Dubai Mainland is a geographical designated area by the Department of Economic Development. All the private businesses conduct commercial activities under the given jurisdiction of Dubai Mainland. Main land basically means that the business is located in a jurisdiction that has a convenience of transportation and is under prominent locations of the city. Dubai Mainland business setup offers closet proximity of all the expediency.
There number of advantages and rewards given it is preferable to opt for a Dubai Mainland Business Setup, however like any other sector there are few limitations as well. In a Mainland setup an entrepreneur does not have the entire liberty or a sole proprietorship towards the business. As per the “Commercial Companies Law” denoted by the Federal Law No.18 of 1988 and its by-law few mandatory measures need to be followed while setting up a Mainland company. One of such provision states that a total local equity of the company cannot be less than 51% towards the local partner. However rather than terming it as a disadvantage many businessmen say even though a share not less than 51% has to be given but the local support works as a boon to the company. They say, having UAE national as a partner is more fruitful as it gives a better insight about the market and collaborating with other UAE national for business purpose or further investments becomes easier.
Benefits of Business Setup in Dubai Mainland:
- A business formation in Dubai Mainland has no currency limitations or restrictions
- Under a Dubai Mainland business setup, you can regulate the company from any part of UAE
- Renting an office is easier, as you can enter into a tenancy in any part of Dubai, giving you multiple options
- Under one license you can participate in a range of activities as mentioned under your license
- Free to conduct business or have an exchange with any company without boundaries
- To acquire a Dubai license, no capital is required
- No limitations or barriers on registrations
- No restrictions on the number of visas attained and simpler recruiting process
- A tax advantageous environment – with no corporate tax as well as no personal income tax
- Licensing and registrations is comparatively easier and stable
- Formation of the company and incorporation process is easier
- No yearly auditing required
- In some types of business, Dubai Mainland can be used as the only option that can make the business proceeding effective
Important steps towards a setup business in Dubai Mainland:
- Deciding a business activity
- Getting a name approval
- Selections of a local agent or business partner
- Acquiring initial permissions and approval
- Drafting a Memorandum of Association with the partner or shareholders
- Rent an office and get the tenancy contract attested
- Submission and collection of the licenses.
Nevertheless, a nominal procedure, prominent location and the list of benefits are not the only driving factor towards opting for a Dubai Mainland. Another basic factor being that Mainland demands for a partnership with a UAE national. Several entrepreneurs state that having a local support works extremely fruitful, creating a recognition for themselves and their company in the UAE market.
To know more about how to start a business in Dubai Mainland contact Shuraa Business Setup now!
Shuraa Business Setup is a leading business setup services provider and a commercial consultancy, that offers substantial solutions with regards to business-related issues in Dubai as well as in any other parts of the UAE. For more information or to book a free consultation with a business setup consultant, feel free to call us at +971-44081900 / 050 7775554.