The first and foremost requirement to set up a mainland company and obtain a trade license Dubai or trade license Abu Dhabi or trade license in other provinces of UAE is to include at least one UAE national for its formation. The chosen UAE national(s) will act as the local sponsor to your onshore company and are also given the permission to act as shareholder(s) or a local service agent(s). Whatever position the person holds, in the case of a sole proprietorship, civil company, or an onshore branch, he can serve your company, without formally holding any shares. However, LLC company formation in UAE demands a minimum share of 51 percent for its local sponsor(s).
Have a look at some of the advantages of starting a mainland company:
♜Entrepreneurs can choose from any of the places in the UAE
♜Unlimited freedom to set up a wide variety of business activities
♜Equal permission to get a trade license both in UI and outside the Emirates
Different Forms of Mainland Companies in UAE
A company owned by an individual, who is solely responsible for all the day to day operations of the company is known as Sole Proprietorship.
A company formed on the basis of a business partnership between professionals with a focus on delivering professional consultancy services is known as a Civil Company. According to DMCC, the professionals who agree to enter into a partnership can be mainly doctors, engineers (except civil engineers), lawyers, accountants etc.
Limited Liability Companies (LLC)
One of the traditional company structures in the mainland is LLC. The minimum number of shareholders who can invest in an LLC is 2 and the maximum is 50.
Private Shareholding Company
Also known as private joint-stock company, the minimum number of investors needed to start a private shareholding company is 3. The minimum capital required is AED 2,000,000. Forming a private share holding company brings numerous benefits for company owners as investors are given complete freedom to start any of the industrial, commercial, and professional activities of their choice.
A Branch office can be regarded as an extension office of an already formed mainland company. Offices of any of the foreign companies, Dubai based companies, UAE based companies, GCC based companies, and free zone companies can be a Branch Office.
The Key Highlights Of Mainland Companies In UAE.
♜Each mainland company setup in UAE is completely regulated under Federal Law No( 2) of 2015 AD on commercial companies.
♜The share percentage of expatriates is limited to 49% in their corresponding LLC companies.
♜People belonging to countries in GCC get 100% share in a mainland company.
♜Not every business activities under mainland company license can be owned completely by foreign nationals
♜in the case of professional license, expats, and foreigners can hold the complete ownership of the mainland company, provided that at least one UAE national is appointed as the Service Agent.
♜All mainland companies in UAE are classified as onshore business entities by law.