With its tax-free benefits, strategic location and rapidly booming economy, UAE has become a lucrative business hub for foreign investors. You can choose to set up a business in the UAE in two ways. Set up a mainland company or a free zone company. Eventually, both kinds of business setup have spectacular benefits and your choice entirely depends on the business structure, business goals and objectives, business activities and your intended trading partners. Good Solutions Businessmen Services has positioned customer satisfaction as a priority to produce quick, easy, and affordable business set up solutions in mainland or free zone. Capitalizing on our team that is well equipped with extensive knowledge and domain expertise, we offer consolidated landscape to help you realize your entrepreneurial dreams.
So, what exactly is a mainland?
A mainland company is an onshore company that can operate its business in the local market of any emirate without any restrictions in its business scope. Licensed by The Department of Economic Development (DED) in every emirate, mainland companies require a local sponsor with 51% equity in your business. However, you can retain 100% control of your business by striking a legal arrangement with the local sponsor whereby the local sponsor acts a sleeping partner. The local sponsor is paid a fixed annual fee or a percentage of sales or profit and serves as an effective representative of your business to the government authorities. However, finding a local sponsor can be time-consuming and tiring especially if you are new to the Dubai business ecosystem. With our high-end networking, Good Solutions Businessmen Services can help you find a sponsor that can be an asset to your business.
Why mainland?
- No corporate tax or personal tax is imposed on businesses in the UAE.
- No currency restrictions and minimal capital are required for a mainland company.
- Mainland companies have the flexibility to conduct their business anywhere in the UAE. They can trade with other mainland companies in UAE giving them umpteen business opportunities as opposed to free zone companies that are restricted to trade in their respective free zones.
- No yearly audit requirement for mainland companies making registration and setup process easy and quick.
- No cap on the number of employment visas that mainland companies can offer.
- 100 percent repatriation of capital in mainland companies.
- Mainland companies are permitted to undertake projects with local and government authorities.
- Extended brand reach as the mainland companies can open up multiple branches and select the office location of their choice
Mainland setup costs
Following is the list of estimated cost that you should incur while setting up your business in UAE mainland.
Note that the costs can vary depending on the business structure, business activities, office location and the number of visas.
- Government and third-party fees including business license fee, Notary fees, legal translations fees, typing centers, government department registrations fee that could be one time or annual fees.
- One-time incorporation fees that include various one-time processes such as submission of documents, the arrangement of approvals and inspections.
- Annual fixed fees for a local sponsor.
- One-time legal fees.
- Annual commercial premises fees.
- Registration fee of the new company with Immigration and Ministry of Labor
- Visa per person that usually lasts for up to 2 years.
- Ongoing costs.
Procedure
You must perform the following steps to set up a business in UAE mainland.
- Choose a business activity and legal structure that suits your business objectives.
- Trade name reservation.
- Register with DED.
- Seek initial approval for the business activity and business name from DED.
- Obtain notarized Articles and MOA for your business.
- Select the office location that suits your business and make arrangements for the tenancy contract.
- Obtain additional clearances and approvals from the relevant authority.
- Final submission of the trade license.
The types of licenses you need for a mainland company
If you want to set up a business in UAE mainland, you need the following types of trade license
- Professional License: You require this license for non-physical services such as consultancy etc.
- Commercial License: You require this license for trading activities such as import and export.
- Industrial License: You require this license for manufacturing and development activities.
- Branch Office License: You require this license for managing activities outside the parent branch.
- Representative Office License: You require this license for marketing purposes of products or services.
Good Solutions Businessmen Services offers an array of tailor-made strategies and business set up solutions to entrepreneurs enabling them to add value to their business.
Good Solutions Businessmen Services offers an array of tailor-made strategies and business set up solutions to entrepreneurs enabling them to add value to their business.
Contact us for a free consultation.