Last updated on January 6, 2022
Dubai Mainland license is famous for its business friendly activities and facilities. A main land Dubai company set up is still the first choice for a lot of investor. Company Formation in Dubai Mainland is very confusing and time taking job. We at trade license in Dubai is one of the leading business setup consultancies. We offer the best services for Mainland Dubai company formation.
Dubai has developed as fast developing city over the past few years. And company setup in Dubai mainland is at ease than ever. Dubai government has an aim to make the method of setting up businesses smooth as well as time effective. In Dubai there are two types of authorities where we can apply for a trade license. One in these two is Dubai Main land and the other is Dubai free trade zone. Both authorities have their own regular values and losses.
While it is true that from outside free trade zone gives the impression. That they are more eye catching with the cost effective offers that they make. And all the attraction they put forward. But if one does thorough study of the market. They would come to know that free zones are not the only choice. Those foreign investors consider when they are opening a business in the UAE. In reality they may not even be the highest favorable business structure to start with. In case one aims to trade directly in the mainland consumer. Or want to apply for some gov’t project. Then in such a case business setup in Dubai mainland is more appropriate in the long run.
Dubai Mainland license
DED is the central authority of the government of Dubai for Dubai mainland license. It was launch in March 1992 with the principal objective of regulating the trade & industry in the state of Dubai. DED is the main authority which is responsible for trade license in Dubai mainland. And commercial obedience & end user protection in the Emirate of Dubai.
Mainland Dubai company setup Process
In Mainland Dubai company formation process you require to hire a UAE citizen as a local sponsor for your business. In this situation, the local sponsor will make a contract. Which he will not have any active part in the income distribution of the Dubai Mainland license?
For a Dubai Mainland license under an expert classification, the investor can have 100% possession. But a local service agent is still important. Therefore for a professional company the local service agent has no active share in the company. In its place, they will only perform as agent. While enlisting authorize agreement along with forming other business certification required in Dubai.
Benefits of mainland license in Dubai
- You can run your company from any part of UAE
- There is no corporate tax for Dubai Mainland license and so it is 100% tax free.
- No funds needed for a local Dubai Mainland license
- There is no currency restrictions for a Dubai Mainland license
- Ability to bring out business in Dubai mainland using Dubai Mainland license
- You are permitted to pick out office locations wherever in Dubai
- Dubai main land offers a stress free visa processing method.
- Mainland Dubai company formation will deliver 100% return of investment and earnings
- Stress free authorize procedures to get the Dubai Mainland license and registration in Dubai
- No audit requirement in Dubai Mainland
Requirements for Dubai Mainland Business Setup
A verified office address from Dubai Municipality is obligatory when opening business in Dubai. The condition of office space for Dubai mainland company setup can be different. It depending on the nature of license the investor is eyeing for. And it is the investor’s duty to get a rental contract for an office at the time of applying.
There are 6 essential phases involved in Dubai mainland company setup. Still, there are some undertakings that Mainland setup need special approval from some specific Government departments. The major 6 levels involved for company setup in Dubai mainland are:
- Business Activity selection along with Name Approval.
- Selecting of Local Partner or Service Mediator.
- Apply for Early Approval for Dubai mainland company setup.
- Planning of Court Notarization as well as MOA.
- Acquire Office Space and Rental Contact
- Final submission for Dubai mainland company setup
Ultimate decision on the kind of business set up influenced by a number of factors, which involves the nature of business deeds along with aiming customer. Keeping all that in notice let’s study below when it is helpful to have a mainland company set up.
Target to trade with other mainland companies
One key point of Dubai mainland company is that it is allow to trade with other main land firms. However with free zone companies there is a strict restriction of trading only inside the same jurisdiction. And in such situation they want to trade with some mainland company. Then there is one condition that is you need a local distributor and also need to pay customs duty. Mainland Dubai company formation on the other hand have right of entry within UAE and elsewhere without any restrictions.
Scope of the Business of Dubai Mainland license:
Mostly free trade zones have some restriction, when it comes to the business they offer to. For example, companies in Dubai Knowledge Village should only work in education or related businesses. They do not allow any substitution of activities. The same applies for Dubai Healthcare City where healthcare associated businesses are only acceptable. Also for a Maritime activity RAK maritime city is the best free trade zone. Also note that expansion of a free zone company activity outside of the free zone is not permitted.
Using Dubai mainland license to work with gov’t sector
Government assignments in UAE are huge business opportunities. These projects are surprising on investment and profit. These projects need specialize companies to be their service provider. It is clear that if you are accomplished to take these projects. Then it will be very money making option for you. And the best way to acquire such kind of opportunity is having a mainland business license. As it views, free zone companies are not allowed to be in contention for such opportunities. They can only work with private firm. All business which aims to get contracts with UAE governmental bodies. For this reason must need to go with Dubai Mainland company setup.
Market Presence with Dubai business license:
The prime and the most important advantage of setting up a Dubai Mainland license; is to allow one to start an office wherever in UAE. And it would not be wrong to say that this is the best approach to trade in local market. Also it will allow you to get your offices in any part of Dubai. And therefore you will have a good existence all over the market. In case a company setup in a free trade zone. Then generally it is not allow to work other than the free zone they are register in. As discuss before. These companies need a local a distributor to take their goods to the mainland. So, for company that is searching for a solid presence as well as strong future in the market. A Dubai business license is a more suitable option.
Dubai business license is financially feasible:
Free zones constantly make the headlines when it comes to low duty tax. But that is not actually mean Dubai mainland license do not match this with some notable incentives as well. Also note that no paid up investment is required for Dubai business license. This is making them a reasonable way of doing business.
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