Dubai, a thriving hub for commerce and innovation, offers immense opportunities for entrepreneurs and businesses seeking to establish a presence in the Middle East. Among its many advantages, the Dubai mainland is particularly appealing for those looking to operate without the constraints of free zones. This article provides a detailed overview of mainland business setup Dubai, including the benefits, licensing processes, and key considerations. Flyingcolour Business Setup is here to assist you every step of the way, ensuring your business establishment is seamless and successful.

What is Mainland Business Setup in Dubai?

Mainland business setup refers to the establishment of a company that operates in the open market within Dubai and the UAE. Unlike free zone companies, mainland businesses can trade directly with the UAE market and conduct business across the GCC (Gulf Cooperation Council) and other regions without restrictions.

Key Features of Mainland Business Setup

Local Sponsorship: Most mainland companies require a local sponsor or partner who holds 51% ownership of the business. This sponsor can be an Emirati individual or a company, which allows the business to operate within Dubai's mainland.

Wide Range of Business Activities: Mainland companies can engage in a variety of business activities, from trading and manufacturing to professional services, catering, and consultancy.

Access to Local Market: Establishing a business on the mainland provides unrestricted access to the local market, enabling direct sales to customers and clients within the UAE.

Flexible Office Space Options: Mainland businesses are required to have a physical office space, which can vary from small offices to large warehouses, depending on the nature of the business.

Long-Term Sustainability: Operating on the mainland is often viewed as a more sustainable option for businesses looking to establish a long-term presence in Dubai, as it opens avenues for growth and expansion.

Benefits of Mainland Business Setup in Dubai

Setting up a mainland business in Dubai comes with a range of advantages that can significantly benefit entrepreneurs and investors. Here are some of the most compelling reasons to consider a mainland setup:

1. 100% Profit Repatriation

One of the most attractive features of a mainland business setup is the ability to repatriate 100% of your profits and capital. This ensures that you can effectively manage and reinvest your earnings as needed.

2. No Restrictions on Business Activities

Unlike free zones, which are tailored for specific industries, mainland businesses have the flexibility to engage in various activities without limitations. This versatility allows entrepreneurs to pivot or diversify their services based on market demands.

3. Enhanced Credibility

Operating in the mainland can enhance your business’s credibility and reputation. Local clients and partners often prefer working with mainland companies due to the perception of stability and reliability.

4. Better Access to Government Contracts

Mainland businesses have better access to government contracts and tenders, which can be lucrative opportunities for growth and expansion in various sectors, including construction, healthcare, and IT.

5. Unlimited Visa Eligibility

Mainland companies can sponsor an unlimited number of visas for employees, allowing businesses to grow their workforce without restrictions.

6. Opportunity for Expansion

Establishing a business in the mainland provides a solid foundation for future growth. With access to a larger market and the ability to operate freely across the UAE, businesses can expand their operations seamlessly.

Steps to Set Up a Mainland Business in Dubai

Setting up a mainland business in Dubai involves several key steps. Below is a step-by-step guide to help you navigate the process effectively:

Step 1: Determine Your Business Activity

The first step in establishing a mainland business is identifying your intended business activities. This decision will guide the type of license you need and the necessary approvals required. Ensure that your chosen activities are compliant with local regulations.

Step 2: Choose a Business Name

Select a suitable name for your business, ensuring it aligns with the guidelines set by the Department of Economic Development (DED) in Dubai. The name should reflect the nature of the business and should not contain any offensive language or reference any prohibited activities.

Step 3: Find a Local Sponsor

For most types of mainland businesses, you will need a local sponsor or partner. This can be an individual or a company with UAE nationality, holding at least 51% of the shares in your business. It is crucial to choose a reliable sponsor, as they will play a significant role in your business operations.

Step 4: Obtain Initial Approval

Before proceeding with the business setup, you must obtain initial approval from the DED. This approval signifies that the DED has no objections to your business activities. Required documents typically include:

• A copy of your passport

• A copy of your sponsor’s passport

• A business plan detailing your intended activities

Step 5: Draft a Memorandum of Association (MoA)

Once you have obtained initial approval, you will need to draft a Memorandum of Association (MoA) outlining the company’s structure, including ownership details and the scope of business activities. The MoA must be notarized by a public notary in Dubai.

