Mainland Company Formation in Dubai

A mainland business setup refers to a company established within the jurisdiction of the UAE government, outside of free zones. Mainland companies can operate across the UAE and internationally without restrictions. They offer flexibility in business activities and are regulated by the UAE Commercial Companies Law.

Mainland businesses can trade freely within the UAE and internationally, allowing them to deal with government entities and take on local contracts. They also have more flexibility in their office location and expansion options, including opening multiple branches across the UAE. Moreover, mainland companies benefit from UAE’s favorable tax environment, with 0% personal and corporate tax for most industries.

Yes, the UAE allows 100% foreign ownership for certain business activities in various sectors, such as industrial, commercial, and certain service sectors. However, for certain activities, such as those in strategic sectors or professional services, foreign investors may still need a local partner or service agent. It’s crucial to check the regulations for your specific business activity.

The process begins by selecting your business activity and trade name. Then, you apply for an initial approval from the Department of Economic Development (DED) and prepare the necessary legal documents, such as the Memorandum of Association (MOA). You will also need to lease an office space and obtain the tenancy contract. Afterward, you can apply for a business license and any additional approvals needed for regulated activities. Once the license is issued, you can begin visa applications for yourself and your employees.

Mainland businesses can apply for a variety of licenses, including commercial, industrial, professional, and tourism licenses. The type of license you need depends on your business activity. For instance, a commercial license is for trading activities, while a professional license is for service-oriented businesses like consulting. Some sectors, like healthcare or financial services, may require additional approvals from relevant regulatory bodies.

Mainland businesses must lease a physical office space to obtain a business license. The size and type of office depend on the number of employees and business activity. In some cases, a shared office or serviced office may be accepted, but a minimum office size may apply based on the license category and visa quotas.

Once your company is established, you can apply for investor and employee visas. The number of visas you can sponsor depends on the size of your office and the nature of your business. You will need to provide required documents such as passport copies, medical tests, and Emirates ID applications. Family sponsorship is also possible if you meet the salary and residency requirements.

Mainland companies are generally required to maintain proper financial records and may be subject to annual audits, depending on their business activity and legal structure. For certain sectors, such as financial services, audited financial statements are mandatory. Even when audits are not legally required, maintaining accurate records is crucial for tax compliance and corporate governance.

Yes, mainland businesses can open branches in any emirate in the UAE without restrictions. Each branch will require its own license, and the process may involve obtaining approval from the DED in the respective emirate. This flexibility allows businesses to expand their presence across the UAE.

Mainland businesses must comply with the UAE Labor Law, which includes regulations on working hours, minimum wages, contracts, and end-of-service benefits. Employers must provide employees with contracts, health insurance, and residency visas, and they must follow specific processes for hiring, termination, and dispute resolution.