Dubai is an excellent business destination for companies and enterprises around the world. In case you wish to start a new business, want to expand to new markets or want to relocate your existing venture, then the UAE and Dubai are great options to consider. Let us now take a look at the Dubai Mainland company formation cost and setup procedure.
What is a Mainland Company in UAE?
A Dubai Mainland Company gives its owner the freedom to conduct business anywhere inside the Emirates. To become a Mainland Company, however, the board must choose an Emirati agent, either a human or a legal entity based in the UAE. If an agent wants to do business in the United Arab Emirates, they need to have a 51% share in the firm. However, the following exceptions will be made to this regulation;
- Operations that are open to complete foreign ownership
- Joint ventures involving UAE nationals and enterprises in other GCC countries are quite large.
- Methods that promote complete local control
What are the different business licenses available to Mainland Companies?
- Businesses that provide services including training, consulting, and management are required to get a professional license.
- Manufacturing and industrial enterprises who own or lease a warehouse or production facility in the nation are eligible to apply for an industrial license.
- A commercial license is required for any enterprise engaged in international trade, whether for the purposes of import/export, logistics, providing real estate services, or catering to tourists.
What are the different types of Mainland Company Formation in Dubai?
- Sole Proprietorship: This business structure is common among service providers and professionals. If the company is formed outside of the Free Zones, it can be owned entirely by foreign investors under Emirati law. They don’t necessitate any bare minimum in terms of starting funds either.
- Under Emirati legislation, a foreign investor cannot possess more than 50% of a limited liability company or commercial establishment. In such a scenario, a share capital of 300,000 AED is required at a minimum.
- Subsidiary Office of a Representing Foreign Company
- There can be up to three shareholders and one local agent in a Civil Company, but the owner must be based outside of the country. In the UAE, such businesses are eligible for both professional and service licenses.
Mainland company set up in the UAE
- A company owner’s first order of business is to decide what kind of business they want to start.
- An entrepreneur’s choice of company structure should reflect the nature of the enterprise’s primary activity.
- The next step is for the business’s owners to choose a trading name and confirm that it abides with Emirati company naming legislation. In addition, at this point, owners should begin compiling the necessary paperwork for the next steps.
- Next, the proprietors will need to establish a Local Sponsor Agreement and a Memorandum of Association to suit their needs.
- The next step is for the business owners to find a suitable site and get an Ejari leasing agreement.
- The next step is for the owners to get the green light from the Ministry of Health as well as the Civil Defense and Police departments.
- Following the acquisition of the appropriate license for their line of work, the new business owners can open for business.
How can we Help?
KGRN Chartered Accountants can help you set up a business in the United Arab Emirates. We’ve helped businesses navigate the UAE’s tangled regulatory landscape for years. Because of the difficulty and duration of the necessary steps, it is recommended that you use a business formation service in the United Arab Emirates. If you need assistance forming a corporation in the United Arab Emirates, our seasoned professionals are here to assist you. We’re here to make sure the whole thing goes well. The question then becomes, “Why wait?” KGRN will help you create a successful business.
For enquiries, call +971 45 570 204 / E-mail: [email protected]
