OPEN BUSINESS AND SET UP COMPANY IN UAE MAINLAND
COMPANY REGISTRATION IN MAINLAND
The government of the UAE, in an effort to promote trade and business setup, has developed an extremely favorable investment climate to bring diversified investors for business setup. The aim was to create an environment where all types of businesses from different industries could not only survive but flourish because of the favorable conditions. Moderate paper work, quick processes and moderate processing fees are part of the incentives provided to the businesses as well.
We at AAZ know how to promptly process the company formation and set up a mainland company for you within limited period of time. Perfect knowledge of documents and processes allows us to make processes quicker and the company to take a flying start.
Mainland company formation Dubai is one type of company formation that has proved to be fruitful for those who want to own a business setup in Dubai.
A Mainland company is a company registered in one of UAE DED (Department of Economic Development). This means that if you choose to conduct business in UAE Mainland, you will need to register business entity with the DED, which will then provide you a business license to start doing business in UAE.
Mainland company can practice any industrial, commercial, trading, professional or tourism activity. Some professional activities are excluded as per DED’s business regulations and other require approvals of authorities that regulate these activities.
Foreign investors may start their business in partnership where 51% ownership of the company belonging to UAE nationals or choose a Sole Establishment company formation to own 100% of shares. However, it should be noted that some business activities are reserved for UAE nationals only.
Shareholders must fulfill the formation documents and processes, which is included the appointment of a manager by the Memorandum of Association (MOA) or Service Agreement, for a limited or an unlimited period of time. Mainland must appoint a minimum of one manager and up to a maximum of five managers for the business.
BENEFITS OF A MAINLAND COMPANY
Having a License of a Mainland Company will allow you to:
1. Trade with other mainland companies
2. Have a greater scope of business activities
3. Take on government work
4. Build a presence in the local UAE market
5. Obtain more visas
6. Maintain easy and affordable way to run your business
The UAE is a tax-free country where many international companies establish new or branch entities, taking advantage of these benefits. The UAE is characterised by an almost complete absence of taxation with just a few exceptions, such as 5% of VAT, customs tax and few other.
For companies in UAE mainland, the two key areas to be aware of are customs tax and municipality tax.
Customs tax: Import duties have been largely standardised at 5%, but there are many exemptions, including food, building materials, medical products and any item destined for a free zone. Cigarettes are the exception to the general rule with the federal government approving 100% tax. A 50% tax is levied on alcohol.
Municipality taxes: Municipality service charges are levied on individuals living and working in the UAE. Service charge percentages vary among the emirates.
For companies in UAE free zones, there are financial incentives to foreign companies which include:
- 100% foreign ownership with 100% repatriation of capital and profits
- No corporate taxes for 50 years
- No personal income taxes
- Exemptions from customs duties
- Absence of currency restrictions
In spite of the tax advantages, it is important to have a full understanding of your options before deciding how to establish your company’s presence in mainland or in a free zone.
Documents and requirements
- Certified passport copies for all shareholders and managers
- Copy of the UAE residence visa, if applicable
- No Objection Certificate (NOC) from current UAE residence visa sponsor
- Certified proofs of address for each shareholder
- CV for each shareholder
- Professional / bank reference letter for each shareholder
If the shareholder is to be a corporate entity, the required documentation will include:
- Memorandum and articles of company
- A board resolution agreeing to incorporate a new LLC in UAE
- A power of attorney (POA) to the general manager to incorporate the new LLC
The required documentation will vary greatly depending on the type of business activity, legal entity, type of shareholder, and the area in which you set up.
contact us now to know more
Asad Abbas International will assist you and guide you through a hassle-free process than you could imagine. We take care from filling up the application forms, submission and collections of payments and required documents on your behalf, up to obtaining your UAE residence visas and bank account.
“AAi” is a shortened name for AAZ International Corporate Services, led by Mr. Asad Abbas, Founder and CEO of Asad Abbas & Co. (Chartered Accountants) and supported by highly proficient and experienced team.
Duly licensed by the Dubai Economic Department with offices in Dubai and Abu Dhabi, the firm provides business set-up and company formation services across UAE. Key services include selection of the correct legal form and locality based on business needs, license registration, business advisory, employee visas obtaining, bank account opening, accounting and payroll outsourcing, financial services advisory, budgeting and taxation advice, provision of secretarial and other services.
AAi mission is to continuously add value to clients by helping them to develop winning strategies and achieve maximum potential in business operations across UAE. By achieving our mission, we contribute to UAE’s economic growth and prosperity.
The firm has delivered a great number of top-notch projects and assisted thousands of clients during more than 10 years of successful operations.
Being part of such prominent market players, AAi guarantees excellent client services of the highest quality, provides local expertise and full scope of services vital to achieving outstanding business growth for clients.