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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:

  2. Extremely low taxes and 0% corporate and personal taxes
  3. 100% repatriation of Capital and Profits
  4. Excellent Support Services
  5. Attractive working environment
  6. Wider options for recruitment
  7. Great infrastructure for businesses

JURISDICTION / TERRITORY for setting up the Company in UAE




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.



    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:

  • Limited Liability Company (LLC)
  • Civil Company
  • Sole Establishment
  • Subsidiary Company
  • Branch Office of Foreign Company
  • Branch Office of Local Company

2-License Categories

  • Professional License
  • Commercial License
  • Industrial License
  • Tourism License

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