It is a well-known fact that the UAE provides a progressive environment for business formation and being registered as a Mainland Company gives you the freedom to trade anywhere in the UAE, and globally. Setting up a serious business, on the other hand, requires a slew of legal requirements. Ayadi Group specializes in all legal aspects of mainland company formation in the UAE, with a team that manages all necessary paperwork and efficiently assists you in obtaining all permits needed to operate a profitable business in UAE.
A Mainland Company is an onshore company that has been approved by the Department of Economic Development of the emirate in which the company or corporation is to be established. Our teams assist you with their knowledge and experience of the jurisdiction and other activities, resulting in a simple, hassle-free, and fast company creation that opens the door to newer opportunities.
A sole proprietorship, also known as a sole establishment, is a legal entity established on the mainland under the name of a sole proprietor. The liability of the Sole Establishment is unlimited, which means that the owner is solely responsible for the establishment's liabilities to the full extent of his properties. Sole proprietorships may engage in commercial or technical activities. Sole Establishments can be registered by expatriates to provide technical or advisory services such as medical clinics, management consulting, legal consulting, IT consulting, HR consulting, training, and other similar services.
In accordance with UAE rule, a foreigner's sole establishment must select a local service agent. The local service agent is a UAE national (individual or company) whose main responsibility is to serve as a liaison between the organization and government departments. The local service agent, for example, applies for different licenses, work permits, and visas. An agency agreement that must be notarized and registered with the Department of Economic Development governs the relationship between the principal body and the local service agent. The principal party will unilaterally terminate the local service agency arrangement.
A civil company is an organization or arrangement in which two or more people have agreed to carry out professional or consulting services and to be responsible to third parties in exchange for a fee. Technical activities are those that use analytical abilities, know-how, learned information, or technical skills to provide services. Medical clinics, management consulting, legal consulting, IT consulting, HR consulting, training, and other related facilities are examples of such activities. The Department of Economic Development in each emirate registers and licenses civil companies.
Civil companies, unlike commercial companies, may be entirely owned by foreigners in most cases. Some professional practices, on the other hand, can necessitate local involvement. If a civil company does not have a UAE national partner, it can nominate a local service agent. The local service agent is a UAE national (individual or company) whose main responsibility is to serve as a liaison between the organization and government departments. The local service agent, for example, applies for different licenses, work permits, and visas. An agency arrangement regulates the relationship between the principal authority and the local service agent.
The Limited Liability Company (LLC) is the most popular form of business in the UAE mainland (LLC). Dubai Economic Department (DED) is the government agency in charge of issuing all LLC licenses and classifying and controlling the forms of economic activity that can be carried out. There are no restrictions on where an LLC can trade in the UAE or the GCC (unlike Free Zone companies); there are also no limitations on real estate possession or the number of visas that can be issued. There is no provision for a minimum share capital.
The key benefit for foreign investors establishing a company in the mainland UAE is that, unlike the Free Zones, there are no territorial restrictions on business activities or office/premise’s location. A mainland company can trade anywhere in the UAE or the wider Gulf Cooperation Council (GCC) area, including all Free Zones, and has a much broader range of real estate options to choose from.
A limited liability company (LLC) is primarily established to engage in commercial business activities. Various commercial operations such as trading, import-export, real estate production, brokerage, facilities management, construction, manufacturing, and other fields are just a few examples. LLC’s may also be formed to carry out professional activities such as restaurants, cafeterias, medical clinics, and other similar businesses.
A division is a separate legal entity that is also considered a part of the parent organization. A parent company owns 100 percent of a division, which must have the same name as its mother company and perform the same business practices. For instance, if a parent company is in the trading sector, its branch in the UAE must be licensed to do the same. A branch's budget and profit/loss statement are needed. A local service agent's primary responsibility is to act as a liaison between the branch and government agencies. A local service agent's primary responsibility is to act as a liaison between the branch and government agencies. For example, on behalf of the branch, the local service agent obtains various licenses, work permits, and employment visas. An agency arrangement regulates the relationship between the division and the local service agent. Local service agents usually charge an annual flat fee for their services.
InformationWhen it comes to conducting business in the UAE, trade license is a mandatory requirement. Various licenses are provided by the Economic Department for different business and technical / professional activities. Commercial, Industrial, and Professional licenses are the three most common types of licenses in the UAE. There are some business practices that need specific licences by the government.
Businesses that engage in some form of commercial trade operation involving products, commodities, or services are given commercial licenses. Logistics, car rental, and real estate brokerage are only a few examples of commercial activities. The number of tertiary activities per license, in addition to the main operation, should be limited to ten.
Starting an industrial or manufacturing business in the UAE necessitates the acquisition of an industrial license. With an industrial license, entrepreneurs may assemble and process products using locally sourced or imported raw materials.
Professional licenses enable individuals and businesses to take up services in which they are qualified based on their educational background. For example: IT services, Artistry, Consulting services, Medical services, Beauty salons, Repair services, Security services, and Document clearing etc.
Some business categories require prior approvals from certain authorities and fall under specific license groups. Contact us today for a free consultation. One of our experts will guide you through the necessary requirements to start your business.
