MAINLAND COMPANY FORMATION
To kick start a conglomerate business venture in the local market & outside UAE without any restriction, here comes the opportunity for mainland company formation. The business venture registered & licensed by the department of economic development can be run with the help of a local partner & foreign partners. The local partner must have a shareholding of 51% of shares, and the foreign partner- up to 49% shares. In certain license category, a foreign partner can hold up to 100% of shares & a UAE national can be appointed as the local service agent in the company. The type of companies formed with the accreditation of the economic department are:
- Limited Liability Company
- Sole Proprietorship
- Branch of a Foreign Company
- Branch of a Free Zone Company
- Civil Company
- Representative Office
- Public Shareholding Companies
- SME/Instant License
It is mandatory to lease office space of a minimum of 200 sq. ft. to set a mainland company up. The eligibility of the visa depends on the size of the office. The advantages of setting up a Mainland Company are:
- Wide range of business activities
- No minimum capital requirement
- Ease of opening bank account
- Easy availability of office solutions
- Robust network
- Easy business set-up process
- Participate in government projects
- 100% return on capital
- 0% corporate or personal income tax.