Mainland Company Formation in Dubai
Dubai has always been the top choice for international investors who are looking to start a new business or expand an existing one. This is because of its prime location and connectivity to all the major countries worldwide. Furthermore, Dubai mainland is a very popular location throughout the UAE, when it comes to setting up a business in the Emirates.
Business setup in Dubai Mainland should be at the top of your list if you are a budding entrepreneur because it offers a flexible legal system as per the UAE government policies. The Dubai mainland symbolizes the most developed economies that are efficient at offering resources needed to carry out smooth business activities. However, you need to obtain a license to begin with the Mainland Company formation in Dubai. The license can be acquired from the Department of Economic Development (DED), Dubai.
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Documents Required for Mainland Company Formation
Submitting the right documents is essential to ensure that you get your business setup license for setting up in the mainland.
Benefits of Mainland Company Formation in Dubai
Get the benefits of owning a mainland business license in Dubai. One of the key benefits of forming a mainland company in the UAE is that it allows for 100% foreign ownership. This means that non-UAE citizens or entities can fully own and operate the company without the need for a local sponsor or partner.
100% Ownership
HH Sheikh Mohammed bin Rashid Al Maktoum has lately permitted 100% foreign ownership of mainland UAE companies.
Strategic Location
With mainland license business investors can enter other GCC nations, this advantage will help in the growth of business.
Easy Import & Export
Easy access to neighbouring and global markets by land, sea and air to help with the business.
No Limit on Visa
Unlike other activities, there is no limit on visa applications for business owners in Dubai Mainland.
Tax Exemptions
100% tax exemption on personal or corporate income or gains. 100% repatriation of capital and profits.
Eligibility for UAE Govt. Contracts
Companies with mainland licenses can apply for UAE government contracts & can work on Government projects.
How to Register for Mainland Company in Dubai?
A business setup in Dubai Mainland is one of the most famous choices for people all over the world. Trade freedom is what attracts people to set up here. Furthermore, the amendment allowing 100% ownership of Dubai mainland business for an expat is a plus point.
Select Business Activities
Choose an Appropriate Legal Form
Register Trade Name and Request Initial Approval
Draft MOA and Local Service Agent Agreement
Choose Preferred Business Location
Acquire Necessary Government Approvals
Submit Documents to Respective Authorities
Pay License Fee for Company Formation
Get Trade License from DED (Within 24 Hours)
Amendment in Mainland License in Dubai
With the new amendments issued by the UAE government, we can conclude that the emerging companies can now hold a 100% Ownership in Dubai Mainland. Therefore, any foreign or local individual can now fully own a mainland business setup in Dubai.
100% Foreign Ownership
As per new law, no foreigners are required a local emirati to form their company under mainland license.
Increased IPO Share Limit
Now any joint stock business can sell 70% of its shares in an IPO (Initial Public Offering). This was 30% earlier.
Legal Protection for Shareholders
Shareholders now have the right to take legal action if the enterprise participates in an activity that causes the company to lose money.
Open Meeting Management
All the company meetings are now no longer necessary to be officiated by an Emirati. Hence it is open to all expatriates.
Electronic Voting System
The annual general meetings can now include a new way of voting, i.e. the electronic voting (due to the pandemic).
Power Abuse Prevention
If leading officers or company chairpersons abuse their power, they can be removed from their positions.
Important Points to Remember While Setting Up Business in Dubai Mainland
There are various things that a person should keep in mind while they are opting for their Business setup in Dubai mainland. Since the company decides the future of your business and even yours in the emirates, keeping in mind a few factors would be beneficial.
Legal Framework
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The law issued by the UAE cabinet now permits 100% foreign ownership of the onshore companies located on the UAE mainland.
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Now any joint stock business can sell 70% of its shares in an IPO (Initial Public Offering). This was 30% earlier.
Corporate Governance
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Shareholders now have the right to take legal action in the court if the enterprise participates in an activity that causes the company to lose money.
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All the company meetings are now no longer necessary to be officiated by an Emirati. Hence it is open to all expatriates.
Modern Practices
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The annual general meetings can now include a new way of voting, i.e. the electronic voting.
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If leading officers or company chairpersons abuse their power, they can be removed from their positions.
Economic Vision
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Building a favorable legal environment for business establishment in the UAE, aiding in the ease of doing business and the overall economy.
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The UAE aims to put a positive spin on its global market appeal by eliminating existing obstacles and widening the economy.
Future Focus
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Making sure that the future of the economy is safe and secure by increasing investment and commercial opportunities for foreign investors.
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Meeting the demands of the UAE business community as they uplift the country's appeal to expat investors, businesses, startups, and other entities.
Types of Company Formation in Dubai Mainland
Selecting the legal form your company can be challenging and demanding. Owning the sole proprietorship is a necessity that can help the business setup in the long run.
Sole Proprietorship
Only one individual may own a sole proprietorship. When it comes to the business, the owner has all control and ownership.
- Any nationality for professional activities
- UAE/GCC citizens only for industrial/commercial activities
General Partnership
A general partnership is formed when two or more UAE citizens come together and assume joint responsibility for the partnership's debts. Transferring a partnership stake requires the consent of all partners.
Limited Liability Company (LLC)
- Up to 50 shareholders allowed
- Shareholders accountable for their respective firm shares
- Requires 1-5 managers
Representative Office
Branch offices share the same name as their parent company. Foreign businesses can establish representative offices in the UAE to spread the word about their products, but they are not allowed to conduct business here.
Public Joint Stock Company
- Suitable for banking, insurance, or financial activities
- Minimum 25% public shares required
- Minimum ten founding members needed
Private Shareholding Company
- Suitable for any type of business or sector
- Requires minimum three GCC or UAE citizens
- Can go public after two years of formation