A mainland enterprise refers to a company that has obtained licensing from the Department of Economic Development (DED) in the relevant Emirate of the United Arab Emirates. In current content, Afdal group offers a concise overview of the advantages associated with establishing a company on the UAE mainland, along with a comprehensive guide to launching your business endeavors within the bustling landscape of Dubai’s mainland.
Establishing a Mainland Company in Dubai and Its Benefits
The benefits of registering your company on the mainland are multifaceted and hold the promise of ensuring a prosperous future for your entrepreneurial ventures and professional pursuits. Mainland enterprises present a wide array of trading opportunities, complete ownership control, and unparalleled geographical flexibility. Collectively, these factors make mainland company formation in the UAE an alluring prospect for forward-thinking entrepreneurs.
Unrestricted Geographical Mobility and Elimination of Trade Constraints
A Dubai mainland company operates without hindrance in trading with other businesses and enjoys unrestricted geographical access. Such companies are also free to extend their services to government entities or engage in direct commerce with consumers throughout the entire UAE. Furthermore, the establishment of a mainland company empowers businesses to set up multiple branches, solidifying a formidable presence across the Emirates.
Expansive Operational Scope
Mainland enterprises also benefit from the privilege of engaging in a diverse range of business activities. If you aspire to diversify your offerings within the mainland, simply re-register the new business activities with the DED, and you are poised to engage in unrestricted trade.
Access to Lucrative Government Procurement Opportunities
A compelling incentive for establishing a mainland business in Dubai lies in the realm of government tenders, a substantial facet of the UAE’s commercial landscape. In recent years, the Abu Dhabi Executive Council allocated an impressive AED 17.5 billion (USD 4.76 billion) for government projects, including a substantial allocation exceeding AED 4 billion for infrastructure development. Approximately AED 2 billion was designated for the enhancement of the education sector, with an additional combined allocation of AED 1.2 billion for upgrades to governmental and social facilities. As an established mainland company in Dubai, you position yourself advantageously to capitalize on these lucrative government contracts.
Unrestricted Ownership Control of Mainland Business Entities
Traditionally, foreign entities could only attain 100% ownership of a UAE-based business under two specific circumstances:
- Establishing operations within a free zone.
- Creating a professional services enterprise on the mainland, designated as either a Sole Establishment or Civil Company.
However, in recent years, HH Sheikh Mohammed bin Rashid Al Maktoum ushered in a transformative policy change by allowing 100% foreign ownership of mainland companies in the UAE. This monumental shift has received widespread approval from prospective international investors eager to conduct business in the Emirates.
For newcomers to the Emirates, this development is particularly auspicious. 100% foreign ownership means business proprietors can embark on their ventures without the necessity of seeking out an Emirati entity or individual to serve as a partner. This opening up of mainland UAE business ownership to full foreign control bodes exceptionally well for the growth-oriented economy of the UAE, making it an enticing proposition for global investors. Nonetheless, it’s important to note that certain strategic sectors, such as oil and gas, still require the involvement of a local partner.
Transitioning from Free Zone to Mainland Company Establishment in Dubai
If you currently operate within the confines of a freezone business structure and are contemplating the transition to establishing a mainland company, rest assured that we are here to offer guidance. Presently, more than 30,000 companies conduct their operations within the three largest free zones in the UAE. Foreign entrepreneurs often opt to set up shop in a free zone, appreciating the inherent conveniences that come with pre-packaged business offerings. Nevertheless, there are limitations within this business model that entrepreneurs must acknowledge.
While freezone companies indeed serve as an optimal starting point for enterprises in the UAE, the moment arrives when expansion beckons, and that’s precisely when the shift to a mainland company becomes imperative. Transitioning to a mainland company constitutes a pivotal step toward ensuring the long-term prosperity of your enterprise. With the assistance of the right UAE national sponsor or a seasoned company formation expert, the transition from a free zone to the UAE mainland becomes a calculated and manageable strategic move.
Steps to start a business on the mainland
1.Business activity selection
2.Intial Approval
3.Trade name reservation
4.Select a business location if need a Normal license
5.Get additional government approvals
6.Submit documents and fees
During time 2 days to one week according to instant license or normal license
A Summary of the Advantages of mainland company formation in Dubai
- Hassle free registration
- No restrictions with visa eligibility
- Commercial licenses no need to have an office for first year
- Free to do business inside and outside the UAE
- 100% ownership