Such type of company is the most common type of registration in the UAE and is recommended where the purpose of the entity is to trade within the whole region. Kindly pay attention that 100% foreign ownership of this company type in the UAE is not permitted.
Pay attention that:
Foreign investors are allowed to hold only up to 49% equity ownership in UAE companies
51% of shares must belong by one or more UAE nationals
2 to 50 shareholders can be included
The minimum recommended share capital is AED 300,000
Multiple business-related activities under 1 trade license can be provided
No corporate taxes, no income taxes
This type of entity is applicable for professional, service activities and consultancy. Setting up such type of a company is the best way a foreign investor can get 100% ownership in a UAE company registered outside Free Zones.
The features of such company type include:
Do not require any form of local ownership
100% foreign ownership
No requirement for minimum capital
The UAE National will act as an agent with 0% ownership.
Set up through a national service agent
One shareholder only
No corporate taxes, no income taxes
Civil company is a company owned by 100% foreign ownership with up to 3 shareholders and local service agent. This is applicable for professional and service activities/license.
Local service agent owns 0% of business shares and profit, whereas foreign partner or a company owns 100% of business shares
Local service agent main task is to perform a role of a signatory for fulfillment of all government related tasks
Local service agent has no administrative powers and is only entitled to annual payment for government services
Local service agent can be a professional, a UAE Government employee or a company owned by a UAE National
For certain activities professional qualification of local service agent is required
If you want to get registration of Mainland company in Dubai or any other Emirate, let My Business Consulting DMCC guide you in choosing the most effective corporate structure for your company. We can help your register your business along with providing support for obtaining UAE Residence Visa and Corporate Bank Account opening.
WHAT IS MAINLAND AND
HOW TO REGISTER MAINLAND COMPANY IN UAE
WHAT IS A MAINLAND COMPANY?
A Mainland company is a company registered in one of UAE DED (Department of Economic Development). This means that if you choose to conduct business in UAE Mainland, you will need to register business entity with the DED, which will then provide you a business license to start doing business in UAE.
Mainland company can practice any industrial, commercial, trading, professional or tourism activity. Some professional activities are excluded as per DED's business regulations and other require approvals of authorities that regulate these activities.
Foreign investors may start their business in partnership where 51% ownership of the company belonging to UAE nationals or choose a Sole Establishment company formation to own 100% of shares. However, it should be noted that some business activities are reserved for UAE nationals only.
Shareholders must fulfill the formation documents and processes, which is included the appointment of a manager by the Memorandum of Association (MOA) or Service Agreement, for a limited or an unlimited period of time. 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?
1. SELECT BUSINESS ACTIVITYDecide the business activity type Commercial/Trading, Consultancy, Professional or Industrial. You can choose several activities within one group of activities.
2. SELECT LEGAL FORMBased on the activity and owner’s resolution.
3. SELECT TRADE NAMEIt’s advisable to suggest three name options in order of preference – names should be clear, has meaning, not related to any religion. At this stage it is required to submit documents of all partners and of the appointed manager partners (Passport / Visa / EID / NOC for UAE Residents / Residential address).
4. APPLY FOR INITIAL APPROVAL IN DEDThis is to confirm that the company can be formed and the company name is approved.
5. PREPARE MOA & LSA AGREEMENTDED will prepare the MOA (Memorandum of Association) and LSA (Local Sponsor Agreement) based on the information provided at stage 3 and stage 4.
6. ESTABLISH BUSINESS LOCATIONTo complete the registration process in the Mainland a lease contract (Ejari) is required. This refers to either an office / business center / warehouse or a showroom. It can be rented or purchased anywhere in the Emirate you have registered the company.
7. GET APPROVALSSome business activities will require external approvals from other authorities such as MOH (Ministry of Health and Prevention), Civil Defense, Police, etc.
8. COLLECT BUSINESS LiCENSEAfter the MOA, LSA are signed, all approvals are obtained and all payments are made. License will be issued along with the MOA.
ADVANTAGES OF A MAINLAND COMPANY
100% repatriation of the capital
0% corporate and personal income taxes
A mainland can have more than one branch
Pitching for a host of private and government projects that are not available to Free Zone or professional services companies without a local partner
Mainland allows foreign entrepreneurs to trade/operate directly with the local market
Availability of a wide range of business activities
HOW WE CAN ASSIST YOU
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 greatly facilitate the process and help foreign companies understand the optimal legal structure for conducting business in the UAE.
If you want to get registration of UAE mainland in Dubai or any other Emirate, let My Business Consulting DMCC guide in choosing the most effective corporate structure for your Company. We can help your Company in getting started as well as doing business in the UAE along with providing support for visa applications accounts& bookkeeping and tax certification.
Contact our experts to get a free kind advice on the best options to set up your business in UAE or obtain a UAE bank account today: [email protected].
SET UP YOUR BUSINESS WITH US
UAE FREE ZONES
Matchest Consulting Inc. (Taiwan Based Partner) We are professional consulting company in Taiwan and have cooperated with MY Business Consulting DMCC for many projects successfully. We appreciate for their patience to let us learn more with respect to UAE company types and related regulations. We will continue to cooperate the business and to bring the best services to the clients. Neqtat Al Entelaq Limited More professional than expected, especially Ms. Alaina. We would really recommend My Business Consulting DMCC to all. Aswaq Capital Limited We are very happy to do the registration of Aswaq Capital in My Business Consulting DMCC. And everybody is very helpful. Shafiq Massoud It’s obvious, that My Business Consulting DMCC is committed to professional services and I will not hesitate to recommend your company to others. Blue Atlas Investment Holding Ltd Very efficient and helpful. Excellent time management as we were on a tight schedule. Everything was prepared in time.
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