Dubai Mainland Business Setup – Expanding Horizons for Your Success

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  • October 10, 2024

Businesses are akin to marriages. Just as one carefully considers every detail—from personal and cultural compatibility to the prospective partner's family background—when entering a marriage, the same diligence applies to setting up a business. You must pay close attention to the government’s intent and political climate, the local business environment, cultural fit, and legal requirements of the location where you plan to establish your enterprise. Couples often research each other's preferences and dislikes, understanding that one misstep can lead to lasting emotional distress. In the same way, a single misguided or poorly advised decision can cripple a business, leading to significant losses in time, money, and emotional investment.

For anyone considering a business setup in Dubai, expect a thrilling journey filled with limitless opportunities. Over the past few decades, Dubai has transformed into a vibrant and future-ready city, not only in the Middle East but globally. Its rich, diverse, and welcoming business environment has attracted residents and entrepreneurs from all corners of the world. Dubai has made significant advancements in innovation and cutting-edge technology, positioning itself as a catalyst for economic growth across the Middle East and beyond.

There are countless reasons to set up a business in Dubai, with some of the most compelling being:

  • Dubai is one of the safest places to live and work, boasting the lowest crime rate globally, supported by a highly advanced policing system and excellent law enforcement.
  • With virtually no taxation and one of the most liberal tax policies in the world, the city offers substantial incentives for new businesses.
  • It ranks among the most politically stable locations on the planet, with capable and committed leadership dedicated to making Dubai the best place to live and do business while excelling in every endeavour.
  • Upon visiting Dubai, you will immediately sense its warmth and welcoming atmosphere, enriched by cultural diversity, tolerance, and pluralism, with nearly 90% of its residents being expatriates.
  • Dubai’s strategic location is a significant advantage, serving as a gateway connecting the East and West between Europe, Asia, and Africa, making it the most progressive and tolerant city in the Middle East.
  • Celebrities from Hollywood and Bollywood, international athletes, industrialists, and wealthy elites from around the globe are eager to make Dubai their second home. The concentration of significant wealth in one city presents immense opportunities to be seized.
  • Establishing a business in Dubai allows foreign entrepreneurs and investors to retain 100% ownership and control, along with full profit and capital repatriation, making it an even more attractive proposition.

Once you decide to establish your business in Dubai, the next critical question is whether to opt for a Dubai Mainland Business Setup or a Free Zone Business Setup. This dilemma is common among entrepreneurs and investors. At FIB, we have observed that many of our clients grappling with this decision often lack expert advice from specialists in the field, leading to a significant knowledge gap. This gap can result in misconceptions and fears that hinder them from making this crucial choice. Some believe that recent legislation permits 100% foreign ownership in Dubai Mainland setups, leading to confusion about the differences between Mainland and Free Zone businesses.

In this article, we at FIB aim to address your concerns and clarify any misconceptions regarding Dubai Mainland Business Setup. Our goal is to equip you with the information needed to make a well-informed decision and establish a profitable and thriving business in Dubai, based on expert guidance rather than rumors.

There are three primary modes of setting up a business in Dubai:

  1. Dubai Mainland Business Setup.
  2. Dubai Free Zone Business Setup.
  3. Dubai Offshore Business Setup

What exactly is Dubai Mainland?

Dubai Mainland refers to the onshore area in Dubai that is not part of the Free Zones. It is regulated by the Department of Economic Development (DED), which serves as the licensing and monitoring authority for businesses operating in this area.

Dubai Mainland Business Setup

In the past, setting up a business in Dubai Mainland required business owners to have a local Emirati sponsor who held at least a 51% stake in the business. However, recent legislation has amended this requirement, allowing foreign entrepreneurs to own and control 100% of their business in most cases. This change has removed a significant barrier for foreigners looking to establish a business in Dubai. To set up a business in Dubai Mainland, obtaining a license from the Dubai Economic Department is mandatory.