guide you through it. We can advise you on how the new law will benefit your business and how to smoothly manage the entire process. Connect with us today!

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