Mainland

Dubai’s industrial growth has set very high benchmarks for other business hubs. Today, company formation in the UAE, especially a mainland company set up in Dubai, holds the potential to deliver exponential dividends in the future.  This has surely grabbed the attention of the new-age investors and entrepreneurs in the UK who are also willing to tap into Dubai’s lucrative marketplace. But what makes a mainland company so special? We’ll answer that and quite a lot more in the blog.  What is Dubai’s mainland?  A mainland company (also referred to as an onshore company) is a business venture registered in Dubai. Additionally, these firms are regulated directly by the Department of Economic Development (DED).  Onshore companies enjoy hassle-free trading in Dubai, all across the UAE, and internationally too. Furthermore, the latest amendments made to the Companies Law have allowed expatriates to enjoy complete business ownership of their mainland companies.  Earlier, mainland businesses had to collaborate with a UAE national (called local sponsor) who’d have 51% shareholding of the foreign company. However, more than 1000 business activities have now been approved by the government to become eligible for 100% expat ownership.  Benefits of Mainland Company setup in Dubai Here’s a list of benefits you can enjoy after setting up a mainland company in the UAE:  1. No minimum capital requirement You don’t have to meet any minimum capital requirements when you launch a business in Dubai mainland. Therefore, you can spend your money on other growth-related operational activities without worrying about settling the capital demands.  2. Diverse business opportunities A mainland company setup in Dubai provides diverse business opportunities to investors. You can indulge in various business activities (as approved under your trading license) without any legal restrictions. This sets onshore business incorporation apart from a free zone establishment.  For instance, a company set up in the DMC (Dubai Media City) free zone must conduct business activities only related to media and entertainment. However, mainland companies enjoy increased freedom in this regard.  3. Tax exemptions The best part about establishing a company in the mainland region is the exemption from various taxes and charges. Business formation in the UAE is well-organised, completely transparent, and easy to comprehend. Likewise, the laws for taxation are also lucid and easy to follow.  The UK’s investors and other business owners don’t have to pay any corporate or personal taxes when they launch a mainland venture. In addition, there’s no taxation on capital gains and you can repatriate 100% of your profits too.  4. No geographic boundation Mainland businesses can trade freely within Dubai and all across the UAE. On the other hand, free zone companies have several geographic restrictions as they can’t trade in the mainland region or any other free zone.  Therefore, you get the opportunity to address a wider target market. This, in turn, can become the game-changer for your mainland enterprise in the Emirates.  5. Preference for government projects Mainland ventures get the opportunity to bid for various government consignments. These projects shape the future of work, lifestyle, tourism, etc., in the UAE. Therefore, it’s a lucrative opportunity that you should look to grab with both hands.  Working on these prestigious projects also helps you strengthen your business network. Today, we all know the importance of networking in the corporate world.  Types of Mainland Business Licenses Here are the 3 types of Dubai mainland licenses: 1. Commercial Trade License A commercial trade license is required to conduct any Dubai mainland business activities, including purchasing and selling products and commodities. This business license can be used in the UAE to establish an LLC or a single establishment. Both general trading and specialised trading can be done with it. If you are forming a new company, you can engage in trading activities that are specific to your business by requesting the right kind of commercial trade license. 2. Industrial License Businesses in the UAE that want to engage in industrial or manufacturing-related activities must obtain an industrial trade license, which allows them to carry out operations that involve converting natural resources or incorporating natural resources into their finished goods. The DED issues this business license; however, additional licenses from other agencies may be required depending on the industrial activity. 3. Professional License Professional licenses enable individuals and businesses to practise a skilled profession based on their educational background. This license covers craftsmanship, carpentry, consultancy services, printing and publishing, medical services, beauty salons, computer graphic design services, repair services, security services, document clearing, and so on. Steps to Establish Your Company in the UAE Mainland You need to follow the steps discussed below to establish a mainland company in Dubai:  1. Define your business activities & legal form What would be the day-to-day business activities of your mainland company once it’s up and running? Pen them down, curate the list further with the help of business consultants at the Shuraa UK branch, and share this list with the DED.  Moreover, define the legal structure of your onshore business venture in Dubai. It can be a sole proprietorship, LLC (limited liability company), joint venture, etc.  2. Register a trading name for your mainland company The next step is to reserve a trading name for your venture. The name you select must not contain prohibited words (like any reference to a God or deity, name of regions, etc.).  In addition, the trading name shouldn’t have any controversial terms or words that derogate someone’s religious or sentimental beliefs. You should also be aware that mainland companies need to pay an additional fee for leveraging a foreign trading name.  3. Rent office space Mainland companies must have an official office location for their venture in Dubai. However, this doesn’t mean you need to invest hefty sums of money in real estate. The best option is to rent office space for your company.  Advanced solutions like flexi-desks, virtual offices, and more are available for company formation in the mainland region. You can sign a sustainability contract with Shuraa to launch