Mainland Company

Mainland company refers to a business entity that operates within the boundaries of the local jurisdiction and is subject to the laws and regulations of that jurisdiction. It is commonly known as an onshore company. Unlike free zone companies, which are established in designated free zones with their own regulations and benefits, mainland companies have broader access to the local market and can trade with both local and international customers.

Setting up a mainland company in the UAE involves following certain procedures and meeting specific requirements. Here is an overview of how it works:

Business Activities: Determine the nature of your business activities and ensure they are permitted within the UAE mainland. Certain activities may require special licenses or approvals from relevant government authorities.

Local Sponsorship: Even though you may hold 100% ownership of a mainland company, Establishing a mainland company with certain business activities in the UAE still requires a local sponsor who is a UAE national or a UAE-owned company. For such business licences the local sponsor holds a minimum of 51% ownership in the company. This sponsorship arrangement is mandated by the UAE Commercial Companies Law.

Choosing a Legal Structure: Select a legal structure that suits your business needs. The most common types of legal structures for mainland companies are Limited Liability Company (LLC) and Sole Proprietorship. An LLC is the preferred option for most businesses, as it offers more flexibility and protection for foreign investors.

Trade Name and Initial Approval: Choose a unique trade name for your company and seek initial approval from the Department of Economic Development (DED) in the respective emirate. This step ensures that the proposed trade name is not already registered and complies with the local regulations.

Memorandum of Association (MOA): Prepare the Memorandum of Association, which outlines the company’s activities, ownership structure, and other key details. This document should be drafted in Arabic and must be notarized by a notary public.

Office Space: Secure an office space that meets the requirements set by the DED. The office should be suitable for the intended business activities and must comply with local regulations.

Licensing and Approvals: Obtain the necessary licenses and approvals from relevant government authorities, such as the DED, Ministry of Economy, and any specific industry regulators. The requirements may vary based on the nature of your business activities.

Registration and Trade License: Complete the company registration process with the DED by submitting the required documents, including the MOA, lease agreement, and other supporting documents. Once approved, you will receive a trade license, which allows you to legally operate your business activities.

Visa and Labour Approvals: As an employer, you will need to apply for employee visas and labour approvals through the Ministry of Human Resources and Emiratisation (MOHRE). This process involves fulfilling certain requirements, such as providing employment contracts, medical tests, and relevant documentation for each employee.

Ongoing Compliance: After the establishment of the mainland company, you must comply with the ongoing regulatory and legal requirements. This includes maintaining proper accounting records, renewing licenses, filing annual financial statements, and adhering to labour laws and other regulations.

It is important to note that specific procedures and requirements may vary slightly between different emirates within the UAE. Consulting with Inchub professionals to ensure compliance with all the necessary procedures and regulations when establishing a mainland company in the UAE.

Important Facts on the Mainland company

Who should consider setting up a company in Mainland?

Remember to review the specific naming guidelines and regulations of the emirate where you plan to establish your mainland company, as there may be slight variations. Following these guidelines will help you choose a suitable and compliant name for your company, enhancing its visibility and reputation in the market.

Setting up a company in the mainland of the United Arab Emirates (UAE) can be suitable for various types of businesses and individuals. Here are some situations where establishing a mainland company is often considered

It’s important to note that the suitability of establishing a mainland company depends on the specific needs and objectives of your business. It’s advisable to consult with us assess your business requirements and guide you on the most appropriate setup option within the UAE.

What are the advantages & Disadvantages setting up company in Mainland

Setting up a company in the mainland of the United Arab Emirates (UAE) offers several advantages and disadvantages. Here are some key points to conside

Advantages

Disadvantages

It’s crucial to carefully consider these advantages and disadvantages in relation to your specific business needs, industry, target market, and long-term objectives. Our experts can provide valuable guidance in making an informed decision about setting up a Mainland Company in the UAE.

Local sponsor or Local Service Agent is a must to setup mainland company?

It is not mandatory to have a local sponsor or local agent to set up a company in the mainland of the United Arab Emirates (UAE). However, it’s important to note that this depends on specific business activities and ownership structures. Here are some scenarios where a local sponsor or local agent may not be required

Professional and Consulting Activities

Certain professional activities, such as legal, accounting, engineering, and consultancy services, may not require a local sponsor or local agent. In these cases, the company can be 100% owned by foreign shareholders, known as a "professional license."

Branch of a Foreign Company

If you are establishing a branch of a foreign company in the UAE mainland, a local sponsor or local agent may not be required. The foreign company acts as the parent company, and the branch operates under its name and legal structure.

UAE National as a Partner

In some cases, if a UAE national or a UAE-owned company becomes a partner in the mainland company with a shareholding of at least 51%, a local sponsor or local agent may not be necessary.

It’s important to carefully review the regulations and requirements of the specific emirate where you plan to establish your mainland company. The rules can vary slightly between emirates, and certain activities may have different ownership requirements. Contact us to provide accurate guidance based on your specific business activities and requirements.

Legal types available in the mainland company

In the mainland of the United Arab Emirates (UAE), there are several legal forms available for setting up a company. The specific legal forms may vary slightly between different emirates, but here is a list of common legal forms for mainland companies

It’s important to note that the specific requirements, procedures, and regulations for each legal form may vary between the emirates in the UAE. It is advisable to consult with us to guide you on the most appropriate legal form based on your business activities, ownership structure, and long-term objectives.