What are the benefits of mainland company formation in Dubai?
As a foreigner, you have two choices of jurisdiction for setting up a company in Dubai. You will decide between Mainland and free zone during the company formation process. Since it’s your first time making the choice, it’s normal to ask what the Dubai mainland company is and why you should set up a company in the mainland. What benefits you can expect from this decision.
Prospr understands foreigners and their questions pretty well. Thereby, we are here to answer all your queries one by one. First thing first, let’s clarify:
What is the Dubai mainland company?
Mainland company meaning a company established in a mainland area, which is an onshore area lies outside the free zones. Mainland area is regulated by the Department of Economic Development (DED). The main reason businessmen and entrepreneurs prefer mainland company setup in Dubai is because such entities don’t have any restrictions on their commercial activities.
A mainland company can be run by a single person or can have up to 50 partners. Once you setup a mainland company, you can engage in nearly all kinds of commercial activities.
At first you needed to hire a local sponsor for company setup in Dubai mainland. Learn everything about local sponsors (in case you have little or no info).
This sponsor or entity usually holds 51 percent share of the Mainland company. But the government has made changes in the legislation. Now as of 1st June 2021, foreigners can have 100 percent ownership of their businesses, in some commercial activities.
You still need to hire a local sponsor, if you run business in a strategically vital sector of UAE such as telecommunication, banking, finance, and national security.
Still confused whether your business need a local sponsor or not? No worries, email us hello@prosprplus.ae Our business consultant will clear your confusion in one session. Book as and when you like.
Benefits of mainland company formation in Dubai
Here are some advantages of starting a company in Dubai mainland:
No territorial restrictions for mainland company formation in Dubai
If you have an online business license, you can conduct business online. When you have free zone license, you can run business only within that specific free zone. But things change quickly with a Mainland license in Dubai. The reason behind its high cost is that it removes territorial restrictions.
Understand: Difference between Mainland and free zone company
In other words, once you set up a mainland company, you can run business anywhere in the UAE and world. You are allowed to conduct business anywhere and wherever you like. With mainland company formation in Dubai, you are allowed to purchase real estate with the company name. Another plus point is that you can rent property in any emirate.
No minimum capital requirement
Another benefit of setting up a business in Mainland Dubai is that you don’t need to fulfill minimum capital requirements. On the flip side, if you plan to open a company in a free zone, then you need to follow the minimum capital requirement set by free zone authorities FZA.
More favorable banking terms
The UAE government has launched flexible banking terms for foreigners. Now if as a foreigner you set up a company in Dubai mainland and you need loans or funds then you can obtain it with favorable terms. Once you have a Mainland company license and office space, opening a corporate account is a simple thing to do. After opening an account, you can try financing.
Must read: How to open a bank account as a foreign resident in UAE
Easy company expansion
Another benefit of opening a mainland company formation in Dubai is that expansion becomes super easy. Since you are allowed to do business anywhere, it is simple for you to open a new branch or office in other emirates and scale up your business the way you like.
Broad Business opportunities
When it comes to tapping on lucrative business ideas, certainly mainland companies open more options than free zones. There are 1000 types of commercial and industrial activities that you can opt for. Whether you want to set up a real estate company in Dubai or are thinking about starting a salon or gym, you can work on any of these ideas with utmost freedom.
Government Contact
When it comes to scaling your business, you can capitalize on government contracts. As a local company of UAE, you are allowed to fill the state tenders and participate in government projects. This golden business opportunity will help you expand your business and earn substantial profit. Besides, it will help you boost your company reputation at national and international level. Companies working with the UAE government can easily win contracts from the international government as well.
No restrictions on the number of work visas
When it comes to expansion of your business or hiring more employees, Mainland companies can issue as many visas as they want. However, you need to ensure that you meet the workspace requirements.
For example, you need to allot approximately 97 square feet per person in an office. However, 161 sq. ft per person is the minimum requirement for the warehouses. Exact number of resident visas depends on your office and warehouse space though. If you want to issue more visas, it’s always a good idea to either buy or rent more space.
Different legal forms of company
When it comes to picking the legal structure, a mainland company formation in Dubai has a wide variety of options to choose from such as:
- Limited Liability Company (LLC)
- General Partnership
- Private Joint Stock Company
- Single Owner Limited Liability Company
- Sole Proprietorships
- Limited Partnership
- Private Joint Stock Companies
- Public Joint Stock Company
- Civil Company
Whether you want to run a business alone or with partners, you can easily find a legal structure that aligns with your business requirements.
Unlimited profit and capital repatriation
Another advantage of setting up a company in Dubai mainland is that you can repatriate all business profits and assets abroad. You won’t have to face any kind of restriction from the government side.
Mainland company formation in Dubai with Prospr
A mainland company is the best option for those who want to run their business anywhere in the world. Business expansion becomes pretty simple with a Mainland license. Since you can issue as many visas as required, it allows you to hire foreign talent and also win contracts from the government. You don’t need to hire a local sponsor all the time as many business activities don’t require one. And the best part is getting 100 percent ownership of this business.
Do you need help for mainland company setup in Dubai? If yes, then Prospr is here to help. We understand that mainland company formation in Dubai is an overwhelming process for a foreigner. Thereby, we offer a helping hand, which you can hold to enjoy a hassle-free company setup in Mainland Dubai. Feel free to contact us.
