Mainland Company
In Dubai, what is a Mainland Company?
Mainland companies are those that are registered with the UAE’s Department of Economic Development (DED). Many investors and ambitious startups looking to build their firms and expand their job areas prefer mainland enterprises, since they benefit from a number of benefits.
In addition to the GCC countries, setting up a mainland business in Dubai allows you to do business across Dubai and the United Arab Emirates. Opening more branches, hiring more personnel, participating in tenders, government projects, and many other perks are all possible with the formation of a mainland firm.
The types of business entities that can be registered in mainland Dubai include sole proprietorship, civil companies, limited liability companies LLC, representative offices of foreign firms, branches of free zone corporations, and branches of UAE-based companies. In the United Arab Emirates’ local market, limited liability corporations (LLCs) are the most frequent.
What is a Limited Liability Company (LLC)?
The most frequent type of corporation in the UAE mainland is the Limited Liability Company (LLC). The Department of Economic Development (DED), which is the government agency in charge of mainland business registration and activity control, issues LLC licenses.
Although the new UAE Commercial Organizations Law allows for the formation of an LLC firm in Dubai with just one shareholder, it is more customary for these companies to have at least two. Because international investors must have a local partner with 51 percent of the business’s shares for certain activities, this sort of corporation is normally founded with a minimum of two shareholders. A limited liability company (LLC) can have up to 50 shareholders.
The Benefits of Forming a Limited Liability Company (LLC) in Dubai
- The limited liability company permits business owners to conduct their operations anywhere in the United Arab Emirates and the Gulf Cooperation Council (GCC) countries.
- Property ownership and leasing are not restricted in any way.
- The number of visas that can be obtained through an LLC is not limited.
- There’s no necessity for a certain amount of capital.
How Do I Form a Limited Liability Company (LLC) In Dubai?
The first step in establishing a business in Dubai is to select an activity from the Department of Economic Development’s list of activities that best fits your company’s needs. It doesn’t matter if it’s commercial, industrial, professional, or handcrafted. The Department of Economic Development offers around 2000 commercial activities from which you can choose your company’s activity.
Limited Liability Companies (LLCs) may or may not require a partner who is a citizen of the United Arab Emirates or a member of the Gulf Cooperation Council (GCC), depending on the nature of your business, as some operations simply require a service agent. The employment of a service agent is required by foreign and professional companies.
The following are the steps to forming an LLC in Dubai:
- When choosing a name for your new business, make sure it’s unique and relevant to your industry.
- If applicable, selecting a local partner.
- Getting your business registered with the DED (Department of Economic Development).
- Creating a Memorandum of Association or a Service Agent Contract and having it notarized in Dubai.
- Obtaining authorization from various government agencies on the outside
- The Department of Economic Development (DED) receives the completed documentation and issues the trading license.
What kinds of businesses can an LLC be involved in?
An LLC license might be for one of three sorts of businesses: commercial, professional, or industrial.
Commercial: This category encompasses all forms of trading activity. Almost any commodity can be imported and exported to Dubai with an LLC license. Products requiring clearance from other government authorities, such as jewelry, periodicals, and newspapers, are excluded.
Professional: Services and trades are classified as professions. It is the simplest form of license to obtain and should only be used for professional purposes. In comparison to other types of licenses issuing, new investors frequently favor this type because of its low cost and quick processing periods.
Industrial: Manufacturing operations are classified as industrial. A warehouse or manufacturing must be the licensing location. Approvals from the Ministry of Economy, Civil Defense, the Municipality, and others are required for industrial activity.
What is the procedure for obtaining an industrial license in Dubai?
Dubai, in addition to being a commercial center that enjoys a geographical location between the East and West and forms a link between them, provides investors in the industrial field with the best location to set up their business, thanks to its superior logistical facilities and services, as well as its solid ground.
- You must register your company with the Department of Economic Development, DED in order to receive an industrial license in Dubai.
- Production, separation, assembly, packing, and other activities are covered by the industrial license in Dubai.
- The industrial license necessitates the establishment of a physical warehouse in the UAE.
100% ownership license for foreigners in Dubai Mainland
When any of the following conditions are met, a foreign firm controlled solely by a foreign investor can be incorporated in mainland Dubai:
Establishing a professional services firm:
Without the necessity for a local partner, a foreign investor can have 100 percent ownership of a company that provides professional services in Dubai. A local service agent who facilitates government services for a fixed annual fee without owning any shares in the company is required to license a professional services company controlled entirely by a foreign investor. A person who is a UAE citizen or an entity can act as a service agent (a UAE company, where all partners are UAE nationals).
Creating a branch of an overseas company:
Investors who already have operating firms in their home countries might create a subsidiary company as a way to expand their business in the United Arab Emirates. A local service agent, rather than a local partner, is required to open an overseas branch in mainland Dubai. As long as the company’s branch is involved in the same line of business as the main company.
Establishing a free zone company branch:
A foreign investor can establish a free zone company branch with 100% ownership without the requirement for a local partner, but with the help of a local service agent.
