Mainland Company Formation
in Dubai
Overview of Mainland Company in Dubai
A Mainland Company in Dubai refers to the Business that is permitted to operate prevalently across the UAE, transcending the boundaries of Free Zones. To initiate this undertaking, a local UAE national, or “local sponsor,” is mandated to hold a majority stake in the company—exceeding 50%—although no capital injection or operational involvement is required from them.
This process is navigated under the guidance of the Dubai Economic Department (DED) and necessitates the procurement of a Mainland License. While the initial outlay, inclusive of securing physical office space, may appear high, the potential for market penetration and business diversification is unparalleled
Mainland Company in Dubai or UAE
Flexible Locations
Choose from a diverse range of strategic locations in the UAE, tailored to your business needs.
No Trade Restrictions
Experience the freedom of unrestricted trade, opening doors to a wider market and diverse clientele
3000+ Business Activities
Dive into a vast pool of opportunities with over 3000 business activities to choose from, a perfect fit for your venture.
Unlimited
Employee
Visas
Scale your team effortlessly
with the provision of unlimited
visas, catering
to businesses of
all sizes.
Access to Lucrative Government Contracts
Step into the realm of high value opportunities by securing lucrative government contracts.
9 Step Process to Mainland
Company in Dubai
This process allows companies to operate within the local
UAE market, and is a popular choice for entrepreneurs and
businesses looking to establish a presence in the UAE.
Selecting the right business activity is the cornerstone of
your mainland company formation journey. With over 3000+ options listed by the DED, you re spoilt for choice. Unlike free zone businesses, mainland businesses aren t restricted by location, offering you unparalleled flexibility. Our Company Formation experts will guide you through these myriad options, ensuring that your chosen activity aligns perfectly with your business vision, current market trends, and future
growth prospects.
The legal structure you choose will dictate many aspects of
your business, from ownership and liability to taxation and
compliance. The most common legal structure is the Limited
Liability Company (LLC), which requires a local sponsor.
However, if you re in the professional services sector, you
have the advantage of being 100% foreign owned.
Our team of legal experts and professional management
consultants will assist you in determining the ideal structure
for your company on the UAE s mainland:
- Sole proprietorship
- Civil Company
- Limited Liability Company (LLC)
- Private Limited Company (PLC)
- Public Joint Stock Company (PJSC)
- Branches, regional headquarters, and representative
offices of foreign companies - Single family offices
Once you ve decided on a structure, your trade name will be
followed by the acronym of your chosen legal structure,
such as LLC, PLC, or PJSC.
Location can make or break a business. Mainland businesses
can set up anywhere and even have the flexibility to easily
open branch offices. Choose where to operate based on your
budget and business activity. Our consultants, with their
finger on the pulse of Dubai s dynamic property market, will
assist you in identifying the ideal spot for your operations.
Options for new business setup in the UAE s mainland cater to
various needs and budgets, including:
- Virtual office
- Leased office
- Fully owned office
- Office building
- Workshop
- Warehouse
Your company s name is more than just an identifier; it s a
reflection of your brand and values. Choose a trade name that
mirrors your brand and values, but also ensure you follow the
UAE guidelines on naming, which means avoiding offensive
language and religious references. Our team will guide you
through the naming conventions and regulations set by the
Department of Economic Development (DED), ensuring your
chosen name is unique and compliant with local norms.
For many business structures in Dubai, obtaining a local
sponsor is a mandatory step. While sponsors own 51% of the
business on paper, partnering with entities like VR1 can
provide a Corporate Nominee to act as your Local Partner,
allowing you to retain full control. Our network of trusted and
reputable local sponsors ensures that you form a partnership
built on mutual respect and understanding.
Navigating the intricacies of mainland company formation can
be complex. Engaging with a seasoned business setup
consultant, like VR1 Business Setup Consultancy, can
simplify this journey. Our consultants, with their vast
experience and in depth knowledge, will provide personalized
guidance, ensuring that every decision you make is informed,
strategic, and in line with your business objectives.
A trade license is your ticket to legally operate in Dubai. You ll
need several documents, including a license application and
memorandum of sponsor arrangements. Depending on your
business activity, additional government approvals,
translations, attestations, and notarizations may be
required. Our team will manage the application process on
your behalf, liaising with the DED and ensuring all
documentation is in order. From initial application to final
approval, we ll ensure a smooth and hassle free process.
Securing your business premises involves more than just
finding the right location; it s about ensuring your lease
agreement is comprehensive and protective of your
interests. Once you ve decided on a location based on your
budget and business activity, draft your lease agreement with
the landlord and get it approved from the Dubai Municipality.
Our legal experts will assist in ensuring the agreement is both
compliant with local regulations and tailored to your specific
needs.
As your business grows, so will your team. Depending on your
office space, you can apply for as many visas as needed,
usually one per 100 sq. ft. As a mainland company owner, you
also have the privilege to sponsor dependents for their visas.
Our immigration specialists will handle the visa application
process for your employees and investors, ensuring
compliance with UAE regulations.
FREQUENTLY ASKED QUESTIONS
The cost to set up a mainland company in Dubai can range between AED 30,000 to AED 50,000. This range is due to different variables such as the type of business activity, the size of the company, and specific licensing requirements.
The major difference between a Mainland and Freezone companies in Dubai is that they operate under different rules. Mainland companies, requiring a local sponsor with a 51% stake, can do business across the UAE, while Freezone companies offer 100% foreign ownership but are limited to their specific Freezone for operations.
The process of starting a mainland company in the UAE involves several steps, such as obtaining a trade license from the Department of Economic Development, securing a local sponsor, and adhering to various legal requirements. Each step must be meticulously followed to ensure a smooth company formation. Get in touch with us to setup your Mainland Company in Dubai.
A Dubai mainland license is a permit given by the Department of Economic Development in Dubai. This license gives a company the right to conduct business operations within the mainland areas of Dubai, giving it a wider operational scope compared to a Freezone company.
The costs of mainland licenses in Dubai can vary greatly depending on the type of business and specific requirements, with professional licenses often being the cheapest. Typically, these can start from AED 10,000 and offer a more cost-effective route for service-oriented businesses.
UAE mainland companies come with several benefits. These include the freedom to trade across the UAE and beyond, and a broader range of permissible business activities, providing flexibility and growth opportunities.
As per the new company law implemented from 1st June 2021, the previous requirement for a UAE national to hold a 51% share in a mainland Limited Liability Company (LLC) has been abolished. Now, foreign investors can fully own 100% of a mainland trading company in the UAE. This significant change offers a new level of opportunity for foreign investors, aligning with the allowances already in place for professional service companies, which could also have 100% foreign ownership.
Mainland companies in the UAE that meet certain income thresholds are required to pay a 9% Corporate Tax on their profits earned within the UAE above this threshold. Even though this is a recent change, it is mandatory for all applicable businesses to register for Corporate Tax. Additionally, they need to maintain their books of accounts and prepare audit reports, ensuring compliance with the new tax regulations.
To close a mainland company in Dubai, you must ensure all debts and liabilities are paid, clearances obtained from relevant government entities, and the trade license and associated visas are cancelled. This process requires careful planning to avoid legal complications.
Switching companies in Dubai is possible, but it requires the cancellation of your current visa and the issuance of a new one from the prospective employer. It's essential to adhere to legal protocols during this transition to maintain your employment status within the country.
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Company In Dubai.
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