Mainland Company Registration in the UAE: What You Need to Know

Mainland Company Registration is a popular option for investors who are considering starting a business in Dubai or the UAE. Mainland companies allow investors to conduct business in the local market and beyond, without any restrictions on the number of visas or office locations. With the recent Cabinet Resolution of 2021, Mainland companies can now be registered as 100% expatriate-owned entities, providing investors with full ownership of their business and greater control over their operations. In this post, we will provide a detailed guide to Mainland Company Registration in the UAE, including its advantages, disadvantages, and the step-by-step process involved. Whether you are a foreign investor looking to expand your business in the UAE or a local entrepreneur starting a new venture, this guide will help you navigate the complexities of Mainland Company Registration and make an informed decision for your business.

Mainland Company Registration

A Mainland Company is a business registered with the Department of Economic Development (DED) of the respective emirate. It allows investors to conduct business in the local market and beyond, without any restrictions on the number of visas or office locations. A Mainland Company can now be registered as a 100% expatriate-owned entity in the UAE, as per the recent Cabinet Resolution of 2021. However, depending on the business activity and industrial sector, there are certain regulations to be fulfilled by the investor.

A mainland company is a business registered with the Department of Economic Development (DED) of the respective emirate. It allows investors to conduct business in the local market and beyond, without any restrictions on the number of visas or office locations. A mainland company can now be registered as a 100% expatriate-owned entity in the UAE, as per the recent Cabinet Resolution of 2021. However, depending on the business activity and industrial sector, there are certain regulations to be fulfilled by the investor.

Advantages of Mainland Company Registration

  1. Access to Local Market: Mainland companies can conduct business in the local market and beyond, without any restrictions on the number of visas or office locations. This allows investors to target the UAE’s lucrative domestic market, as well as the wider GCC region.
  2. Greater Flexibility: Mainland companies offer greater flexibility in terms of business activities and operations. Investors can choose from a wide range of business activities and can operate from multiple locations within the UAE.
  3. Full Ownership: With the recent Cabinet Resolution of 2021, Mainland companies can be registered as 100% expatriate-owned entities. This allows investors to have full ownership of their business and retain complete control over their operations.
  4. Greater Access to Banking Facilities: Mainland companies have greater access to banking facilities compared to Free Zone or Offshore Companies, making it easier to conduct business and receive payments.

Disadvantages of Mainland Company Registration

  1. Higher Costs: Mainland Company Registration is generally more expensive compared to Free Zone or Offshore Company Registration. This is due to the additional costs associated with local sponsorship, office rental, and other regulatory requirements.
  2. Complex Process: The process of registering a Mainland Company is more complex and time-consuming compared to Free Zone or Offshore Company Registration. This is due to the additional regulatory requirements and the need to comply with local laws and regulations.
  3. Regulatory Requirements: Depending on the business activity and industrial sector, there may be certain regulations that need to be fulfilled by the investor. This can include minimum capital requirements, licensing requirements, and other regulatory approvals.

The Mainland Company Registration Process

  1. Choose a Business Activity: The first step in the Mainland Company Registration process is to choose a business activity. The chosen business activity will determine the type of license required and the regulatory requirements that need to be fulfilled.
  2. Choose a Trade Name: Once the business activity has been chosen, the investor must choose a trade name for their business. The chosen name must comply with the DED’s naming guidelines and should not violate any existing trademarks or copyrights.
  3. Obtain Initial Approval: The next step is to obtain initial approval from the DED. This involves submitting the required documents and obtaining approval for the chosen trade name and business activity.
  4. Rent an Office Space: The investor must then rent an office space to establish their business. The office space must meet certain requirements, such as a minimum size and location, and must be approved by the DED.
  5. Obtain Local Sponsorship: Depending on the business activity and the investor’s nationality, local sponsorship may be required. This involves partnering with a local sponsor who will act as a local service agent and provide assistance with certain regulatory requirements.
  6. Obtain Final Approval: Once all the requirements have been met, the investor can obtain final approval from the DED.

Is Mainland Company Registration the right decision for your business?

In conclusion, Mainland Company Registration in the UAE is a popular option for investors who are looking to conduct business in the local market and beyond. With its many advantages, including greater access to the local market, full ownership, and greater flexibility, it can be an attractive choice for foreign investors and local entrepreneurs alike.

However, it is important to keep in mind the associated costs and regulatory requirements, which can be more complex and time-consuming compared to Free Zone or Offshore Company Registration.

If you are considering registering a Mainland Company in the UAE, it is important to work with a trusted and experienced business consultancy firm that can guide you through the process and provide expert advice on the regulatory requirements and compliance procedures. At Setup My Business Dubai, we have a team of experienced professionals who can help you with all aspects of company registration in the UAE, including Mainland Company Registration.

If you would like a free consultation from one of our experts, please contact us using the form here and learn more about how we can help you start your business in Dubai or the UAE.