United Arab Emirates (UAE) mainland offers a promising business landscape with its diverse economy and strategic location. Establishing a company in the UAE mainland provides access to a broader market and the opportunity to conduct business across all emirates. In this article, we will outline the essential steps to establish your business setup UAE mainland.
Determine the legal structure:
The first step is to decide on the legal structure of your company. Options include sole proprietorship, partnership, and limited liability company (LLC). Each structure has specific requirements and benefits. Consult with a legal advisor to determine the most suitable structure for your business.
Choose a local partner:
For certain business activities, you may require a local partner who holds 51% ownership of the company. This requirement applies to many sectors, except those located in free zones or those eligible for 100% foreign ownership. Select a reliable local partner or sponsor who understands your business and can contribute to its success.
Reserve a trade name:
Choose a unique trade name for your company and submit it to the Department of Economic Development (DED) for approval. Ensure that the name aligns with the guidelines and regulations set by the DED.
Draft the MOA:
The MOA outlines the company’s activities, ownership structure, capital details, and distribution of profits and losses. Engage a legal professional to draft the MOA, ensuring compliance with local laws and regulations.
Obtain initial approval:
Submit the necessary documents, including the MOA and other required forms, to the DED for initial approval. This step verifies the company’s eligibility and ensures compliance with legal requirements.
Lease office space:
To establish a mainland company, you must have a physical office space in the UAE mainland. Choose a suitable location and lease office space that meets your business needs and budget.
Obtain approvals and licenses:
After receiving initial approval, proceed to obtain various licenses and approvals specific to your business activity. These may include a commercial license, trade license, and other industry-specific licenses from the relevant authorities.
Register the company:
Register your company with the DED and obtain the commercial registration certificate. This step legally establishes your business in the UAE mainland.
Register for VAT:
If your company meets the required threshold, register for Value Added Tax (VAT). Comply with VAT regulations and maintain accurate records of your financial transactions.