All you need to know about Mainland Company Setup in the UAE

Introduction

Starting a company in the UAE comes with various benefits such as tax advantages, favorable business location, access to a talented workforce, and a high-quality lifestyle. The UAE has established itself as a prominent regional business hub, offering market competition and a wide range of options for customers. Furthermore, the spending capacity and habits of UAE residents are consistently increasing, while the country has also become a global tourist hub, providing additional advantages for companies setting up in the UAE. Regardless of whether you establish a free-zone, mainland, or offshore company, Dubai is an attractive location with many business opportunities. This article will focus on the process of setting up a mainland company in the UAE.

What is Mainland in the UAE?

The mainland, also referred to as the onshore area, pertains to the region in Dubai that is situated outside the free zones and falls under the jurisdiction of the Department of Economic Development (DED). Consequently, the issuance of all three categories of mainland trade licenses, namely Professional/Services License, Commercial License, and Industrial License, is overseen by the DED.

Main-land Company Registration / Set-up in the UAE

• An area that is outside the Free Zones is the Mainland Area.
• The regulatory Authority in the Mainland area for issuing the Mainland Licenses for Company Setup is Department of Economic Development (DED).
• The Mainland Companies have permission to carry out businesses and trades without any restrictions or limitations not only throughout the UAE but also internationally.
• As per recent update, there is no need to have a local sponsor to get a Dubai Mainland Licenses. Hence, a Mainland Company can be Set Up in the UAE / Dubai without a local sponsor.

Benefits of Mainland Company Formation in the UAE

• Mainland Companies have a freedom to get a commercial space on rent in any area in the UAE.
• Mainland Companies can conduct a multiple business activities.
• These types of companies have an alternative to trade and business anywhere in the UAE and internationally.
• Companies set up in the Mainland can have 100% foreign ownership.
• Mainland Companies do not have to face any currency restriction.
• The Employment Visa process for the main land Company is effortless.
• The Mainland companies get the advantage of bidding on government projects.
• The Mainland Companies can open a corporate bank account easily.

How to Setup a Mainland Company in the UAE?

Setting up a Mainland Company in the UAE, particularly in Dubai, requires adherence to certain procedures and legal requirements. Here’s a detailed guide on how to initiate the process:

• Engage with a Business Setup Consultant: Seek the assistance of a reputable business setup consultant or consultancy firm specializing in Mainland Company formations in Dubai. They will guide you through the entire process, ensuring compliance with legal requirements and offering valuable insights.

• Determine Business Activity: Identify the nature of your business activity and select the appropriate license category. Mainland licenses in Dubai are categorized as commercial, industrial, or professional licenses. Each category corresponds to specific business activities.

• Find a Local Sponsor: As a foreign investor, you will need to have a local Emirati sponsor or partner who will hold a majority ownership of the company (51% share). This local sponsor can be an individual or a corporate entity. The role of the sponsor is typically limited to a shareholding capacity and does not have involvement in the day-to-day operations or profit-sharing.

• Prepare Legal Documents: Gather the required legal documents for company registration. These may include:

1. Passport copies of shareholders and sponsors.
2. No-objection certificates (NOCs) from existing sponsors (if applicable).
3. Proposed company name.
4. Memorandum of Association (MOA) outlining business activities and shareholding structure.
5. Lease agreement for a physical office space in Dubai.
6. EJARI registration certificate
7. External departments approval
8. Dubai Chamber of Commerce and Industry Registration

• Register with the Department of Economic Development (DED): Submit the necessary documents to the DED for initial approval and payment of the required fees. The DED will review the application and verify the proposed business activity and legal documents.

• Trade Name Reservation: Once the initial approval is obtained, you can proceed with reserving your trade name through the DED. This step ensures that your chosen business name is unique and available for registration.

• Lease a Physical Office Space: To meet the legal requirements, you must lease a physical office space within the designated commercial areas approved by the government. The office should be suitable for conducting your business activities.

• Finalize Legal Procedures: Upon receiving the trade name reservation and securing the office lease agreement, you can finalize the legal procedures. This includes signing the MOA, obtaining the necessary approvals, and paying the required fees to obtain the mainland license.

• Obtain Business License: After completing the legal procedures and obtaining the necessary approvals, the DED will issue your Dubai mainland license. This license grants you the authority to conduct your chosen business activity within the UAE.

• Post-License Activities: Following the issuance of the mainland license, you will need to complete additional procedures, such as obtaining labor and immigration cards, registering for VAT (if applicable), and opening a corporate bank account.

• Corporate Tax: Mainland companies in the UAE are subject to corporate tax. Ensure compliance with tax regulations and consult with a tax advisor to fulfill your tax obligations.

It is essential to note that the process and specific requirements may vary depending on the business activity, location, and other factors. Engaging professional assistance will ensure a smooth and efficient setup process for your Mainland Company in the UAE.

Suggested Read:  Free Zone company registration in UAE

Conclusion

In conclusion, setting up a Mainland Company in the UAE, particularly in Dubai, offers investors and businesses numerous advantages and opportunities for growth. With a Mainland license, entrepreneurs can enjoy 100% freedom, flexibility, and protection within the UAE borders, along with the potential to expand their business nationally and internationally. With the right approach and support, establishing a Mainland Company in the UAE can pave the way for success and prosperity in one of the world’s most dynamic business landscapes.