Step 6: Rent an Office Space

Every mainland company must have a physical office space. Choose a location that suits your business needs and budget. The office lease agreement must be registered and submitted along with your application to the DED.

Step 7: Obtain a Business License

After completing the previous steps, you can apply for your business license through the DED. The type of license will depend on your business activities, and it can take a few days to process. You will need to provide the following documents:

• Initial approval certificate

• MoA

• Lease agreement

• Copies of passports and visas of shareholders and partners

Step 8: Visa Processing

Once your business license is approved, you can apply for visas for yourself and your employees. The number of visas granted will depend on your office size and business activities.

Step 9: Open a Corporate Bank Account

With your business license and documents, you can open a corporate bank account to manage your business finances effectively. Different banks offer various services, so it’s essential to compare options and choose a bank that suits your business needs.

Step 10: Comply with Local Regulations

Once your business is set up, ensure you comply with local regulations, including obtaining any additional permits specific to your business activities, adhering to tax requirements, and maintaining proper records.

Cost of Mainland Business Setup in Dubai

The costs associated with business setup in mainland can vary significantly depending on several factors, including the type of business, the size of the office space, and additional services required. Here’s a breakdown of typical expenses:

1. Local Sponsor Fees: Fees for local sponsorship can range from AED 10,000 to AED 50,000 annually, depending on the agreement.

2. Business License Fees: The cost of obtaining a business license can vary but generally falls between AED 10,000 and AED 15,000.

3. Office Space Rental: Office rental prices vary significantly based on location and size. On average, expect to pay between AED 20,000 to AED 100,000 annually.

4. Visa Costs: Visa fees for employees typically range from AED 3,000 to AED 6,000, depending on the type of visa.

5. Legal and Registration Fees: Additional legal fees for document notarization and registration can amount to AED 3,000 to AED 5,000.

Overall, the total cost of setting up a mainland business in Dubai can range from AED 50,000 to AED 150,000, depending on the specific circumstances.

FAQ About Mainland Business Setup in Dubai

Q1: What are the key benefits of setting up a mainland business in Dubai?

A1: Setting up a mainland business in Dubai offers several advantages, including full access to the local market, the ability to conduct diverse business activities, enhanced credibility, better access to government contracts, and unlimited visa eligibility for employees.

Q2: Do I need a local sponsor to set up a mainland business in Dubai?

A2: Yes, most mainland businesses require a local sponsor who holds at least 51% of the company's shares. This sponsor can be an Emirati individual or a company.

Q3: What types of licenses are available for mainland businesses in Dubai?

A3: Mainland businesses can obtain various licenses based on their activities, including trading licenses, service licenses, industrial licenses, and more.

Q4: How long does it take to set up a mainland business in Dubai?

A4: The time required to set up a mainland business can vary, but it generally takes between 2 to 4 weeks, depending on the complexity of the business and the efficiency of the document processing.

Q5: Can I operate in other emirates with a mainland license?

A5: Yes, a mainland business license allows you to operate across Dubai and other emirates without restrictions.

Q6: What is the cost involved in setting up a mainland business?

A6: The total cost of setting up a mainland business can range from AED 50,000 to AED 150,000, depending on various factors such as the type of business, office space, and licensing fees.

Q7: Do I need a physical office to set up a mainland business?

A7: Yes, all mainland businesses are required to have a physical office space. The size and location can vary based on the nature of the business.

Q8: Can I sponsor visas for my employees?

A8: Yes, mainland businesses can sponsor an unlimited number of visas for their employees, depending on the size of the office space.

Q9: How can Flyingcolour Business Setup assist me?

A9: Flyingcolour Business Setup offers comprehensive support throughout the mainland business setup process, including legal advice, documentation assistance, local sponsorship arrangements, and guidance on compliance and regulatory matters.

Conclusion

Establishing a mainland business in Dubai is a strategic move for entrepreneurs looking to tap into the thriving market of the UAE. With its business-friendly environment, diverse opportunities, and global connectivity, Dubai offers an ideal landscape for growth and success.

Partnering with Flyingcolour Business Setup ensures that you navigate the complexities of the mainland business setup process efficiently. From securing the necessary licenses to finding the right local sponsor, our team of experts is dedicated to helping you achieve your business goals in Dubai.

Connect with us today to embark on your journey toward successful mainland business setup in Dubai. Let Flyingcolour Business Setup be your trusted partner in turning your entrepreneurial dreams into reality!