Setting up a business in the UAE mainland offers numerous advantages for entrepreneurs and corporations looking to establish a strong presence in the region. This comprehensive guide will walk you through the process, requirements, and benefits of mainland company formation in the UAE.
What is a Mainland Company?
A mainland company in the UAE is a business entity established under the UAE Commercial Companies Law and licensed by the Department of Economic Development (DED) of the respective emirate. Unlike free zone companies, mainland companies can conduct business throughout the UAE without restrictions and can engage in a wide range of commercial activities.
Benefits of Setting Up a Mainland Company
- No restrictions on business activities or geographical location within the UAE
- Ability to do business directly with the local market without intermediaries
- Eligibility to bid for government contracts and tenders
- No restriction on the number of visas that can be applied for
- 100% foreign ownership now available for most business activities
- Enhanced credibility with local businesses and government entities
Steps to Set Up a Mainland Company
- Choose a Business Activity: Determine the business activities you wish to conduct. The DED has a list of approved activities, each with specific requirements.
- Select a Company Name: Choose a name for your company that complies with the UAE's naming conventions and get it approved by the DED.
- Prepare Required Documents: Gather all necessary documents, including passport copies, visa copies, and other personal identification documents of the shareholders.
- Apply for Initial Approval: Submit your application to the DED for initial approval.
- Draft and Notarize Company Documents: Prepare the Memorandum of Association (MOA) and have it notarized by a UAE notary public.
- Obtain Trade License: Once all documents are approved, you can obtain your trade license from the DED.
- Register with Additional Authorities: Depending on your business activity, you may need to register with additional authorities such as the Chamber of Commerce and Industry.
- Open a Corporate Bank Account: With your trade license, you can now open a corporate bank account in the UAE.
- Apply for Visas: Apply for residence visas for yourself, your employees, and eligible dependents.
Required Documents
The following documents are typically required for mainland company formation:
- Passport copies of all shareholders and managers
- Emirates ID (for UAE residents)
- No Objection Certificate (NOC) from current sponsor (for UAE residents)
- Bank reference letter
- Business plan (for certain activities)
- Educational certificates (for professional licenses)
Cost Considerations
The cost of setting up a mainland company in the UAE varies depending on several factors, including:
- Type of business activity
- Size of the company
- Location of the office
- Number of visas required
The main costs include:
- Trade license fees
- Office rent
- Visa costs
- Chamber of Commerce membership
- Initial approval fees
- Name reservation fees
- Notarization fees
Conclusion
Setting up a mainland company in the UAE offers numerous advantages for businesses looking to establish a strong presence in the region. With the recent changes in regulations allowing 100% foreign ownership for most business activities, the UAE mainland has become an even more attractive destination for foreign investors.
While the process may seem complex, working with a professional business setup consultant like Al Tawakkal Management Consultancy can simplify the process and ensure a smooth and hassle-free experience.
Our team of experts is well-versed in the UAE's business regulations and can guide you through every step of the company formation process, from selecting the right business activity to obtaining your trade license and beyond.
