HOW TO SETUP MAINLAND COMPANY IN DUBAI: GUIDE + CHECKLIST
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In the last 40 years, the UAE has diversified its economy to allow
international business opportunities in a variety of sectors. There are
numerous incentives available to new, experienced, and budding businesses,
thanks to the government’s flexibility in making it easy to form
a company in Mainland Dubai.
Benefits of Mainland Company Formation in Dubai:
- 100%
foreign ownership of businesses
- Visa
extensions for entrepreneurs
- Taxes
are extremely low, with corporate taxes practically nonexistent
- There is
no withholding tax
- Supporting
the formation of new companies by providing funding and support
- The most
prosperous economy in the world thanks to its great infrastructure and
business environment
Business Opportunities in the UAE are mainly found in
three jurisdictions:
What is the UAE Mainland?
Typically, business operations take place on the UAE mainland,
which is the epicenter of most business activities. It is also known as an area
for forming offshore companies. Business entities are allowed to conduct their
business functions freely on the UAE mainland in accordance with the Department
of Economic Development (DED) of the respective emirate.
Mainland Company formation in Dubai from Free Zone:
Looking to convert your business from a free zone to Mainland, our team
is here to help you transition from a free zone to a mainland Dubai
company if you are currently in a free zone. There are currently over
30,000 companies trading from the three largest free zones in the
UAE.
There are pre-packaged business inclusions available to foreign
entrepreneurs setting up in a free zone. However, there are limitations to this
model for business owners. When it’s time to expand, UAE businesses should
switch to mainland companies from free zone companies. A mainland company is
crucial to the success of a business. A sharp and manageable move from a free
zone to the UAE mainland is possible with the right UAE national sponsor or
company formation specialist.
Checklist on How to form a mainland company in the
UAE:
1. Identify your business activity
Choosing the industry in which you will trade is the first step in
setting up a company on the UAE mainland. The Department of Economic
Development (DED) lists thousands of permitted business activities. Among them
are trading, agriculture, hospitality, manufacturing, etc.
2. Find the right location for your business
After choosing your business activity, it’s time to decide where you
wish to operate or where you want to do the business
setup in the Dubai mainland. There is no restriction. There are
many factors to consider when choosing the right location, such as budgeting
and the type of business you plan to run. Mainland company formation in
Dubai is not an easy task, but we can help you.
You can also open branch offices easily in Dubai if you set up your
business there. The result is that businesses are no longer limited to one
location and can establish a large local presence over time.
3. Establish the legal structure of your business
It is possible for foreign entrepreneurs to set up several types of
businesses on the UAE mainland from a legal standpoint. LLC
Company Formation is the most common business
structure on the mainland. LLCs are independent legal entities owned by two or
more shareholders. If a company wishes to trade under a commercial or
industrial license (including manufacturing and industrial activities) on the
UAE mainland, it must form an LLC.
4. Get in touch with a local service agent or sponsor
Prior to this, foreign entrepreneurs could only form mainland companies
in Dubai by partnering with a sponsor or local service agent. As an LLC, you
are required to have a local sponsor if you are trading under a commercial or
industrial license. Alternatively, your local sponsor can be a UAE-based
company or a UAE national. 51% of the business will be owned by the local
sponsor in both cases.
In order to act as your Local Partner, Clever Corp Business Setup
Consultants can nominate a Corporate Nominee on
your behalf. You retain 100% control over the business operations and finances
and are protected from any risks. In mainland China, only a local service agent
(LSA) is needed to establish a professional company.
5. Choose a company name
It is vital that the company name conveys the values and brand of your
company. The UAE has several considerations to take into account. It is
prohibited to use offensive language, make religious references, or make
inferences about other organizations. Your company name can only contain your
full name. You must write your company name as it sounds, rather than
translating it to another language
6. License for Mainland trade application
The Department of Economic Development has now received your application
for a Dubai
mainland license. Trade license applications require several
documents. There are a number of these documents, including a license
application, sponsor agreement, ownership percentage among partners, and
shareholder visa.
7. Make sure your office space is secure
When you’ve obtained your business permit, it’s time to secure
office space. A serviced office on the UAE mainland is
usually owned and maintained by a third party and includes everything you need
to get started right away. Typical inclusions include desks, phone and internet
access, and reception services. Lease payments usually cover rent, office
equipment, and utility bills. A ‘shell and core’ office space is the
other end of the spectrum.
8. You need to apply for the relevant visas
Business owners in the UAE mainland do not have a limit
on mainland visa applications. There should be a correlation between the number
of visas applied for and the amount of office space needed. A typical area is
100 square feet. A minimum of 1,000 square feet of office or warehouse space is
required per visa. In some cases, this may not be applicable. Compared to a
textile or manufacturing company, a domestic cleaning company with 500+
employees would require significantly less office space.
9. Hire a business setup consultant to help you set up your
company
It is important to understand the legal and company formation processes
in the UAE before setting up a mainland company. It is easier for overseas
entrepreneurs to set up a company when they work with a UAE-based
consultant. Business consultants can help you achieve your business goals
and help in mainland company formation in Dubai or UAE by collaborating with
you. By doing this, you will gain confidence in starting a successful business
on the UAE mainland.
Wrapping Up:
You can customize all of the above services based on your business’s
needs. We offer additional complementary services post-Mainland Business Setup
in Dubai/UAE that set us apart from the competition. Besides Sharjah, Ajman,
Ras Al Khaimah, Fujairah, and Umm Al Quwain, our business setup consultants at Clever
Corp are also experts in incorporating
mainland companies. Our services do not end with
setting up your business in Dubai; we also guide you afterward on how to take
it forward and provide you with everything you need. For more information
about Mainland Company formation in Dubai.
Contact us
Email id – info@theclevercorp.com
Contact no – +971 586412034
Original Source: https://theclevercorp.com/setup-mainland-company/
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