Mainland Overview

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Mainland Company Formation in Dubai by UAE’s #1 Business Setup Consultants- Business Hub

Are you planning for a Mainland Company formation in Dubai? Is the Mainland License in Dubai the best option for you? Do you have any doubts about which location will be best for your company? If these are your worries, look no further because Business Hub has got you covered.


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Mainland Company Formation in Dubai

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Business Hub- Mainland Company Formation Specialists in Dubai

A mainland company is an onshore company that has been licensed by the Department of Economic Development (DED) of the corresponding emirate and is permitted to conduct business in the local market as well as outside the UAE.

Companies from the mainland can engage in any type of industrial, commercial, trading, professional, or tourism activity. Some professional activities are prohibited by DED’s business regulations, while others require authorization from regulatory agencies.

Mainland turns out to be the most popular and practical option when it comes to company formation in Dubai. This is because it offers the maximum benefits that the country has to offer in terms of business formation.

However, for mainland companies, there are several rules to be followed during the procedure.

One of them is that a UAE national must own at least 51 percent of the total stock in any commercial company, save in the following situations:

  • Activities that ensure 100 percent foreign ownership
  • Companies based in Free Zones
  • Businesses that allow for 100 percent local ownership

Local Partners and Agents ​

A local partner (Commercial and Industrial license) or a Local Service Agent (Professional License) is required depending on the type of license.

A professional license is required when an individual or a group of individuals provide some expert service and the business is 100 percent owned by the expatriate.

In administrative transactions with government departments, the local Service agent acts as a representative. The local service agent does not own a share of the company and is compensated for their services on a yearly basis.

Foreign investors may even 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, certain business activities are reserved only for UAE nationals.

If you’re looking for a mainland Company formation in Dubai then you will need reputable business people.  Business Hub is a trusted name in town because we have adapted ourselves to Dubai’s cutting-edge business environment. Mainland Business Setup in Dubai may sound difficult, but it is not for us; as Business Setup Consultants, we can handle any situation for you. Get in touch with us to say goodbye to all your worries. 

Advantages of Mainland Company Formation in Dubai or UAE

If you establish your business on the Dubai mainland, it will be easier for you to expand and remain flexible at the same time. Following are the benefits of setting up a Dubai Mainland Company:

  • Easy access to economical office space with the ability to rent/lease offices wherever
  • Unrestricted trade across Dubai and the entire UAE
  • There are no annual auditing
  • No business or individual taxes.
  • No restrictions on getting work visas, and the recruitment process gets simple.
  • No minimum amount of capital required
  • The capital is repatriated in its entirety.
  • Foreign enterprises can trade/operate directly with the local market on the mainland.
  • Corporate and personal income taxes are both zero percent.
  • A wide range of commercial activities available.
  • A mainland company can have several branches.
  • Ability to work with the governments of the UAE and the Gulf Cooperation Council
  • You have the ability to trade globally and grow your footprint.


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Types of Businesses That Can Be Established on UAE’s Mainland

  1.  Limited Liability Companies-

 

These are the most popular type of companies established in the UAE. These are usually suggested when your goal is to conduct business within the country. Here, foreign investors are permitted to own up to 49 percent of the shares in a UAE company, with one or more UAE nationals owning the remaining 51 percent. Furthermore, there is no business or personal income tax.

 

  1. Sole Establishment-

 

If you’re a professional with a service-related business or a consultancy firm, a Mainland business establishment should be your best bet. There is no minimum capital requirement and 100 percent foreign ownership is permitted. Again, there is no corporate or personal income tax. An investor can easily obtain a bank account after forming a civil corporation.

 

  1. Branch and Representative Office of Foreign Company-

 

In the UAE, foreign companies can open a branch or a representative office. With the appointment of a Local service agent, these companies can be 100% controlled by a foreign organization.

Contact Business Hub, the best Business Setup consultants in Dubai for any further queries. 

How To Register a Mainland Company in the UAE?

It takes about 5 to 12 business days to set up a Mainland company after receiving the complete set of essential paperwork. However, this timeline may be extended if some company actions require external permission.

