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Mainland Company Setup in UAE - DXB Setup

Dubai is considered as a wonderful place for a business hub. It allows many investors to set up and formation of mainland company setup in UAE. There is a major difference between Free Zone and Mainland Company or called Offshore Company.

mainland company setup in UAE

Free Zone companies are permitted to do business within the region of UAE whereas Offshore Business is permitted to do business all over the world.

What are Mainland companies?

Mainland companies in Dubai are directed by Federal Law No.2 of 2015 ( the New commercial Company Law NCCL) came into effect on 1 st July 2015. In the UAE Mainland Companies are regulated by the legal structure which is set by the UAE government.

Mainland companies have to be located under the limitations of commercial geographical areas. And should be covered by the jurisdiction of the Emirate Government. Commercial licenses or professional licenses are to be obtained.

Regions in the UAE to set up a mainland company

  • Mainland Business set up in Dubai
  • Mainland Business set up in Abu Dubai
  • Mainland Business set up in Sharjah
  • Mainland Business set up in Ajman
  • Mainland Business set up in Fujairah
  • Mainland Business set up in Rak-Ras al Khaimah

Reference for you:

How To Setup a Business in Dubai?
How to Get a Business License in Dubai
How to do Business Setup in Dubai Free Zones?
How to Setup a New Business in Sharjah Free Zone: A Step by Step Guide.
A Step by Step Guide To Do Ajman Free Zone Business Setup

Why set up a company in Dubai Mainland?

Dubai is a hub for business formation and the establishment of Mainland Companies for various advantages. Unrestricted business activities with other mainland companies, extensive business opportunity, work with governmental bodies, open presence in the UAE market, Financially viable are some factors that attract investors to form a mainland company in UAE.

Here are some following reasons with favors for the formation of Mainland company in UAE.

  1. Strategic Location.
  2. Favorable Economic Policies
  3. Tax Incentives
  4. Favorable Business Culture
  5. Avoidance of Double Taxation
  6. The Huge Availability of Natural Resources.
  7. Robust Network
  8. Easy Business set up process
  9. Easy availability of office space
  10. No restriction in carrying out business activities
  11. No local sponsors to obtain a professional license
  12. Easy availability of visas.

Strategic Location:

UAE is the best strategic location in the middle east. It provides a wide range of opportunities for investors to enter the other GCC countries and also help in expanding business activities.

Favorable Economic Policies:

UAE government provides many facilities for the investors to form a mainland company in UAE. Facilities include 100 ℅ foreign ownership, no personal tax, etc.

This provides wonderful opportunities for the investors to come forward and initiate business set up and business formation.

Tax Incentives:

Payment of income tax is not necessary which is said to be an eye-catching point for the investors to set up the formation of Mainland Companies in the UAE.

Favorable Business Culture:

With pleasant business climate Dubai motivates the investors to form Mainland Company in UAE. Irrespective of its size and nature of the business, it stands the best location for newbies, entrepreneurs, and established business professionals.

Avoidance of Double Taxation:

There is flexibility laid by the government of UAE for the business owners to enter into a double taxation agreement for the import process. This allows them to clear out the tax to be paid on both sides.

The Huge Availability of Natural Resources:

As there is vast availability of natural resources in UAE it is helpful for a better living lifestyle and in the commercial domain.

Robust network:

As there is a wide range of transportation facilities like roadway, airways, and waterways it’s made easy for the investors to set up business in Dubai Mainland. As the connectivity is robust relevant business activities can be carried out with ease.

Easy Business Set up formation:

Dubai provides a very easy setup formation. It provides an easy way to initiate and complete the process. For faster tasking business owners mostly prefer to have a deal with professional business consultants regarding the help for completion of the task.

Easy Availability of Office space:

Office space is easily and quickly available in the UAE. This helps to set up the formation of Mainland Company.

No restriction in carrying out business activities:

There is flexibility to carry out their business in the whole UAE irrespective of business nature. Activities are made legal and relevant authorities approve the same.

No local sponsors to obtain professional licenses:

A professional license has to be obtained if the plan is set up by a professional company to carry out business activities. For other activities, you don’t need to have a local sponsor to get a professional license.

Easy availability of visas:

Dubai offers free of tension to obtain a visa. Its is effortless for business owners to obtain investor visa and residence visa. All the essentials required for a visa must be approved.

How to set up a mainland company in the UAE?

