Forming a mainland company in the United Arab Emirates will provide for the expansion of business activities and access to such a lively market. A mainland company allows entrepreneurs and investors to form a presence in the heart of the UAE's commercial hubs, within the cities of Dubai, Abu Dhabi, and Sharjah, making Mainland Company Formation an ideal choice for accessing competitive markets. The very business-friendly environment coupled with top infrastructure, favorable tax policies, and stiff infrastructural competitiveness opens up opportunities for growth and diversification in the mainland UAE.
The process of Company Formation in UAE Mainland includes selecting the type of business and license, choosing a company name and trade name, obtaining initial approval and registration, securing a trade license, registering with relevant authorities, and opening a corporate bank account. The mainland presence enables businesses to tap into strategic locations, world-class infrastructure, and a business-friendly environment, making Mainland Company Formation a key step for consolidation, growth, innovation, and success. This, in turn, opens up a business to broaden its customer base through Mainland Company Formation Services in UAE, facilitating partnerships with local businesses, entry into new markets, credibility enhancement, and better brand visibility.
Advantages of Mainland Company Formation
Availability of commercial space for lease in any location
Mainland Company Formation in UAE allows businesses to lease commercial space in any location in the Emirates. Business organizations are given the latitude to search for locations that best meet their operational needs for their operations and targeted markets, thus facilitating better access to customers and suppliers.
Ability to participate in a variety of commercial operations
Through Mainland company formation businesses can engage in various commercial activities without the restrictions faced by free zone enterprises. For example, trading, manufacturing, and professional services allow companies to take advantage of various market opportunities by diversifying their operations.
100% foreign ownership and the ability to conduct business anywhere in the United Arab Emirates
Recent regulatory changes have liberalized several sectors, allowing 100% foreign ownership for businesses through Mainland Company Formation UAE, without the need for an onshore local sponsor. With this policy change, foreign investors can hold full control over their companies and continue to trade freely across the UAE, thereby strong enhancement of their operational capabilities.
No restrictions on currency
Businesses established through Mainland Company Formation Services in UAE can operate in any currency, offering flexibility in global trade and financial transactions. This ease allows them to trade abroad and simplify dealings with partners on a different continent, thus making it easier for them to manage their monies.
Processing work visas is simple
A company that is incorporated in the mainland will make work visas much easier to obtain for the employees. Companies can sponsor visas for their employees much more easily and thus build a skilled workforce adapted to their business needs.
Benefits of submitting a bid for government work
Access Tenders or Contracts to Mainland Companies. Through Mainland Company Formation in UAE, businesses can qualify to tender for government projects, securing high-value contracts that significantly boost revenue. This benefit may also be very useful for companies wanting to increase their public sector clients.
Ease of opening a corporate bank account
With Company Formation Services in UAE Mainland, it is relatively easier for businesses to set up corporate bank accounts due to compliance and transparency. The reason for this preference of the banks is due to the level of regulation compliance and transparency of operation exhibited by the local businesses, making straightforward partnerships easier.
Types of Mainland Company Formation in UAE
Branch of Foreign Office
Professional Companies
LLC
Representative Office
Branch of Foreign Office: A branch office allows a foreign company to continue operating in the UAE while retaining all the characteristics of its parent organization. It can conduct business activities identical to those of the parent organization, however is not considered a separate legal entity. The branch will be wholly owned by the foreign parent organization and liable for its debts.
Professional Companies: Professional companies are usually established by professionals, like doctors, lawyers, and consultants. LLCs permit 100% foreign ownership; however, they require the presence of a local service agent who is a UAE citizen. In an LLC, the liability of partners is unlimited, and become personally responsible for the company's debt
LLCs: LLCs are one of the most popular forms of business entities in the UAE. They require at least two and a maximum of 50 shareholders, with a local sponsor holding at least 51% of the shares. LLCs provide limited liability protection. This means that shareholders are liable only up to the amount invested in the company's case of debt. They can undertake different business activities.
Representative Office: An office representative is an extension of a foreign company in the UAE, mainly for marketing and promotional purposes. This cannot engage in commercial transactions and cannot generate revenue on the spot but promote the products or services of the parent company, as well as communicate with prospective clients.
Steps to Establish Your Company in Mainland
Choose Business Activity: Identify the type of business activity to be conducted. This will help you know what kind of license you are going to have and what regulatory approvals you need to seek.
Choose Business Form: Determine what legal form of enterprise of operation will suit your needs, such as an LLC or professional company, depending on the needs and wants of owners.
Obtain Trade Name Approval: Submit your preferred trade name to DED for approval. Ensure the name complies with UAE regulations, a significant part of Mainland Company Formation
First License Approval: Proceed to DED to get the primary license approval to allow you to start the registration process.
Card from MoHRE: A card issued by MoHRE is a precondition to getting work visas and recruiting personnel.
Obtain External Clearance (if necessary): Your type of business might need further clearance and approval from centralized authorities and ministries
License Release: After appropriate clearance, a DED license will be issued whereby you will thus be eligible to conduct your business ventures in the UAE legally
Activation of Corporate Account in Bank: You may open a current corporate account with any bank that will manage your business transactions comprehensively to enable the smooth running of your business.
