All You Need to Know About Dubai Mainland Company Formation
Mainland Dubai companies are considered the most successful companies in UAE. This is why most investors prefer to invest in mainland company setup Dubai. All the mainland companies are part of the jurisdiction that falls under the UAE government, which is why they have to follow and meet all the legal structures and requirements set by the government. According to the law, it is also mandatory to have UAE nationals as business partners by giving them more than 50% of the shares to have mainland commercial companies in Dubai.
Benefits of Registering a Mainland Company in Dubai
Mainland companies enjoy incredible advantages for being under this lucrative business legal entity:
- mainland companies do not have to pay any corporate income or personal tax.
- There is no restriction of questioning on currency movements.
- There is complete freedom to run the company from any part of the UAE.
- Straightforward procedure for applying and getting the trade license.
- There is no need for an audit in mainland Dubai.
- Ensured repatriation of all the capital and profits.
- Mainland company’s employees have simple processing of their visas.
- No limitations regarding enhancing business activities
Primary Requirements to Set Up Dubai Mainland Company
- In UAE, to start a mainland company, the foreign investor needs a native sponsor. The investor has to give the sponsor 51% of the stock shares, and he can keep the rest of the stocks to his name.
- If the investor goes for a professional license, though he can have complete ownership, he must hire a native service consultant for help.
- The company should have around 200 sq feet of space to open an office in Dubai or anywhere in the UAE.
- First, there is a need to get authorization from the Department of Economic Development for mainland company launch. It can also direct the company to take approval from the other ministries such as the Ministry of Interior and Dubai Municipality in most cases.
- Sometimes, the company might need to get permission from other minor authorities for certain business activities. Those authorities can be RTA, Educational services, Money Exchange, Tourism, health care, and engineering advisory.
Procedure of Starting Dubai Mainland Company
Starting a mainland business in Dubai requires the investor to follow a specific procedure to get the license as early as within two weeks. The procedure follows:
- Determination of the business activity: the investor should thoroughly understand the activity or the activities he wants his business to be around.
- Selection of the legal form: the investor can select from multiple legal forms considering his business need.
- Trade name Registration: the name must be unique and reflects the business type.
- Initial Approval Request: this means asking permission from the UAE government. Once get the approval, the investor can proceed to the next steps.
- Draft for Signed MoI: as per the business nature, a signed MoI and LSA are needed.
- Company Location: the company should have a DED-approved physical address anywhere in UAE.
Approval of all the documents: the company needs approval from different ministries such as MoI, MoJ, health ministry, and executive consultancy for final business setup Dubai and successful launch of the company.