The Department of Economic Development has designated Dubai Mainland as the zone for all commercial activities carried out by private businesses. Conducting business under particular jurisdiction allows convenient movement of vehicles and its geographical coverage includes prominent parts of the city. Thus, setting up a business in Dubai Mainland offers a proximity of all expediencies.
Choosing Dubai Mainland for business setup provides several advantages. Nevertheless, unlike any other jurisdiction, this too, has its own limitations. One of the major drawbacks is that in the mainland, the businessowner does not have the liberty of 100% ownership of the company. According one of the provisions under the UAE commercial law, all mainland commercial companies must have a local partner or sponsor who owns 51% of the shares. However, this partner is a silent partner and does not interfere in your finance or operations. Therefore, businessowners do not consider this a setback. Instead, they opine that this local connection serves as an advantage. The Emirati sponsor is often able to provide a better insight on the regional market. Furthermore, this collaboration helps companies acquire more investments for business.
Below are some of the advantages of Business Setup in Dubai Mainland:
- There are no currency limitations nor restrictions for a business formation in Dubai Mainland
- Businessowners can regulate the company from any part of UAE under a Dubai Mainland business setup
- You have multiple options to choose when it comes to renting an office in Dubai as you can get into a tenancy in any part of the city
- You can participate in multiple business activities mentioned under your license
- You can have an exchange with any company without any limitations and you are free to conduct business
- No capital is required in order to acquire a Dubai license
- When it comes to registrations, there are no limitations nor barriers
- The recruiting process is simpler as there are no restrictions on the number of visas attained
- The city has an advantageous tax environment as there is no corporate tax nor personal income tax
- Processes such as licensing and registrations are comparatively easier and stable in this jurisdiction
- The process of company formation and incorporation is simpler
- Under the Mainland jurisdiction, yearly auditing is not required
- For certain types of companies, Dubai Mainland is the only option for making the business proceeding effective
Some aspects to bear in mind before setting up a business in Dubai Mainland:
- Finalising your business activity
- Getting your trade name approved
- Finding a reliable local agent or a business partner
- Obtaining initial permissions and approval from relevant authorities
- Drafting a Memorandum of Association (MoA) with the local partner and shareholders
- Leasing an office space
- Getting your tenancy contract attested
- Submitting documents required for trade license
In summation, it is not only the nominal procedure, a strategic location and some of the other benefits that make business setup in Dubai Mainland lucrative. Another basic factor for company formation in this jurisdiction is the need to get into a partnership with a UAE national. Most of the business owners have realised that having a local support is quite fruitful in terms of building their company’s recognition in the UAE market.
To know more about how to start a business in Dubai Mainland contact Business Setup now!
Shuraa Business Setup is a leading business setup consultancy offering customised solutions for A-Z business-related matters in Dubai as well as other parts of the UAE. For more information or to book a free consultation with a company formation expert, call Shuraa at +971 44081900 or WhatsApp on +971 50 7775554 for a call back.