Benefits of Setting Up a Mainland Company in Dubai

A mainland company is one of the two options available in the United Arab Emirates. As a foreign investor, you can either form an offshore company in any of the many free zones across the Emirates or you can opt for establishing a mainland company. The two concepts have a few basic differences, which the foreign investors should know before entering into the diversified and open market of Dubai. For a layman, the concept revolves around the full ownership or less than half ownership of a company. The article is designed to offer you help in understanding how a mainland company in Dubai can be beneficial for your business.

The Department of Economic Development (DED) is the responsible organization for company formation in Dubai. As per the law, there are two primary jurisdictions in the state, i.e. mainland and free zones. Both options have their different set of advantages but it is the nature of your business which eventually decides where your company will be formed. A new entrant must be aware of the fact that if he or she wants to form a mainland company, the local law requires him to have a local partner who will keep 51 percent of the equity.

The Dubai mainland company is a perfect option for the business like car manufacturers, luxury goods, and restaurants, etc. Following are some of the benefits of establishing a mainland company in Dubai.

 

  • No imposition of corporate or personal tax
  • There is no limit on employment visas which allows the companies to hire employers with any hassle
  • Lower import duty
  • Limitations on minimum capital requirement
  • No annual audits required
  • No restriction on legal documents processing
  • Affordable rental and lease plans available for office spaces
  • You may conduct your business activity anywhere in Dubai

There are many places in Dubai mainland where investors are allowed to set up their companies. These particular areas include Sheikh Zayed Road, Jumeirah, Al Quoz, Business Bay, Al Qusais, Al Karama, Deira, and Bur Dubai.

  • Sheikh Zayed Road is the central artery of Dubai where you can find all the globally-renowned landmarks including Burj Al Khalif, Mall of the Emirates, Dubai Mall, etc.
  • Jumeirah is home to the most lavish offices and residential units in Dubai and is an elegant place to run your business.
  • Business Bay is an ideal location of businesses like financial companies, consultancy firms, hospitality facilities, retail companies, and many more.
  • Al Quoz is divided into four main zones including factories, warehouses, industrial units, and other locations. There are many shopping centers, malls, and labor accommodations zones located here.
  • Al Qusais is the center of medical and educational institutes but it also has many industrial zones and residential areas.
  • Al Karama, Deira, and Bur Dubai are mostly famous for gold selling outlets and historical places.