SET UP YOUR MAINLAND COMPANY IN UAE

Transitioning from a Free Zone to a Mainland Company in the UAE can be a strategic move for long-term growth and expansion. Here is a checklist to guide you through the process:

Choose your Business Activity: Determine the industry in which you will operate and select a business activity from the Department of Economic Development’s (DED) list of permitted activities. Unlike free zones, mainland companies have more flexibility in choosing their business activities.

Find the Ideal Location: Select a suitable location for your business considering factors like budget and the nature of your operations. Mainland companies have the freedom to choose any location within the UAE, so consider proximity to ports or other strategic areas if it aligns with your business needs.

Determine your Business Legal Structure: Decide on the legal structure for your mainland company. The most common structure is a Limited Liability Company (LLC), which may require a local sponsor if operating under a commercial or industrial license. However, professional service companies can be 100% foreign-owned and do not require a local sponsor.

Obtain a Local Sponsor or Local Service Agent: Depending on your chosen legal structure, you may need to engage a local sponsor or a local service agent. In the case of an LLC, a local sponsor (UAE national or UAE-based company) owning 51% of the business was traditionally required. However, alternatives such as a Corporate Nominee as a Local Partner can be employed to retain operational and financial control while mitigating risks. For professional service companies, only a local service agent acting as a representative in administrative dealings is required, without any ownership share.

Name your Company: Choose a company trade name that adheres to the guidelines set by the UAE authorities. Guidelines include avoiding offensive language, religious references, references to other organizations, and using full personal names in the company name. Guidelines for naming can be found in the Choosing a Company Name in the UAE guide.

Apply for a Mainland Trade License: Submit the necessary documents, including a license application, memorandum of sponsor arrangements, ownership percentage among partners, and shareholder visas, to the Department of Economic Development to apply for a mainland trade license.

Secure your Office Space: Once you have obtained a trading license, secure an office space that suits your business requirements. You can choose from serviced offices, shell and core office spaces that require fit-out, or pre-fitted office spaces where you provide your own equipment.

Apply for Relevant Visas: Apply for visas corresponding to your required office space. The general rule is 100 sq. ft. of office or warehouse space per visa, although exceptions may exist. As a mainland company owner, you can also sponsor visas for your dependents, including family members and domestic staff. Additionally, you may be eligible for an investment visa, granting you and your family the right to live and work in the UAE for up to three years.

Partner with a Company Setup Consultant: Consider working with experienced company setup consultants in the UAE to navigate the legal and company formation processes smoothly. These consultants can provide expert guidance, collaborate with you to understand your business goals, and ensure a successful setup for your mainland company in the UAE.

Partnering with a reputable company setup consultant can make the entire process more efficient and help you comply with the legal requirements of transitioning from a free zone to a mainland company in the UAE.