DED - DUBAI MAINLAND COMPANY SETUP
What is a Dubai Mainland Company?
In the Emirate of Dubai, areas situated outside of free zones are classified as the “mainland.” This classification is similarly used in other Emirates of the United Arab Emirates, such as the Abu Dhabi mainland or Sharjah mainland. Accordingly, companies incorporated and operating within Dubai’s mainland are known as “Dubai mainland companies.” Read everything about Dubai Mainland Company Setup here.
Companies registered in these vibrant mainland areas are known as “Dubai mainland companies,” offering unparalleled access to the full UAE market, in addition to any global business that they may conduct.
Dubai mainland companies are registered with the Department of Economic Development of Dubai.
Dubai Mainland Company Setup: Unlocking Growth in a Thriving Economic Landscape
Dubai has emerged as a global nexus for commerce and innovation, attracting entrepreneurs and corporations worldwide. Establishing a Mainland Company in Dubai offers unparalleled advantages, especially against the backdrop of the city’s robust economic growth and diversification.
In 2024 alone more than 70,000 mainland companies have been registered in Dubai, reflecting an annual growth of 18% compared to 2023, as announced by the Dubai Chamber of Commerce and Industry.
Economic Resilience and Growth
Dubai’s economy has demonstrated remarkable resilience and expansion. In the first nine months of 2024, the United Arab Emirates (UAE) achieved a real GDP growth of 3.8%, totalling AED 1.322 trillion, with non-oil sectors contributing 74.6% to this figure. Dubai specifically recorded a 3.2% GDP growth in the first half of 2024, reaching AED 231 billion. Key sectors such as wholesale and retail trade, financial services, manufacturing, and real estate have been pivotal, with wholesale and retail trade alone accounting for approximately 25% of Dubai’s real GDP.
Main Advantages of Dubai Mainland Company Setup
- Unrestricted Market Access: Dubai Mainland Companies can operate across the entire UAE and engage directly with the local market, including government contracts, unlike Free Zone entities which have geographical limitations.
- Full Foreign Ownership: Recent legislative reforms have allowed 100% foreign ownership in most sectors, eliminating the previous requirement for a UAE national to hold a 51% stake. This change significantly enhances the appeal for international investors.
- Strategic Location and Infrastructure: Dubai’s strategic position as a gateway between East and West, coupled with world-class infrastructure, provides Dubai Mainland Companies with access to a vast network of trade routes and logistics facilities.
- Flexible Office Locations: Businesses have the liberty to establish offices anywhere in Dubai, offering flexibility in choosing locations that align with their operational needs and budget.
- Visa and Labor Benefits: Mainland Companies face fewer restrictions on visa allocations, facilitating the hiring of a larger workforce to support business growth.
Some Peculiarities to Consider
While the advantages are compelling, certain considerations are essential:
- Regulatory Compliance: Establishing a Dubai Mainland Company involves navigating various regulatory requirements, including approvals from the Department of Economic Development (DED) and other relevant authorities, depending on the business activity.
- Physical Office Requirement: Dubai Mainland Companies must have a physical office space; virtual offices are not permitted. The size of the office can influence the number of visas a company can obtain.
- Sector-Specific Regulations: Certain sectors, such as banking and insurance, may still require local partnerships or have to adhere to specific ownership structures, despite the general allowance for full foreign ownership.
Conclusion
Dubai Mainland Companies offer a strategic advantage for businesses aiming to tap into the UAE’s dynamic and growing economy. With the city’s commitment to economic diversification and its position as a global business hub, establishing a Mainland Company in Dubai positions businesses for sustainable growth and success.
As a Dubai Mainland Company is subject to various regulatory requirements and approvals from the Department of Economic Development (DED) and perhaps other relevant authorities, entrepreneurs are well advised to seek professional consulting prior to the setup of a Mainland Company, and to engage an experienced company and business setup service in Dubai for the setup of their Dubai Mainland Company.
Please see our scope of services relating to the formation of Dubai Mainland Companies in the respective topic under “Services”.
Contact us now to get more expert information about Dubai Mainland Company setup.
DUBAI MAINLAND COMPANY:
Detailed advantages
- 100% Foreign Business Ownership and Capital Repatriation (except a few business activities)
- Physical presence where the customers are: Allowed to rent or own office spaces and shops in Dubai Mainland
- Flexible conditions for UAE residence visa eligibility
- Depending on business activity, offices or even co-working space in business centers are now allowed and eligible for UAE residence visas
- Can do business with government entities, participate in tenders
- Can conduct business anywhere in the UAE
- Easier to open bank accounts compared with free zone companies
- Benefits from SME tax relief: no corporate tax on annual profit up to AED 375,000
- No mandatory annual audit up AED 50 million revenue
- No minimum capital requirement
DUBAI MAINLAND COMPANY:
Legal forms
A Dubai Mainland Company can be registered in the following legal forms:
- Limited Liability Company (LLC) with one or more shareholders; this is the most common choice
- Sole Establishment; a single entrepreneur runs a business, with unlimited liability
- General Partnership; two or more partners run a business with unlimited liability
- Limited Partnership; two or more partners run a business with limited liability
- Civil Company; a partnership of individuals who are UAE nationals
- Foreign, Local or Free Zone Company Branch
- Private or Public Joint Stock Company (PrJSC and PJSC)
DUBAI MAINLAND COMPANY:
Setup Step by Step
Setting up a Dubai Mainland Company comprises the following main steps. Specific documents are to be submitted or to be obtained at each step. In most steps, documents issued during a preceding step must be submitted.
Depending on each particular business case and on how swiftly our clients cooperate with us, the formation of a Dubai Mainland Company takes four days to two weeks.
The steps are as follows, in the order mentioned:
- Determine the Type and Nature of Your Business Activity
- Decide Your Company’s Legal Structure
- Approval and Registration of Trade Name
- Initial Governmental Approval
- Draft of Memorandum of Association (MOA); for companies
- Determination of the Business Location, issuance of Ejari (registration with the Dubai Land Department)
- Additional Governmental Approvals if necessary, depending on the type of business
- Issuance of Business Licence
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Registration of company or firm with the Dubai Chamber of Commerce and Industry (mandatory)
Request Consultation
Due to our strong focus on tangible business setup we are experienced in dealing with all departments to setup and register a Dubai Mainland Company.
We will be happy to provide you with more information and accompany you on your journey toward a successful start of your business in Dubai.
We will handle your company’s registration, will make sure that you get the office or other facilities that you need, and care for your visa, licensing and tax set-up, in accordance with the applicable laws to ensure a smooth start for you and your business in Dubai Mainland.
Please feel welcome to contact us today.
