Opening a mainland company bank account is a crucial step for businesses operating in the UAE’s mainland. This account not only facilitates daily transactions but also provides access to a wide range of banking services essential for business growth. With a mainland company bank account, businesses can benefit from enhanced financial management, streamlined payment processing, and the ability to conduct transactions in multiple currencies. Whether you’re a new startup or an established company, opening a mainland company bank account ensures your business is equipped to thrive in the competitive UAE market.
Advantages of Mainland Company Formation in Dubai
Setting up a mainland company in Dubai comes with many advantages. Here are some key benefits:
Expanded Business Opportunities
Mainland companies have the flexibility to operate throughout Dubai and across the UAE, offering access to a broader market.
Complete Ownership
Enjoy 100% ownership of your business, granting you full control and maximum flexibility.
Versatile Locations
Select from a wide range of locations to establish your business, ensuring the perfect fit for your specific needs.
These benefits make mainland company formation an attractive option for entrepreneurs looking to grow and succeed.
Location Flexibility and No Trade Restrictions
Establishing a Dubai mainland company gives you the freedom to trade with other businesses without limitations and choose from unlimited location options. Mainland companies can provide services to government entities and sell directly to consumers across the UAE. Additionally, setting up a mainland company allows you to open multiple branches, enhancing your presence throughout the Emirates.
Expansive Business Scope
Mainland companies have the flexibility to engage in a broad range of activities. If you wish to expand your services within the mainland, you can easily add new business activities by re-registering with the DED, allowing you to trade freely in your chosen sectors.
Opportunity to Secure Lucrative Government Contracts
One of the key benefits of establishing a mainland business in Dubai is gaining access to valuable government contracts across the UAE. In recent years, the Abu Dhabi Executive Council approved AED 17.5 billion (USD 4.76 billion) for government projects, with over AED 4 billion allocated to infrastructure, approximately AED 2 billion to education, and AED 1.2 billion combined for upgrades to government and social facilities. As a Dubai mainland company, you’ll be strategically positioned to capitalize on these significant opportunities.
100% Foreign Ownership of Mainland Business Entities
Historically, full foreign ownership of a business entity in the UAE was limited to two scenarios: establishing in a free zone or setting up a professional services company in the mainland, such as a Sole Establishment or Civil Company. However, recent reforms initiated by HH Sheikh Mohammed bin Rashid Al Maktoum have allowed 100% foreign ownership of mainland companies in the UAE. This development has been a major advantage for international investors eager to enter the UAE market, removing the need for an Emirati partner and simplifying the process of doing business. While this change has opened up incredible opportunities for foreign investors in the UAE’s thriving economy, certain strategic sectors, like oil and gas, still require a local partner.
Your Checklist for Mainland Business Setup in Dubai
Get ready to launch your business successfully with this essential checklist!
- Choose Your Business Activity
- Find the Ideal Location for Your Business
- Determine Your Business Legal Structure
- Obtain a Local Sponsor or Service Agent
- Name Your Company
- Apply for a Mainland Trade Licence
- Secure Your Office Space
- Apply for Relevant Visas
- Partner with a Company Setup Consultant
FAQ - Frequently Asked Questions
What is a mainland company in Dubai?
Opening a bank account in the UAE free zones offers benefits such as tax exemptions, seamless international transactions, access to corporate banking services, and enhanced business credibility.
What are the main benefits of setting up a mainland company in Dubai?
Mainland companies enjoy benefits such as the ability to trade freely across the UAE, access to government contracts, 100% foreign ownership (in most industries), and the option to open multiple branches throughout the country.
Can I own 100% of my mainland business as a foreign investor?
Yes, recent reforms allow 100% foreign ownership of mainland companies in most industries. However, certain strategic sectors, like oil and gas, still require a local partner.
What business activities can I choose from when setting up a mainland company?
The DED offers over 2,000 permitted business activities across various sectors, including trading, agriculture, hospitality, and manufacturing. Mainland businesses can freely engage in any of these approved activities.
Do I need a local sponsor for my mainland business?
For businesses operating under commercial or industrial licenses, a local sponsor (UAE national or company) owning 51% of the business is required. However, professional service companies can be 100% foreign-owned without the need for a local sponsor.
How do I choose the right location for my mainland business?
Your business location should align with your operational needs and budget. Mainland businesses have the freedom to operate anywhere in the UAE, with the option to open additional branches in multiple locations.
What legal structures are available for mainland businesses in Dubai?
The most common legal structure is the Limited Liability Company (LLC), which requires two or more shareholders and a local sponsor. Professional service companies can operate as sole proprietorships or civil companies, allowing 100% foreign ownership.
What legal structures are available for mainland businesses in Dubai?
You need to submit an application to the DED along with required documents such as a license application, memorandum of sponsor arrangements, and ownership details. The specific requirements may vary based on your business activity and legal structure.
What are my office space options in the UAE mainland?
You can choose from fully serviced offices, shell and core spaces, or pre-fitted office spaces. Your decision will depend on your business size, budget, and operational needs.
How many visas can I apply for with a mainland company?
There is no limit to the number of visas you can apply for, but the number typically corresponds to the size of your office space. For example, 100 sq. ft. of office or warehouse space is generally required per visa.
