What is Mainland Company in UAE

A mainland company, also known as an onshore company, is a business entity that operates within the mainland areas of the United Arab Emirates (UAE). Unlike free zones where specific regulations apply, mainland companies must adhere to the laws and regulations of the UAE government.

Company Setup Process

The process of setting up a mainland company involves several steps and requirements. Firstly, you need to determine the type of business activity you want to engage in and choose the appropriate legal structure, such as a sole proprietorship, limited liability company (LLC), or a branch of a foreign company.

Next, you’ll need to choose a local sponsor, also known as a local service agent (LSA), for your mainland company.

An LSA is a UAE national or a company fully owned by UAE nationals who will act as a liaison between your company and the UAE government.

After securing a local sponsor, you can proceed with obtaining the necessary approvals and licenses from the relevant government authorities.

This includes registering your trade name, applying for the necessary permits, and obtaining an industrial license, commercial license, or professional license, depending on the nature of your business.

 

Read Whether a mainland company can do business in freezone area

Mainland Company Benefits

Mainland companies offer several advantages for businesses in the UAE:

• Market Accessibility: By establishing a mainland company, you gain access to the entire UAE market, not just a specific free zone.
• No Limitations: Mainland companies have no restrictions on the number of visas they can obtain, allowing you to employ as many staff members as required for your business operations.
• Greater Flexibility: Mainland companies can operate anywhere in the UAE and can engage in various business activities without limitations.
• Government Contracts: Mainland companies have the opportunity to bid for government contracts, which can be highly lucrative.
• World-Class Infrastructure: The mainland areas of the UAE provide excellent infrastructure, making it easier to conduct business activities efficiently.

Know about DCL certificate in UAE here.

Legal Requirements and Ownership

When setting up a mainland company, it’s important to understand the legal requirements and ownership regulations:

• For certain activities, such as legal consultancy or auditing, 100% ownership by UAE nationals or companies fully owned by UAE nationals is required. Foreign investors can still engage in these sectors by partnering with a local sponsor.
• In most cases, at least 51% of the ownership should be held by UAE nationals, while the remaining 49% can be owned by foreigners. Exceptions to this rule include professional activities where 100% foreign ownership is allowed.
• In some sectors, establishing a mainland company may require approval from specific government departments or professional regulatory bodies.

Frequently Asked Questions On What Is Mainland Company In Uae

What Is A Mainland Company In Uae?

A mainland company in UAE is a legal entity permitted to do business across the country.

How To Establish A Mainland Company In Uae?

Establish a mainland company in UAE by following legal procedures, obtaining necessary licenses, and approvals.

Why Choose A Mainland Company Over Free Zone?

Selecting a mainland company over a free zone provides more flexibility in business operations and wider market accessibility.

A mainland company in the UAE enables businesses to operate outside of free zones, providing access to the entire UAE market. With the right legal structure, local sponsor, and necessary licenses, setting up a mainland company can bring numerous benefits including market accessibility, flexibility, and the ability to bid for government contracts. Understanding the legal requirements and ownership regulations is essential to ensuring a smooth and compliant company setup process.

Know the benefits of Mainland Company Formation in Dubai here: https://dubaitopic.com/benefits-of-mainland-company-formation-in-dubai/