Forming a mainland company in the United Arab Emirates will provide for expansion of business activities and access to such a lively market. A mainland company allows entrepreneurs and investors to form a presence in the heart of the UAE's commercial hubs, within the cities of Dubai, Abu Dhabi, and Sharjah. The very business-friendly environment coupled with top infrastructure, favorable tax policies, and stiff infrastructural competitiveness opens up opportunities for growth and diversification in the mainland of the UAE.

The mainland company formation process includes the selection of business and license type, selection of the name of the company, trade name, initial approval and registration, obtaining trade license, registering with the authorities concerned, and opening a corporate bank account. The mainland presence enables businesses to tap strategic location, world-class infrastructure, and a business-friendly environment of the UAE in order to consolidate, grow, innovate, and become successful. This, in turn, opens up a business to broaden its customer base, partnering with local businesses, opening new markets and industries, setting credibility and reputation, and enhancing visibility and brand awareness.

Advantages of Mainland Company Formation

• Availability of commercial space for lease in any location

The mainland companies in the UAE benefit from leasing commercial space in any location in the Emirates. Business organizations are given the latitude to search for locations that best meet their operational needs for their operations and targeted markets, thus facilitating better access to customers and suppliers.

• Ability to participate in a variety of commercial operations

These land-based business enterprises can be involved in various commercial activities, not being limited like any free zone enterprise. For example, trading, manufacturing, and professional services, which allow companies to take advantage of various market opportunities by diversifying their operations.

• 100% foreign ownership and the ability to conduct business anywhere in the United Arab Emirates

Recently, regulatory changes have liberalized several sectors to 100 percent foreign ownership of companies in the mainland and do not require any onshore local sponsor. With this policy change, foreign investors can hold full control over their companies and continue to trade freely across the UAE, thereby strong enhancement of their operational capabilities.

• No restrictions on currency

Companies in the Mainland can do business in whatever currency they like; thus, there is no restriction regarding this. This ease allows them to trade abroad and simplify dealings with partners on a different continent, thus making it easier for them to manage their monies.

• Processing work visas is simple

A company that is incorporated in the mainland will make work visas much easier to obtain for the employees. Companies can sponsor visas for their employees much more easily and thus build a skilled workforce adapted to their business needs.

• Benefits of submitting a bid for government work

Access Tenders or Contracts to Mainland Companies. All mainland companies qualify to tender and offer their services for government tenders and projects, enabling them to bag high-value contracts that may substantially upgrade revenue. This benefit may also be very useful for companies wanting to increase their public sector clients.

• Ease of opening a corporate bank account

In practice, for a mainland company, it is relatively easier than for offshore companies to set up a corporate bank account. The reason for this preference of the banks is due to the level of regulation compliance and transparency of operation exhibited by the local businesses, making straightforward partnerships easier.

Types of Mainland Company Formation in UAE

• Branch of Foreign Office
• Professional Companies
• LLC
• Representative Office

• Branch of Foreign Office: A branch office allows a foreign company to continue operating in the UAE while retaining all the characteristics of its parent organization. It can conduct business activities identical to those of the parent organization, however is not considered a separate legal entity. The branch will be wholly owned by the foreign parent organization and liable for its debts.
• Professional Companies: Professional companies are usually established by professionals, like doctors, lawyers, and consultants. LLCs permit 100% foreign ownership; however, they require the presence of a local service agent who is a UAE citizen. In an LLC, the liability of partners is unlimited, and become personally responsible for the company's debt
• LLCs: LLCs are one of the most popular forms of business entities in the UAE. They require at least two and a maximum of 50 shareholders, with a local sponsor holding at least 51% of the shares. LLCs provide limited liability protection. This means that shareholders are liable only up to the amount invested in the company's case of debt. They can undertake different business activities.
• Representative Office: An office representative is an extension of a foreign company in the UAE, mainly for marketing and promotional purposes. This cannot engage in commercial transactions and cannot generate revenue on the spot but promote the products or services of the parent company, as well as communicate with prospective clients.

Steps to Establish Your Company in Mainland

• Choose Business Activity: Identify the type of business activity to be conducted. This will help you know what kind of license you are going to have and what regulatory approvals you need to seek.
• Choose Business Form: Determine what legal form of enterprise of operation will suit your needs, such as an LLC or professional company, depending on the needs and wants of owners.
• Obtain Trade Name Approval: Submit your preferred trade name to DED for approval. The name submitted shall not be conflicting and should be a proper name.
• First License Approval: Proceed to DED to get the primary license approval to allow you to start the registration process.
• Card from MoHRE: A card issued by MoHRE is a precondition to get work visas and recruit personnel.
• Obtain External Clearance (if necessary): Your type of business might need further clearance and approval from centralized authorities and ministries
• License Release: After appropriate clearance, a DED license will be issued whereby you will thus be eligible to conduct your business ventures in the UAE legally
• Activation of Corporate Account in Bank: You may open a current corporate account with any bank that will manage your business transactions comprehensively to enable the smooth running of your business.
• Labour File: Create a labor file with MoHRE to manage the employee file and work permits.
• Process Visa: Get work visas for yourself and any other staff so that they can legally stay and work in the UAE

Conclusion

Forming a mainland company in the UAE provides big benefits, among others, being allowed to do businesses anywhere in the UAE; gaining access to all their business activities; and the ability to work with both private and government sectors. Mainland companies, on the other hand, have to be at 51% local ownership only. Other than that slight, longer licensing process, it enjoys unrestricted trade. It does not have capped office spaces and headcount for employees.

With the help of experts like Reyson Badger who could make the establishment process quite smooth and efficient. Being thoroughly well-versed in the regulations of the UAE and business structures, they provide the comprehensive support that one needs while navigating the complexities of forming mainland companies. Contact Reyson Badger for customized guidance and expert services to establish your business in the UAE.

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