Mainland Company Formation in Dubai

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Most of the investors wanted to do business with less to zero worries when it comes to the location of their company. This is exactly the reason why does businessmen and investors are attracted to do a business set up in Dubai Mainland for they have the freedom to undertake a business anywhere in Dubai and UAE.

Mainland Company Registration in the UAE

The most common Mainland Dubai Companies in the UAE can be classified as follows:

  1. Limited Liability Company (LLC)

    Continuing your dream to set up a new mainland enterprise, you must be able to have definite knowledge on how to run this type of company formation. As mentioned from our previous article, we clearly stated that in order to establish a Mainland Company, a local sponsor is necessary.

    For the LLC Company, a foreign investor cannot be entitled to have 100% ownership of his enterprise. As per the law in the UAE Mainland, 51% of the total share of a commercial company shall be held by a UAE National (local sponsor or silent partner), while the remaining percentage which is 49% goes to foreign investor. This could mean that for LLC Company setup in Dubai, one of the responsibilities that will be carried on by the foreign investor is to hire a local Emirati sponsor.

    In connection with this, the local sponsor shall create an agreement in the court in which it will be stated that he will not have any involvement in either the company operation or profit sharing of the company setup in Dubai Mainland.

    Also, there are restrictions in the above-mentioned rule as it is confined to perform certain business undertakes such as the following:

    • Banking Business
    • Insurance Business
    • Money Investment Business
  2. Professional Company (Civil Work Company)

    Unlike the rules applied in LLC, a foreign investor can actually retain 100% ownership of the company’s shares in Civil Work Company. How is it possible? Professionals in the field of consulting, legal, accounting, doctors, and other related fields have the privilege to form a Mainland Company particularly a Professional Company which is also known as Civil Work Company.

    In addition to this, a Civil Work Company requires to appoint a Local Service Agent to take care of the official procedures and to liaise with the different government ministries. This is actually required in registering the Civil Work Company with the Department of Economic Development (DED)

    Since a Civil Work Company is exclusively for the holders of professional licenses only, therefore it is necessary to obtain external approval from a corresponding government ministry before the license can be processed.

  3. Branch or Representative Office of Foreign Companies
    • Branch of a Foreign Company in the UAE:

      Setting up a foreign branch office in UAE enables you to perform the activities which are being offered by its parent company. However, the activities to be performed by the foreign branch office is still subject for approval by the Ministry of Economy.

    • Representative Office in the UAE:

      Setting up a Representative Office enables you to likewise advertise and sell the services or products offered by the parent company. However, a representative office cannot commercially trade or sign contracts in the UAE for it should be done by the parent company.

      Branch or Representative Office of Foreign Companies requires a service agent, either as an individual or corporate vehicle who will be responsible in rendering the labour and immigration services for the company. This is mandated in order to complete the whole process of incorporation. The service agent is not liable and or oblige in any financial affairs related to the company either inside or outside the Emirate.

AMCA: Your Partner in Setting Up your Business

AMCA, known to be committed to excellence and in-depth knowledge about business set-up, will assist you in your mainland company formation in Dubai and UAE. With the help of our professional consultants, we will be taking care of your requirements needed for the formation. We will assist you from the beginning of its process until the end, and we ensure you to be untroubled while in the course of setting up your business.

Do not hesitate to contact us today and we will be glad to provide you all the information needed for your Mainland Company Formation.