Mainland businesses represent the most prevalent type of enterprise in Dubai, providing access to a broader market by enabling trade with other mainland companies. Unlike free zone businesses, mainland enterprises do not require a local distribution agent and are exempt from customs duties. Acquiring a mainland business license allows participation in highly lucrative government projects. Additionally, competition is reduced since free zone companies cannot engage with government entities. Furthermore, there is no minimum capital requirement for mainland companies, simplifying the establishment process and making it more affordable. The initial step in Business Setup in Dubai Mainland involves selecting the appropriate type of license, which can be commercial, professional, or industrial.
An LLC in the UAE is permitted to engage in various industrial, commercial, professional, and tourism activities. Public joint stock companies can also operate in any industrial, commercial, or professional sector. However, private joint stock companies are limited to conducting only commercial and industrial activities.A branch of a local or GCC company can perform activities specified in the main company’s license, while a branch of a foreign company is restricted to certain commercial and professional activities.
Branches of free zone companies can engage in commercial, industrial, and professional businesses as long as these activities are authorized for the main company on the mainland.In a mainland setup, foreign investors are typically allowed to own a maximum of 49% of shares, with at least 51% required to be held by a local sponsor. However, recent government reforms have introduced a new investment law that permits 100% foreign ownership on the mainland. This change eliminates the necessity for local sponsorship when starting a business.
This new policy is expected to attract more investors to establish their enterprises in the UAE, significantly boosting foreign direct investment. With this amendment, mainland companies will enjoy equal status or even advantages over free zone companies.The UAE government continues to seek ways to simplify the business environment, and these recent policy changes reflect that commitment.
If you’re planning to Setting a Business in Dubai, feel free to reach out to us at Contact us via phone at tel:+971585567272 or email us Send Us A Message —we’d be happy to assist you every step of the way.
In addition to business setup services, we provide a range of solutions including business consultancy, mergers and acquisitions, tax residency certificates, trade licenses, and much more.
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