BUSINESS OVERVIEW
WHAT IS A MAINLAND COMPANY?
A Mainland company is a company registered in one of the UAE DED (Department of Economic Development) areas. It means that if you choose to conduct business in UAE Mainland, you will need to register a business entity with the DED, which will then provide you with a business licence to commence business in UAE.
Mainland companies can practice any industrial, commercial, trading, professional, or tourism activity. Some professional activities are excluded as per DED’s business regulations, and others require the approval of authorities which regulate these activities.
Foreign investors may start their business in a partnership where 51% ownership of the company belongs to UAE nationals or choose a Sole Establishment company formation to own 100% of shares. However, some business activities are reserved for UAE nationals only.
Shareholders must fulfil the formation documents and processes, which includes the appointment of a manager by the Memorandum of Association (MOA) or Service Agreement, for a limited or an unlimited period. Mainland must appoint a minimum of one manager and up to a maximum of five managers for the business.
HOW TO REGISTER MAINLAND COMPANY IN UAE?
- SELECT BUSINESS ACTIVITY
Decide the business activity type: Commercial/Trading, Consultancy, Professional, or Industrial. You can choose several activities in one group of activities.
- SELECT LEGAL FORM
Based on the activity and the owner’s resolution.
- SELECT TRADE NAME
It’s advisable to suggest three name options in order of preference ā names must be clear, have meaning and are not related to any religion. At this stage, it’s required to submit documents of all partners and the appointed manager partners (Passport / Visa / EID / NOC for UAE Residents / Residential address).
- APPLY FOR INITIAL APPROVAL IN DED
It is to confirm that the company can be formed and the company name is approved.
- PREPARE MOA & LSA AGREEMENT
DED will prepare the MOA (Memorandum of Association) and LSA (Local Sponsor Agreement) based on the information provided at stage 3 and stage 4.
- ESTABLISH BUSINESS LOCATION
To complete the registration process in the Mainland, a lease contract (Ejari) is required. It refers to either an office/business centre/warehouse or a showroom. It can be rented or purchased anywhere in the Emirate where you have registered the company.
- GET APPROVALS
Some business activities will require external approvals from other authorities such as MOH (Ministry of Health and Prevention), Civil Defence, Police, etc.
- COLLECT BUSINESS Licence
After the MOA, the LSA is signed after all approvals obtained, and all payments have been made. The licence will be issued along with the MOA.
Note: it takes approximately 5 to 12 working days to establish a Mainland company after receiving the full set of required documents. In case of external approval for some of the business activities, the time frame may take longer.
TO REGISTER A MAINLAND COMPANY IN UAE
Although some of the procedures for setting up and obtaining a license can be lengthy, obtaining the appropriate legal advice will facilitate the process and help foreign companies understand the optimal legal structure for conducting business in the UAE.
If you want to obtain registration of UAE mainland in Dubai or any other Emirate, let EXSUS guide you in choosing the most effective corporate structure for your company. We can help your company in getting started as well as conducting business in the UAE along with providing support for visa applications, accounts + bookkeeping, and tax certification.
Contact our experts to obtain free kind advice on the best options to set up your business in UAE or obtain a UAE bank account today.
ADVANTAGES OF A MAINLAND COMPANY
- 100% repatriation of the capital
- 0% corporate and personal income taxes
- A mainland can have more than one branch
- ā¢ Pitching for a host of private and government projects that are not available to Free Zone or professional services companies without a local partner
- ā¢ Mainland allows foreign entrepreneurs to trade/operate directly with the local market
