Company Formation in Local Market Company

The United Arab Emirates (UAE) has diversified its economy in the past decade to allow global business opportunities attracting the foreign investment into UAE and with the recent amendment in Federal Law no. 2 of 2015 especially “by removing restrictions concerning a UAE national’s existence as a majority shareholder” has increased the encouragements for all form of investors who is interested in forming a Company in UAE.

Though the statement “There has never been a better time for company formation in UAE” could probably be held true at any time during past decades, but right now THE TIME IS PRACTICALLY PROMISING.

These promising practicalities include:

ALLOWING 100% FOREIGN-OWNED BUSINESS
Extremely low taxes and 0% corporate and personal taxes
100% repatriation of Capital and Profits
Excellent Support Services
Attractive working environment
Wider options for recruitment
Great infrastructure for businesses

JURISDICTION / TERRITORY for setting up the Company in UAE

MAINLAND/ ONSHORE/ LOCAL MARKET/ LLC
FREE ZONE/ FZ LLC
OFFSHORE

WHAT IS MAINLAND?

The area that acts as the epicenter for most business operations is known as UAE mainland, also known as area for onshore company formation. UAE mainland is the total geographical area, permitted by Department of Economic Development (DED) of the respective emirate to all business entities to operate business functions freely – in the local market, free zones as well as outside the UAE.

Main advantages for companies operating under the mainland license are:

100% foreign expats ownership for Commercial activities
No minimum capital requirement for company formation
The simple and quick registration process
Flexibility to set up offices and do business anywhere in the UAE and outside
Ability to take up work from both private and public sectors
No cap on the number of visas issued (subject to office size)
Ability to repatriate capital and profits up to 100%
Exemption from corporate and income tax
Ease of doing businessDubai Economy– Dubai:
- Flexibility do business anywhere in the UAE
- Fewer nationality-based restrictions for ownership and visas
- Access to Dubai’s world-class infrastructure
Abu Dhabi Department of Economic Development– Abu Dhabi:
- Flexibility do business anywhere in the UAE
- Efficiency regarding Dubai mainland company formation cost
- Commercial license validity of two years, unlike other emirates
In contrast, Free Zone companies can locate offices only in their zone, operate only within the industry the zone specializes in, and do business only with the private sector. Mainland Company Formation in UAE, therefore, is an attractive prospect for many entrepreneurs.

A STEP-BY-STEP GUIDE

While the technical, administrative, and financial aspects of the Company formation in Dubai can seem daunting, by following the step-by-step process with the right support, it is far simpler and more affordable than you might think.

For Company formation, there are following 6 steps:
1. Choose your Business Activity and Company Name;
2. Finalize all your incorporation paperwork (application for your Chosen name and activity);
3. Signing of Memorandum of Association (MOA);
4. Submit Ejari/Tenancy Contract;
5. Make the payment and receive your Trade License;
6. Apply establishment card for VISA purpose;
7. Apply for Residency VISA & complete next steps:
- Medical fitness test
- Emirates ID
- Health Insurance
1. Open a Bank Account

Types of Mainland Company Setup in UAE

1-Legal Type

The types of businesses and enterprises that you may be thinking of while setting up a business in mainland UAE could fall under one of these categories: