COMPANY SETUP IN MAINLAND-DUBAI
OVERVIEW
ADVANTAGES
LICENSING CATEGORIES
COMPANY TYPES
OVERVIEW
Why Mainland?
The reasons to setup a company in mainland Dubai can be many. All we can tell you is that there is a best-fit for every business, and your business could potentially benefit from having an office in the mainland of the United Arab Emirates, as opposed to setting it up in a designated free zone or as an offshore company.
If you are an advertising company, your clients will definitely appreciate being able to reach you in an easy-to-access location. If you setup company in mainland Dubai ,It is much easier than travelling to a free zone on the outskirts of the city, plus you can scale up more easily as you grow. Some legal advisory firms pay a lot of attention to the privacy of their clients, and having an office on the mainland enables them to achieve this objective. There are just a few examples of the advantages of locating your business on the mainland.
How to Setup Your Company in the Mainland Dubai?
The first step involves identifying what activities you plan to undertake. Based on this, the right company structure that is beneficial for your business can be determined. For instance, you could set up your company as a Sole Establishment, a Legally Limited Partnership, a Legally Limited Company, or a Private Limited Company.
Setup a company on the mainland Dubai requires you to have a Local Sponsor who will own 51% of the company. The Local Sponsor can be a male or female above the age of 21. In addition, the Local Sponsor must be a UAE national or an Emirati.
Having a Local Sponsor who owns 51% of your company does not mean the Local Sponsor takes home 51% of the profits. Things work differently in the UAE. The Local Sponsor needs to be paid a Sponsor Fee according to a predetermined agreement, and this could be done on a monthly / quarterly / half-yearly / annual basis. In some cases, the Local Sponsor takes a percentage of the sales.
The Local Sponsor is legally responsible for the functioning of your company. But the Local Sponsor can sign over a Power of Attorney relinquishing his/her control over your company, and this way, you will in charge of everything.
The Local Sponsor can be an individual, or it could also be another company incorporated in the United Arab Emirates. The latter still functions in the same way, putting you in full control over your business.
Need the Help of a Professional Company Setup Specialist?
This is where we come into the picture. At 3A Global, we have a track record of matching companies with the right Local Partner. Our business setup experts are all informed of the latest changes in legislation and can tell you that if you are a professional planning to offer professional services*, then what you need is a Local Service Agent and not a Local Partner.
*Examples include a doctor planning to open his/her consulting clinic, a lawyer planning to open his legal consulting firm, an engineer planning to offer engineering consultancy services and so forth.
A Local Service Agent, unlike a Local Partner, does not own 51% of your company. He/She is still legally responsible for your business and will represent you in all Government-related matters, including when it comes to getting a Business License.
Our team also consists of legal professionals who will go the extra mile to ensure that everything is above board and in order. We also have expert auditors who can take care of the annual audit, which is mandatory for companies established on the mainland.
ADVANTAGES
There are several advantages to having a company located on the mainland of the United Arab Emirates. If you would like to know more about mainland company advantages, please get in touch with us.
- No minimum capital required – Under UAE Companies Law, there is no minimum capital required to set up a company, except as what may be required for the purpose of incorporation.
- No limit to the number of visas – All those working in the UAE must possess employment visas, and their spouses and children may be granted dependent visas subject to their earnings.
- No Annual Audits Required – Companies located on the mainland are free from the annual audit requirement. This is an advantage that companies located in free zones do not have.
- No personal or corporate taxes – Companies located on the mainland of the United Arab Emirates are free from any taxation on their earnings. This applies to individuals as well.
LICENSING CATEGORIES
General Trading License In Dubai, UAE
It is important to secure the right type of business license, depending on the commercial activity you have in mind. If you need help getting a Trade License in Dubai, we can be of assistance.
Some of the different types of Trade License in Dubai are as follows
Tourism License
A Tourism License is required for any business establishment in the hospitality industry, or related to it. Examples of businesses that require a Tourism License are hotels, resorts, restaurants, tour operators, travel companies, car rental agencies, cruise boat services, and the like.
A Tourism License is issued by the Department of Tourism and Commerce Marketing (DTCM) in Dubai, and we can help you ensure that all the necessary paperwork is in order and the requisite approvals obtained from the corresponding Government agencies.
There are four kinds of Tourism Licenses
Tourism License This type of license allows you to conduct organized tours in Dubai. An Inbound Tourism License holder is also permitted to organize trips for business travellers, that is, those on a business visa, apart from those on tourist visas. Insurance is mandatory to protect both the License holder as well as the consumer in case of any eventuality.
Outbound Tourism License This type of License allows you to conduct organized trips beyond the geographical limits of the emirate of Dubai. With an Outbound Tourism License, you could take tourists / business travellers on trips to the pristine beaches of Fujairah, or enable them to experience Khor Fakkan, the hidden paradise of the United Arab Emirates. An Outbound Tourism License also allows you to do everything an Inbound Tourism License holder can.
Travel Agency License This type of License allows you to do everything an Outbound Tourism License holder can, plus offer airline or international cruise tickets and/or visa support. Insurance is still mandatory. A No Objection Certificate is required from the Department of Civil Aviation before one can apply for a Travel Agency License. The Local Sponsor can request the NOC by submitting an application in Arabic.
Tour Guide License This type of License is mandatory if you want to be able to accompany tourists and/or business travellers as a tour guide. It requires you to be proficient with the UAE’s tourist destinations, as well as be intricately familiar with the history and the culture of the United Arab Emirates. You have to take an exam to be granted a Tour Guide License, which is valid for only one year. You have to subsequently renew your License every year by passing a refresher course for tourist guides in the UAE.
Craftsmanship License
A Craftsmanship License is, as the name suggests, issued to craftsmen. A craftsman is defined by the Abu Dhabi Judicial Department as someone who practices a craft independently, and for profit. He/She must be dependent on his/her physical efforts and/or the use of specialized tools or equipment.
Examples of craftsmen include artisans, sculptors, designers, wood carving experts, carpenters, and blacksmiths.
COMPANY TYPES
Where Should I Set Up My Business on the Mainland?
The United Arab Emirates is comprised of seven emirates, and each emirate is regulated by its own regulatory framework. The Abu Dhabi Department of Economic Development is responsible for overseeing company formation in Abu Dhabi, while in Dubai, the same is looked after by the Dubai Department of Economic Development. We can advise you on the best locations for business setup in Dubai mainland, as well as the rest of the United Arab Emirates.
The fees payable when setting up a company vary, and sometimes, it might be more cost-effective to set up your business in Sharjah, which is only 40 km away from Dubai. On a good day, the distance between these two cities can be covered in just 20 minutes. During rush hour, it could take as much as two hours at the most. This is still an attractive reason to set up your business in Sharjah.
Keep in mind that you can operate throughout the length and breadth of the United Arab Emirates irrespective of your location – businesses are not restricted by the geographical location of their office.
Different Company Types?
- Branch Office
- Civil Company
- Limited Liability Company
- Representative Office
- Sole Proprietorship
How 3A Global Corporate Services Provider Can help Your Business?
Setup a business in Dubai requires an experienced and talented pool of professionals. We have 16 years of experience in company formation in the UAE. Feel free to contact us for expert advice.
