Businesses are like marriages. As in the case of a marriage, you make an informed decision taking into consideration even minute details right from your nature and cultural compatibility to your would-be partner to your would-be in laws and their upbringing and environment. So is the case with setting up a business where you will have to keep a keen eye on the intent and political will of the government, the business environment, cultural compatibility and the legal necessities of the place where you intend to setup your business. One even takes into account each other’s likes and dislikes and researches every possible minute details as we know that one wrong or ill informed decision would lead to lifelong sufferings and emotional drain. Similarly one wrong or ill-informed or ill advised decision can cause our business to bleed to death or cause huge losses in terms of time money and emotion.
Anyone contemplating starting a business setup in Dubai is up for a roller coaster journey as the potential to explore and exploit is limitless .In the past few decades Dubai has emerged as the most vibrant and future ready city not only in the Middle East but the entire world. It has attracted residents and entrepreneurs from across the globe owing to its rich, conducive and multiethnic business environment. Dubai has undertaken giant strides in innovation and cutting edge technology and has emerged as the engine of economic growth not only in the Middle East but the whole world.
There are a zillion reasons for setting up business in Dubai, prominent among them are as follows:
- It is one of the safest places to reside and work with the least crime rate in the world and the most advanced policing system and excellent law and order.
- Virtually zero taxation and the most liberal taxation policy in the world and huge incentives on setting up businesses.
- It is amongst the most politically stable places on the planet with an able and willing political leadership striving to make Dubai the best place on earth to do business and reside and be excellent in every endeavor it undertakes.
- Once you visit Dubai, You will surely feel its warmth and welcoming aura rich in cultural diversity, tolerance and pluralism. Almost 90 % of its residents are expats.
- Dubai’s strategic location is an added advantage as it acts as a gateway to the east and the west acting as a connecting link between Europe, Asia and Africa and is the most progressive and tolerant city of the Middle East.
- Prominent personalities from Hollywood, Bollywood International Athletes, Industrialists and the rich elite from across the world are lining up to make Dubai there second home. The concentration of huge wealth in a single city provides huge opportunity to be exploited.
- Setting up business in the city of Dubai allows 100% ownership and control of businesses to foreign entrepreneurs and investors and full profit and capital repatriation making doing business in Dubai an even more lucrative proposition.
Once you have made up your mind to make Dubai your business setup abode the next question that comes to mind is whether to go for Dubai Mainland Business Setup or Free Zone Business Setup which is an pertinent dilemma faced by almost all entrepreneurs and investors and we at Consult Zone have felt that almost all our clients contemplating Dubai Mainland Business Setup or Free zone Business Setup lack expert advice form domain specialists and there is a huge knowledge gap that giving rise to a lot of misconceptions and apprehensions which act as a deterrent in making the all-important decision. Some say that a new legislation has allowed 100% ownership for foreign entrepreneurs in Dubai Mainland Business Setup as well therefore Mainland Businesses and Free Zones are the same.
Through this piece of writing, we at Consult Zone would like to alley your fears and clear your apprehensions regarding Dubai Mainland Business Setup so that you can take an informed decision and Setup a profitable and thriving business in Dubai based on expert advice and not on gossips.
There are basically three modes of Setting up Business in Dubai
- Dubai Mainland Business Setup
- Dubai Freezone Business Setup
- Dubai Offshore Business Setup
Through this piece of writing, we, at Consult Zone would specifically be focusing on Dubai Mainland Business Setup.
What actually is the Dubai Mainland?
The Onshore area in Dubai that excludes the Free Zones and is regulated by the Department of Economic Development, Dubai, which is also the licensing and monitoring authority, constitutes the Dubai Mainland.
Dubai Mainland Business Setup
Previously, for Dubai Mainland Business setup, it was a statutory obligation making it mandatory for business owners to have a local Emirati sponsor who was supposed to hold majority stake in the business not less than 51 % but a recent legislation has made amendments in the law and now with a few exceptions, businesses, even a foreign entrepreneur can own and control 100 % of his business enterprise thus removing a major hindrance for foreigners to setup a business in Dubai.
Dubai Mainland Business Setup mandates the requirement of a license from the Dubai Economic Authority.
Dubai Mainland Business Setup - Key Advantages
Dubai Mainland Business setup provides a plethora of benefits and incentives for entrepreneurs with more than 3000 business activities to choose from and avail business opportunities both within UAE and the rest of the GCC countries and the entire world.
We enlist here the reason why entrepreneurs should whole heartedly go for Dubai Mainland Business Setup.
- One prominent reason to opt for Dubai Mainland Business Setup license is the freedom to operate their business anywhere within the UAE including Free Zones and also outside the country.
- Dubai Mainland Business Setup license allows businesses to bid and work on huge government projects worth millions of dollars.
- Dubai Mainland Business Setup license allows for complete freedom from currency restrictions thus allowing 100% repatriation of offshore and on shore accounts.
- Exemption from minimum capital requirement is other key benefit that ‘companies opting for Dubai Mainland Business Setup license enjoy thus making it easier to set up a company in Mainland.
- Companies with Dubai Mainland Business Setup license enjoy all the incentives and facilities that companies with Free Zone business licenses have which includes huge tax exemptions on import and export duties and corporate taxes.
- There are no limitations on visas as a Dubai Mainland Business Setup licensed company which meets the requisite minimum physical space necessity criteria of the government copyright issuance finds it easier to scale up its business and get more visas for its employees.
- A Mainland Business license empowers entrepreneurs to increase their presence throughout UAE by opening regional offices and profiting from newer opportunities in untapped local markets.
- A recent legislation has allowed 100% foreign ownership of business thus opening great opportunities for foreign investors and entrepreneurs to tap into Dubai’s world class infrastructure and stable business environment.
- Catering to both UAE market as well as the entire international market simultaneously with 100% freedom to choose the location of your office premises and accessibility and proximity to a pool of diverse and highly qualified and skilled professionals is also one of the incentives that a company opting for Dubai Mainland business setup license enjoy.
TYPES OF LICENSES FOR DUBAI MAINLAND BUSINESS SETUP
For Dubai mainland business setup the department of Economic development issues the following kinds of licenses.
Professional License
For firms providing professional services like consulting, engineering or legal services. The cost involved is relatively lesser than other licenses.