The 100% foreign ownership in Dubai is an attractive business benefit that is attracting many business owners from around the world. The Dubai Mainland has many business advantages for entrepreneurs. 100% foreign ownership is a highlight of UAE’s business landscape.
Setting up a mainland company in the UAE will help the investors to explore the local business ecosystem. It also enables them to expand their business to the local markets. The respective Department of Economic Development in each Emirate will issue the trade license for the investor.
For a wide variety of business activities, the investor can set up a 100% foreign ownership company in Dubai. The process of setting up a 100% foreign ownership company in Dubai is very straightforward.
So, now there are two ways global investors can start a company in Dubai. Firstly, it is starting a Limited Liability Company in the Dubai Mainland. There is a wide range of business activities to choose for their business. Secondly, it is setting up a Free Zone company in Dubai.
1.1 100% Foreign Ownership in Dubai – Mainland Companies
In the Dubai Mainland, the most common type of company structure is the Limited Liability Company (LLC). Investors can start an LLC company and obtain a services, trading, or industrial license. There are numerous business activities the entrepreneur can choose for their Mainland company.
The entrepreneur can get 100% foreign ownership in Dubai for a wide range of business activities ranging from services, trading, light manufacturing units, e-commerce, and more. They can easily set up an LLC Company in the Dubai Mainland with minimal paperwork.
Also, there is no requirement for an office space for services and trading licenses in the Dubai Mainland. However, when it comes to manufacturing and general trading having an office space is mandatory.
Additionally, for opening a bank account in UAE, it is best advisable to have an office space in the region with fully operational business processes and employees.
To set up a 100% foreign-owned company in Dubai Mainland, the investor must submit their details and choose the desired business activity. The Dubai Economy & Tourism Department will provide the license to the entrepreneur.
1.2. Benefits of Mainland Company in Dubai
Mainland Company in Dubai has many advantages. Firstly, the 100% foreign ownership in Dubai Mainland is an attraction for many investors. Then, the ability to venture into the local UAE market more freely and participate in Government projects is another key business advantage.
Additionally, there is a wide variety of office spaces, warehouse premises, and land areas in the Dubai Mainland at economical rates. So, entrepreneurs can get full control over their company and their assets by setting up a company in the Dubai Mainland.
Also, the advanced logistics and Port and Airport infrastructure, availability of skilled labour, large addressable market, etc., make the Dubai Mainland an attractive choice for foreign entrepreneurs.
2.1 100% Foreign Ownership in Dubai – Free Zone Companies
The Free Zone is the most popular choice of foreign business owners due to its 100% foreign ownership and complete freedom of running the company in the region. It is the respective Free Zone authority that determines the regulations and guidelines for the successful operations of the company.
Setting up a company in the Free Zones of Dubai requires limited paperwork and processes. The business owner has a wide choice when it comes to the Free Zones in Dubai and the company setup packages.
The Free Zones offer world-class business infrastructure facilities, office/warehouse spaces, and an ecosystem for startups, entrepreneurs, innovation leaders, and more.
There are numerous business advantages in setting up a company in the Free Zones of Dubai. Depending on the Free Zones, there is a provision for the preferential Zero Percent Corporate Tax while fulfilling certain criteria. Similarly, there are VAT-Free Zones in Dubai.
Also, the Free Trade Zones in Dubai are a hub of foreign direct investment and economic activities in the region. They provide the perfect base for an entrepreneur to start small and scale up into a multinational company.
The Free Zones offer a host of business benefits, tax exemptions, easy access to international markets, and more.
2.2 Benefits of Free Zone Companies
Free Zone Companies have numerous benefits while operating in Dubai. The companies can enjoy zero import duty on goods imported to the Free Zone. The Free Zone provides all required infrastructure such as office space, warehouse facilities, land area, etc.
So, depending on the specific business activities, the company owner can choose the right option for their business. Free Zones are also an ideal option for entrepreneurs who are aiming at global expansion.
The easy access to the Airports and Sea Ports, separate Customs Clearance, etc., make the Free Zone an attractive choice for global traders and logistics service providers.
Similarly, the Free Zones are the perfect choice for startups, services companies, freelancers, innovators, etc. The Free Zones in Dubai offer various incentives and platforms for entrepreneurs to network and collaborate for their innovative projects.
The Free Zone ecosystem allows entrepreneurs to grow their businesses seamlessly through the Free Zone network.
Steps in Setting up a 100% Foreign-Owned Company in Dubai
A 100% foreign ownership Company in Dubai can be set up in the Free Zones or the Mainland. The steps involved in the process of the company setup are almost similar. It starts with selecting the right business jurisdiction and business activities.
So, after finalizing the business jurisdiction, the right Free Zone must be identified if the investor is proceeding with the Free Zones. Otherwise, they can go ahead with the Dubai Economy & Tourism Department for the 100% foreign ownership Company in Dubai Mainland.
Then, the investor must submit the required documents to the respective Free Zone authority. They would require a passport copy, photograph, investor details, shareholder’s profile, etc., along with the trade license fee.
The documents will be reviewed by the Free Zone Authority and a business license will be issued to the entrepreneur accordingly.
For the Free Zone company if they require an office space or warehouse facility. They can prepare the tenancy contract and pay the rent for the premises. The Free Zone office/ Warehouse facility comes along with the business license package, and they can avail of that at a discounted rate.
Once, the office space is finalized and the trade license is issued, the Free Zone company can proceed to obtain the bank account in Dubai. Also, apply for the investor’s UAE residence Visa and employee visas as required.
So, in a nutshell, a 100% foreign ownership company in Dubai is an attractive choice for entrepreneurs and they can choose between two business jurisdictions – Dubai Mainland and Free Trade Zones. Depending on their business activity, visa quota, budget, location preferences, etc.., they can make the choice accordingly.
To know more about setting up a 100% foreign ownership company in Dubai, connect with our expert team right away!