Company Formation in Mainland UAE
Understanding the Mainland Company Formation in Dubai, UAE
Mainland company formation in Dubai, Abu Dhabi and across the UAE is one of the most sought-after business setups for foreign investors looking to expand their operations in the Middle East. The UAE’s mainland offers unrestricted access to local markets, full flexibility to operate within the UAE, and straightforward registration procedures.
Imagine having the freedom to conduct business anywhere in the UAE, You’re not restricted to a specific zone or limited in your business reach, and you are able to directly engage with the local market, and build lasting relationships with government entities. That’s exactly what a mainland company formation in Dubai offers. Unlike free zones or offshore companies, your mainland business becomes an integral part of Dubai’s thriving economic landscape.
In the UAE Mainland companies are regulated by the Department of Economic Development (DED) in each emirate, ensuring a seamless and business-friendly environment.
Mainland Company Formation in Dubai is Ideal for Your Business if:
- You plan to work directly with local UAE businesses and government entities
- Your business model requires multiple physical locations
- You want to build a strong local presence and brand
- Your activities involve trading physical goods in the local market
- You’re looking for long-term business growth in the UAE
Benefits of Mainland Company Formation in Dubai, Abu Dhabi Sharjah
Mainland company formation in Dubai, Abu Dhabi and across the UAE offers numerous advantages, especially for foreign investors who want the freedom to trade within the local UAE market and abroad.
Key Benefits
- 100% Foreign Ownership (recent changes): Following new UAE laws, foreign investors can now fully own mainland companies in many sectors.
- Access to Local Markets & Government Contracts: Mainland businesses can trade freely within UAE markets without restrictions and also internationally.
- No Currency Restrictions: UAE mainland does not impose any currency restrictions, which eases international business transactions.
- Repatriation of Profits and Capital: 100% profit and capital repatriation is allowed for mainland businesses.
- Ability to Operate Across the UAE: UAE Mainland companies have no restrictions on where they can operate, allowing for total flexibility with unlimited visa quotas based on office space
UAE Mainland Company Structures in UAE
UAE Mainland companies can be structured in various ways, each offering different benefits and requirements.
Key Company Structures
- Limited Liability Company (LLC): The most popular structure, offering flexibility, liability protection, and 100% foreign ownership in many sectors.
- Sole Proprietorship: Suitable for single-owner businesses in professional sectors.
- Branch Office: Allows foreign companies to expand to the UAE without forming a new entity.
Points to Consider
- Each structure has unique benefits in terms of liability, capital requirements, and ownership regulations.
- LLCs require local partnerships in certain industries, but foreign investors retain management control.
The Company registration in the UAE mainland, several licenses are available based on the nature of your business.
Main Types of Licenses
- Commercial License: For companies engaged in trading and commercial activities, such as import-export businesses, retail, etc.
- Professional License: For service-oriented businesses, including consultancies, healthcare, and IT services.
- Industrial License: For manufacturing or industrial activities; requires approvals from relevant ministries.
Each license has unique requirements, costs, and regulations. The most suitable type depends on your business model and industry.
Additional Information
- Licensing requirements for specific industries
- Approvals from regulatory bodies like the UAE Ministry of Industry and Advanced Technology for industrial licenses
Process to Mainland Company Formation in Dubai, Abu Dhabi & Sharjah
Here’s a breakdown of the primary steps involved in setting up a mainland business in the UAE.
- Determine Business Activity and License Type: Identify the core business activities and obtain the right license.
- Register Trade Name: Select a unique trade name compliant with DED naming conventions.
- Obtain Initial Approvals: Secure pre-approvals from relevant authorities based on the business activity.
- Prepare Legal Documentation: Draft and notarize essential documents, including the Memorandum of Association (MoA).
- Lease Business Premises: Mainland companies need a physical office in the UAE to register.
- Apply for Final License and Approvals: Submit final documentation to obtain the business license.
- Register for Corporate Tax (if applicable): Companies with an annual turnover exceeding the VAT threshold must register for VAT.
