Get To Know the Steps for Mainland Company Formation in Dubai
Are you dreaming about a business setup in Dubai? Then you must be surely aware of the Mainland business setup in Dubai. In case you are wondering what a mainland company is, we will let you know through this article.
What is a Mainland Company?
A company that is generally registered with the government of the nation or jurisdiction in which it conducts business is known as a mainland company. Mainland companies are usually allowed to conduct business throughout the nation and are bound by the same laws and regulations as other domestic businesses.
Meanwhile, mainland companies in the United Arab Emirates (UAE) are those that have an official registration with one of the seven emirates’ Department of Economic Development (DED). Additionally, mainland businesses are not limited to operating within a specific free zone. In fact, they are free to conduct business wherever throughout the United Arab Emirates.
What Are the Benefits of a Mainland Company?
- 100% foreign ownership: It is legal for foreign people or entities to own all of a mainland company. Additionally, for companies looking to operate in the UAE without collaborating with local firms, this is a huge benefit.
- No restrictions on trade and location: Mainland businesses are not required to operate within a specified free zone. Meanwhile, they can trade and conduct business anywhere in the UAE.
- Access to government contracts: Mainland businesses are eligible to compete on government contracts. And for companies who operate in the UAE, this can be a sizable source of income.
- No corporate tax: In the UAE, Mainland companies are not subject to corporate tax. This is indeed a significant benefit for companies looking to increase revenue.
- Easy visa process: Obtaining a visa is rather simple for workers employed by mainland businesses. If a company is looking to hire foreign labor, this can be a huge benefit.
- Repatriation of capital and profits: Mainland companies are free to repatriate their capital and profits. Meanwhile, if a company is looking to invest their revenues abroad, this is a huge benefit.
What are the Steps for Mainland Company Formation in Dubai?
Forming a mainland company in Dubai is a simple procedure that takes a few weeks to finish. Remember with the Best Business Setup consultants in Dubai mainland company formation is quite easy. Obviously, Best Solution is the best business setup partner to help you.
Meanwhile, the following are the steps involved for the mainland company formation in Dubai:
1. Choose your business activity
Selecting the kind of business you wish to launch in Dubai is the first step. On the mainland, a wide range of activities are allowed, including manufacturing, services, tourism, and trading. Meanwhile, it is important that the activity you choose is in line with your business goals.
2. Find the ideal location for your business in the UAE
After you’ve decided on your business activity, you’ll need to find a good place for it. Dubai indeed has several unique business districts, each with special benefits of their own. And when making your choice, you should take into account elements like accessibility to your target market, office space availability, and transportation connections.
3. Determine your business legal structure
In Dubai, limited liability companies (LLCs) and public shareholding corporations (PSCs) are the two primary legal forms for mainland businesses. However, due to their many benefits, such as restricted liability for shareholders and a comparatively easy setup procedure, limited liability companies (LLCs) are the most popular form of business in Dubai. PSCs have the ability to obtain funds through the public sale of shares, but they are more difficult to set up and run.
4. Name your company
Your business name ought to be original and free of any offensive or profane words. Besides, the Best Solutions helps you to verify the availability of company names online and choose one accordingly.
5. Apply for a mainland trade license
To apply for a mainland trade license, you will need to submit a number of documents. So, these documents include:
- A completed application form
- A copy of your passport
- A copy of your visa
- Your company’s Memorandum of Association (MOA)
- Your company’s local service agent (LSA) agreement (if applicable)
- A copy of your tenancy or ejari(if applicable)
- The relevant application fees
6. Obtain necessary approvals
Depending on what business you do, you can require more permissions from different government departments. For instance, the Dubai Municipality will want your permission if you are opening a restaurant. Once again, Best Solution can make these procedures so easy.
7. Collect your business license
We all know how important a business license is in Dubai. Meanwhile, you can pick up your business license from the Best Solution once your application has been accepted. Now, you can begin doing business in Dubai after you have your company license.
8. Post-setup formalities
You will have to take care of certain post-setup formalities, such as getting a company stamp and registering your business with the Ministry of Labor.
Anyway, it is crucial to remember that the particular requirements for forming a mainland company in Dubai can change based on the nature of your business and its legal structure. For this reason, it is wise to consult a popular business setup consultant like Best Solution for professional guidance to ensure that you comply with all relevant regulations.
