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Keep In Mind The Following Things When Setting Up Mainland Company In Dubai

Keep In Mind The Following Things When Setting Up Mainland Company In Dubai

Posted on July 28, 2022October 10, 2022 By Kaitlin

Among the different kinds of business entities, the mainland company setup in Dubai is considered the most advanced entity in Dubai. To be considered a legitimate entity, it must meet the legal structure and policies of the Emirati government. Its primary objective should be to be within the commercialized geographic region’s limit. Moreover, it should be based in an Emirati government jurisdiction. The following are the important things to keep in mind when setting up a mainland company in Dubai.

Documents required for setting up a mainland company in Dubai:

Several documents are required for setting up a mainland company in the UAE. In most cases, you can conduct professional activities without the need for a physical office, but if you intend to carry on business on the mainland, you need to provide sufficient office space and have a local service agent. Several legal requirements must be fulfilled before you can start the process of setting up a mainland company in Dubai.

The first step in setting up a mainland company in the UAE is determining the legal structure of the company. You need to select the type of commercial activity that the company will pursue. The economic department of Dubai offers over two thousand activities to choose from. If you intend to carry out operations in the local market, a mainland company is the best option. However, if you intend to expand your business to other markets, a free zone business license is better suited.

Exemption from corporate tax:

Setting up a mainland company in Dubai has many advantages over other offshore company formations. This type of entity is completely exempt from income and corporate tax. It is the perfect option for expanding companies since it provides freedom to conduct international business while retaining the benefits of an offshore company. Additionally, these entities allow for a low statutory vote of 5%, which is the lowest in the world.

Freedom to conduct business in any part of the UAE:

The United Arab Emirates is a federation of seven emirate states. The UAE has a civil law system, with principles of Shariah law filling in gaps. The Federal Supreme Council, or FSC, enacts federal legislation applicable throughout the UAE, and individual emirates retain their jurisdiction and laws within their territory. The UAE Commercial Companies Law is the cornerstone piece of federal legislation for businesses in the UAE.

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