Mainland of Dubai is gaining popularity as a commerce hub due to various business benefits for the investors. The 100% foreign ownership, no national sponsor requirement, favorable tax structure, etc., make mainland an attractive option for setting up a company. The Cost of a Mainland Company Setup in Dubai starts at approx. AED 19,000 with virtual office and trade license.
This article highlights the business benefits and cost of a Mainland Company Setup in Dubai.
Setting up a Mainland Company will benefit the investor in many ways.
Mainland Company Setup in Dubai – Cost and Benefits
Many industries have 100% foreign ownership and there is no requirement of minimum capital as well as local UAE Sponsor anymore. Foreign investors can directly register and own the full rights of the company in Dubai.
The cost of a mainland company license in Dubai starts from around AED 10,000 for an LLC Company. Also, there is no requirement for a UAE National to sponsor the company. The ex-pat investor gets 100% ownership of the LLC Company.
Apart from certain strategic industry sectors such as heavy manufacturing, finance, banking, agriculture, aviation, etc. Also, there are a lot of other industries and business activities that offer complete foreign ownership to the investors.
Cost of Opening a Mainland Company in UAE
The cost of opening a mainland company in Dubai depends on various factors such as the location of the office, type of business license, and more. Cost of a Mainland Company plays a vital role in the selection of whether Mainland or a Free Zone.
The investor can open a Limited Liability Company in the mainland of Dubai and take a suitable business license for a cost-effective rate. The overall cost of opening a Mainland company in UAE is around AED 20,000 at the minimum.
Depending on the business activity, investors can take office space in the Dubai mainland and hire new staff. So, cost of setting up a Dubai Mainland Company includes trade license fee, virtual office fee, and office rent (if physical office).
Cost of Taking an Office Space – Mainland Vs Free Zone
Business owners can expand their business by adding more branch offices in the mainland and also take a warehouse at a lower cost. Business Consultants in Dubai will help in setting up an LLC Company on Mainland by coordinating with the Government Authorities.
An Expert Business Consultant can reduce the total cost of a Mainland Company Setup in Dubai. They can also help in preparing the administrative documents. They will guide you with the preparation of the application form, shareholder certificate, obtaining special approval, tenancy contract, and more.
For certain business activities like trading, eCommerce, logistics, etc., the mainland company is the favorable choice due to the flexibility in easily scaling up the business by being in the mainland of Dubai.
The cost of opening a mainland trading company in Dubai is low. They enjoy great benefits such as low taxation, faster customs clearance, business-friendly environment, global connectivity, and more.
Additionally, business owners can get a trade license in the mainland of Dubai at a relatively low cost starting from approx. AED 19,000 for a services business.
Furthermore, the flexibility of having office space anywhere in Dubai or even a shared or flexi-desk is another highlight. Also, being in Dubai Mainland, the business owner can expand their local presence and cater to a wide audience base.
Furthermore, a mainland company can participate in government tendering and contracts. Additionally, adding employees is a seamless process in the Dubai Mainland as there are no visa quota limits unlike in the Free Zone license packages.
How Business Consultants will help to Lower the Cost of a Mainland Company?
To set up a company in Dubai Mainland the business owner can seek assistance from expert business consultants such as AURION. The expert team will guide you in the process and suggest ways to keep the cost of the Mainland Company Setup low.
Office Rent is major factor that determines the cost of setting up a mainland company in Dubai. So, the company owner can either take office space at a cheaper rate in areas away from the city or take a virtual trade license and operate remotely.
The Office rent of the premises depends on the square feet. The larger the office size the cost of taking the office space will increase.
Low Cost Company Setup in the Dubai Mainland
It is advisable to take an office space to keep the business on track easily. Also to open the company bank account quickly. So, the overall cost of setting up a mainland company in Dubai will have the rent component (physical office), trade license fee, and investor/employee visa cost (if any)
When compared to Free Zone, mainland companies can reduce Significant company setup costs. Also, the office rents on the mainland vary significantly depending on the emirates. Taking an office space in areas with less demand will help to keep the initial company setup cost low.
Investors can choose the desired business license and pay the required fee to obtain the trade license to legally start operating in UAE. With the mainland business license, the investor can easily sell their products and services to the local UAE market and growth the business quickly.
Low-Cost Company Setup in the Mainland of Dubai
The cost of various types of trade licenses in the mainland of Dubai vary. The General Trading License is priced higher than the services license in Dubai Mainland. To keep the cost of company setup low, the business owner must follow certain steps while setting up their mainland company in Dubai.
Once the trade license is ready and the office tenancy agreement is prepared for the office space. Then, the investor can apply for a corporate bank account from the UAE’s wide network of commercial banks. It is easy for a mainland company to open a bank account in UAE due to the enhanced credibility and presence in the mainland of UAE.
Hence, in a nutshell, a mainland company setup is an ideal choice for investors to easily establish a company, get a residence visa, open a bank account, and start operating the business. The cost of setting up a mainland company in Dubai is almost fixed, the variable component is the office rent that depends on the office size and location.
AURION will assist you with end-to-end company formation services and allied business advisory support for setting up your dream company in the mainland of UAE. Connect with our expert team right away!
