What are the key distinctions when starting a mainland business in the United Arab Emirates? Business set up companies in UAE going to break it down for you since there are important differences between mainland and firms in the UAE Free Zone. A mainland firm is an onshore business that has been grant a license by an emirate’s Department of Economic Development, which is the most important item you should know. This company is able to conduct business both domestically and internationally in the United Arab Emirates.
Which kind of corporate structures is available for the UAE’s mainland?
You must take your entity’s purpose into account when conducting business on the UAE mainland. Therefore, you must decide if your business will: 1) carry out commercial operations independently, 2) market the services of a foreign parent corporation, or 3) take part in local tenders utilizing expertise gained outside of the UAE.
You may thus decide more confidently what will achieve your company’s objectives in the best possible way.
If you intend to establish an independent entity
The Department of Economic Development has divided commercial operations into two divisions, and you can create mainland organizations to conduct autonomous commercial activities in each group.
- Organizations that are professional or that provide professional services (i.e., ICT, consulting firms, restaurants, etc.).
- Commercial firms that engage in commerce or industrial activity (i.e., commercial brokers, food trade, manufacturing of any goods, etc.).
Whether corporate shareholders will be a part of your business
Only an LLC may have a corporation as a shareholder in the permitted percentage of 49% for a mainland firm with corporate shareholders. Representative Offices or Branches of Foreign Entities, however, are more appealing legal structures for representing the foreign entity on the UAE Mainland. These legal documents are entirely own by the parent firm; you are just require to name a local agent.
A representative office is a type of legal entity that enables the entity to carry out marketing tasks for the main overseas business.
What licenses are offered for the mainland?
Like with other businesses in the UAE, you must not only establish your company but also submit an application for a license that covers the scope of your company’s operations.
- Commercial
- General Trading: A wide range of goods is available for sale.
- The following commercial pursuits: Investment services are one instance.
- Trade of particular goods: Your firm is only permit to acquire and sell the products listed in the license, which is clear about what it can trade.
- Industrial
Any type of product manufacture is cover under this license.
- Professional
This license applies to tasks like management consulting that call for specialized training.
What conditions must be met before your mainland firm may be registered?
You should make sure you have a pre-arrangement with the local business set up consultants and settle on the business space you are seeking to rent out before applying for your mainland license since this choice will impact the entire process. You should consider how many work visas you will require in the first year when deciding what kind of business premises to select.
Conclusion
When recommending the legal forms and licenses that would best serve your needs, our knowledgeable staff at Emirates Group will consider the features of your company. Following that, we will take care of all of your business needs so you may benefit from the promise of the Emirati economy.
