Mainland Company Formation in UAE
Company Formation in UAE Mainland
Company Formation in UAE Mainland
The UAE is honored as one of the safest countries in the world and serves as a crucial trading mecca in the Middle East. With its favorable duty terrain and strong banking network, the UAE landmass is considered an ideal position for entrepreneurs to establish a company and open a commercial bank account.
A Limited Liability Company( LLC) remains the most popular business structure on the landmass. A recent press decision has allowed deportees to enjoy 100 power in landmass companies within named assiduity sectors, removing the former demand for a original guarantor. This significant reform enables investors to set up an LLC without demanding a original Emirati mate in approved conditioning.
These changes align with the emendations made to Federal Law No. 2 of 2015 on marketable companies, as streamlined by Law No. 26 of 2020. The amended law applies to all realities conducting marketable, fiscal, artificial, agrarian, real estate, and other profitable conditioning within the UAE landmass.
The capability for deportees to completely enjoy landmass companies is subject to specific capital conditions and conditions outlined by the UAE Cabinet. The minimal share capital demanded for 100 power varies by sector and business exertion, generally ranging from AED 2 million to AED 100 million.
There are several types of company structures available in the UAE mainland, and investors can select the most suitable option based on their specific business needs and objectives. The experienced business consultants at Prime Consult will provide expert guidance on the various company structures available and help you choose the one that aligns best with your business goals.
For GCC nationals and residents, opening a branch of a GCC-based company in Dubai offers significant advantages. Establishing the branch on the UAE mainland is often the most practical and beneficial route. While the process of setting up a branch office is generally similar to establishing a new company, it does require some additional documentation and the attestation of parent company documents.
Forms of Companies
1. SOLE PROPRIETORSHIP
A Sole Proprietorship is a business possessed and operated by a single existent, rather than a company. The proprietor holds 100 power, exercises full control over all aspects of the business, and is entitled to 100 of the gains. still, the existent is also tête-à-tête responsible for all arrears, debts, and fiscal scores related to the business.
2. CIVIL COMPANY
3. ONE PERSON LIMITED LIABILITY COMPANY
4. PRIVATE SHAREHOLDING COMPANY
5. PUBLIC SHARE HOLDING COMPANY (PUBLIC JOINT STOCK COMPANY) PJSC
6. LIMITED LIABILITY COMPANY
A Limited Liability Company (LLC) is a flexible form of business that combines features of both partnership and corporate structures. It must have between 2 to 50 shareholders, each of whom is liable only to the extent of their share in the company’s capital. Except for a public shareholding company, an LLC can be converted into other legal forms, offering adaptability to meet changing business needs.
7. SIMPLE LIMITED PARTNERSHIP
8. PARTNERSHIP COMPANY
9. BRANCH OF A FOREIGN COMPANY
10. REPRESENTATIVE OFFICE
A representative office for commercial activities is not a separate legal business structure but rather a specific type of activity that a branch office can undertake. It is primarily authorized to promote and market the products or services of the parent company, but it is not permitted to carry out any direct business operations or generate revenue in the UAE.
A representative office must appoint a Original Service Agent( LSA), who can be either a UAE public or a company completely possessed by at least one UAE public. The part of the LSA is limited to easing executive and governmental processes. The agent doesn’t bear any fiscal liability or responsibility for the company’s scores or conditioning within or outside the UAE.
11. BRANCH OF DUBAI – BASED COMPANY
A branch of a Dubai- grounded company must conduct one or further of the conditioning listed on the parent company’s main trade license. However, each branch is permitted to carry out different conditioning, handed that all these conditioning are covered under the original license of the main company, If a company has multiple branches. This ensures thickness and nonsupervisory compliance across all functional units.
12. BRANCH OF UAE- BASED COMPANY
A branch of a UAE-based company must conduct one or more of the activities listed in the main company’s trade license. For companies with multiple branches, each branch can engage in different activities, provided all activities are included in the original license issued to the parent company. This ensures that all branches operate within the approved scope of the business.
13. BRANCH OF A GCC BASED COMPANY
Opening a branch of a GCC company in the UAE is a common and effective way for businesses from the Gulf region to expand into the UAE market. There are specific steps to follow for registering a branch office, and compliance with documentation and licensing requirements is essential.
A branch of a GCC company must conduct one or more of the activities listed in the parent company’s main license. For companies with multiple branches, each branch can operate different activities, as long as all are included in the original license.
The company documents must be attested by the UAE embassy in the home country and further attested by the Ministry of Foreign Affairs in the UAE. Business consultants at Prime Consult provide full guidance throughout the process, ensuring a smooth and compliant setup.
It’s important to note that while rules may vary among GCC countries regarding activity combinations, Dubai requires that the branch license only include activities within the same business group, even if the parent company in another GCC country has a broader set of activities.
14. BRANCH OF A FREE ZONE COMPANY
A branch of a free zone company can engage in professional, commercial, or industrial activities in mainland Dubai, provided that the parent company’s main activity is authorized by the Department of Economy and Tourism (DED). If your company was originally licensed in a UAE free zone (and not as a branch of a foreign entity), you are eligible to apply for a branch license from the DED to expand your business operations into the mainland. This allows the free zone entity to operate legally in both jurisdictions while complying with the applicable regulations.
15. INTELAQ (Home-based business for UAE Nationals)
An Intelaq License Company is a type of home- grounded business that can only be established by UAE Citizens. It allows the holder to engage in a wide range of professional, trade, or artisan conditioning, handed the nature of the business is suitable for a domestic setting. The business must n’t harm the terrain or public health and should n’t produce noise or disturbances that could affect neighbors.
Permitted legal structures under the Intelaq license include Sole Establishment, Limited Liability Company( LLC), Civil Company, and Partnership. still, Intelaq license holders are n’t permitted to finance workers under this license.
16. SME LICENSE
An SME license is available to businesses that are 100% owned by UAE Nationals and can be established under any legal structure. The license is valid for a period of three years and allows the business owners to sponsor employees. It is designed to support small and medium-sized enterprises, encouraging local entrepreneurship and business growth in the UAE.
Contact us for more details about the Mainland Company Formation in UAE.
