Dubai’s reputation as a global business hub continues to grow, and one of the most popular options for entrepreneurs and companies is setting up a mainland business. The mainland company formation in Dubai allows businesses to operate freely within the local market and beyond. With numerous benefits, including access to a broad customer base and government projects, a mainland business setup in Dubai is an attractive proposition for both local and foreign investors.

In this article, we will explore the complete process of setting up a mainland company in Dubai, including the advantages, licensing requirements, regulations, and how Flyingcolour Business Setup can assist you in establishing your company with ease.

What is a Mainland Company in Dubai?

A mainland company refers to a business entity that is registered under the Dubai Department of Economic Development (DED). Unlike companies in Dubai’s free zones, mainland companies have no restrictions on doing business within the local market, allowing them to trade freely across Dubai and other emirates in the UAE. Mainland companies can also take on government contracts, which is a significant advantage for many businesses.

Mainland companies are governed by the UAE Commercial Companies Law (CCL) and must adhere to certain rules and regulations, such as appointing a local sponsor or shareholder in specific business categories.

Key Benefits of Mainland Business Setup in Dubai

Setting up a mainland company in Dubai offers a wide range of advantages that appeal to both local and foreign investors. Here are some key benefits of establishing a mainland business in Dubai:

1. Unrestricted Business Activities

Unlike free zone companies, which are limited to operating within their specific free zone or dealing internationally, a mainland company is allowed to conduct business across the entire UAE and even internationally. This means mainland businesses can access the local market and trade without restrictions.

2. Eligibility for Government Contracts

One of the most lucrative advantages of mainland company formation is the ability to bid for and win government contracts. Dubai’s government often outsources large projects to private firms, and only mainland companies are eligible to participate in these opportunities.

3. No Limitations on Office Location

Mainland businesses have the flexibility to set up their offices in any part of Dubai or other emirates. This flexibility enables companies to establish a physical presence in prime locations that align with their business goals.

4. Visa Eligibility

Mainland companies in Dubai can sponsor an unlimited number of employee visas based on the size of their office space. This makes it easier to expand the workforce as the business grows, without concerns over visa quotas.

5. Multiple Business Activities

The Dubai Department of Economic Development (DED) allows mainland businesses to undertake multiple business activities under a single trade license. This can significantly reduce costs and streamline operations, especially for companies engaged in diverse sectors.

6. No Capital Repatriation Restrictions

Mainland businesses have no restrictions on the repatriation of capital and profits, which is a huge advantage for foreign investors. They can easily transfer their earnings to their home country without incurring additional taxes.

7. 100% Foreign Ownership in Certain Sectors

With the recent amendments in UAE laws, 100% foreign ownership is now allowed in certain sectors and industries within the mainland, eliminating the need for a local sponsor in these categories. This has made Dubai even more attractive for foreign investors.

Steps Involved in Mainland Company Formation in Dubai

Establishing a mainland company in Dubai involves several steps, all of which must be carefully executed to ensure compliance with the UAE’s legal and regulatory framework. Here is a step-by-step guide to the mainland business setup in Dubai:

1. Determine Your Business Activity

The first step in setting up a mainland business is selecting the type of business activity you want to engage in. This is important because the type of activity determines the necessary licenses, external approvals, and any potential limitations.

Dubai offers a wide range of business activities, including trading, services, industrial activities, and consultancy. Each activity requires specific approvals from relevant government departments or ministries.

2. Select a Legal Structure

Choosing the right legal structure is critical for the formation of a mainland company. The most common structures available for mainland businesses include:

• Limited Liability Company (LLC): The most popular structure for foreign investors, an LLC allows foreign ownership of up to 49%, with a UAE national (local sponsor) holding the remaining 51%. However, under certain conditions, 100% foreign ownership may be allowed.

• Sole Establishment: For individuals engaging in professional or consultancy services, a sole establishment allows 100% ownership.

