Opening a Mainland Company in the UAE: Benefits and Key Steps
The UAE is a country that not only allows foreigners to start a business but has also created highly favorable conditions for it. Entrepreneurs can choose from three types of companies: offshore, those within a free economic zone (FEZ), or mainland companies (Mainland Company). Let’s explore the advantages of mainland companies and what is required to establish one.
Comparing Mainland Companies with Other Types
The UAE is made up of seven emirates, each with its own regulations, and features FEZs equipped with all the necessary infrastructure for specific business activities. Mainland companies must be registered outside these free zones, but that’s not their only distinguishing feature.
For a detailed understanding, you can seek business setup consultations in the UAE, but the main points are covered in this article. The key advantage of a mainland company is the ability to operate anywhere in the Emirates. Below is a comparison of the three types of companies:
Type | Mainland | Onshore in FEZ | Offshore |
Operating within UAE | Permitted | Only within the free zone | Not permitted |
International Activities | Permitted | Permitted | Permitted |
Taxation | Standard with some benefits | Preferential | None |
Eligibility for Residency Visas | Permitted | Permitted | Not permitted |
Mainland companies face no restrictions and enjoy additional benefits that are not available to offshore companies or those in FEZs:
- Participation in government tenders;
- Collaboration with any government body;
- Operations with diverse partners;
- Unlimited employee residency visas.
Furthermore, employee income is tax-free, and capital can be transferred abroad without restrictions. Until 2021, one significant drawback for entrepreneurs was the requirement for a local citizen to hold a controlling share of the company. However, a new law introduced three years ago allows 100% foreign ownership for certain types of activities.
What Is Needed to Open a Mainland Company
If you decide to open a Mainland Company, the first step is to determine the type of activities your business will engage in and choose the legal form of the company. It can be:
- A branch of a foreign company or one registered in a FEZ;
- An equivalent of a limited liability company (LLC);
- A sole proprietorship.
To establish a mainland company in the UAE, you’ll also need to:
- Choose a company name without any religious connotations. It can include the founders’ names or indicate the type of activity.
- Sign an agreement with a local agent responsible for liaising with government authorities on the company’s behalf.
- Obtain approval for the company name from the Department of Economic Development (DED).
- Prepare notarized founding documents.
- Rent or purchase office space.
- Pay all required fees.
- Obtain the necessary licenses.
After completing these steps, you can proceed with the registration process. This begins with submitting an application and ends with the issuance of a registration certificate. Once this certificate is obtained, the company’s immigration card is issued, and a bank account is opened.
Documents Required for Registration
Along with the registration application, you’ll need the company’s Articles of Association, a founding agreement, a permit from the foreign affairs office, and passport copies of the company’s director and founders. If a legal entity is among the founders, the list of required documents will expand significantly.
You can learn about all the details of the process from the experts at Dynasty Business Adviser, a licensed service provider for company registration in the UAE. For over 8 years, the company has not only provided consultations but also acted as an intermediary with all UAE government institutions, ensuring a swift and efficient registration process..