Mainland Company Formation

Mainland Company Formation in Dubai

What Is A Mainland Company In Dubai?

Corporations registered with the Department of Economic Development (DED) in the United Arab Emirates are Mainland companies. Mainland enterprises are an attractive investment option for several investors and ambitious startups seeking to extend their operations and job sectors due to their numerous advantages.
Establishing a company entity on the mainland in Dubai enables one to conduct transactions throughout Dubai, the United Arab Emirates, and the GCC nations. In addition to many other advantages, establishing a mainland company enables you to expand your business through the opening of new branches, the hiring of more personnel, and participation in government projects and bids.
Business entities that are eligible for registration in mainland Dubai include sole proprietorships, civil companies, limited liability companies (LLCs), representative offices of international corporations, branches of free zone enterprises, and branches of UAE-based companies. Locally, limited liability companies (LLCs) predominate in the United Arab Emirates market.

Limited Liability Company Setup in Dubai

The most prevalent and conventional form of company in the UAE mainland is the Limited Liability Company (LLC). The Department of Economic Development (DED), the governmental entity authorised to provide licences for mainland business registration and activity regulation, is responsible for the issuance of LLC licences.
While the UAE Commercial Companies Law recently implemented permits the establishment of an LLC business in Dubai with a single shareholder, it is customary for such entities to have at least two shareholders. Foreign investors are required to have a local partner hold 51% of the company’s shares for particular activities; hence, a minimum of two shareholders is often required to incorporate this sort of corporation. The upper limit for the number of shareholders permitted in an LLC firm is fifty.

Advantages Of Setting Up An LLC Company In Dubai

The limited liability corporation permits proprietors to conduct business operations without limits or constraints on location, anywhere in the United Arab Emirates and the GCC countries.
No restrictions apply to the ownership or leasing of properties.
An unlimited number of visas may be obtained in accordance with an LLC.
No minimum capital need exists.

How To Set Up An LLC In Dubai?

Selecting the activity that best aligns with your company’s operations from the options provided by the Department of Economic Development is the initial phase in establishing your business in Dubai. Regardless of whether the work is industrial, commercial, professional, or artisanal. The Department of Economic Development provides over two thousand alternatives of commercial activities from which you may select one for your organisation.
Depending on the nature of the business, Limited Liability Companies (LLCs) are required to have a partner who is a citizen of the United Arab Emirates or one of the GCC nations; for certain activities, a service agent is sufficient. Professional and international businesses necessitate the employment of a service agent.

What types of business can an LLC company operate in?

The first step in establishing your Dubai company is selecting the activity that aligns most closely with your business. The Department of Economic Development provides a comprehensive list of over 2,000 commercial activities, including commercial, industrial, professional, or craftsmanship options. For Limited Liability Companies (LLC), a partner from the UAE or one of the GCC countries is needed, depending on your company’s activity. Some activities may only require a service agent. Foreign and professional companies must appoint a service agent as well.

What types of business can an LLC company operate in?

An investor may possess an LLC licence for one of three business categories: industrial, commercial, or professional.

Commercial

This category encompasses every form of trade operation. Almost any commodity may be imported or exported to Dubai with an LLC licence. Products requiring authorization from additional government authorities are excluded, including those used in the jewellery trade, magazines, and newspapers.

Industrial

Manufacturing operations are classified as industrial activities. Location of the licence must be a factory or warehouse. Various governmental bodies, including the Ministry of Economy, Civil Defense, and the municipality, issue approvals for industrial activity.

Professional

Crafts and services are classified as professions. It is the most straightforward licensing kind and should be limited to professional activity alone. When compared to other types of licence issuance, this one is typically favoured by new investors due to its quick processing periods and inexpensive cost.

How to get an industrial Licence in Dubai?

Dubai offers investors in the industrial sector an ideal site to establish their businesses due to its commercial centre status and its advantageous geographical location that connects the East and West, as well as its stable ground and excellent logistical facilities and services.
In Dubai, in order to acquire an industrial licence, one must formally register their company with the Department of Economic Development (DED).
The industrial licence in Dubai encompasses a variety of activities, such as production, separation, assembly, and packaging, among others.
The industrial licence stipulates that a warehouse must be located within the UAE.