Mainland Company Formation in UAE
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Mainland Company Formation in UAE
Attaining a Mainland Company License is an attractive option for investors looking to establish a business in the UAE, enabling maximum trading opportunities and revenue generation. This guide provides an in- depth analysis of the process of mainland company formation, its benefits, and potential challenges.
The UAE has continuously improved its policies to foster economic growth and attract investors to start new businesses or branch offices. Setting up a mainland company in the UAE is now more straightforward, regardless of the emirate you choose. Entrepreneurs can apply directly through the Department of Economic Development (DED) or use digital platforms to obtain a commercial license quickly by submitting the required documents online.
Why Choose Mainland over Free Zone for Business Setup?
- Setting up a mainland company offers several advantages compared to free zones:
- Flexible Location and No Trading Restrictions - Mainland businesses can operate anywhere in the UAE and trade without restrictions, allowing them to expand their branches and strengthen their market presence.
- Broader Scope of Operations - Mainland companies can expand their services easily by re- registering new activities with the DED.
- Access to Government Contracts - Mainland businesses can leverage profitable government tenders, enhancing growth opportunities.
- 100% Foreign Ownership - Recent reforms allow 100% foreign ownership of mainland companies, opening immense growth potential for foreign investors.
Types of Mainland Companies in UAE
- 1. Sole Establishment
- Owned by a single proprietor responsible for financial obligations. Suitable for commercial, industrial, agricultural, or real estate activities.
- 2. Civil Company
- Ideal for professional services. JS Corporate Solution (JSC) provides complete assistance in advisory, office selection, business planning, and documentation.
- 3. Limited Liability Company (LLC)
- The most common business type. Earlier, local sponsors were required to hold 51% shares, but now 100% foreign ownership is allowed for most sectors.
- 4. Branch and Representative Office
- Branch offices promote parent company services and handle transactions, while representative offices focus on marketing and promotion.
- 5. Joint Venture
- Suitable for partnerships, allowing shared ownership and management responsibilities.
- 6. Private and Public Shareholding Company
- Suitable for larger-scale businesses requiring shareholding structures. JSC assists in structuring and compliance.
Mainland Company Setup Procedure
- Determine Business Activity - Choose from occupational, industrial, tourism, commercial, agricultural, or professional licenses.
- Select Legal Structure - Options include LLC, PJSC, civil company, and sole proprietorship.
- Register Trade Name - Unique and compliant with DED regulations.
- Obtain Initial Approval - Secures a 'no objection' status to proceed with further steps.
- Draft MOA or LSA - Essential for LLCs and civil companies.
- Choose a Business Location - Register tenancy contracts via Ejari.
- Secure Government Approvals - Additional permissions may be needed based on activities.
- Submit Documents and Collect License - Finalize paperwork and licensing.
Required Documents for Mainland Business Setup
- Initial Approval Phase:
- Registration application and trade name reservation proof.
- Passport copies of owners and partners.
- No objection letters, if required.
- Additional government approvals, depending on activity.
- Final Approval Phase:
- Initial approval receipt.
- Office lease agreement.
- MOA attested by a Notary Public.
- JSC provides expert attestation services to streamline the documentation process.
Switching from Free Zone to Mainland
- To transition from a free zone to a mainland business, follow these steps:
- Cancel the free zone license.
- Choose a new business activity and legal structure.
- Secure a local sponsor or opt for 100% ownership.
- Register with DED and apply for a mainland license.
- Obtain office space and apply for visas.
- JSC offers seamless support for transitioning businesses, ensuring compliance and operational efficiency.
Why Choose JS Corporate Solution?
- JS Corporate Solution (JSC) is a trusted partner in UAE business setup, offering tailored services to simplify the process. Our expertise includes:
- Mainland and Free Zone Company Formation
- Offshore Business Setup
- VAT Registration and Compliance
- Legal Advisory and Documentation Services
- Our dedicated team is committed to simplifying the process, so you can focus on growing your business.
Contact JSC Today
We prioritize cost-effective solutions, leveraging our market knowledge and regulatory insights to guide investors through every step of business formation. Our team of legal professionals ensures quality
service delivery within deadlines