BUSINESS SET UP

BUSINESS SET UP

A. UAE Mainland
  a. Overview
  b. Dubai Mainland License

WHY MAINLAND V FREE ZONE?

The main incentive to set up a mainland business is access to government tenders such as infrastructure, education, and social activities. Supported by 100% foreign ownership, the broad scope of trading activities provides an opportunity for foreign investors to set sail in the UAE. Free Zone companies are limited to certain activities depending on their location while mainland companies are free to trade in any of the Department of Economic Development (DED) listed activities.

SETTING YOUR MAINLAND COMPANY UP:

· Many free zone companies opt to switch to mainland entities. The requirements are listed below

  ·Choose your business activity.
  ·Select your location in the UAE.
  ·Ensure legal compliance based on the business structure (sole establishment, LLC, branch and representative office or joint venture each have their varying legal compliance thresholds).
  ·Secure a local sponsor or local service agent.
  ·Establish a name for your company.
  ·Apply for a main trade license.
  ·Acquire your office space.
  ·Apply for visas.
  ·Partner with a Company Set Up Consultant.

Factors to consider:

Comparative Analysis on the type of mainland License
Particulars
Commercial
Industrial
Professional
Business Activity

Caters for businesses selling tangible products. Often the legal license type is commercial. Examples of commercial licenses are general trading, garment trading, and electronic trading etc.

Caters for companies specialised in manufacturing, casting, moulding, assembly, or processing activities. Also including any production from raw materials to semi-finished goods and supplies.

Caters for businesses that is qualified with a certain skill set or knowledge in a certain industry or field in exchange for a fee. Examples of a professional license type include accounting, events organisation and medical.
Ownership
Foreign investors can hold 49% shares and 51% of the shares can be held by a UAE national or corporate nominee.
Foreign investors can hold 49% shares and 51% of the shares can be held by a UAE national or corporate nominee.
Foreign investor will have 100% ownership. License registration requirement is to have a local service agent.
Share Capital
Minimum share capital is AED 300,000 (not paid up).
Minimum share capital is AED 300,000 (not paid up)
The company not limited by share capital
Liability
Commercial license is issued for a limited liability company (LLC). Shareholders are limited by the company debts and liabilities.
An industrial license is issued for a limited liability company (LLC) are limited by the company’s debts and liabilities.
Unlimited liability, the professional license holder can be solely responsibility for all debts.
Government Fees
Commercial license type fees range from AED 8,000 to AED 20,000+
Industrial license type fees range from AED 10,000 to AED 30,000+ (depending on approvals for certain business activities.
Professional license-type fees range from AED 8,000 to AED 20,000+ (depending on approvals for certain business activities.

LEGAL COMPLIANCE

Depending on the type of business structure you opt for there are thresholds on the number of shareholders. Additionally, trading under a commercial or industrial license restricts you to form an LLC on the mainland which would require a local sponsor. In contrast, under a professional service license, a company can be 100% foreign owned and does not need a local sponsor. Although this may seem daunting, book a free consultation with A&S Trade Corp to set your business up for success.

SPONSORSHIP

OBTAINING A LOCAL SPONSOR

There are two options for meeting the requirement of a local sponsor under the UAE Commercial Companies Law.

Individual sponsor – Individual sponsors are UAE Emirati Nationals or a UAE company that agrees to provide sponsorship to foreign investors. The sponsor will enter into a contractual agreement to represent foreign investors in the UAE. Sponsors are required to hold 51% of company shares and liability. Selecting an individual partner can prove a daunting task, as you are essentially trusting this individual with your business. An individual sponsor may also want to share in organizational responsibilities and may want to be actively involved in business management, operations, and voting direction of your company. Furthermore, you will need to ensure you have a plan in place should the sponsor not be available, become difficult to work with, become sick, or pass away.

Corporate Sponsorship – Corporate sponsorship allows you to form a company in Dubai and the UAE while making sure you maintain control of your company. The idea of finding a trusting sponsor for your company seems impossible. Not to worry, A&S Trade Corp will guide you on the requirements and benefits of selecting a safe and trusted “corporate sponsor”. if you would like to retain 100% operational and financial risks A&S Trade Corp can assist you in securing a Corporate Nominee.

WHAT ARE THE BENEFITS OF A CORPORATE SPONSOR/CORPORATE NOMINEE?

· Zero interference with your business – You will have full rights to conduct your daily operations and maintain control of the company’s voting rights. Best of all, you will have 100% of the financial benefits. Our corporate sponsorship grants no interference from your corporate sponsor.

· Greater protection – Unlike individual sponsorship, your business is more protected and secure by using a corporate sponsor. At Creation, we will provide your company with security agreements to protect 49% of shareholders’ interests from any undue risks.

· Protection against sponsorship withdrawal – With Creation, you will never deal with an individual sponsor. Since your corporate sponsorship is handled by a team, there is never a risk of ownership problems due to an individual’s death or early retirement.

· Time saving documentation processing – Local sponsorship requires a great deal of documentation, ranging from visas to bank references, and working with a corporate sponsor can streamline the completion period, making it short and painless.

MAINLAND VISA

SECURING A UAE VISA

Whether you need employment visas for your team or residence visas for your family members, we will cater to your needs and secure your visa expediently.

(setting you up for success)

TYPES OF MAINLAND VISAS

Private company

Free Zone area visas are limited to your preferred office space. However, mainland companies in Dubai free zone can do business only within the free zone or outside the country.

MAINLAND ACTIVITIES