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Why Should You Set Up Your Business on the Mainland?
The reasons can be many. All we can tell you is that there is a best-fit for every business, and your business could potentially benefit from having an office in the mainland of the United Arab Emirates, as opposed to setting it up in a designated free zone or as an offshore company.
If you are an advertising company, your clients will definitely appreciate being able to reach you in an easy-to-access location. It is much easier than travelling to a free zone on the outskirts of the city, plus you can scale up more easily as you grow. Some legal advisory firms pay a lot of attention to the privacy of their clients, and having an office on the mainland enables them to achieve this objective. There are just a few examples of the advantages of locating your business on the mainland.
How to Establish Your Company on the Mainland
The first step involves identifying what the commercial activities you plan to undertake are. Based on this, the right company structure that is beneficial for your business can be determined. For instance, you could set up your company as a Sole Establishment, a Legally Limited Partnership, a Legally Limited Company, or a Private Limited Company.
Registering a company on the mainland requires you to have a Local Sponsor who will own 51% of the company. The Local Sponsor can be a male or female above the age of 21. In addition, the Local Sponsor must be a UAE national or an Emirati.
Having a Local Sponsor who owns 51% of your company does not mean the Local Sponsor takes home 51% of the profits. Things work differently in the UAE. The Local Sponsor needs to be paid a Sponsor Fee according to a predetermined agreement, and this could be done on a monthly / quarterly / half-yearly / annual basis. In some cases, the Local Sponsor takes a percentage of the sales.
The Local Sponsor is legally responsible for the functioning of your company. But the Local Sponsor can sign over a Power of Attorney relinquishing his/her control over your company, and this way, you will in charge of everything.
The Local Sponsor can be an individual, or it could also be another company incorporated in the United Arab Emirates. The latter still functions in the same way, putting you in full control over your business.
Need the Help of a Professional Company Setup Specialist?
This is where we come into the picture. At A&A Associate LLC, we have a track record of matching companies with the right Local Partner. Our business setup experts are all informed of the latest changes in legislation and can tell you that if you are a professional planning to offer professional services*, then what you need is a Local Service Agent and not a Local Partner.
*Examples include a doctor planning to open his/her consulting clinic, a lawyer planning to open his legal consulting firm, an engineer planning to offer engineering consultancy services and so forth.
A Local Service Agent, unlike a Local Partner, does not own 51% of your company. He/She is still legally responsible for your business and will represent you in all Government-related matters, including when it comes to getting a Business License.
Our team also consists of legal professionals who will go the extra mile to ensure that everything is above board and in order. We also have expert auditors who can take care of the annual audit, which is mandatory for companies established on the mainland.
MainlandCompany Setup
Investor
Visa
Work Visa
for your team
Residence Permits
for your family
Licensing
& Documentation
Labour
Cards
Immigration
Cards
Approvals from
Government
Renewal of
Business License
Benefits of Setting Up a Company on the Mainland
World-class infrastructure for just every aspect of your business
Unrestricted flexibility to scale up or down, depending on business needs
Stable business climate and regulatory framework
Ability to operate in both local and international markets at the same time
Ease of doing business, simplified by international conferences and trade expos
Presence of major banks and audit services to fuel your growth.
Freedom to choose the location of your office
Access to a truly global pool of talent from around the world
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