Mainland Company Formation in Dubai
Setting up a mainland company in Dubai offers entrepreneurs access to the UAE market with greater operational flexibility. This guide covers the key benefits, setup process, and costs involved.
- What you need to know
What is a Mainland Company in Dubai?
A Mainland company, also called “onshore”, is a business registered with the Department of Economic Development (DED) of the relevant emirate.
Unlike free zone companies, Mainland companies are allowed to operate freely across the entire UAE territory, including the local market and internationally.
They can also participate in government tenders and establish branches across the United Arab Emirates.
- Benefits
Advantages of Setting Up a Mainland Company in Dubai
Dubai offers a highly favorable environment for business growth
Access to the Local Market
Mainland companies can trade directly within the UAE, offering an opportunity to expand in a growing market.
Geographical Flexibility
Ability to establish offices anywhere in the UAE without geographic restrictions.
Wide Range of Activities
Broad scope of permitted business activities, including those requiring direct interaction with the local market.
Participation in Government Contracts
Eligibility to bid for government contracts, which are often reserved for mainland companies.
No Visa Limitations
Depending on the size of the commercial premises, mainland companies can obtain an unlimited number of employee visas.
Foreign Ownership and Local Partnership
Historically, UAE legislation required that an Emirati national hold 51% of the shares in a Mainland company, with the foreign partner limited to 49%.
However, since 2021, reforms have allowed for 100% foreign ownership in many business sectors.
It is essential to consult the “positive list” published by the government to determine if your activity is eligible for full ownership.
If your activity is not on this list, you will need to partner with a local sponsor or a local service agent, depending on the type of license required.
- STRUCTURING OPTIONS
Types of Licenses Available for Mainland Companies
The DED offers several types of licenses depending on the nature of the business activity:
Commercial License
- Best for:
For general or specialized trading activities.
Professional License
- Best for:
For professional services, artisans, consultants, etc.
Industrial License
- Best for:
For manufacturing or industrial production activities.
- We are here for you
Steps to Set Up a Mainland Company in Dubai
Define Your Business Activity – Clearly define the activity you plan to undertake, as it will influence the type of license required and the applicable regulations.
Choose Legal Form – Select the appropriate legal structure, such as limited liability company (LLC), branch, or sole proprietorship.
Register the Trade Name – Submit an application to the DED to reserve a trade name that complies with local guidelines and reflects the nature of the business.
Obtain Initial Approval – After reserving the trade name, apply for initial approval from the DED, confirming that you can proceed with the registration process.
Draft the Memorandum of Association (MOA) – For LLCs, prepare an MOA detailing the shareholders' shares, responsibilities, and operational terms of the business.
Select a Business Location – Lease or purchase a suitable commercial space and obtain a lease contract certified by the land department.
Obtain Additional Approvals – Depending on the activity, additional approvals from other government authorities may be required.
Submit Final Documents and Pay Fees – Submit all required documents to the DED, pay the associated fees, and obtain the official business license.
For detailed information on each step, our EXILLIUM Mainland company formation experts are at your service.
- What you need to know
Costs Associated with Setting Up a Mainland Company
The costs depend on several factors, including the type of license, location, business activity, and additional services required.
The main cost components include:
License Fees
Rental Fees
Sponsor or Local Agent Fees
Visa Costs
Professional Fees
Conclusion
Creating a Mainland company in Dubai offers French entrepreneurs a unique opportunity to access the dynamic UAE market and benefit from extensive operational flexibility.
By following the appropriate steps and ensuring compliance with local regulations, it is possible to establish a successful business in this rapidly growing region.
