Establishing a mainland company in Dubai is an attractive choice for investors looking to launch a new venture that maximises trading and generates income. This blog thoroughly reviews the advantages and potential drawbacks of forming a mainland company in Dubai and the United Arab Emirates (UAE).

Why Should You Establish a Mainland Company in the UAE?

While setting up a company in the UAE mainland offers numerous benefits, below are some of the benefits:

• 100% ownership and control of your business (Certain sectors are exempt).
• Low corporate taxes and no income tax
• Easy and smooth company onboarding process
• World-class facilities and infrastructure
• No trade restrictions
• Rich culture and opportunities

Types of Mainland Companies You Can Establish in the UAE Mainland

1. Sole Establishment

A sole proprietorship is a business type where a single proprietor owns and operates the entity, managing commercial, industrial, agricultural, or real estate projects according to the company’s activity. The owner is fully responsible for the financial liabilities and obligations of the business, ensuring all financial commitments are met.

2. Limited Liability Companies (LLCs)

In the UAE, this is the most typical type of business enterprise. It is a form of company that consists of a minimum of two and a maximum of fifty shareholders, wherein the liability of each shareholder is limited only to the extent of their portion of capital.

3. Civil Company

This type of business venture is for professionals such as engineers, doctors, accountants, and lawyers. A local sponsor is not required but requires two or more qualified professionals to establish a civil company on the UAE mainland.

4. Offices of Representatives and Branch

As the name suggests, a branch or office representative is the branch of a foreign office or company. It is permissible for a branch office to advertise and market the goods of its parent company, participate in transactions, and provide clients with the services. A representative office is also permitted to advertise the parent company’s commercial endeavours.

The UAE also offers collaborative business opportunities and public and private shareholding firms.

Documents Required to Register a Mainland Company in the UAE

Before starting the application for the company’s registration, ensure the below documents are ready for submission:

• Proof of a reserved trade name, along with registration and licensing application forms
• A copy of the applicant’s passport, and, for UAE residents, their Emirates IDs as well
• Approval from relevant government agencies depending on the nature of the activity
• Notarised Memorandum of Association (MoA)

Additional documents that are required to setup a branch of a foreign company:

• Local service agreement
• Audited financial statements
• Documents of the parent company
• Parent company’s Board Resolution (BR)
• Power of Attorney authorising the General Manager or Director as the authorised signatory

Steps of Registering a Mainland Company in the UAE

Gatestone Group will assist you in registering your mainland company in the following steps:

Step 1: Select the business type and business activity

The UAE mainland offers five business types to choose from. Select the category that best describes your company from the below:

• Industrial
• Commercial
• Agricultural
• Professional
• Tourism

Next is to select the appropriate business activity from the 2000+ business activities offered by the Department of Economic Development (DED) of the Emirates.

Step 2: Select the Legal Structure of Your Business

Select the legal structure of the business based on the business needs:

• Sole Establishment
• A local company’s branch
• limited liability company (LLC)
• Joint-stock company, private or public
• Office of a foreign company 

Step 3: Register Your Company Name

This step involves choosing the name and logo of your company. Apply through the Department of Economic Development (DED) of the Emirates to have your business given a distinctive trade name. 

Step 4:  Obtain The Necessary Approvals

Obtain the necessary permissions from the authorised government authority before starting your business. It is imperative to receive this approval to legally operate a business in the UAE.

Step 5: Obtain Legal Documents (LOA or MOA)

A company established as a Civil, LLC, public shareholding, or private shareholding typically requires a Memorandum of Association (MOA).

Step 6: Select the Location

To conduct business in the UAE, most companies need a physical address. The business’s surroundings and location must adhere to the guidelines set forth by the selected emirate’s Department of Economic Development as well as the zoning laws and ordinances of the municipalities or other governing authorities. The Dubai Land Department’s Ejari portal should be used to register the tenancy contract for the office or warehouse space. 

Step 7: Additional Government Approvals If Needed

In some cases, businesses require extra clearances from government authorities in charge of managing business operations. The following are some of the government entities responsible for providing extra permissions in the defined sector:

• The Roads and Transport Authority (RTA) is responsible for public transport services, granting driving licences, registering vehicles etc.
• The Ministry of Justice oversees courts and prosecution departments in the UAE.
• The Local Municipal Department manages architecture and engineering services, waste management and other health and public safety services.
• The Telecommunications and Digital Government Regulatory Authority (TDRA) manages the telecommunications services in the country.
• The Ministry of Health and Prevention is the federal health authority in the UAE. The Local Health Departments in different emirates are the regulatory authorities for healthcare services, insurance matters etc.
• The Supreme Petroleum Council controls gas and oil-field services, including onshore and offshore oil drilling operations.

Step 8: Submit the Documents and Get Your Licence

• A receipt of initial approval and copies of all previously submitted documents
• Copy of lease contract, duly attested
• Memorandum(s) of Association, as required
• Approvals from other government entities, as required

Step 9: Post-incorporation Requirements

It is important to remember that establishing a company in the UAE has some post-incorporation and legal requirements that must be met for your company to be operational and compliant in the UAE. This includes but is not limited to:

• Opening a corporate bank account
• Applying for employee visas
• Registering with the Wage Protection System (WPS)
• Accounting and Bookkeeping
• Audits
• Tax registration
• Human Resource
• Other compliance requirements like Ultimate Beneficial Owner (UBO), Economic Substance Regulations (ESR), Anti-Money Laundering (AML), and Counter Financing of Terrorism

The process, while straightforward, can often be overwhelming due to the variety of choices and legal issues to consider and comply with. Consulting with experts like Gatestone Group ensures that you receive personalised plans and suggestions tailored to your specific needs. Gatestone Group, with years of experience in company formation and other corporate services, has a proven record of helping businesses achieve success. Let Gatestone Group guide your business to its next milestone.