Mainland Company Formation
If you wish to carry out your core business in the UAE, setting up a mainland company and obtaining an appropriate license suiting your business needs would be the need of the hour. In order to set up your mainland company, registration must be done before the UAE DED (Department of Economic Development). Mainland companies can practice any commercial, industrial, trading, professional, or tourism activity though certain activities would require prior approvals from concerned regulatory authorities. All the Emirates in the UAE, i.e., Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah issue mainland licenses.
The different kinds of companies that can be set up in mainland include:
Limited Liability Companies
This is the most common type of company registered in the UAE and is mostly recommended where the purpose of is to carry out trade within the UAE. Foreign Investors are allowed to hold up to 49% equity ownership in the UAE Company whereas 51% of the ownership must belong to one or more UAE national. Further no corporate tax or income tax is levied.
This type of entity is mostly preferable to professionals, service-related activities and consultancy. 100% foreign ownership is permissible and there is no minimum capital requirement. Again, no corporate tax or income tax is levied. Establishing a civil company allows an investor to open a bank account with ease.
Branch and Representative Office of Foreign Company-
Foreign companies can open a Branch or a Representative office in the UAE. These types of companies can be 100% owned by the foreign entity with the appointment of Local service agent.
The different kinds of licenses offered in mainland include:
They are mainly issued for those business concerns that indulge in buying, selling and supplying of goods or those that are into trading.
They are mainly issued for those business concerns that are involved in the manufacturing of goods, like factories and industries etc.
These are mainly issued for those business concerns that undertake service-oriented endeavors, like consultancy services, beauty salons etc.
These licenses are issued by the government to certain investors in order to facilitate ease of business which means reduced documentation procedural requirements.
They are mainly issued for those business concerns that conduct and undertake tourism related activities.
E Trader License-
Such licenses are issued to those home-based individuals or entrepreneurs who are involved in selling goods and services vi social media platforms.
Merits of setting up a mainland company:
· No personal tax or income tax levied.
· Availability of a wide range of business activities.
· Trading and operation directly in/with the local market.