If you are looking for Mainland Company Formation & business set up in Dubai-UAE, you will need to register a business entity with the Department of Economic Development (DED), which will then provide you a business license to start doing business in UAE.
Benefits :
- Ease of getting office space at affordable rates
- Flexibility to trade anywhere in the UAE and internationally.
- Ability to conduct a wide range of business activities.
- 100% foreign ownership
- No restrictions in processing legal documents
- No currency restriction
- Easy employment visa processing
- No requirement for minimum capital
- Advantage of bidding on government projects
Mainland Company Formation Locations:
If you are confusing where we can start our business in the UAE, then YUGA Accounting will explain all the advantages and disadvantages of the emirates which are available to help you in the process of starting a company in the UAE.
Dubai Mainland
In Dubai, all business entities that come under commercial, professional, and sole establishment registered under the Dubai Economic Department (DED) are known as Dubai Mainland License. Limited Liability Company (LLC) or a branch/representative of a foreign company are the most chosen business forms in Dubai mainland. Complete foreign ownership was not possible with a mainland company until June 1, 2021, but now 2000+ commercial and industrial business activities are eligible for 100% business ownership under a mainland licence.
Benefits when you set up a Dubai mainland business:
- Freedom to trade across Dubai and in the UAE.
- Ability to trade internationally and expand your presence.
- Freedom to grow your company and team.
- Ability to diversify your offerings.
- Ability to deal with the UAE or GCC governments.
- Ability to create a flexible startup.
Abu Dhabi Mainland
Abu Dhabi Department of Economic Development (ADDED) issue business license to operate in Abu Dhabi Mainland, this is a government entity focusing on stakeholders and efficiently enabling a sustainable economy in Abu Dhabi. The Emirate is one of the largest oil producers, but it’s also heavily funded in real estate, industrial development, retail, and tourism. Depending on the structure of the company, the procedures will differ. For example, the procedure for an LLC formation in Abu Dhabi will be different from that of a service-oriented small business setup.
Benefits when you set up a Dubai mainland business:
- Registration Process is far more easy, quick, and effective.
- It provides long-lasting commercial license that is 2 years.
- There is very little or no stress on renewals.
- There is the least possible taxation on LLC.
- Mainland companies can conduct their business with other mainland companies in Dubai or UAE.
Sharjah Mainland
Sharjah Mainland has become one of the most popular business destinations in the UAE because of its investor-friendly atmosphere. Companies have immense growth prospects in the region and a large number of expatriates and foreign investors are coming forward for company formation. Sharjah Economic Development Department (SEDD) keeps track of businesses and license issuance, renewal and winding. As the UAE’s third-largest Emirate, the region is constantly increasing financially, creating chances for fast-growing industrial and commercial sectors.
Benefits when you set up a Sharjah mainland business:
- 100% tax exemption for import, export, and commercial levies
- Affordable rent
- Security of investment
- Warehousing facilities can be used to store goods for up to two months
- Government incentives for investors
Ajman Mainland
Ajman may be the smallest of the seven emirates in the UAE, but it is one of the largest when it comes to business. Many entrepreneurs seek business setup in Ajman Mainland because of its prime location and easy accessibility. Real estate, retail, construction, transport, and business services are all popular industries for Ajman Mainland business setup. Business setup in Ajman mainland is easy and economical. Another reason for its growing popularity is the affordable cost of an Ajman mainland business license.
Benefits when you set up a Ajman mainland business:
- License cost is comparatively low
- Low-cost rented commercial spaces and offices
- Due to easy lease options, the manufacturing industry prefers Ajman.
- Easy access to two international airports and four ports
- Company formation in Ajman is ideal for industries as raw materials are easily available
Process for Mainland License:
Starting a business in ordinary ways involves a series of steps, including:
1. Identifying a business activity
Deciding the business activity type is the basis for selecting the legal form. There are six types of licenses.
- Commercial/Trading
- Industrial
- Tourism
- Professional
- Agricultural
- Occupational
2. Select Legal Form
The legal form depends mainly on the business requirements. In the UAE, an investor can select one of these legal forms:
- General partnership
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company (PrJSC)
- Civil company
- Local company branch
- GCC company branch
- Foreign company branch
- Free zone company branch
- Sole establishment
- Holding companies.
3. Register the trade name
The trade name of your new business must reflect your chosen activity, and it must get approved by the authorities before formal usage. Approval is subject to the trade name not already being in use by someone else, or it being previously registered. Further, the trade name must not offend public morals or the public order of the UAE. At this stage, it’s required to submit documents of all partners and the appointed manager partners (Passport / Visa / EID / NOC for UAE Residents / Residential address). When approved, the trade name will be followed by the acronym of your legal structure, ex: LLC, PLC or PJSC.
4. Applying for an initial approval
An initial approval means that the UAE Government has no objection for the business to be established in the country. It also allows the investor to proceed with the next steps in setting up a business. It does not, however, grant the authority to run or practice the business activity. Some activities require additional approvals from government entities related to that particular business before applying for the initial approval. These include activities related to legal affairs, security affairs and financial securities and commodities.
5. Prepare MOA & LSA Agreement
DED will prepare the MOA (Memorandum of Association) and LSA (Local Sponsor Agreement) depending on the legal form of a business.
6. Select a business location
There are multiple choices for new business set up in the UAE’s mainland, each catering to specific needs and budgets:
- Virtual office
- Leased office
- Fully owned office
- Office building
- Workshop
- Warehouse
7. Apply for relevant visas
There’s no limit with mainland visa applications for business owners in the UAE mainland. But the number of visas applied for should correspond with the amount of office space required. Usually, 100 sq. ft. of office or warehouse space per visa is the rule. As the owner of a UAE mainland company, you will also be able to sponsor dependents – such as family members and domestic staff (maids or drivers, for example) for their visas as well. Foreign entrepreneurs who establish business on the UAE mainland are also entitled to an investment visa which gives them and their families the right to live and work in the UAE for up to three years.
8. Collect the Business Licence
After the Memorandum of Association (MOA), Local Service Agent Agreement (LSA) signed, all approvals obtained, and all payments have been made. The license will be issued along with the MOA.
Note: It takes approximately 5 to 12 working days to establish a Mainland company after receiving the full set of required documents. In case of external approval for some of the business activities, the timeframe may take longer.
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