 Establishing a business in mainland Dubai is a strategic decision for any entrepreneur who wishes to penetrate one of the world’s most vibrant markets. It has a prime location, business-friendly policies, and an expanding economy that will provide unmatched opportunities for businesses operating in various sectors. Whether it is your first venture or an investment for many years, knowledge of the process of opening a business in mainland Dubai is important for your success.
It’s also a great opportunity to launch your business here, especially because the UAE is witnessing a boost in economy with an aggressive target of $817 billion in terms of trade and a rapidly growing tourism sector.Â
Benefits of Company Set Up in Mainland Dubai
100 % Access to Local and Global Market
In contrast, a mainland company will have the freedom to trade within the UAE and also overseas. Unlike free zones, mainland businesses can operate in various sectors without requiring special permissions.
Strategic Location
The mainland companies enjoy access to prime commercial locations that give businesses the advantage of visibility and logistics.
Government Contracts:
Most government and semi-government contracts are only issued to mainland companies, offering several profitable opportunities.
Visa Flexibility:
Mainland companies can procure an unlimited number of employment visas depending on office space size, hence it will be quite easy to scale up your workforce.
Networking Opportunities:
The Mainland Dubai location provides a solid local network of partners, suppliers, and potential clients.
Switching From Free Zone to Mainland
If you are switching from a free zone to a mainland company formation, it may open doors for business expansion. Here’s why you may consider this:Â
Better Access to the Market:
Free zone businesses are limited to conducting business in their free zones or through distribution. Mainland businesses, on the other hand, are free to access the UAE market directly.
More Opportunities to Expand Business:
Mainland companies have fewer restrictions on scale and expansion, giving them higher opportunities for growth.
Better Reputation:
A mainland business is more likely to gain a better reputation with local customers and partners.
Higher Customer Base:
Mainland businesses can cater to a larger audience compared to free zone businesses, which face geographic and operational restrictions.
To switch, businesses need to cancel their existing free zone licenses and reapply for a mainland license, ensuring compliance with Dubai’s regulations.
Step-by-Step Guide to Setting Up a Business in Mainland Dubai
Choose Your Business Activity
Identify your business activity first and foremost. The Dubai Department of Economic Development maintains an exhaustive list of activities allowed, ranging from trading and manufacturing to consultancy and services. Choosing the correct category will ensure adherence to local regulations and help establish requirements for licensing.
Identify Your Ideal Location
Business Location. Business location greatly influences your business. Keep in mind factors such as customers’ convenience, ease of suppliers reaching, and the distance from logistical points. There is a wider selection for Mainland business locations; free zones only allow restricted areas for location selection.
Business Legal Structure
Your business legal structure influences tax liability and operational rules. Here are some popular ones;
- LLC or Limited Liability Company: appropriate for most business types but demands having a local sponsor.
- Sole Proprietorship: Suitable for small business owners who are working as single individuals.
- Branch Office: This type is suitable for foreign companies coming to Dubai.
- Civil Company: A partnership type suited for professionals such as lawyers, doctors, and accountants.
Secure a Local Sponsor or Local Service Agent
Many Mainland businesses need a local sponsor, who holds 51% ownership of the company. However, professional service businesses can get a local service agent, who doesn’t hold equity but helps with all administrative formalities.
Give a Name to Your Company
Choosing a name for your business involves adhering to Dubai’s naming conventions. Avoid offensive terms, ensure the name reflects your business activity, and check its availability through the DED. Reserve your trade name to secure your identity.
Apply for a Mainland Trade License
A trade license is mandatory for all businesses in Dubai. The application process involves:
- Submitting required documents to the DED.
- Paying applicable fees.
- Receiving initial approval before finalizing the license.
Secure Your Office Space
Mainland businesses require office space, both physical and accessible. The office, depending on the scale of your business and the number of visas you plan to apply for, should be adequate to meet your operational requirements. For start-ups, shared workspaces and serviced offices are a cost-effective option.
Apply for Relevant Visas
You’ll need visas for yourself, your employees, and their dependents. Dubai’s straightforward visa application process includes medical tests, Emirates ID registration, and visa stamping. Partnering with a consultant can expedite this process.
Partner with a Company Setup Consultant
Working with experienced consultants can streamline the setup process, ensuring compliance and saving time. Consultants handle paperwork, liaise with authorities, and provide expert guidance tailored to your business needs.
Set up your business in Mainland Dubai with DXB-VIP
Registering a Dubai mainland company is complex, and hence the company will do all that work. Having extensive experience in providing solid support for businesses seeking a good hold in Dubai, DXP-VIP offers turn-key solutions in the following manners:
- Legal documentation and approval.
- Finding office spaces
- Application of trade license.
- Visa processing and sponsorship.
Partner with DXP-VIP to ensure a seamless journey from idea to execution, empowering your business to thrive in Dubai’s competitive market.
This would open a sea of opportunities from completely free access to the market, and strategic growth advantages to setting up your business in mainland Dubai.Â
Using this step-by-step guide with the assistance of experts such as DXP-VIP will certainly help you to tread on the process and meet all your entrepreneurial requirements. Starting fresh or moving over from a free zone, a mainland company in Dubai opens its gates to limitless potential.
Author Bio:
John Doe is a business setup expert with over 10 years of experience helping entrepreneurs establish their companies in the UAE. His insights have guided numerous startups to success in Dubai’s competitive market.