To get a good start for the process of mainland company formation you need to have a verified office address that is acquired by a municipality. There are long many other factors which are considered necessary for the formation of mainland company in UAE.

Factors include professional or business license, local partner or local serving agent, office space and visa processing. Documentation plays a very important role in Mainland Company formation in UAE.

Here are some steps involved in Company formation in the Dubai mainland.

  1. Type of business activity selection and name approval
  2. Selection of Local Partner or Service Agent
  3. Initial approval for Mainland Company set up.
  4. Preparation for Court Notarization and MOA.
  5. Office space and Tenancy Contact.
  6. Final submission for Mainland Company Formation in the UAE.

Documents required to set up a Mainland Company in the UAE

Documents required are different for Individual Shareholder and Corporate Shareholder. Also, additional documents should be provided for Professional Firms and Public Shareholding Companies.

Documents Required for Individual Shareholder

  • Passport copies of the expatriate shareholders, directors, and manager along with the Visa page and entry stamp( when shareholders enter the UAE).
  • If the shareholder/manager is on an employment visa of a company in the UAE, a No Objection Certificate is necessary (NOC) from the employer is required.
  • National ID card copy of the UAE National partner.

Documents Required for Corporate Shareholder:

  • An exact copy of Certificate of Incorporation and Memorandum and Articles of Association legalized from the UAE Embassy.
  • List of shareholders in Arabic No Objection Certificate from the Free Zone / offshore Authority if the company is a shareholder in a proposed LLC.
  • Original Board Resolution for setting up the company with the power of Attorney Notarized and legalized from the UAE embassy.

Additional Documents required for professional Firms and Public Shareholding Companies.

CV and Degree Certificate Documents have to be :

  • Certificate as true copies by the Notary Public in the country of origin.
  • Legalized by the UAE Embassy in the country of origin.
  • Legalized by the Ministry of Foreign Affairs in the UAE.

The process of Mainland Company Formation in the UAE

To set up a mainland company in the UAE certain process has to be followed.

  • Finding a local sponsor.
  • Creation of Memorandum of Association.
  • Obtaining a preliminary approval.
  • Choosing a Trade name and getting registered by DED.
  • Arranging of Office Space.
  • Applying for a trade license
  • Submitting required documents to DED and the Commercial Registration Department.

Finding a local sponsor

A local sponsor must refer to a UAE national or a company that should be owned wholly by UAE nationals. It also acts as a service agent for your company business in the UAE, generally also acting as a sleeping partner of your company.

A detailed agreement, stating the responsibilities of the said sponsor towards the business as well as his/her annual fee is to be prepared.

A No Objection Certificate from the local sponsor is required for running your business activities.

Creation of Memorandum of Association:

Create a Memorandum of Association(MOM) for your company. A document listing the fundamental conditions upon which a company must operate.

  • The main purpose of the company
  • Capital investment
  • Issuance of shares.

Obtaining a preliminary approval:

Obtain a preliminary approval for the company by notarizing the now at the Department of Economic Development(DED), Dubai. It’s best to get it done through a lawyer or business setup p consultant.

Choosing a Trade name and getting registered by DED:

Decide the trade name and register it with the DED. The name should be unique and relevant. The DED has the authority to reject or change the name in case a company with a similar name already exists.

Arranging of Office Space:

Arrange an Office space for the company. This is necessary to obtain a license for the business. The office tenancy or ownership contract serves as the proof for a registered office address.

In the case of an offshore company, the address of the registered agent ( appointed by the company from the approved list of registered agents in UAE) can be provided as the official address of the company.

Applying for Trade license:

Apply for a trade license, which is issued by the DED. A license can be one of the following types, depending on the kind of business the company carries out.

  • Industrial license, for manufacturing activities.
  • Professional license for service-based companies like law firms, educational institutes or artisans.
  • Commercial license, for any kind of trading activity.

Submitting Required Documents to DED and Commercial Registration Department:

Based on the type and location of your company submit the required documents to the DED and Commercial Registration Department. Pay the license fee.

If everything is alright then your company will be registered in a week.

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DXBsetup.comHeadquarters
DXB Setup - Dubai Business Setup.
Office # 2903, Boulevard Plaza Tower 1,
Downtown, Dubai, UAE
OUR LOCATIONSWhere to find us?
Dubai UAE Map
We are SocialDXB Setup Social Links
Let's connect socially to spread the word.

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