The steps to register a Company in the UAE include:

  1. Choosing Your Business Activity

After deciding that you need to open a business in Dubai, the most important decision you must make is which business to open. You can choose between commercial/trading, consulting, professional, or industrial as your business activity. In one group of activities, you can choose from a variety of activities. In the United Arab Emirates, there are over 2,000 business activities you can choose from.

  1. Select A Legal Form

The legal form is mostly determined by the needs of the firm. Furthermore, the legal form serves as a foundation for determining which laws and regulations are applicable to your business. An investor in the UAE can choose from one of the following legal structures:

  • Limited liability company (LLC)
  • Civil company
  • Free zone company branch
  • GCC company branch
  • Sole establishment
  • General partnership
  • and others
  1. Select A Trade Name

A trade name separates one company from another. It also represents the company’s nature and structure.

It’s a good idea to offer three names in order of choice —

Names should be simple, meaningful, and unrelated to any religion.

An investor can apply for a trading name through each emirate’s economic department’s website or mobile application.

  1. Apply for an initial Approval in DED

An initial approval indicates that the UAE government has no objections to the company’s operation in the country. It also permits the investor to move on to the next steps in the business setup process. It does not, however, give you permission to run or practice your business.  This is just to confirm that the business can be formed and the name of the company is approved.

  1. Get the MOA and LSA Agreements in Order

You need a completed and signed Memorandum of Association (MOA) or a Local Service Agent Agreement (LSA) of the business depending on the legal form of your organization.

Based on the information submitted at stages 3 and 4, the DED will produce the MOA (Memorandum of Association) and LSA (Local Sponsor Agreement).

  1. Set Up Your Business Location

To operate in the UAE, all firms must have a physical address. The licensed premises and locations must meet the requirements set forth by the Department of Economic Development of each emirate, as well as local municipality land planning legislation. A leasing contract (Ejari) is necessary to complete the registration process on the mainland. It can refer to a showroom or an office/business center/warehouse. It can be rented or acquired anywhere in the Emirate where your company is registered.

  1. Additional Approvals

Some company activities will necessitate authorization from outside agencies such as the Ministry of Health and Prevention, Civil Defense, and the Police, among others.

  1. Collect Your Business License

After your MOA is signed, all approvals are received, and all payments are made, the LSA is signed. Along with the MOA, your license is also issued.

 

Business Hub can make this process completely simple for you. So what are you waiting for? Contact us Today!

Mainland Company Formation in Dubai, UAE | LLC Sponsorship

All mainland permits, whether as a Local Partner or a Local Service Agent, require the presence of a UAE national.

  • In commercial licenses, a UAE national owns 51 percent of the stock, and the ex-pat partner owns 49 percent.
  • In the professional license, the ex-pat partner owns 100 percent of the company, and one UAE national has been appointed as a Local Service Agent.

Remember that this Local Partner/Service Agent is in charge of signing all government applications, whilst the ex-pat partner is solely responsible for business operations, with no participation from the Local Partner/Service Agent unless otherwise agreed.

Your company will be assigned a prime corporate candidate to operate as your 51 percent local sponsor in Dubai, thanks to Business Hub. 

We think that business owners should have complete financial and operational control over their businesses. In your quest to start a business in Dubai, we are here to defend all of your rights.

We believe in thorough documentation and open communication to put your mind at ease about the security of your company. Our company’s candidate is the best product currently on the market. Our sponsorship services will supply you with all of the documents necessary to safeguard your company’s financial rights.

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Mainland Business Setup in Dubai

How can Business Hub help you set up Your Mainland Business in the UAE?

Although some of the procedures for starting a business and obtaining a license can be time-consuming, finding legal assistance from the top business setup expert in UAE can help you get the job done faster. Also, we strongly believe that in the long term, the appropriate advice from seasoned professionals like us always satisfies the needs of the business.

Business Hub assists your firm in establishing itself and conducting business in the UAE, as well as giving assistance with visa applications, accounting and bookkeeping, and tax certification.

Contact our experts for Free information on how to start a business in the UAE or open a bank account in the UAE today!