dubai mainland structure
Understanding Mainland Companies in the UAE: The Key to Operating Locally
A UAE mainland business structure offering full market access, 100% foreign ownership, and the ability to trade locally and internationally.
A Mainland Company in the UAE offers businesses unparalleled access to local markets, providing the flexibility to trade both within the UAE and internationally. Following the 2021 reforms, foreign investors can now fully own an LLC, making it an attractive option for businesses looking to operate in the UAE without the need for a local sponsor.
Key Features of Mainland Companies
100% Foreign Ownership: As of 2021, foreign investors can own a Mainland Company entirely, without the need for a UAE national sponsor in most sectors.
Freedom to Trade: Mainland Companies can trade freely within the UAE and globally.
No Business Location Restrictions: Businesses are not confined to freezones and can operate anywhere within the UAE.
Access to Government Contracts: Mainland Companies are eligible to bid for lucrative UAE government contracts, providing further growth opportunities.
Benefits of a Mainland Company
Full Market Access: Mainland Companies have unrestricted access to the UAE market, allowing them to trade within the local market, unlike Freezone Companies which are typically restricted to operating within their designated freezones.
Flexible Business Activities: A Mainland Company can engage in various commercial, industrial, and professional activities without needing additional licenses.
Global Expansion: With no limitations on geographical operations, Mainland Companies can expand both locally and internationally.
Unlimited Visa Availability: Mainland Companies are not limited by the number of visas they can sponsor, making it ideal for businesses planning to employ a larger workforce.
Who Should Choose a Mainland Company?
A Mainland Company is ideal for:
Businesses with Local Clients: Companies that require unrestricted access to the UAE’s domestic market for offering their services or products.
Retail Businesses: Those looking to set up storefronts or shops across the UAE.
Contracting and Construction Firms: Companies seeking to bid on UAE government contracts or large-scale projects.
Service Providers: Consultants, professionals, and freelancers who wish to operate freely in the UAE and access the local market.
Steps for Setting Up a Mainland Company
Here’s a simplified guide to setting up a Mainland Company in the UAE:
1. Choose Your Business Activity: The type of business activity will determine the required approvals and licenses.
2. Submit Trade Name: Reserve your company’s trade name through the Department of Economic Development (DED).
3. Apply for Initial Approval: Submit an application to DED to get approval for your business activity and ownership structure.
4. Prepare Documents: Gather the required legal documents, including passport copies and legal agreements.
5. Sign the Memorandum of Association (MOA): This outlines the ownership distribution and management structure of your company.
6. Lease Office Space: Rent a physical office space in the UAE, as this is required for Mainland Companies.
7. Obtain Trade License: Once all approvals are obtained, DED will issue your business license, allowing you to start operations.
Common Pitfalls to Avoid
Misunderstanding Local Regulations: Regulations can vary depending on the emirate where you set up your business. It’s essential to ensure compliance with all local and federal laws and also understand about any additional approvals which are specific to some of the business activities.
Choosing the Wrong License Type: Selecting the right business activity and license type is critical for legal compliance and long-term success. A wrong activity can lead to banning of trade license or establishment card.
Not Having Physical Office Space: While DET gives an exemption for office space in the first year for mainland companies, it is advisable to take an office space or a proper Ejari in order to ensure all inspections and compliances can be done and it also supports you with opening of corporate bank accounts.
How YKT Can Help?
At YKT, we specialize in guiding businesses through the setup of Mainland Companies. From selecting the right business activity to ensuring full compliance with UAE laws, our team provides expert advice every step of the way. Whether you need help with documentation, approvals, or navigating legal regulations and office space / Ejari, YKT ensures that your business is structured for success in 1-3 days.
Ready to get started with your Mainland Company in the UAE? Contact YKT today, and let us help you build a solid foundation for your business.