Required Documents
For Individual Shareholders:
- Passport copies
- UAE visa copy (if applicable)
- Emirates ID (if applicable)
- No objection certificate (if applicable)
- Bank reference letter
For Corporate Shareholders:
- Certificate of incorporation
- Memorandum of Association
- Board resolution
- Power of Attorney
- Good standing certificate
Dubai Mainland Company Formation Costs
The cost of Dubai mainland company formation varies depending on several factors, including business type, office requirements, and specific licensing fees.
General Costs to Expect
- DED Fees: DED charges for trade name registration, license issuance, and other regulatory fees.
- Office Rent: Physical office space is required for mainland companies; costs vary based on location.
- Sponsorship Fees: Some sectors require local sponsorship, which may involve annual fees.
Cost Breakdown
Initial Setup Costs:
We believe in complete transparency about UAE Business set up cost. Here’s what you can expect on average
- Trade License: Starting from AED 15,000
- Initial Approval: AED 1,000 – 3,000
- Trade Name Registration: AED 2,000
- Office Space: Starting from AED 20,000/year
- Service Fees: Starting from AED 5,000
- Visa and Immigration Costs: Includes visas for employees and family members.
- Bank Account Opening: Some banks may require an initial deposit.
Tips for Budget Management
- Consult with us to understand all hidden costs and fees associated with your industry.
Legal Obligations and Compliance
Mainland companies must adhere to UAE’s business regulations, including:
- VAT Registration: VAT applies to companies with annual turnover above AED 375,000.
- Annual Audits: Certain sectors require audited financial statements.
- Labor Law Compliance: Abide by the UAE labor laws for employee rights, minimum wages, and working hours.
- Corporate Tax (from 2024): All UAE businesses are subject to a 9% corporate tax on profits exceeding AED 375,000.
Annual Renewal Costs:
In addition to the UAE Business set up cost, you will need to keep in mind:
- License Renewal: Starting from AED 10,000
- Office Lease: Based on location and size
- Establishment Card: AED 2,000
- PRO Services: Starting from AED 3,000
Why Affinitas for Dubai and Abu Dhabi Company Formation
Affinitas DMCC offers expert services for company formation in UAE’s mainland, guiding you through every step of the process to ensure a seamless setup experience.
Why Work with Affinitas DMCC
- Local Expertise: Affinitas DMCC’s team is well-versed in UAE business regulations, ensuring full compliance.
- Customized Support: Tailored packages based on your specific needs, including accounting, tax advisory, and legal services.
- Efficient Setup Process: Comprehensive support to expedite license approvals, paperwork, and local sponsorship requirements.
Our Unique Approach
“We don’t just process paperwork – we build relationships. Our team becomes your team, understanding your business goals and helping you achieve them.”
Value-Added Services
- Dedicated business development consultant
- Premium PRO services
- Bank account opening assistance
- Corporate tax and VAT registration support
- Business networking opportunities
Post-Setup Support
- Annual compliance monitoring
- License renewal management
- Government liaison services
- Business expansion consultation
- Legal document amendments
Ready to Start Your Mainland Business Journey in UAE?
Contact us for a personalized consultation. Let’s discuss your business vision and beyond.
FAQ: Mainland company formation in the UAE
The process typically takes 1-3 days, depending on the business activity and required approvals.
As of recent laws, full foreign ownership is allowed in many sectors. However, some industries still require a local partner.
Mainland companies enjoy unrestricted access to the UAE market, flexibility in operations, and new 100% ownership laws.
Think of a mainland company as planting deep roots in the UAE soil. You’re not just operating in the market; you’re becoming part of it.
Free Zone Companies are better suited for:
- 100% foreign ownership in specific zones
- Zero corporate tax (in certain free zones)
- Simplified setup process
- Import/export focused businesses
- Limited local market access
Set Up Your Business with Affinitas DMCC
Partner with Affinitas DMCC to benefit from our extensive expertise and comprehensive setup services, ensuring a smooth, compliant, and efficient business start-up experience.
