Setting up a business in Dubai mainland is considered an onshore company, and the government allows you to do trade in the local market, UAE, and even across the world. But this facility is an offer to commercial and professional license holders. For staring up a business in the mainland, you have to make a partnership with a resident who has UAE nationality and the ratio is:
- Foreign investor 49%
- National sponsor 51%
Dubai government offers a better arrangement for profit sharing; the sponsor has to pay a fixed amount of annual fee and sometimes a percentage of profit. Mostly, the foreign investor considers a fixed annual fee, which helps them to keep 100 % control over their business, whereas the sponsor doesn’t involve in business and work as a silent partner.
Mainland Dubai business is set up under the Department of Economic Development. The government also facilitates investors from registration, licensing, consumer protection to family Visa stamping in Dubai.
Advantages of company formation in mainland Dubai:
In the past few years, Dubai is becoming a more desirable destination for foreign investors. Here are the top benefits of doing business in mainland Dubai.
- Doing business in mainland Dubai exempted you from corporate tax.
- It doesn’t require any minimum or maximum capital requirements for setting up a business in the mainland area.
- Mainland business allows you to do trade in Dubai as well as in the UAE. This feature is wonderful for investors because free zone areas don’t allow foreign investors to expand their business across the free zone. That’s why the mainland area attracts investors more than the free zone.
- Mainland businesses have many options for their business activities rather than free zones. For example, if you are doing food business in the free zone, you must have related to this industry. But mainland areas allow investors to change their business activities anytime, there is no such restriction.
- The process of mainland company formation in Dubai is not much complicated. Hiring a professional consultant may help you in setting up a business in a better way.
- One more thing, which is beneficial for mainland businesses, they are allowed to choose their workspace anywhere in Dubai. This feature makes the mainland area more attractive to foreign investors.
- Mainland businesses may also get work from the UAE government rather than free zone businesses.
- You can issue unlimited Visas on behalf of mainland trade licenses.