The business setup in Dubai mainland could be the right decision for you, provided the flexibility it offers to trade both within the UAE and internationally. Besides, the business owners have the choice to select from more than 3,000 business activities. But what exactly constitutes a mainland company formation in Dubai, and how can it be beneficial? Let’s find out in this guide.

Business setup in Dubai mainland

A mainland is a legal jurisdiction overseen by the Department of Economic Development (DED) of the respective Emirate in the United Arab Emirates. Businesses registered in Dubai mainland are supervised and licensed by Dubai DED. Mainland company formation allows business owners to trade within the local market as well as outside the UAE without any restrictions.

Key features of mainland company formation in Dubai: –

• Operational flexibility – Mainland entities are not restricted to a specific zone and can operate anywhere within the UAE and abroad.
• An array of activities – The DED approved a broad range of business activities for Mainland companies. This allows them to expand or change their scope by including more activities in their operations.
• Government contract opportunities – Apart from trading with the UAE market, mainland businesses can also take up government contracts or projects and invite substantial growth opportunities.
• No ownership restrictions – As per the recent changes in the law, Mainland companies can now enjoy 100% foreign ownership in most sectors. This eliminates the need for a UAE national as a business partner. Although certain sectors still require local sponsorship, such as the oil & gas industry.
• Global trading – Unlike free zone companies, Mainland businesses have limitations in trading, and therefore, can engage freely in both local and international trade.
• Ability to grow – Mainland businesses are allowed to open multiple branches across Dubai and other Emirates. It helps them increase their operational reach and presence within the country.

Thus, entrepreneurs and investors often choose business setup in Dubai mainland to have a robust presence in the diverse market and benefit from the dynamic environment of the UAE.

Benefits of business setup in Dubai mainland

There are numerous advantages to forming a company in Dubai Mainland.

• Strategic location – The strategic location of Dubai makes it a gateway between the East and West. This allows businesses to access markets across Europe, Asia, the Middle East, and Africa through excellent air, sea, and land transport links.
• No trade restrictions – Mainland companies can trade anywhere within the UAE. Besides, they are not restricted to who they can do business with, unlike free zone companies which are generally restricted to operating within their specific free zone and with international markets.
• Diverse sectors – Dubai is strong in various sectors other than oil, such as real estate, construction, tourism, hospitality, technology, and finance. Hence, owners of Mainland can avail themselves of a wide array of opportunities for diversification and growth by operating in nearly any industry.
• Eligibility for government contracts – Mainland companies can bid for lucrative government contracts in sectors like infrastructure development, health care, and education. This opportunity is unavailable for free zone entities.
• 100% foreign ownership – Previously, foreign entrepreneurs had to find a UAE national to hold at least 51% ownership in their mainland company. However, with the recent changes in the law, they can avail full ownership of their company, provided they do not fall under the exception category. 
• Ease of doing business – The regulatory environment of Dubai facilitates ease of doing business, creating a conducive atmosphere for business establishment and growth. Even the government is committed to improving business policies to attract foreign investments.
• Ability to Issue multiple visas – The visa quota for mainland companies is unlimited, depending on the size of the office and the nature of the business. This facilitates businesses that require a large workforce.
• Networking opportunities – Business setup in Dubai mainland provides access to a large pool of potential clients, partners, and other global businesses.
• Banking facilities – The robust banking facilities of Dubai are conducive to business operations. It supports both the local and international banking needs of companies. Mainland companies can easily access corporate bank accounts and loans.

Process of Mainland Company Formation in Dubai

Business setup in Dubai Mainland involves a systematic process managed by the DED. Below are some of the key steps involved in the procedure: –

Choose your preferred activity

Before initiating the process of business setup in Dubai Mainland, it is crucial to determine the activity you want to engage in. The DED has approved a comprehensive list of over 2,000 business activities across various sectors, such as trading, agriculture, hospitality, manufacturing, and more. Unlike Free zones, mainland companies are not restricted to a specific activity.

Find an ideal location

Next, choose a suitable location on the Mainland for your business. Unlike Free zones, mainland companies can establish themselves anywhere within the UAE. This decision is crucial as it can impact the success and growth of your business. Hence, it is advisable to conduct thorough research or consult with the experts of Shuraa Business Setup to ensure that the selected location corresponds with your business objectives and operational needs.

Determine your structure

Select an appropriate legal structure for your Mainland company. The various options available in the region cater to different business needs. For example, Limited Liability Company, Professional services company, etc. Hence, make a choice wisely as it affects your operational capabilities, legal liabilities, and tax obligations.

Find a local sponsor or service agent

Mainland Dubai often requires foreign entrepreneurs to engage with a local sponsor or service agent while establishing a commercial or industrial LLC. As per the new reforms, Mainland companies can get 100% foreign ownership for specific sectors. However, the business owner will require a local service agent who will assist them with government procedures and paperwork without having an equity stake in the business.

Name your company

Choosing the right name for your company is crucial as it can significantly impact your brand image in the market. However, there are specific guidelines to this process, and business owners must follow them to ensure their trade name is properly registered.

Apply for a license

The license application process in Dubai Mainland is overseen by the Department of Economic Development (DED). To obtain a business license, the business owner needs to submit certain documents including a license application, company MOA, ownership details, shareholder information, etc. To ensure a successful license application, the business owner must ensure that all paperwork is accurately filled out and the specific regulations and requirements are duly met.

Secure an office space

After securing a trading license, find an office space in the UAE mainland. The types of office facilities available in the region are – serviced offices, core offices, and pre-fitted offices. The office space you choose will significantly impact your operations, staff morale, and client opinions.

Once your mainland business is set up, apply for relevant visas and start a corporate account in a Dubai bank.

Shuraa can assist you with business setup in Dubai mainland

If you are planning a Mainland company formation in Dubai, the experts at Shuraa Business Setup will offer valuable assistance throughout the process and cover every aspect, from selecting the right activity to applying for the necessary visas. Overall, they will ensure that all legal and regulatory requirements are fulfilled competently.

Contact Shuraa today and start your entrepreneurial journey to Dubai with confidence.