Mainland Company Formation
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Mainland Company Formation
Mainland company formation in the United Arab Emirates (UAE) refers to the process of establishing a company in the areas of the UAE that are not part of a free zone. These mainland areas are also known as onshore areas, and they fall under the jurisdiction of the respective emirate’s Department of Economic Development (DED).
A company setup in UAE offers numerous advantages, including tax benefits, strategic location, access to a skilled workforce, and a high quality of life. The UAE has firmly established itself as a regional business hub, characterized by robust market competition and a wide array of opportunities for businesses.
Additionally, the increasing spending capacity and consumption patterns of UAE residents, coupled with its status as a global tourist destination, further enhance the appeal of setting up companies in the UAE. Whether you opt for a free-zone, mainland, or offshore company, UAE stands out as an attractive location teeming with business prospects.
An Overview of the various forms of Mainland Company Setup in UAE
- Sole Proprietorship: Owned by an individual who controls all aspects and profits, but is also personally responsible for all business obligations.
- Civil Company: A partnership for professionals like doctors, lawyers, engineers, and accountants.
- One Person Limited Liability Company: Owned by one individual or corporate body, with liability limited to the partner’s share.
- Private Shareholding Company: A partnership with 2-200 people, requiring a minimum capital investment of AED 5,000,000.
- Public Share Holding Company (PJSC): A company with transferable shares of equal value.
- Limited Liability Company (LLC): A flexible enterprise with 2-50 investors, each liable only for their share in the capital.
- Simple Limited Partnership: Formed with at least two partners, including one general partner and one limited partner.
- Partnership Company: Similar to a simple limited partnership with general and limited partners.
- Branch of a Foreign Company: Represents a foreign company in the UAE market.
- Representative Office: Conducts promotional activities for the parent company but not business operations.
- Branch of Dubai-Based Company: Carries out activities included in the main company’s license.
- Branch of UAE-Based Company: Conducts activities included in the main company’s license.
- Branch of GCC-Based Company: Performs activities authorized in the main company’s license.
- Branch of a Free Zone Company: Allows a free zone company to operate in mainland Dubai.
- Intelaq (Home-Based Business for UAE Nationals): Established by UAE Nationals for home-based businesses.
- SME License: Available for businesses 100% owned by UAE Nationals, valid for three years, and permits employee sponsorship.
Mainland Company Formation in UAE
Setting up a mainland company in the UAE, specifically in Dubai, involves adhering to specific procedures and legal requirements.
Here’s a comprehensive guide on how to initiate the process of company formation in UAE:
Engage with a Business Setup Consultant
Start by seeking guidance of a reputable business setup consultant like us at Insight 360 who has expertise in mainland company formations in Dubai. Our firm will provide comprehensive assistance, ensuring compliance with legal requirements and offering valuable insights.
Determine Business Activity
Select the appropriate license category. Mainland licenses in Dubai are categorized as commercial, industrial, or professional licenses, each corresponding to specific business activities.
Prepare Legal Documents
Gather the necessary legal documents for company registration, including passport copies of shareholders and sponsors, no-objection certificates (NOCs) from existing sponsors (if applicable), proposed company name, Memorandum of Association (MOA) detailing business activities and shareholding structure, lease agreement for a physical office space in Dubai, EJARI registration certificate, external department approvals, and Dubai Chamber of Commerce and Industry registration.
Register with the Department of Economic Development (DED)
Submit the required documents to the DED for initial approval and payment of fees. The DED will review your application, verifying your proposed business activity and legal documents.
Trade Name Reservation
Once you receive initial approval, proceed to reserve your trade name through the DED to ensure its uniqueness and availability for registration.
Lease a Physical Office Space
Comply with legal requirements by leasing a physical office space within government-approved commercial areas, suitable for conducting your business activities.
Finalize Legal Procedures
After securing the trade name reservation and office lease agreement, finalize legal procedures. This includes signing the MOA, obtaining necessary approvals, and paying fees to obtain the mainland license.
Obtain Business License
Following completion of legal procedures and obtaining necessary approvals, the DED will issue your Dubai mainland license, granting authority to conduct your chosen business activity within the UAE.
Post-License Activities
Post-license tasks include obtaining labor and immigration cards, registering for VAT (if applicable), and opening a corporate bank account.
Corporate Tax
Mainland companies in the UAE are required to ensure compliance with tax regulations.
It’s important to note that the process and specific requirements may vary based on factors such as business activity and location. Seek our professional assistance to ensure a smooth and efficient setup process for your mainland company in UAE.