Labor File: Create a labor file with MoHRE to manage the employee file and work permits.
Process Visa: Get work visas for yourself and any other staff so that they can legally stay and work in the UAE
Types of Mainland Licenses in Dubai
In Dubai, mainland licenses are issued by the Department of Economic Development (DED) and allow businesses to operate throughout the UAE. The main types of mainland licenses include:
Commercial License: This license is suitable for businesses engaged in trading goods and commodities, including import, export, distribution, and retail activities.
Professional License: Required for businesses offering professional services, such as consultancy, engineering, IT services, and other specialized services.
Industrial License: Necessary for companies involved in manufacturing, production, and assembly activities.
Tourism License: For businesses providing tourism-related services, such as travel agencies, hotels, and tour operators.
Agricultural License: Issued for activities related to agriculture, including cultivation and trading of agricultural products.
Craftsmanship License: Required for individuals or businesses providing skilled trades like plumbing, carpentry, and electrical work.
Required Documents for Mainland Company Formation
To establish a mainland company in Dubai, the following documents are typically required:
Completed Application Form: A form detailing the business activity and structure.
Trade Name Reservation: A reserved trade name that complies with DED regulations.
Shareholder Identification: Copies of passports and Emirates IDs for all shareholders and partners.
Legal Structure Documentation: Depending on the chosen legal structure (e.g., LLC, sole proprietorship), specific documents may be needed.
Office Lease Agreement: Proof of a physical office space in Dubai.
No Objection Certificate (if applicable): Required if a local sponsor is involved or if the shareholder is a UAE national.
Memorandum of Association (MOA): A document outlining the company’s structure and operational guidelines.
Mainland vs Free Zone
Ownership Structure:
Mainland: Typically requires a local sponsor holding at least 51% ownership unless specific sectors allow 100% foreign ownership.
Free Zone: Allows 100% foreign ownership without needing a local partner.
Business Scope:
Mainland: Businesses can operate anywhere in the UAE and engage with the local market directly.
Free Zone: Companies are restricted to operating within the free zone or through local distributors when trading in mainland UAE.
Licensing Flexibility:
Mainland: Offers a wider range of business activities under one license.
Free Zone: Business activities are limited to those specified in the free zone's regulations.
Features of Mainland Company
Broader Market Access: Mainland companies can operate throughout Dubai and the UAE without restrictions on where they can conduct business.
Diverse Licensing Options: Businesses have access to various types of licenses tailored to their specific activities.
Ability to Bid on Government Contracts: Mainland companies can participate in government contracts and projects that may not be available to free zone entities.
Local Market Engagement: Companies can directly engage with customers and suppliers within the local market without intermediary restrictions.
Flexible Business Structures: Various legal structures (LLC, sole proprietorship) provide options for different ownership models based on business needs.
Why Choose Reyson Badger for Mainland Company Formation
Forming a mainland company in the UAE provides big benefits, among others, being allowed to do business anywhere in the UAE; gaining access to all their business activities; and the ability to work with both private and government sectors. Mainland companies, on the other hand, have to be at 51% local ownership only. Other than that slight, longer licensing process, it enjoys unrestricted trade. It does not have capped office spaces and headcount for employees.
With the support of Mainland Company Formation Services in UAE provided by experts likeReyson Badger,you can navigate the complex setup process smoothly. They bring comprehensive expertise in Mainland Company Formation, ensuring your business is established efficiently and aligned with UAE regulations. Contact Reyson Badger for tailored guidance and expert support in establishing your business.
FAQ
1, How do I register a trade name for my mainland company?
A: To register a trade name for your mainland company, you need to:
Check the availability of the trade name with the Department of Economic Development (DED).
Submit an application for trade name registration with the DED.
Pay the required registration fees.
2, How do we navigate property ownership and lease agreements for mainland companies?
A: For mainland companies:
Property ownership: Foreign investors can own property in designated areas, but there may be restrictions.
Lease agreements: Companies can lease property for a minimum of 3 years, with the option to renew.
It's recommended to consult with a real estate expert and/or lawyer to ensure compliance with UAE laws and regulations.
3, How much will it cost to maintain my mainland company annually?
A: The annual maintenance cost for a mainland company in Dubai includes:
Trade license renewal fees (approximately AED 2,000 to AED 5,000).
Chamber of Commerce fees (approximately AED 1,000 to AED 2,000).
Audit fees (approximately AED 5,000 to AED 10,000).
Other miscellaneous fees (e.g., visa fees, labor fees).
The total annual cost can range from AED 10,000 to AED 30,000 or more, depending on the company's size and activities.
4, Which option is faster to set up, the mainland or the free zone?
A: Setting up a free zone company is faster than setting up a mainland company. Free zone companies can be established in as little as 1-2 weeks, while mainland companies may take 2-4 weeks or more to set up. However, the setup time can vary depending on the specific requirements and documentation needed for each type of company.