• Civil Company: Commonly used for professional services, a civil company is an option for those wanting 100% ownership without needing a local sponsor.

3. Choose a Trade Name

Once you’ve determined your business activity and legal structure, the next step is to choose a trade name. The trade name must comply with Dubai’s naming conventions, which include avoiding any religious or offensive terms and ensuring the name accurately reflects the business activity.

4. Find a Local Sponsor (if required)

In most mainland company structures, a local sponsor (UAE national) is required to hold 51% ownership. However, as previously mentioned, recent law changes allow 100% foreign ownership in certain sectors. For businesses that still require a local sponsor, the sponsor’s role is generally passive, meaning they do not have involvement in daily operations but are entitled to a fixed annual fee.

5. Obtain Initial Approval

The initial approval from the Dubai Department of Economic Development (DED) allows you to move forward with your business setup process. This approval ensures that your business activities and chosen legal structure comply with UAE regulations.

6. Draft the Memorandum of Association (MOA)

For certain company structures like an LLC, the next step is to draft the Memorandum of Association (MOA). This document outlines the ownership structure, capital distribution, and management responsibilities of the company. The MOA must be signed by all shareholders and notarized by a UAE notary public.

7. Secure an Office Space

To complete the company formation process, mainland businesses must lease physical office space. The office space requirements depend on the type and scale of the business. The authorities typically require an Ejari (tenancy contract) to be submitted as proof of a physical office location.

8. Apply for a Business License

Once all necessary approvals and documents are in place, you can apply for a business license. The Dubai Department of Economic Development (DED) issues the following types of licenses for mainland businesses:

• Commercial License: For trading and commercial activities.

• Professional License: For service-based businesses, including consultancy and legal services.

• Industrial License: For manufacturing and industrial activities.

9. Final Approval and License Issuance

After completing all the above steps, you will receive final approval from the DED. Once the license is issued, your business is legally registered, and you can start operations.

How Flyingcolour Business Setup Simplifies Mainland Company Formation in Dubai

Setting up a mainland company in Dubai can be a complex and time-consuming process, especially for foreign investors unfamiliar with local regulations. This is where Flyingcolour Business Setup comes in to provide expert assistance and ensure a hassle-free experience.

At Flyingcolour Business Setup, we offer a comprehensive range of services to help you establish your mainland business in Dubai. Our team of professionals has in-depth knowledge of the UAE’s legal framework and will guide you through every step of the process. Here’s how we can assist you:

1. Business Activity and License Consultation

We help you determine the most suitable business activity and license type for your business based on your goals, industry, and market requirements.

2. Legal Structuring and Documentation

Our experts assist with selecting the right legal structure, drafting the Memorandum of Association, and handling all necessary paperwork to ensure compliance with UAE law.

3. Local Sponsor Services

If your mainland business requires a local sponsor, we can help you find reliable and trusted local sponsors. We also ensure that the sponsorship agreement is clear and legally sound to protect your interests.

4. Office Leasing Assistance

We assist in finding suitable office spaces that meet the Dubai Department of Economic Development’s requirements, whether you need a full office setup or a flexi-desk arrangement.

5. PRO Services

Our PRO services handle all government-related transactions, including visa applications, document clearances, and approvals, so you don’t have to worry about navigating the bureaucratic process.

6. Post-Setup Support

We provide ongoing support after your company is registered, including trade license renewals, visa services, and government approvals.

Conclusion

Mainland company formation in Dubai opens up a world of opportunities for entrepreneurs and investors. Whether you aim to target the local market, bid on government contracts, or expand your business in the UAE, mainland business setup Dubai offers flexibility, scalability, and unrestricted access to a growing economy.

At Flyingcolour Business Setup, we are committed to making your business setup process as smooth and efficient as possible. With our expert guidance, personalized solutions, and wide range of services, we help you navigate the complexities of mainland business setup Dubai. Contact us today to take the first step toward a successful business venture in Dubai!