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Company Setup

Mainland Company Formation

Mainland company formation in the UAE refers to the process of establishing a business entity in any of the emirates of the UAE that is not in a designated free zone. A mainland company is also commonly known as an onshore company or a local company.

The formation of a mainland company in the UAE is regulated by the UAE Commercial Companies Law, which stipulates that a mainland company must have at least one UAE national as a shareholder holding at least 51% of the company’s shares. The UAE national shareholder can be an individual or a company, and the foreign investor(s) can hold the remaining 49% of the shares. This requirement is mandatory for all mainland companies, irrespective of their nature of business or industry.

License offered in Mainland

In mainland UAE, companies can obtain various types of licenses depending on the nature of their business activities. Some of the common types of licenses include:
  1. Commercial License
  2. Industrial License
  3. Professional License
  4. Tourism License
  5. E-commerce License
  6. Service License
  7. Trading License
  8. Construction License
  9. Media License
  10. Educational License

Mainland Company Formation startup process

The process of mainland company formation in the UAE typically involves the following steps:

  • Choose a Local Sponsor
  • Choose a Business Activity
  • Choose a Business Name
  • Obtain Initial Approval
  • Draft the Memorandum of
  • Obtain a Trade License
  • Obtain Approvals from Other Government Authorities
  • Register for VAT
  • Open a Bank

The process of mainland company formation in UAE may vary depending on the emirate and the type of business activity you wish to undertake. It is advisable to seek the services of a local business setup consultancy firm to guide you through the process and ensure compliance with all the legal requirements.

The required documents to set up a company in Mainland

The specific documents required to set up a mainland company in the UAE may vary depending on the type of business activity and legal structure. However, the general documents required for mainland company formation in the UAE are:

 

  • Name reservation and initial approval
  • Local service agent agreement: If the company is 100% foreign-owned, a local service agent agreement is required with a UAE national who will act as a liaison between the company and the government authorities.
  • Premises lease agreement: A tenancy contract or lease agreement for the physical office or warehouse space where the business will operate.
  • License application form: A completed license application form from the DED, which outlines the proposed business activities.
  • Initial approval certificate: A copy of the initial approval certificate issued by the DED.
  • Passport copies: Passport copies of all shareholders and the appointed manager/director of the company.
  • Passport size photographs
  • No objection certificate from the current employer
  • Other approvals if any depends on the nature of the business

It is important to note that these documents may vary depending on the type of business activity and legal structure, and additional documents may be required. It is recommended to seek the assistance of a professional business setup service provider or a local sponsor to ensure a smooth and hassle-free company formation process.

Advantages of company formation in Mainland

Setting up a company in Mainland UAE has several advantages, such as:

  1. Access to a larger
  2. No restrictions on office location
  3. No limitations on business activities
  4. Unlimited visa options
  5. No corporate or personal income tax
  6. Strong legal framework
  7. Easy access to government services

Features about company setup in Mainland

Here are some key features of setting up a company in Mainland UAE:

  1. Local Sponsorship
  2. Trade License
  3. No restrictions on office location
  4. Company registration with DED
  5. Establishment Card
  6. Taxation
  7. Labor Law
  8. Flexibility in ownership and shareholding
  9. Access to UAE market

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