Top 10 Benefits of Business in Mainland Dubai

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Top 10 Benefits of Business in Mainland Dubai

Mainland Company in Dubai is an onshore company which can carry out its business activities in the local market of Dubai, in any other areas of United Arab Emirates and outside UAE. There is no restriction on the scope of its business in case of commercial and professional licenses. The formation of Mainland Company in Dubai requires a local sponsor who is UAE national. So the general shareholding pattern of Dubai Mainland Company is,

  • UAE national Sponsor – 51%
  • Foreign Shareholder (s) – 49%

For profit sharing between local sponsor and foreign investor, mainland business in Dubai offer a flexible legal arrangement whereby a sponsor can be paid a fixed annual fee, percentage of sales or percentage of profits. Amongst these, fixed annual fees is most popular which allows foreign investor to retain 100% control of his business and local sponsor or sleeping partner will not have involvement in business activities or profit sharing. For more detail read; why and what type of local sponsors are required for Mainland Company Formation.

Department of Economic Development (DED) is responsible for mainland business setup in Dubai; its registration, licensing, commercial compliance as well as consumer protection in Dubai.

Why choose Dubai for Mainland Company Formation?

For the last three decades, the city of Dubai has undergone a huge transformation from a local trading community into one of the most successful and prosperous cities of the world. Today, Dubai has become one of the most attractive destinations for tourists and businessmen alike.

Dubai while possessing a geographical strategic location that combines East and West with a market base of over 2.2 billion consumers, government’s excellent infrastructural facilities, a diverse pool of talented human resource from around the world, business friendly policies by the government along with the support of Department of Economic Development (DED) which encourages and eases the process of new business setups; these factors have made a crucial role in making Dubai a dynamic business hub.

Advantages of Setting up Mainland Business in Dubai

Dubai mainland is amongst the most preferable forms of business setup in Dubai because of the numerous benefits which are,

  • Mainland Company in Dubai is exempted from corporate tax.
  • There is no minimum capital requirement for the formation of Mainland Company.
  • Mainland companies can trade with other mainland companies in Dubai or UAE. They have the flexibility to do their business in any part of UAE or beyond. This feature sets them apart from free zones companies because they are restricted to operate their business in their respective free zone.
  • Mainland companies also have more options for business activities unlike free zone businesses e.g.  Companies in Dubai Media City must work in the media or closely related industries. However there is no such limitation for mainland business and it can open up to wider UAE economy with much scope of diversity.
  • Mainland businesses can choose their office location anywhere in Dubai. This feature allows them not only to trade with local market but can also open up multiple branches of the company thus enabling them to build a strong presence in UAE.
  • Mainland companies are allowed to take on governmental work unlike free zone companies which are prohibited from undertaking government contracts and are only allowed to carry out private commercial work.
  • There is no limitation on the number of visas on mainland license. However the eligibility to obtain visas depends upon office space. More office space, more number of visas you may get.
  • There is no currency restriction for mainland business in Dubai.
  • 100% repatriation of capital and profits are admissible.
  • Registration process for mainland companies is simple and hassle free. Also there is no yearly audit requirement.

KWS Middle East for Mainland Company Formation in Dubai

We are an established consultant company who has been facilitating entrepreneurs for the formation of their mainland businesses in Dubai for over ten years. Be it to find a local sponsor, appropriate business premises, financial assistance or handling legal documentation formalities, KWSME will help you in incorporation of your company from start till end in the most professional and hassle free manner. To get free consultation about Mainland Company formation contact one of our experts.

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