Main Land Business

A UAE national is required for Mainland company setup in UAE who is known as local sponsor or local service agent. A local sponsor is necessary for commercial companies where he will hold maximum number of share, that is 51% and expatriate will hold only 49% shares. Local service agent is also needed for professional company setup, in which an expatriate is permitted to hold 100% shares in mainland company setup in UAE. We can provide you a local sponsor and you’d have full power to do business in your own unique style. The sponsors will not be involved in profit sharing or any of your business operations.

Three types of business licenses are permitted for mainland companies in UAE, these are:

COMMERCIAL LICENSE
Covers different types of trading activities

INDUSTRIAL LICENSE
Issued to companies performing industrial or manufacturing activity.

PROFESSIONAL LICENSE
Issued to companies offering professional services, and other related services like craftsmen and artisan.

A UAE national is required for Mainland company setup in UAE who is known as local sponsor or local service agent. A local sponsor is necessary for commercial companies where he will hold maximum number of share, that is 51% and expatriate will hold only 49% shares. Local service agent is also needed for professional company setup, in which an expatriate is permitted to hold 100% shares in mainland company setup in UAE. We can provide you a local sponsor and you’d have full power to do business in your own unique style. The sponsors will not be involved in profit sharing or any of your business operations.


Main Land Company Type

Any investor planning to establish a mainland company in UAE, can setup business establishments in any of the following ways:

LIMITED LIABILITY COMPANY (LLC)
LLC is the most common form of business in UAE, can be established with a minimum of 2 and a maximum of 50 partners. The percentage of individual’s share in the capital decides the liability to each partner.
It is mandatory to have a UAE national as a partner in the LLC (51% shareholding)

BRANCH OF FOREIGN COMPANIES(LLC)
Foreign companies are not allowed to practice their primary business, or incorporate branches in the Mainland, or engage in trading activities unless licensed by the Ministry of Economy
The license mandates a national agent to act on the behalf of the company
Proposed business activity for a branch of foreign Company should be within the domain of the activities performed by the parent company

REPRESENTATIVE OFFICES(LLC)
UAE Commercial Company Law allows foreign companies to open Branch/Representative offices without any shareholder. Representative Offices are not allowed to perform trading or manufacturing activity and cannot even invoice as these are essentially the parent company’s marketing arms

PROFESSIONAL FIRMS/CIVIL COMPANY
Professional Firms are also known as Civil Companies, Unlike LLC Companies Expatriate can hold 100% share and UAE national as Service agent.
In order to carry out professional practice in the UAE, Foreign Investors can setup a partnership firm/Professional Company. Eg. Marketing Consultancy, Management Consultancy, Engineering Consultancy Etc.

PUBLIC SHAREHOLDING COMPANIES
Companies performing public shareholding, financial, banking or insurance activities are known as public shareholding companies, the minimum capital required is US$ 2.725 million for Public Share holding Company.

The main 6 steps involved in company formation in the mainland area:

  • No currency restrictions
  • No restriction of office location
  • No corporate tax
  • No minimum capital requirement
  • Personal income tax exemption
  • Access to clients from anywhere in the world
  • No limit on the number of employment visas