Company Formation Process

THIS IS HOWCompany Formation
Process

UAE Mainland

A Mainland UAE entity holds a Mainland or onshore license, permitting the business to be administered, run, and executed from within the UAE or internationally, without any difficulties. These licenses are regulated and issued by Emirate’s Department of Economic Development (DED). One of the major advantages of setting up the mainland company or registering a local company in Dubai is that it allows the execution of business activities, without any territorial restrictions.

For the attainment of a DED mainland license, the presence of a UAE National as a Local Service Agent or Local Partner is vital. The status of the UAE National for your company depends on your business activities. A local Service Agent represents the company in administrative dealings and does not hold any shares. On the other hand, a local sponsor holds 51% of the company shares. Accordingly, a prescribed annual fee can be paid in order to retain the entire control of the business.

Company Structure Definitions

Mainland Company Legal Structures

The following structures are covered by mainland licensed entities

SOLE ESTABLISHMENT

Also known as Sole Proprietorship, it is completely owned by a single individual for commercial, industrial, professional or consultancy activities.

LLC (LIMITED LIABILITY COMPANY)

One of the most common business entities, LLC registration and setup in Dubai involves shareholders anywhere from 2 to 50 and the liability bore by each partner is as per the ratio of shareholding.

BRANCH

Investors looking forward to growing their businesses can also choose Mainland license to establish a branch office in Dubai.

CIVIL COMPANY

These companies refer to the business partnerships of individuals related to prominent fields, including accountants, engineers, lawyers, and doctors.

REPRESENTATIVE OFFICE

With a Mainland license, foreign investors can also set up a representative office for marketing and research, without the need of any shareholder.

SUBSIDIARY

A Subsidiary Company is a corporation or limited liability company, which is owned by another company called the Parent Company.