Mainland Company Formation in UAE
Company Formation in UAE Mainland
Company Formation in UAE Mainland
UAE is one of the safest countries in the world and also the trading hub of Middle East. Being a tax haven, with a strong network of Banks, businessman find UAE mainland as an ideal location to setup company and bank account.
Limited Liability Company (LLC) is a popular company structure in the Mainland of UAE. The recent cabinet decision has granted 100% ownership in mainland company in selected industry sectors by the expatriates and eliminates the requirement of local sponsor for the selected industry sectors and business activities. Hence, Investors can setup a Limited Liability Company without the requirent of a local sponsor.
The 100% ownership in mainland company for the expat is subjected to certain capital requirements and conditions laid out by the UAE Government’s Cabinet decision. There is a minimum share capital required for obtaining 100% ownership in mainland (onshore) companies in UAE and it varies from AED 2 million to AED 100 million approx., depending on the industry sector and the business activity chosen by the investor.
Starting a branch of a GCC Company in Dubai is beneficial for the GCC residents and nationalities. For a GCC Company to open a branch in the UAE, the best choice is to open on the mainland. The process of opening a branch office in UAE is similar to every new company opening. However, there are few additional documentation and attestation of parent company documents required.
Forms of Companies
1. SOLE PROPRIETORSHIP
A Sole Proprietorship is a business owned by an individual, not a company. This individual will possess 100% of the business, control the all part of its activities and keep 100% of any profits. He or she will likewise be 100% in charge of business obligations and some other financial commitments.
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 LLC is an adaptable type of enterprise that mixes elements of partnership and corporate structures. An LLC must have between 2-50 investors, every one of whom is liable just to the extent of his or her share in the company’s capital. Except for public shareholding organization, an LLC can be changed to any other legal form.
7. SIMPLE LIMITED PARTNERSHIP
8. PARTNERSHIP COMPANY
9. BRANCH OF A FOREIGN COMPANY
10. REPRESENTATIVE OFFICE
A Representative Office for Commercial Activities isn’t a business structure in its own right but it’s a business activity that a branch can conduct. It has its own criteria, which incorporates the authorization to promote and market the business of the parent company – however not conduct business operations. A Representative Office requires a Local Service Agent (LSA), who can be a UAE National or a company owned by at least one UAE Nationals.
The Agent’s duties towards the company and third parties shall be limited to rendering necessary services to the company without his bearing any financial liabilities or commitments related to the company or its branches and offices inside and outside the State.
11. BRANCH OF DUBAI – BASED COMPANY
A Branch of Dubai- based Company must carry out one or all the activities that are included in the main company license. For a company having multiple branches, each branch can carry out various activities as long as they are all included in the original license for the main company.
12. BRANCH OF UAE- BASED COMPANY
A Branch of a UAE-based Company must carry out one or all the activities that are included in the main company license. Different activities can be undertaken by each branch for a company with multiple branches, as long as they all were included in the original license for the main company.
13. BRANCH OF A GCC BASED COMPANY
Opening a branch of the GCC Company in the UAE is a popular company structure. There are a few steps to follow for registering a branch office for a GCC Company in UAE.
A Branch of a GCC Company must carry out one or all the activities that are included in the main company license. Different activities can be undertaken by each branch for a company with multiple branches, as long as they all were included in the original license for the main company.
The GCC Company must have all the company documents attested from the home country’s UAE embassy office. Also, the documents must be attested by the Ministry of Foreign Affairs in the UAE. Expert Business Consultants at Prime Consult will guide you through the complete process.
While other GCC countries may follow various rules in terms of combining activities, for Dubai branch licenses, activities of the same group only will be accepted, regardless of whether other activities are registered in the GCC main company.
14. BRANCH OF A FREE ZONE COMPANY
A branch of a free zone company can practice professional, commercial and industrial business as long as the main company’s activity is authorised in mainland Dubai. If the main license of your company was issued in a UAE free zone, (not as a branch of a foreign company), then you can obtain a branch license from DED in order to expand your operations to mainland Dubai.
15. INTELAQ (Home-based business for UAE Nationals)
An Intelaq License Company can only be established by UAE Nationals. It is a home-based business which can conduct almost any type of professional, trade or artisan business. The business must be reasonable to operate in a residential atmosphere. The environment or the health of a person must not be harmed by the business and also should not generate noise or other irritants that could negatively impact neighbours. The following legal forms can be taken: Sole Establishment, LLC, Civil Company and Partnership. Intelaq license holders are not allowed to sponsor employees.
16. SME LICENSE
An SME license can be given to businesses that are owned 100% by UAE Nationals and can take any legal form. This license is valid for three years and permits the owners to sponsor employees.
Contact us for more details about the Mainland Company Formation in UAE.
