Mainland company

A mainland company in Dubai refers to a business entity that is directly registered with the Dubai Department of Economic Development (DED) and operates within the mainland jurisdiction. These companies have the freedom to conduct business in Dubai and across the UAE without any restrictions.

Key features of a mainland company in Dubai:

• Local sponsorship: Opening a mainland company in Dubai requires obtaining a local Emirati sponsor who holds 51% of the company shares. However, ownership terms can be protected through a proper legal agreement.

• Office location flexibility: Mainland companies can be established anywhere in Dubai, depending on the suitability of the business activities. There are no restrictions on the location of the office or presence within free zones.

• Trade with the local market: Mainland companies have the advantage of trading directly with the local UAE market without any limitations. They can bid on government projects, participate in tenders, and engage in business activities across the country.

• No limitation on business activities: Mainland companies have the freedom to conduct a diverse range of business activities, including retail, professional services, trading, industrial manufacturing, etc. There are no specific limitations on the permissible business activities.

Advantages of opening a mainland company in Dubai:

• Access to local markets: Mainland companies can cater to the local UAE market, which provides a large consumer base and significant business opportunities.

• Easy branch establishment: Mainland companies can easily open branches or representative offices in other Emirates or across the UAE without any additional approvals.

• No currency restrictions: Mainland companies have the advantage of trading in any currency without restrictions, making it easier to conduct international transactions.

• Employment opportunities: Mainland companies can hire employees directly from the local market and also have the provision to obtain work visas for expatriate employees.

• Local procurement preferences: Mainland companies often receive preferences from government entities and local companies for procurement purposes.

Process to open a mainland company in Dubai:

• Determine the business activity: Identify the specific business activity you wish to conduct and ensure it is permissible outside free zone areas.

• Find a local sponsor: Connect with a trustworthy and reliable local sponsor who will hold 51% ownership. Seek legal assistance to draft a clear sponsorship agreement to protect your interests.

• Choose a company structure: Decide on the company structure, such as a Limited Liability Company (LLC), Sole Proprietorship, or Civil Company, based on the nature of your business and the number of shareholders.

• Prepare legal documents: Draft the Memorandum of Association (MOA) and obtain initial approval from the Dubai DED. Prepare other required legal documents, such as the lease agreement for office space.

• Obtain permissions and licenses: Complete the necessary paperwork, including obtaining trade licenses, professional licenses (if applicable), and any special permits or approvals specific to your business activity.

• Register with relevant authorities: Register your company with the Dubai DED, acquire the necessary tax registrations, obtain a UAE SIM card, open a bank account, and complete any other required registrations.

• Obtain visas and labor cards: Secure work visas for your employees, medical fitness certificates, labor cards, and any other necessary documents related to hiring and employing staff.

Opening a mainland company in Dubai might involve several legal and administrative steps. My UAE licence understands the basic requirements and guides the client in the right direction.