This article contains the benefits, requirements, and processes for setting up a mainland company by a corporate shareholder.
There are various benefits to setting up a mainland company
- Access to Local Markets: Mainland companies can trade directly within the UAE.
- Broad Choice of Businesses: Better suited for mainland operations are manufacturing, retail, investment, and professional services.
- Flexibility of Operations: Mainland companies can open offices or retail outlets in high-demand locations like malls, high streets, or business hubs.
- Strategically Advantageous Opportunities: Mainland companies may bid for government contracts and strive toward international expansion.
Which Emirate to Choose?
Dubai Mainland
- This suits businesses that want high visibility and a cosmopolitan customer base.
- It is a favorite choice for retail stores, investment firms, and professional services.
- Licensing authority: Dubai Department of Economy and Tourism (DET).
Abu Dhabi Mainland
- Recommended for industrial activities, oil and gas services, and government collaborations.
- Licensing authority: Abu Dhabi Department of Economic Development (ADDED).
Northern Emirates
- Most suitable for fresh start-ups or SMEs that offer an economical alternative.
- Ideal options for logistic activities, manufacturing, or local trade.
Required Documents
Establishing a mainland company with a corporate shareholder involves lengthy paperwork.
For the Parent Company (Corporate Shareholder):
- Certificate of Incorporation;
- MOA and AOA;
- Board Resolution:
- Authorizing the formation of a mainland company in the UAE.
- Note: It is essential to specify the relevant authority (e.g., “Notary Public Dubai,” “Notary Abu Dhabi,” “Dubai Court,” or “Dubai Department of Economy and Tourism (DET)”) while drafting the board resolution.
4.Incumbency certificate: Confirms the current shareholders and directors of the company.
5. Power of Attorney (POA): Appointing an authorized representative.
For Individual Representatives:
Identity documents:
- copyright copies of the authorized signatory and manager.
- UAE visa and Emirates ID (if applicable).
Additional Requirements:
- UBO Declaration: Identification of the Ultimate Beneficial Owners.
- Proof of address: For the parent company and authorized signatory.
- Attested documents: All corporate documents must be:
- Attested by the Ministry of Foreign Affairs and by the Ministry of Justice.
- Translated from a foreign language into Arabic according to UAE requirements.
The steps are indicated below:
- Select an Activity to be Engaged: Choose the activity according to business goals (e.g., manufacturing, retail, investment).
- Select the Emirate: Depending on operational and market needs.
- Register Trade Name: For approval to the relevant licensing authority (e.g., DET for Dubai, ADDED for Abu Dhabi).
- Drafting of MOA and LSA Agreement:
- An MOA describes the structure of a company and its ownership.
- A local service agent (LSA) agreement may be needed for professional licenses.
- Document Submission: All corporate and personal documents require notarization and attestation.
- Approval from Dubai Commercial Licensing Department: Attain preliminary approval from the licensing authority.
- Find Office Space: They need office space Only for a mainland license.
- Payment of Licensing Fees: Pay all costs for registration and issuance of the license.
- copyright: Apply for visas for managers and other employees.
Key Considerations for Specific Activities
Manufacturing
- Approval is required from the Ministry of Industrialization and/or the Ministry of Industry and Advanced Technologies before commencement.
- Must offer some land for the facility.
Setting up a business in Dubai