5 Reasons Why You Should Open a Business in Mainland Dubai in 2022

With only a couple of months left before the year ends, there is no better time than now to start thinking about and creating your business plans for 2022.

Expanding your company or opening a new venture in Dubai is something you should consider adding to your business plans for 2022. This city continues to be one of the top global commercial centres in the world, which means it is a great place for firms in need of a growth base and healthy competition.

When you have a business in Dubai, you will also have access to various tax benefits. Foreign investors, for instance, are exempted from paying corporate, personal, and capital gains taxes.

Additionally, in Dubai, business owners only pay 5% value added tax or VAT, which is lower when compared to other cities.

The city also has an easily accessible airport that has hundreds of flights leaving and coming in daily from various countries, making travel easier for you and your team.

Lastly, Dubai is an investor-friendly city. Starting a company here is free of complications and quite straightforward.

You can also get assistance from qualified business consultants if you need help setting up your first company here, meaning you don’t have to navigate the entire process alone.

Starting a Business in Mainland Dubai

When planning to open a business in Dubai, one of the important decisions you have to make is deciding where to set it up – in mainland Dubai or in a free zone?

Both locations offer several advantages, but opening your business in mainland Dubai provides more.

When you choose a business setup in mainland Dubai, you will have access to these benefits:


1. 100% business ownership

In the past, foreign investors needed to have an Emirati partner to establish a business in Dubai. However, in 2019, changes were introduced to the United Arab Emirates (UAE) Federal Law No. 2 of 2015, which includes allowing foreigners 100% ownership of their business in the country.

This amendment cancels the requirement of foreign entrepreneurs and organizations to partner with an Emirati shareholder or agent to open a business in the country.

As a result, foreigners can have full ownership of their business.

Another change made to the UAE Federal Law No. 2 of 2015 was the introduction of new provisions regarding ownership of limited liability and joint-stock companies. With the new regulations, foreign investors won’t have to find an Emirati national or group to sponsor their company.

This change reduces the work, time, and cost you’ll need to set up a new business in Dubai.

2. No restrictions

When you have a mainland company in Dubai, you won’t have any restrictions regarding who you can do business with or where you can trade in the city.

If your business requires you to deal directly with consumers or offer services to the government and other commercial companies, you have to establish your business in mainland Dubai.   

This also means you can trade across the UAE and anywhere in the world without the need to obtain trade permissions from the local authority.

Additionally, if you plan to have a large team, setting up your company in mainland Dubai will make this possible. This is because there are no limitations on the number of visas that you can acquire for your employees.

However, a visa quota is given based on your commercial space. The bigger your office space is, the more visas you can get.

2. More business activities to choose from

Whether you’re planning to expand your company or open an entirely different business, you will have no difficulties implementing your plan in mainland Dubai.

This is because there are more business activities to choose from in mainland Dubai. This is an advantage that many free zones are unable to provide since they have limited offerings related to the theme of that specific sector.

Some of the industries you can establish your business under are:

  • Commercial
  • Consulting
  • Educational
  • Food and beverage
  • Industrial
  • Information technology
  • Occupational
  • Tourism

Also, the UAE allows companies to have more than one business activity. When your business is located in mainland Dubai, you will have an easier time expanding your products and services and the sectors you can cater to.

3. Flexibility in location

Another noteworthy advantage of establishing your company in mainland Dubai is that you can set up your business premises nearly anywhere in the city.

Mainland companies can be located anywhere in the city. In free zones, you may have limited options in terms of commercial space since you can only choose among the different buildings and spaces inside the area.

You can also set up your company in mainland Dubai without a physical space if you don’t need one at the outset.

This will work to your advantage if you won’t stay in Dubai during the initial company setup stages. With the help of your business consultants, you can start the application process outside of the country and come here when you are ready to look for an office space.

4. Opportunities for diversification

With the many advantags you can enjoy when you set up in mainland Dubai, you will have more opportunities to grow your business locally. You will be able to open more branches in multiple locations within the city.

Additionally, you will be able to diversify your offerings, allowing you to expand your business further.

For instance, if you are interested in opening a coffee shop, restaurant, or any food business, you will have more opportunities to broaden your menu and services if it is located in Dubai.

You can even invest in other food business ideas once you are ready to expand your portfolio.

Opening Your First Business in Mainland Dubai in 2022

With these benefits in mind, opening your first business in mainland Dubai can be a smart decision.

You can get the ball rolling now by looking for business consultants who can help you as you go through the entire process of setting up your company.

Trusted business setup consultants can help you with all aspects of company formation in Dubai. Their variety of services will give you the assurance that you won’t have any worries regarding the establishment of your venture even if you are out of the country.

With the right consultants, you can start implementing your plans for opening a business in mainland Dubai in a hassle-free way before the year ends.

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