• 18 Jul, 2024

Setting Up a Mainland Company in the UAE 🇦🇪

Are you considering establishing a business in the United Arab Emirates (UAE)? Understanding the process of setting up a mainland company is crucial. In the UAE, mainland companies have certain advantages and regulations compared to free zone or offshore companies. Lets delve into the steps and requirements for forming a mainland company in the UAE.

What is a Mainland Company?    

A Mainland Company Formation In Dubai is an onshore company that can conduct  
business within the UAE without any restrictions on geographical location. These  
companies can engage in activities throughout the UAE and can even bid for  
government contracts.

Steps to Form a Mainland Company

1. Choose Your Business Activity  
The first business setup in Abu Dhabi a mainland company is determining the type of  
business activity you want to engage in. This decision will influence the type of license  
you need to obtain.  
2. Select a Local Partner  
For mainland companies, it's mandatory to have a local partner who owns at least 51%  
of the company shares. This local partner can be an individual or a corporate entity.  
3. Choose a Legal Form  
Select the legal form for your company, such as a limited liability company (LLC), sole  
proprietorship, or partnership, depending on your business requirements.  
4. Reserve a Trade Name  
Choose a unique name for your company and ensure it complies with the naming  
conventions set by the UAE authorities. Once approved, the name will be reserved for  
your company.  
5. Prepare Memorandum of Association (MOA)  
Draft a Memorandum of Association (MOA) outlining the company's objectives,  
activities, and shareholders' details. This document needs to be notarized.

6. Obtain Initial Approval  
Submit the required documents, including the MOA and other legal forms, to the  
Department of Economic Development (DED) for initial approval.  
7. Rent Office Space  
You need to rent physical office space for your mainland company. The office should  
comply with the requirements set by the DED.  
8. Finalize Legal Documents  
Once you receive initial approval, finalize all legal documents, including the lease  
agreement for your office space.  
9. Obtain Business License  
Apply for a business license from the DED based on your company's activities. The  
license is essential for legal operation in the UAE.  
10. Register for Employees' Visas  
After obtaining the business license, you can proceed to apply for visas for your  
employees and dependents.

Benefits of Mainland Company Formation

1. Flexibility in Business Activities  
Mainland companies enjoy flexibility in conducting business activities across the UAE  
without any geographic restrictions.  
2. Access to Government Contracts  
Mainland companies can bid for government contracts, opening up opportunities for  
business growth and expansion.  
3. No Currency Restrictions  
There are no currency restrictions for mainland companies, allowing for easy  
repatriation of profits.  
4. Greater Market Reach  
With the ability to operate throughout the UAE, mainland companies can access a  
larger market compared to free zone or offshore companies.  

Establishing a mainland company in the UAE offers various advantages, including  
flexibility in business activities, access to government contracts, and greater market  
reach. However, it's essential to understand and comply with the regulatory  
requirements set by the UAE authorities. With the right guidance and assistance, setting  
up a mainland company can be a smooth and rewarding process.