United Arab Emirates (UAE) is one of the most popular trading environments in the Gulf and an ideal location for mainland company setup due to its strategic location (situated midway between Africa and CIS countries, and Europe and the Far East), vibrant economic policies, and positive planning.
As per the mainland company incorporation law, a UAE national has to mandatorily hold at least 51% of total equity in any commercial company, except in the following cases:
- Activities with 100% GCC ownership
- Businesses located in the Free Zones
- Instances where GCC companies (wholly owned) enter into a partnership with UAE national
- Where the law requires 100% local ownership
Advantages of Mainland Company
- Mainland company Formation has no currency restrictions
- In mainland company setup you can drive your company from any part of UAE
- Mainland company Formation has no yearly auditing mandatory
- Mainland company setup in dubai has flexibility to rent office anywhere
- Wide range of license types & activities
- No corporation tax
- 100% repatriation of capital and profits
- No minimum capital requirement
- Mainland company Formation has no limitations in getting employment visas
- Choice of office locations
- Stable local authorities
- Simple incorporation process.
- Hassle free legal procedures to seek license and registration
- Personal income tax exemption
- Only practical option for many types of business
Permissible Legal Entities in Mainland Company Setup
Any investor planning to establish a mainland company in UAE, can setup his / her business establishments in any of the following ways:
Branch of Foreign Companies
- No shareholder requirement
- Foreign companies are not allowed to practice their primary business, or incorporate branches in the Mainland, or engage in trading activities unless licensed by the Ministry of Economy
- Necessary approvals and license need to be taken from the concerned authorities to practise business in Mainland
- The license mandates a national agent to act on the behalf of the company
- Type of business practiced should be stated
- Proposed business activity for a branch of foreign Company should be within the domain of the activities performed by the parent company
Limited Liability Company (LLC)
- LLC is the most common form of business in UAE
- LLC can be established with a minimum of 2 and a maximum of 50 partners
- The percentage of individual’s share in the capital decides the liability to each partner
Representative Offices
- UAE Commercial Company Law allows foreign companies to open Branch/Representative offices without any shareholder
- Representative Offices are not allowed to perform trading or manufacturing activity and cannot even invoice as these are essentially the parent company’s marketing arms
Public Shareholding Companies
- Companies performing public shareholding, financial, banking or insurance activities are known as public shareholding companies
- For a public shareholding company, the minimum capital required is US$ 2.725 million, therefore its suitable for large projects or operations
Business License Types
Three types of business licenses are permitted for mainland companies in UAE, these are:
- Commercial Licence – Covers different types of trading activities
- Industrial Licence – Issued to companies performing industrial or manufacturing activity
- Professional Licence -Issued to companies offering professional services, and other related services like craftsmen and artisans
How can we help
At Zola Group, we assist our clients with mainland company setup in the United Arab Emirates by taking care of their business requirements from start till end.
Visit us here for your mainland company setup requirements in UAE and our team will be glad to assist you.
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