The United Arab Emirates is a land of opportunity for businesses worldwide. Mainland companies in the UAE benefit from the country’s strategic location, robust infrastructure, and business-friendly environment. Setting up a mainland company in the UAE offers numerous benefits, including access to a thriving market, strategic location, and a favourable business environment. In this article, we delve into the process, benefits, requirements, necessary documents, types of business licenses, and company structures for mainland companies in the UAE.

Types of Business Licenses

Mainland companies in the UAE can obtain various types of licenses based on their business activities. Some common types of licenses include:

• Commercial License: For companies engaged in trading activities such as buying, selling, and distribution of goods.
  
  
• Professional License: Suitable for professionals and service providers such as consultants, freelancers, and artisans.
  
  
• Industrial License: Required for companies involved in manufacturing or industrial activities.
  
  
• Tourism License: For businesses operating in the tourism and travel sector such as hotels, tour operators, and travel agencies.
  
  

Company Structures

Mainland companies in the UAE can opt for various company structures based on their requirements:

• Limited Liability Company (LLC): The most common structure, offering limited liability to shareholders and flexibility in operations. A minimum of two and a maximum of fifty shareholders, comprising both individuals and corporate entities, are needed.
  
• Sole Establishment: Suitable for single owners or sole proprietors who wish to operate their business independently but lacks the benefit of limited liability.
  
  
• Partnership: A business structure where two or more individuals share ownership and responsibility.
  
  
• Branch Office: Allows foreign companies to establish a presence in the UAE and engage in commercial activities.
  
  
• Civil Company: The Civil Company structure is perfect for professionals who offer professional services since it enables experts such as physicians, lawyers, and consultants to combine their knowledge and form a joint venture. This arrangement makes sure that each partner is accountable for their deeds and debts.
  
  

Process of Setting up a mainland company in the UAE 

Setting up a mainland company in the UAE involves several steps. Below, you can see a general overview of the process:

1. Choose a Local Sponsor: Foreign investors looking to establish a mainland company under commercial or industrial licences in the UAE are required to have a local sponsor, who must be a UAE national, or a company wholly owned by UAE nationals. The local sponsor typically holds 51% ownership in the company. However, UAE has made it possible for entrepreneurs who just need a professional services license to fully own their companies.
   
   
2. Select the Business Activity and company structure: Determine the nature of your business activity and ensure it complies with the regulations set by the UAE government. Choose the business activity from a wide range of permissible activities. Also, decide on the legal structure of your company, whether it's a sole proprietorship, partnership, limited liability company (LLC), or a branch of a foreign company.
   
   
3. Trade Name Approval: Choose a unique trade name for your company and get it approved by the Department of Economic Development (DED) in the respective emirate where you intend to establish your business. Typically, the approval process of trade name takes around three working days.
   
   
4. Apply for Mainland Trade License: Once company name is registered, prepare and submit the required documents. The submission process can be a little tricky as several documents are required to be submitted, however, firm advice can be of assistance to ensure a hassle-free experience. Once the documentation is submitted and verified, you'll receive initial approval from the relevant authorities, then, prepare the necessary documents, including the Memorandum of Association.
   
   
5. Office Space and Lease Agreement: Select a business location and finalize the lease agreement. In the UAE, office spaces are usually owned by third parties. The packages and inclusions can be customised depending on your needs. It is essential to note that the tenancy agreement, Real Estate Regulation Authority (RERA) documents, and EJARI need to be submitted, following with the initial approval that is granted by the DED.
   
   
6. Governmental Approvals: Acquire approvals for any business activities from relevant authorities, if necessary.
   
   
7. Final Registration: Submit all documents and pay the fees to complete the registration process. Obtain the necessary licenses for your business activity from the DED or other regulatory bodies depending on the nature of your business.
   
   
8. Visa Processing: Process visas for shareholders, employees, and dependents through the General Directorate of Residency and Foreigners Affairs (GDRFA).
   
   
9. Get Establishment Card: Obtain the establishment card from the Ministry of Human Resources and Emiratisation (MOHRE) for employment-related matters.
    

Advantages of Mainland Companies

Establishing a mainland company in the UAE offers several advantages such as below: 

• Access to Local Market: Mainland companies can freely conduct business within the UAE market without restrictions on geographical locations or sectors. Trade freely within the UAE and beyond.
  
  
• No Currency Restrictions: There are no currency restrictions for mainland companies, allowing for seamless financial transactions.
   
• Government Contracts: Mainland companies can bid for government contracts, which can be lucrative opportunities in various sectors.
   
• Repatriation of Profits: Transfer profits and capital abroad without limitations.
   
• Flexibility in Business Activities: Mainland companies have the flexibility to engage in multiple business activities under a single license, subject to approval from relevant authorities.
   
• No Visa Limitations: Shareholders and employees of mainland companies are eligible for residency visas, providing stability and ease of living in the UAE. Mainland companies are free to increase their visa quotas without any limitations under a business license. However, an additional physical space would be required after a certain point. 
  
  

Requirements

To establish a mainland company, you’ll need to do the following:

• Physical Office Space: You must lease an office space and have a verifiable business address.
  
  
• Local Sponsorship: You must have a local sponsor (for certain business activities).
   
• Compliance: You must adhere to UAE business laws and regulations.
  
  

Required Documents

The documents needed to establish a mainland company in the UAE include:

• Passport copies of shareholders and directors.
  
  
• Memorandum of Association (MOA) and Articles of Association (AOA).
  
  
• Lease agreement for office space.
  
  
• No objection certificate (NOC) (If applicable)
  
  
• Trade name reservation certificate.
  
  
• Initial approval from relevant authorities.
  
  
• Completed license application forms.
  
  
• Business plan outlining the company's objectives, operations, and financial projections.
  
  

In conclusion, the UAE’s mainland offers a fertile ground for businesses to flourish, with its straightforward setup process, favourable business environment, and access to a diverse market. It’s an ideal destination for entrepreneurs looking to tap into the Middle East’s growing markets.