A mainland company is an onshore company licensed by the Department of Economic Development (DED), and permitted to conduct business activities in its region as well as outside UAE. The NCCL replaces the previous Commercial Companies Law . Mainland companies are regulated by the UAE legal structure and government policies, and are located within the limitation of commercialized geographical areas falling under the jurisdiction of the Emirates government.
The Department of Economic Development is a business center point under the purview of the administration of Dubai, UAE. DED was set up in March 1992 with the essential goal of sorting out and directing the business and exchange theEmirate of Dubai, and at the same time enriching the economic development and growth of Dubai & the UAE.
Procedures to be followed while setting up a business in mainland
As the initial phase in setting up a business in UAE territory, a UAE public should be selected as the nearby patron for your business. The nearby support would settle on an understanding that he would not have any inclusion in the organization tasks or benefit sharing of the terrain organization arrangement in the UAE. Hence, the local sponsor is also referred to as a sleeping partner.
Talking about licences, for a professional licence, the investor can have 100% ownership, but a local service agent is still called for. This implies that the local service agent has no active part in the company business management, operations or profit sharing under a professional company. The local service agent instead acts as a figurehead representative, while drafting legal agreements and setting up other business documentation required in the UAE.
Requirements for Mainland Business Setup
When starting a business in UAE territory, a confirmed office address from the Municipality is required. The prerequisite of office space for territory business arrangement can be fluctuated dependent on the kind of permit the financial specialist is keen on, and it is the speculator's duty to guarantee that a valid tenancy contract for an office is available at the time of applying for the license of the company in UAE mainland.
There are certain activities to be conducted prior to a business setup in UAE mainland that require special approvals from few specific government departments. The 6 main steps/approvals required are:
- Business activity selection and name approval
- Selection of local partner or service agent
- Application for initial approval for mainland company setup
- Preparation of court notarization and MOA (Memorandum of Association)
- Getting office space and tenancy contact
- Final submission for mainland company formation
- Collection of licences from the judicial bodies
Benefits of Setting Up a Company in Mainland
Astutely thought enterprising initiatives, a plethora of tax incentives, abundance of natural resources like petroleum, and prevention of twofold tax assessment have prompted administration, industry and exchange parts prospering in the territory, along these lines transforming UAE terrain into a powerful business center point.
The benefits of setting up a mainland company in the UAE are:
- There are no corporate or personal taxes if you form a company in the mainland
- There is no minimum capital required to start a business
- One gets the flexibility of conducting business in any part of the UAE
- There is no need of a local sponsor to get professional license
- There are no limitations on getting employment visas, hence the employee recruiting process can turn out to be quite simple.