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What is the cost of Civil Company Formation in Mainland?

By Shivangi - 30 Nov 2021 Last Updated: 05 May 2022
What is the cost of Civil Company Formation in Mainland?

The UAE Mainland is home to a diverse range of huge multinational corporations, small and medium businesses, retail stores, restaurants, coffee shops, shopping malls, and other businesses. Brands from all over the world are looking for a way to enter the UAE mainland. Mainland Company Registration in the United Arab Emirates is one of the most sought-after business Investments by investors looking to actively reach out to a multi-cultural audience and expand into local UAE marketplaces. The key corporate structures on the UAE mainland are listed below.

The Mainland Company Registration process has undergone major changes as a result of the recent Cabinet Decision of 2021. Mainland enterprises in certain business areas, such as commercial, industrial, and trading, can now be 100% controlled by expatriates.

Certain important commercial sectors, such as security, defense, and military activities; fishery services; banks, exchange shops, telecommunications, and so on, are prohibited from being owned entirely by expatriates.

In the case of the services sector, all company activities are owned entirely by foreign expatriates. However, for administrative purposes, a local service agent must be assigned to communicate with the Department of Economic Development.

 Limited Liability Company (LLC)

In the mainland of the UAE, the Limited Liability Company structure is one of the most prevalent business structures. When there are two or more shareholders (up to 50) and they want to form a company on the UAE mainland, investors usually choose a Limited Liability Company. For entrepreneurs in the region, there are a number of advantages to forming an LLC company.

Benefits of LLC

The fundamental benefit of an LLC Company Shareholder is that their liability in the company is limited to the amount of shares they own, and their personal assets are secured. Limited Liability Companies (LLCs) can be founded on the UAE mainland for a variety of purposes. An LLC Company can be formed to carry out commercial, service, and industrial activities. As of the recent amendment to the Companies Law, there is 100% expatriate ownership on a select list of business activities for LLC company formation. Setting up an LLC Company in the UAE mainland does not require the involvement of a local UAE national sponsor or a corporate sponsor (a company with a UAE national as a shareholder).

Company of Professionals (Civil Work Company)

In the Mainland of the UAE, professionals in the fields of consulting, legal, accountancy, and medicine, among others, might form a Civil Work Company. The company's shares can be retained in their whole by the owner. To register a Civil Work Company with the Department of Economic Development (DED), it is necessary to pay an annual fee to appoint a Local Service Agent to communicate with government officials. Opening a Civil Works Company is a wonderful alternative for entrepreneurs, single owners, and qualified professionals looking to start a business in the UAE. Entrepreneurs can choose from a variety of Professional Licenses offered by the Dubai Economy. Opening a Civil Works Company in the UAE has various advantages, one of which is the shareholder's 100% ownership with no obligation for a UAE national as a partner.

Foreign Companies Branch or Representative Office

Investors with an existing office in the UAE's Freezones or any firm based outside the UAE can establish a Branch or Representative Office on the UAE's Mainland. The formation of a Branch or a Representative Office is subject to various procedures and conditions. For companies looking to actively expand into the UAE local markets, opening a branch office in the UAE is a lucrative business investment. Large enterprises can use Branch Office to streamline their business processes in new markets while also testing market circumstances and audience response before investing in a broad expansion strategy.

What are the Different Types of Mainland Business Licenses?

General trading, manufacturing, and services are the most popular categories of business licences in the UAE mainland. Special business licence types are required for specific business operations such as E-Commerce, food dealing, and so on.

Investors can choose the company licence they want and pay the required cost to get a Trade Licence to lawfully operate in the UAE. The investor may simply offer their products and services to the local UAE market and build their firm swiftly with a mainland business licence. Once the trade licence is approved and the office rental agreement is finalised, the investor can open a corporate bank account with one of the UAE's many commercial banks.

Cost of a Mainland License in Dubai

The cost of a Dubai Mainland licence is largely determined by the company's business activity, local service agent, and legal structure. This is in addition to any other government costs that may be incurred during the procedure. It would cost between AED 16,000 and AED 20,000.

Read More: Benefits of sole Proprietorship Company Formation in Mainland

Documents needed to form a Limited Liability Company (LLC)

The following are the documentation you'll need to get your initial approval:

  • Copy of the applicant's passport
  • The DED has released a registration application form as well as a trade name reservation document.
  • A photocopy of the applicant's  papers (for the UAE nationals only)
  • A letter of authorization from the applicant's sponsor (not applicable for the GCC nationals).

The following documents are necessary to register a trade licence:

  • Receipt of the initial approval.
  • The office or warehouse tenancy contract must be confirmed by the Dubai municipality's planning and civil defense departments, as well as the location plan.
  • The Notary Public has authenticated the original photocopy of the Memorandum of Agreement.
  • Assume the local partner is a company that already exists in the UAE or elsewhere. In that scenario, the UAE embassy/consulate or a GCC state embassy/consulate, as well as the UAE Ministry of Foreign Affairs, must attest the MOA and the Commercial Register Certificate (and their translation to Arabic).

The Benefits of Incorporating an LLC in Dubai

Due to a variety of factors, LLCs are one of the most popular company formation alternatives in Dubai Mainland. The following are some of the most significant benefits of operating a business as an LLC.

  1. The process of forming an LLC is simple and quick. The Dubai Department of Economic Development (DED) will register the company in 90 minutes without requiring the company to sign a lease agreement.
  2. The freedom to rent an office anywhere in Dubai and the UAE is provided by a company with the legal structure of an LLC. As a result, entrepreneurs can pick where to build their firms in order to increase their profits.
  3. Entrepreneurs who register their business as an LLC will be able to apply for dependent Visas as well. Entrepreneurs can also apply for their employees' visas based on the size and type of their firm. Entrepreneurs can apply for additional visas with a larger leased office. Entry permit, status adjustment, medical fitness test, and lastly Emirates ID registration and visa stamping are all part of the visa application process.
  4. In contrast to some Free Zones, LLCs allow entrepreneurs to engage in a wide range of business activities because they have no restrictions or constraints on the business activities recognised by DED.

Conclusion

There are several choices available to foreign entrepreneurs who want to start a business in the UAE. Civil Company offers the best of both worlds: complete ownership and business opportunities on the mainland. As business advisors, Dhanguard can assist you in forming a professional company or any other type of business in Dubai, UAE.

 

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

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