Mainland Company Formation
Home > Mainland Company Formation
Get Business Consulting Services Today
Mainland Company Formation
Company formation in Mainland in the UAE presents a highly lucrative investment opportunity for entrepreneurs and businesses. The mainland refers to areas outside of the free zones in the UAE, and the Department of Economic Development (DED) serves as the regulatory authority responsible for granting mainland licenses. Mainland companies registered with the DED have the privilege of conducting business without limitations, both within the UAE and on an international scale.
Mainland – An attractive destination for company formation in UAE
One significant legal development that has ushered in a new era for businesses in the UAE is the implementation of reforms to the Commercial Companies Law in June 2021. These reforms have far-reaching implications for the future of business in the region. Notably, the UAE government has introduced a groundbreaking change by allowing 100% foreign ownership of mainland businesses.
Previously, expatriate business owners were limited to owning a maximum of 49% of their business, with the remaining 51% share typically held by an Emirati sponsor. However, the recent changes to UAE company law mean that foreigners establishing companies in Dubai no longer require an Emirati shareholder or agent. As a result, company formation in Mainland in Dubai has become even more attractive and accessible to both local and international investors.
Types of Trade Licenses for Company Formation in Mainland
- Professional License: Issued for service-related activities such as consulting.
- Commercial License: Granted to businesses engaged in trade or buying and selling of goods and services.
- Industrial License: Required for firms involved in manufacturing goods, such as factories and industries.
- Tourism License: Necessary for tourism-related activities, issued by the Department of Tourism and Commerce Marketing (DTCM).
Benefits of Mainland Company Formation in Dubai:
- Location Flexibility and Zero Trade Restrictions: Mainland companies can trade without geographical boundaries and provide services across the UAE.
- Broad Working Scope: Mainland companies can expand their business offerings by registering new activities with the Department of Economic Development (DED).
- Access to Government Contracts: Mainland companies have the opportunity to participate in lucrative government tenders and contracts.
- 100% Ownership Control: Recent changes in UAE laws allow for 100% foreign ownership of mainland companies in certain sectors, eliminating the need for a local partner.
Steps for Mainland Company formation in Dubai
Determine Your Business Activity
Begin by thoroughly researching the Dubai market and identifying the specific business activity you wish to pursue. Make an informed decision as it will determine the type of license and permits you require. Seek expert guidance if needed.
Choose Your Company's Legal Structure
Your company’s legal structure, ownership, and the number of shareholders will depend on your chosen legal framework. While Dubai Mainland offers various legal formations, the Limited Liability Company (LLC) is the most commonly chosen structure.
Register Your Trade Name
Reserve your trade name once you’ve identified your business activity. Selecting an appropriate trade name is crucial and must comply with government guidelines. Consider seeking assistance from a consultant for a compliant trade name.
Create an MOA or LSA
Depending on your chosen company type (e.g., public shareholding, private shareholding, limited liability, or sole proprietorship), you’ll need to draft either a Memorandum of Association (MOA) or a Local Service Agent Agreement (LSA).
Select a Suitable Business Location
Ensure you have a business location that complies with the Department of Economic Development’s regulations, local municipality requirements, zoning policies, and other relevant guidelines.
Apply for Necessary Government Approvals:
Depending on your specific business type, you may need to fulfill additional government requirements. For instance, if you plan to use an English brand name, there might be an extra fee of AED 2,000, whereas Arabic names are usually exempt from this fee.
Pay Fees and Obtain Your License:
After finalizing your business activity, reserving your trade name, and establishing the legal framework, you can apply for a license for business setup in Mainland. Ensure that all required documents are submitted to the Dubai Department of Economic Development (DED) as part of the application process.
Required Documents for Initiating a Company Formation in Mainland
To initiate a mainland company formation in Dubai, you will need to provide the following essential documents:
- Passport copy of the shareholders.
- Entry stamp or Visa page.
- Passport-size photograph.
Depending on the specific business activity you choose, additional documents may be required. LINKS CORPORATE CONSULTANTS can assist you in understanding the specific documentation requirements and ensure that all your paperwork is in order. Contact us today for more information and take the first step toward a successful venture in Dubai.