No doubt why Dubai has earned a top rank for being a favorable business destination worldwide. Dubai’s skyline, pro-business policies, tax benefits, and lavish lifestyle have made it an entrepreneur’s favorite spot. Among these options, business setup in Dubai mainland remains a top choice. But hold on! What exactly is mainland business setup Dubai? That’s what we will be discussing right here in this article.
Mainland company formation is a type of business setup in Dubai established on Dubai’s jurisdiction “mainland.” It brings with it many opportunities for business owners. Let’s see why mainland could be an ideal choice for your business setup in Dubai. We will also quickly go through the process of getting started there.
Mainland business setup in Dubai
The areas that lie outside the free zones in Dubai constitute the mainland. Companies established on the mainland enjoy flexibility in trade, allowing them to operate anywhere across the Emirates. They can also conduct business outside the country’s boundaries. All mainland companies are governed and licensed by the Department of Economic Development (DED). The DED sets the regulations and laws that businesses on the mainland are required to follow.
What businesses can be set in mainland
There are over 2,000 business activities permitted by the Department of Economic Development (DED) that can be pursued on the mainland. These activities span a wide range of industries and sectors, including education, IT, finance, health, science, marketing, arts, media, and more. Depending on the activity you choose, you will need to obtain the appropriate business license for the mainland. Broadly speaking, there are three main categories of mainland business licenses:
1. Industrial License:
For those looking to start a manufacturing firm or an industry-related business on Dubai’s mainland, obtaining an industrial license is essential. For example, food manufacturers or textile processors would require this license.
2. Commercial License:
Businesses planning to engage in buying, selling, importing, exporting, and trading commodities and goods in mainland Dubai must obtain the DED commercial license. For instance, a retailer would need this license. A wide variety of products can be traded, including clothing, accessories, jewelry, furniture, and electronics. However, there may be restrictions on specific products.
3. Professional License:
Professionals who want to set up their businesses in Dubai and render services based on their education and expertise must obtain a professional license. For example, a healthcare worker, a nutritionist looking to run a clinic, or a consultancy firm would require this type of license.
Why Choose Mainland Business Setup in Dubai?
Now let’s get to the motivational part. Why should you consider a business setup in Dubai mainland? What are the benefits that mainland companies in Dubai enjoy? Let’s take a look, and you’ll see for yourself:
1. Freedom in Trade:
With a mainland business setup, you get the freedom to trade freely across the UAE and internationally.
2. Flourishing Economy:
Dubai’s economy is witnessing remarkable growth. In fact, the UAE is considered one of the most stable economies globally. This makes it a prime location for businesses to flourish and thrive.
3. Wide Business Options:
The DED permits a wide range of business activities on the mainland. This means you can choose an activity that aligns with your interests and is profitable.
4. Ownership Benefits:
Recent changes in UAE laws now allow many activities on the mainland to have 100% foreign ownership. This means you no longer need to partner with a local sponsor, giving you full control over your business.
5. Tax Benefits:
Dubai offers a 0% personal income tax rate. Additionally, corporate tax rates are low, allowing businesses to save more and increase their profitability.
6. Unlimited Visas:
Business setup in Dubai mainland face no limits on the number of visas they can issue. However, eligibility depends on the size of the office space you have.
7. Access to International Trade:
Dubai’s strategic global position between Europe, Asia, and Africa makes it a launchpad for reaching vast international markets and creating a strong global brand presence.
8. Networking Opportunities:
As a hub for multinational corporations, big brands, and enterprises from diverse fields, Dubai offers immense networking opportunities to expand your connections and reach a broader clientele.
9. Access to Global Talent:
Dubai is a melting pot of cultures and skills. Businesses can easily find and hire top talent from around the world to fill critical roles and drive growth.
10. Ease of doing business:
Dubai pro-business environment, business friendly policies, and supportive government has made the process of starting and running a business there quite simplified.
Starting business on mainland: The process
Here are the steps that help you start your business setup in Dubai mainland successfully:
- Choose business activities: Decide what business operations you want to pursue. This also will dictate the type of license you will need.
- Decide the legal form: Decide the business structure of your mainland business setup Dubai. It can be a sole establishment, a limited liability company, a branch or representative office, a joint stock company or some other.
- Register trade name: Next you must select and register a suitable and lawful business name. You must make sure to respect UAE’s naming convention.
- Get the initial approval:Secure an NOC from DED, this initial approval for your business lets you go further with the business licensing procedure.
- Choose office space: You must rent out a suitable office space for your mainland business. Also, you must get the lease agreement of the premises registered on the Ejari portal.
- Get additional approvals:For some business operations, you need to get some approvals from the specialized departments like specific Ministries, government departments etc.
- Apply for the license: Finally, along with the required documents, you must apply for the mainland business license. For that, you must reach out to the DED and fill and submit the license application form. Documents you need include: passport and visa copies, passport sized photographs, business plan, bank statements, initial approval certificate, trade name registration certificate, NOC from local sponsors if needed, Ejari, attested company articles, etc.
- Visa and bank account: You may need to get appropriate visas for yourself, and your employees as needed. Also, you must open a bank account for your business setup in Dubai mainland for financial purposes.
Conclusion
Mainland company formation in Dubai is key to a world filled with opportunities. With business setup in Dubai mainland, you get to choose among a diverse range of business activities, can trade across the UAE and can take your business endeavors to next level. The procedure to setup a business on Dubai mainland may seem complex and tiring, but with the right support, it can actually be easy.
Dubiz Business Setup stands as UAE’s trusted setup advisory firm. With their years of experience and a team of dedicated professionals, they make the company formation in Dubai hassle free for their clients. From Dubai mainland business license to the visas and business bank account, they can handle everything on your behalf. Give them a call today!
