While it may seem that foreign investors are limited to free trade zones for setting up a business in Dubai, this is not the case. Foreign investors can also be involved in what are called mainland companies by working with a sponsor.
A sponsor is a business in Dubai that works with the foreign investor in the business. The sponsor must be a Dubai national company and must have at least 51% interest in the business.
In return, the foreign owner of the business will pay the sponsor an annual sum that is determined at the beginning of the relationship. The sponsorship agreement will be written by an attorney in a legal document that is registered with the courts. In return, the sponsor’s role is to provide insight and understanding as well as provide assistance with the Dubai mainland company setup.
Freedom of Business Location
With the choice of a Dubai mainland company setup rather than a free zone company, there is no restriction on where the business can be located. This is very beneficial in most types of trade companies as moving a business to the customers rather than trying to get the customers to come to a business improves the bottom line.
The sponsor can be very helpful in working with the foreign investor to determine the ideal location in the city for the business. The company will still need to set up an office that meets the requirements set out in Dubai as part of the application process.
Ability to Trade Domestically
The additional benefit to Dubai mainland company setup is that the company can trade directly with residents of Dubai as well as government departments and other agencies. There are a few types of business that must be 100% owned by nationals, but a top Dubai business attorney can quickly review your business proposal to ensure this is not an issue with your application. Contact STA Law Firm for more information.