Over View of Company Registration on Mainland United Arab Emirates
It is necessary to understand what it means by the term Mainland Company in order for an entrepreneur to take a decision to register a Mainland Company in UAE.
Following are the facts about Mainland Companies in UAE.
- These companies are regulated under Federal Law No. 2 of 2015 which came in to effect on 1 July 2015.
- These licenses are issued by Department of Economic Development.
- Each Emirate in UAE has separate Department of Economic Development to regulate Mainland licenses.
- No expatriate can own more than 49% in any commercial limited liability company.
- UAE national must to own minimum 51% shares in a commercial entity which is popularly known here as LLC.
- GCC national can own 100% shares in any company.
- GCC companies or individual GCC national can make partnership with UAE national.
- For certain business activities, by law only UAE national can own 100% shares.
- Business activities covered under professional category can be 100% owned by foreigners but it is mandatory have UAE national as a service agent.
- UAE Mainland Company is considered as onshore business entity.
- Mainland Company enables the investor to obtain residence visa for him as well as employees residence visas.
- Mainland business setup in UAE is the most common choice for investors looking to conduct local business
Legal Structures to Conduct Business On UAE Mainland
Businesses on Mainland UAE can operate their businesses under different legal structures available according to their business plan and activities. Mainland business setup in UAE can be formed as mainly. All these licenses are primarily issued by Department of Economic Development in each emirate of UAE along with different departments/ ministries depending on various special approvals.
- UAE Mainland Limited Liability Company popularly known as LLC. This structure is applicable for commercial activities and in general to any trading activity. It is must for a UAE National to own 51% of shares. Maximum 50 share holders are allowed in this type of legal structure. Company’s financial liability is limited to company share capital and assets only. Company’s day to day management is handled by manager/managers appointed under notarised MOA. Share holder must to be physically present once in order to establish this type of company. Read more
- UAE Mainland Professional Sole Establishment or Professional Civil Company. This structure is applicable to companies offering professional services. It is must to appoint UAE national as a service agent. Read more
- UAE Mainland-Branch or Representative Office of a Foreign Company. These licenses are only issued after an approval from Ministry of Economy. The proposed activity of the branch company should be in the same domain of the parent company. Representative companies are only allowed to do promotional activity of the product or services of the parent company.Read more
- UAE Mainland Industrial Companies Read more
- UAE Mainland Companies owned by GCC Nationals. The states of The Gulf Cooperation Council (Saudi Arabia, United Arab Emirates, Sultanate of Oman, Qatar, Kuwait and Bahrain) signed the united economic agreement in Riyadh on 7th June 1981 which defines how GCC nationals can own companies and do business in member countries. Read more
Documents Required For Mainland Company Formation in UAE
Following are in general documents required to be submitted.
- Passport copies of share holders
- UID for all share holders
- Attested degree certificate if required
- CV if required
- Attested parent company documents if it is a branch or representative company
- AUD ( American university ) exam certificate if it a consultancy firm on Dubai mainland
- NOC if share holder is on residence visa
- Proof of rented office or shop premises
- Attestation has to be done by foreign affairs ministry of home country and UAE embassy in Home country and MOFA in UAE
Reliable UAE National Share Holder and Service Agent
If any investor wishes to setup Mainland Company in United Arab Emirates, the first and foremost step is to choose UAE national share holder if it is a commercial company and UAE national service agent if it is a professional company. Following are few important points about it.
- Flyingcolour® provides corporate local entity to satisfy this requirement.
- Flyingcolour® provides most reliable local UAE national services since 2004 and it is evident from our online reviews that our clients are very happy with our speed of error less services.
- We provide corporate UAE national share holder or service agent against fixed annual fees.
- We also provide side agreement protecting investor’s 100% right on the company.
- We allow investor to change UAE national share holder or service agent without any objection for what so ever reason unconditionally.
Mainland Business Setup Jurisdictions in United Arab Emirates
United Arab Emirates has seven emirates and each emirate has separate Department of Economic Development to regulate mainland licenses. Flyingcolour® assists in setting up Mainland Company in Dubai, Abudhabi, Sharjah, Ajman, umm Al Quawain and Fujairah.