Choosing Right Jurisdiction for your Business in UAE
Choosing the right jurisdiction for your Business is now easy! The UAE government has allowed 100 % ownership in specific industries where entrepreneurs and foreign investors can be sole owners in commercial LLC setups in Mainland Dubai. This will do away with the requirement to have local sponsor Dubai as a partner with a majority shareholder stake.
However, not every location in Dubai offers the same choices regarding the business structure. Businesses can be set up in Freezone or the Mainland area of Dubai. So, if one is looking for easy access to the port, then Free Zone is preferable. Every place in UAE has its own territorial access. If one is looking to do business outside UAE, then Freezone company makes more sense, whereas if the target is the local UAE market, one must set up a Mainland company.
Approved business activities
In Dubai, the DED or the Department of Economic Development has 2300 business types in their main list, out of which 1061 businesses can now qualify for the foreign investor to own 100 % shareholding.
Thus, uae allow 100 % Ownership in manufacturing and trading activities subject to the investor bringing in certain technology, capital and implementing the mandatory employment of UAE nationals in their company.
For starting a new 100% ownership business in a Dubai Mainland Company, one needs to choose from the approved list of 1061 business activities. However, a local national will be required if those approved activities fall under the service and professional consultancy sectors. They will not be shareholders in the company but only be associated as service agents to carry out specific administrative work.
Starting a new 100% foreign-owned mainland company setup in Dubai in 6 steps.
- Choose the type of business.
- Decide the company name.
- Complete the documentation for company formation.
- Apply for the licenses and get approval from the authorities, including business licenses.
- Open a business bank account, allowing 100 % repatriation in foreign currency.
- Apply for business Visas and overseas employees Visa
The overall cost of company formation in dubai mainland with 100 % foreign ownership business depends on the nature of the business activity, location, and the number of visas required. The minimum cost for service and professional consultancy in mainland company registration will be approximately 8000 Dirhams. At the same time, for a commercial license, it will come to a minimum cost of 14000 dirhams. There will also be additional expenses towards business consultancy fees, visa expenses, office rent, and miscellaneous expenses.
Advantages of Mainland company in Dubai
- 1000+ business activities to choose from
- Freedom to select any business premises across Dubai
- No Currency restriction for repatriation
- 100% ownership of a company
- Easy Visa processing for employees
The legal structure of Mainland Setup
A Mainland company in Dubai can be formed as
- Sole Proprietorship
- Partnership (LLC)
- Branch of Multinational company
- Representative office
- Civil Office
Categories of license
- Professional license – Involves a wide range of service-related activities
- Commercial license – Involves different kinds of trading activities
- Industrial license – Includes a wide range of manufacturing activities
How to set up a Dubai Mainland company?
- Decide on what type of business to start – An investor must select what type of business they want to choosing the right jurisdiction for your business in UAE.
- Company type – Choosing sole ownership or LLC partnership depending on the business activity chosen.
- Trade license – applying for the business license and getting approval from DED to start the business.
- External approvals – External approvals may be required from authorities like Dubai municipality, judicial bodies, or some ministries for specific sectors like education, healthcare, and food-related business.
- Visas and other documentations – Getting visas for employees after the establishment card and labor file is obtained.
- Selecting business premises – Having an office or a commercial space is necessary to get the trade license. The RERA has regulated the renting and leasing of office space in Dubai.
- Fees – One has to pay specific fees to DED and other authorities to get the license and other statutory approvals.
- Opening Bank account – One has to open a Corporate Bank account in the company’s name for transaction purposes.
About Business Links UAE
The new laws interpretation and implementation mean existing businesses will need the assistance of the consultants to amend the business structures, documentation, licenses, and tax liabilities. New investors will look to them for providing their expertise in business setup in Dubai under the new laws. Business Consultancy like Business Links UAE Consultancy can play a significant role in setting up a 100% foreign company in mainland Dubai.
If you are looking for expert help, get in touch with our team
✉ email@example.com | www.businesslinkuae.com | +971-556070118 | ☎+971-43215227