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Documents require to start a Civil Company in Mainland

By Shivangi - 08 Dec 2021 Last Updated: 05 May 2022
Documents require to start a Civil Company in Mainland

Dubai is a land of opportunities. Many economists and business professionals have identified this city as the best place to start a business because of its facilities such as world-class infrastructure, stable connectivity, skilled workers, cosmopolitan workplace, and incentives to invest more.

The DED (Dubai Economic Department) has granted permission to all private business companies and their members to conduct a Civil Company in Mainland.

Multinational grocery stores, consumer goods, auto manufacturers, and other businesses are ideal places for a foreign business owner to work. According to UAE business incorporation rules, a foreign owner may own up to 49 percent of a company based on the mainland, and a UAE citizen may own up to 51 percent of total shares, except in the following cases:

  • Activities with complete ownership for the Service business ( IT services, Technical Services, Marketing Management )
  • Instances of GCC companies forming alliances with UAE nationals
  • Where the law requires that all assets be owned by the local community.
  • Businesses operating in Freezones.

Formation of a Civil Company in Mainland

The procedure is quick and simple, just like any other UAE incorporation to form a Civil Company in Mainland. Here's how to get your company registered on the Dubai Mainland:

  • Choose the type of business you want to start in Dubai.
  • Find a Local Service Agent who will own 51% of the company's stock.
  • Examine the suitability, accessibility, and cost of the location.
  • Obtain preliminary approval from the Dubai Department of Economic Development.
  • Office Space is required on Dubai's mainland. The use of a registered office address is required for the issuance of a trade licence. Information about an ownership agreement or tenancy can be provided as proof of a registered address.
  • If you meet all of the above requirements, you can apply for a Dubai mainland licence. The Dubai Economic Department (DED) is responsible for issuing mainland licences in Dubai, United Arab Emirates.
  • Submit the necessary documentation for company formation, as well as the appropriate licence fee, to the Commercial Registration Department and the Department of Economic Development.

Documents Required for Formation of Civil Company in Mainland

Individual and corporate shareholders require different documents.

Individual Stockholders

  • Copies of passports for expat owners, directors, and managers, as well as the Visa page and entry stamp (when shareholders enter UAE).
  • If the shareholder/manager is on an employment Visa with any company in the UAE, the employer must provide a No Objection Certificate (NOC).
  • A copy of the national ID card of the UAE National Partner.

In Terms of Corporate Shareholders

  • A certified copy of the UAE Embassy's Certificate of Incorporation as well as the Memorandum and Articles of Association.
  • No objection certificate from the Free Zone/Offshore Authority is required if the corporation is a shareholder in the proposed LLC.
  • The original Board Resolution for the formation of the firm, as well as a notarized and legalised Power of Attorney from the UAE Embassy.

Business Entities that can be registered as a Civil Company in Mainland

Given below are the Entities can be registered as Civil Company in Mainland:-

Foreign Office Branch

 Investors looking for a platform to expand their business will find opportunities in Dubai. Consider incorporating your branch office in Dubai Mainland if you're looking for a place to grow.

Professional Corporations

 They are also referred to as civil firms, and they are dedicated to a single discipline in order to carry out related practise in their field. Professional corporations, unlike LLCs, are not restricted to a 51 percent shareholding limit.

Limited Liability Company (LLC)

 An LCC, one of the most common types of business companies, can be formed with as few as two owners or as many as 50. The actual shareholding ratio determines the proportion of respondents that each partner must bear.

Representative Office

The UAE allows international investors to open a representative office without the participation of a shareholder. A representative office is less concerned with the company's day-to-day operations and is more concerned with marketing analysis and promotion.

Read More: Process of Civil Company Formation

What is a Mainland licence?

A mainland licence, also known as an onshore licence, allows individuals to conduct business both within and outside of the UAE. The Department of Economic Development (DED) in the UAE is in charge of issuing these licences.

According to UAE company law, a mainland business based in Dubai or the rest of the UAE must have a local partner or service agent. The type of Civil Company in Mainland you're starting will determine whether you need a local sponsor or a local service agent. A local sponsor will retain 51% of the company's stock, but as the owner, you will retain ownership for a fixed annual fee. A local service agent, on the other hand, has no voting rights and instead represents the corporation in all regulatory interactions with government agencies.

The Cost of Forming a Civil Company in Mainland

The cost of establishing a business on the Chinese mainland is determined by factors such as the nature of the business, the number of visas required, and the location. There will also be some additional fees, such as government taxes and company registration fees.

  1. Initial DED Approval (Department of Economic Development) AED 235 (One-time cost).
  2. AED 735 for the approval of a trade name (One-time cost).
  3. The size of your office determines the cost of office rent. The annual office rent will be AED 100 or more per square foot on average. The cost of renting an office space is determined by its location and size.
  4. Attestation of the Memorandum of Association (MOA) – AED 1500 (one-time fee), to be drawn up and agreed upon by all business partners.
  5. AED 500 for contract drafting and court agreement attestation (one-time fee); court agreement attestation must be signed by either partners or their lawyers.
  6. Registration with the Ministry of Economy – AED 3,000 (one-time fee); the company will be registered upon payment of this fee.
  7. A Trade Licence costs AED 10,000 (approximately).
  8. Market taxes – paid to the government as a percentage of office rent – 5% for stores
  9. The cost of local sponsorship in the UAE varies according to the type of company. On average, sponsorship costs between AED 7, 000 and AED 25, 000. Certain jobs, such as contracting and real estate, will be more profitable.

Conclusion

Dubai not only offers fantastic commercial opportunities to regional investors. However, it is a thriving international market for companies looking to expand globally. Dubai has a large market reach and is an excellent place to conduct business. This is an excellent time to establish a mainland company in Dubai because the market is extremely welcoming to new businesses, with simple and thorough legal requirements. All you need is a local sponsorship set up through a Dubai LLC business setup, which we can also help you with. All mandatory licences and company formation are handled by the Department of Economic Development.

According to trade experts, forming a mainland company in Dubai is the next significant milestone for all new entry enterprises. Dubai's market has long been the most profitable for international firms and talents; in other words, you had a need for perfect talent, and your clients were pleased with your selection. With Dhanguard get Experience and our team will guide you to start a Civil Company in Mainland.

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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