Setting up a Mainland company in the United Arab Emirates (UAE) offers a wide range of opportunities for entrepreneurs and businesses. The Mainland refers to the area of the UAE where businesses can operate and trade within the local market under the regulations and laws of the local government. If you’re considering establishing a Mainland company in the UAE, here’s what you need to know:
- Business Activities: Mainland companies have the advantage of being able to engage in a diverse range of business activities across various sectors. Whether you’re interested in trading, manufacturing, professional services, or any other industry, you have the flexibility to choose the activities that align with your business objectives.
- Local Market Access: One of the primary benefits of setting up a Mainland company is the unrestricted access to the local market. You can cater to the needs of the UAE population, as well as trade with both local and international businesses operating in the UAE.
- Company Structure: When establishing a Mainland company, you have different options for the structure of your business. The most common structure is a Limited Liability Company (LLC), which requires a local Emirati partner or sponsor who holds a minimum of 51% ownership in the company. The sponsor’s involvement ensures compliance with local regulations and provides local market knowledge.
- Licensing and Permits: Mainland companies require obtaining licenses and permits from the relevant government authorities. The specific licenses and permits depend on the nature of your business activity. These may include a trade license, professional license, industrial license, or other specific licenses related to your industry.
- Flexibility in Office Locations: Mainland companies have the freedom to choose their office location within the UAE, allowing you to establish a presence in areas that best suit your business needs. You can set up your office in commercial buildings, business centers, or designated areas within the Mainland.
- Local Sponsorship: As mentioned earlier, Mainland companies require a local Emirati partner or sponsor. The local sponsor typically holds 51% ownership in the company, while the foreign investor or partner holds the remaining 49%. The sponsor’s role is to provide support, guidance, and compliance with local regulations.
- Employment and Visa Sponsorship: Mainland companies can directly sponsor employees for their UAE residence visas and work permits. This allows you to have full control over your workforce and ensures seamless operations within the UAE.