What is the 100% Ownership in Dubai Mainland? Complete Guide by RadiantBiz

Dubai is a highly welcoming nation for tourists. The competitive landscape for starting a business is also amazing in Dubai. Starting a business in Dubai can be very advantageous since you have access to a skilled workforce, a prominent location at the intersection of Asia, Europe, and Africa, and the allure of working in a nation with little to no taxation.

Dubai offers a large and positive pool to start an investment for the expats. You can form a company in the Emirate without a second thought.

Top reasons to start a business in Dubai in 2022

• Ranked #1 in Arab world — Dubai innovation Index
• Ranked #1 in the Arab world and 3rd globally in FDI attraction
• Ranked #3 best city for expats — Inter Nations Expat city Ranking 2021
• Ranked #4 best destinations for international travelers
• Ranked #5 in the list of 10 cities in the world for 2021- Best Cities
• Ranked #14 Global power city index 2021.

Did you know?

In the first quarter of 2022, Dubai issued 24,662 new business licenses, up 58% from the first quarter of 2021, which implies that Dubai is the number one choice for expats worldwide. (* Source — Gulfbusiness.com)

What was the existing law for businesses in Dubai?

Previously, establishing a mainland business in Dubai required finding an Emirati citizen who would be entitled to be the local sponsor for the company and would hold 51% of the total shares in the company.

But with the Commercial Corporations Law (CCL) modified by the UAE’s Ministry of Economy in June 2021, thus permitting foreign investors and expats to establish and fully own onshore enterprises. This paved the way for new companies to hold 100% Ownership in Dubai Mainland.

Understanding the 100% Ownership in Dubai Mainland

Eliminating the previous law of 51% ownership by a local sponsor, UAE now has the provision of 100% Ownership in Dubai Mainland. The main benefit of having a mainland company is that, unlike free zone companies, their economic operations are not limited to a specific geographical area, allowing them to freely trade with any company, public or private, located within and outside of the UAE, including free zones, onshore and offshore.

With 100% ownership of business in UAE, you now get access to a bigger reach with a mainland structure, which means you have a better opportunity of extending your business worldwide, which means more prospects and money. Other benefits of establishing a mainland business in Dubai include no minimum capital need and the potential of acquiring a resident visa.

This is, however, restricted to a few businesses and depends on the nature of your business activity in Dubai.

Is your business eligible for 100% ownership in Dubai Mainland?

List of businesses who can avail the 100% Ownership in Dubai Mainland

1. Civil Construction
2. Agriculture
3. Entertainment services
4. Administration service
5. Education
6. Food & Hospitality
7. Healthcare
8. IT & Communication
9. Product Manufacturing
10. Renewable Energy
11. Scientific Activities
12. Space Technology
13. Storage & Transportation

Major highlights of the 100% Ownership in Dubai Mainland

• According to the regulations changed by the UAE government, onshore businesses based in UAE are permitted to have 100% ownership for foreign investors in UAE
• The law gives expats the opportunity to maintain the necessary capitalization requirements, shareholding ratios, and establish their onshore business setups according to cabinet resolution regulations.
• The company’s meetings are now open to all expats and do not need to be majorly presided over by the local sponsor.
• It is no longer needed to get in talks for local sponsorship to secure the company’s 51% shares.
• More freedom in organizing and managing your business.
• Have more chance to expand your company’s presence outside of the UAE’s free zone region.

What is the importance of 100% Ownership in Dubai Mainland?

Dubai Mainland offers an unlimited number of visas that can be issued. Additionally, you are allowed to own office premises anywhere in Dubai’s mainland. Along with these enormous benefits, you also have more possibilities for commercial endeavors, so you can run a B2B or B2C business or manage a showroom.

The Dubai mainland also allows for the operation of warehouses, export/import businesses, and many other forms of commercial ventures.

The UAE government is attempting to accomplish the following in the upcoming years-

• Creating a supportive legal framework for business establishment in the UAE in order to facilitate doing business there and boost the national economy.
• Ensuring the economic future is stable through expanding investment and business prospects for expats.
• As they attract more foreign investors, startups, and other SMEs, they must also meet the demands of the UAE business community, which they have been doing by implementing business friendly policies.
• Preserving the reputation of being one of the world’s largest economies and expat-friendly countries.

Conclusion

The world has recognized the grandeur of Dubai as the international business capital. Foreign expats have been rushing to Dubai to drive more opportunities for their investments in the Emirates. With a vibrant economy, amazing location, and flexible government laws, everything falls in your favor when you start a business in Dubai.

If you are thinking about investing in the most business-friendly countries in the world. This is the perfect time to do it. Establishing your company with the coming of the 100% Ownership in Dubai Mainland is very beneficial for you as it gives you complete ownership of your company, which leads to better maintenance and expansion of your business.

FAQs

1. Are all kinds of business activities eligible for 100% ownership in Dubai mainland?

No, it depends on the nature of your business. Check the list mentioned above to see if your business can avail of the new regulations.

2. What are the expansion chances in Dubai mainland?

You can freely expand your business to other locations in Dubai and the UAE if you have a mainland license in Dubai.

3. What is the cost of a mainland license in Dubai?

Majorly, the cost of obtaining a mainland license in Dubai is entirely dependent upon the nature of your company, the location of your office, and numerous other considerations.

Our cost calculator is the most effective tool for getting a quick estimate. This will enable you to acquire a rapid price estimate and move forward appropriately.

4. Can you get the mainland license in a day?

Yes, you can obtain a mainland license in just a day. However, you can obtain your license in just 24 hours if you deal with a proficient Business Setup Consultant in Dubai like RadiantBiz.