The UAE continues to maintain and grow its economy, expanding over the past 40 years. It allows multiple international business opportunities across different sectors. The mainland company in the UAE is the onshore company that does business in Dubai’s local industry and other parts in and outside UAE. Here is everything you need to know about the mainland company and how to set up in the UAE.
What is the Mainland Company UAE?
The Mainland company is a registered company in the DED, the department of economic development of the UAE. This onshore company does business in the local Dubai sector and the UAE and other parts outside. This area acts are the epicenter for most of the business operations in the country.
If you want to start a business in the UAE Mainland, you will have to register your business with the DED, which will give you the business license to start your business in the UAE. Mainland companies are free to practice any commercial, industrial, trading, tourism, and professional activity. While some activities are included in DED’s business regulations, some others need the approval of the authorities to regulate activities.
How to Set Your Company in the Mainland UAE?
If you want to set up your business in the UAE mainland, here are a few steps to make a start. Here’s how you can set up your company in Mainland UAE.
1. Choose Your Business Activity
Before setting up a company in the UAE mainland, you need to decide the industry you want to trade in. Multiple permitted activities are listed in the DED list. These trading businesses include agriculture, trading, manufacturing, and hospitality. Unlike the free zone, where companies are restricted, mainland businesses are free to trade in any DED 2000+ listed activities.
2. Select the Ideal Location
Now that you’ve decided on the business activity you want, the next thing is to determine the location for your business operation. In UAE, businesses do not have any restrictions on where they can or cannot be set up. The correct location for your company depends on several factors like business activity and budgeting. For example, if your company is dependent on exports and imports, a place near UAE’s busy ports like Jebel Ali will be suitable. The benefit of the mainland is also the ease of branch openings. So businesses aren’t limited to a single location; instead can develop their presence over time.
3. Determine Your Legal Structure
Foreign entrepreneurs can set up different businesses in the UAE mainland. However, the most common business structure on the mainland is the LLC, a limited liability company. An LLC is a separate, legal entity that may be owned by multiple shareholders, two, or more. A business that wants to trade with an industrial or commercial license needs to make an LLC and set up a company on the mainland. For this, you need a local sponsor. Nevertheless, if you wish to set up a professional services company, you wouldn’t need such a sponsor.
4. Get a Local Sponsor or Service Agent
Earlier, foreign entrepreneurs were only permitted to manage the formation of a mainland company by a partnership with a local service agent or sponsor. If you’re trading under an industrial or commercial license as LLC, you would need a local sponsor. This sponsor could either be a UAE-based company or a UAE national. Either way, the local sponsor owns 51% of your business.
5. Name the Company
The company name is one of the most critical decisions a business needs to make. You need to consider several things in mind. Religious inferences or references and offensive language are not permitted. Moreover, only full names may be included.
Talking about your company’s name in other languages, the names should be written as they sound and not translated. You can see the guidelines for choosing a name for your company in UAE.
6. Apply for the License for Mainland Trade
After the process above is complete, you would need to apply for a license of main trade with the DED. You will need to give certain documents to get your trade license application, including the license application, and shareholder visas, among other things.
Documents Needed for Getting Legal Forms License
To get a business license, you need to get the following documents.
- The receipt of initial approval along with all the documents submitted previously.
- Lease contract copy with RERA, Real Estate Regulatory Agency Dubai, attestation.
- Memorandum of association that has been duly attested (for every company type)
- Government approvals and those of all other related entities
- Service agent contract duly attested (for civil companies and establishments owned 100% by the non-GGC nationals), local service agent in the UAE.
7. Secure an Office Space
After getting the business trading license, you need to secure your office space. On the mainland, the serviced offices are owned and managed by third parties where everything is already contained, so you just need to move.
Phone, desks, reception services, and internet access are some included services. Here, the lease payments can cover the utility bills, rent, and office equipment use. The other is the shell and core office spaces where decoration, bills, and rent costs are required. The middle ground offers pre-fitted office spaces where the owner brings their equipment and pays the bills as well.
8. Partner with a Consultant
Setting up your company in the UAE mainland requires an in-depth understanding of the company’s legal and formation process. If you work with a UAE-based consultant, you can ease some of your stress. A business consultant will collaborate with you and let you understand the process and business goals, making you feel confident about your business initiative in the UAE mainland.
Necessary Documents for Setting Up LLC business in Mainland UAE
The following documents are required for LLC mainland business setup.
- Certified copies of the manager’s and shareholder’s passports.
- UAE residence visa copy, if it is applicable.
- The NOC, No objection certificate from the recent residence UAE visa sponsor.
- Shareholder’s certified address proofs.
- Each shareholder’s CV.
- Each shareholder’s bank/professional reference letter.
With the shareholder being a corporate entity, the documents needed include the following.
- Company’s articles and memorandum.
- The board of resolution’s agreement to incorporate a new LLC.
- The POA, power of attorney to the general manager for incorporating the new LLC.
The Verdict
The UAE mainland is the major business place for inverters and locals. The process of starting a business here is relatively simple and takes only a few minutes online. To set up your business in the mainland UAE, you need to follow the simple steps covered above.
