UAE Mainland
UAE Mainland Company Formation is highly sought after due to the country’s reputation as a thriving trade hub and one of the safest nations globally. Entrepreneurs recognize the UAE mainland as an ideal location to establish their corporations and open bank accounts, thanks to its status as a tax haven and its robust banking network.
The most prevalent business form in the UAE mainland is the Limited Liability Company (LLC). Recent cabinet decisions have eliminated the requirement for local sponsors in specific industries and commercial activities, allowing foreign investors to have 100% ownership in mainland companies. This means that investors can now establish a limited liability company without the need for a local sponsor.
All organizations involved in commercial, financial, industrial, agricultural, real estate, or any other economic operations on the mainland are subject to the amendments made to Federal Law No. 2 of 2015 on Commercial Companies and Amended Law No. 26 of 2020.
Benefits Of UAE Mainland Company Formation
Setting up a mainland company in the United Arab Emirates (UAE) can offer several benefits. The UAE mainland refers to areas that are not part of free zones, where foreign investors can have full ownership of their businesses. Here are some benefits of UAE mainland company formation:
- Access to the Local Market: A mainland company allows you to do business directly with the local market in the UAE. This is crucial for businesses that want to tap into the local consumer base.
- No Currency Restrictions: Unlike free zones where there might be restrictions on the use of the local currency (AED), mainland companies can transact in any currency without limitations.
- Business Flexibility: Mainland companies have the flexibility to engage in various business activities without the restrictions imposed by free zone regulations. This flexibility is particularly advantageous for companies with diverse business interests.
- Government Contracts: Mainland companies are eligible to bid for government contracts, which can be lucrative opportunities in a country with significant government-led projects and initiatives.
- Wider Geographic Scope: While free zone companies are often restricted to doing business within the free zone and internationally, mainland companies have the freedom to operate throughout the entire UAE.
- No Annual Auditing Requirement: Mainland companies are not subject to the annual auditing requirement that free zone companies must comply with. This can reduce the administrative burden and associated costs for businesses.
- Professional Expertise: Mainland companies often benefit from the presence of a wider range of professional service providers, including legal, financial, and business consulting services, which can be important for the success of a business.
- Employment Visa Flexibility: Mainland companies have more flexibility in obtaining employment visas for their staff, and there are generally no restrictions on the number of visas that can be issued.
- Business Networking Opportunities: Being part of the local business community can provide valuable networking opportunities. Mainland companies can actively participate in local events, forums, and business associations, fostering connections and collaborations.
- Strategic Location: The UAE's strategic geographical location makes it an ideal hub for businesses looking to expand into the Middle East, Asia, and Africa.
- Stable Business Environment: The UAE has a stable and business-friendly environment with modern infrastructure, advanced technology, and a well-developed legal framework.
Key Aspects of Establishing a Mainland Company in the UAE
- Mainland enterprises in the UAE do not face any tax burdens.
- Obtaining a Mainland Company Formation License does not require a specific amount of legal capital.
- The process of setting up a mainland company is streamlined and hassle-free.
- There is no mandatory requirement for an audit to be conducted.
- Approvals for UAE Mainland Company Formation are easily obtained.
- The company can be managed from any location within the UAE.
- There are no legal restrictions on the use of money for mainland companies.
- Dubai offers convenient and readily available services for employment visas.
- The financial status of a company can be transparently disclosed.
- All capital and profits can be repatriated without any obstacles.
- The company office is easily accessible from any part of the UAE.
Different Types of Mainland Company Formation in the UAE
Setting up a mainland company in the United Arab Emirates (UAE) can offer several benefits. The UAE mainland refers to areas that are not part of free zones, where foreign investors can have full ownership of their businesses. Here are some benefits of UAE mainland company formation:
Foreign Branch Office
Dubai offers opportunities for corporate entities seeking to expand their operations. If you are looking to expand globally towards the MENA region, you can consider establishing a branch office through mainland company formation.
Professional Companies
Also known as common organizations, these companies are dedicated to a specific profession and carry out professional practices related to their field.
LLC
One of the most popular forms of business entities is the limited liability company (LLC), which requires a minimum of two investors and allows a maximum of fifty. The distribution of individual shares determines the level of responsibility each partner has.
Representative Office
The UAE allows foreign financial experts to establish representative offices without the need for an investor. These offices primarily focus on research and development activities and promotional efforts, rather than engaging in operational activities.
Steps Involved in Acquiring a Mainland License in the UAE
- Select the desired business activity.
- Determine the appropriate company structure.
- Obtain approval for the chosen trade name.
- Obtain initial approval for the license.
- Acquire the establishment card.
- Obtain external approval, if necessary.
- Issue the license.
- Establish a company bank account.
- Complete the labour file.
- Initiate the visa process.
