How To Set Up a Mainland Company In The UAE With a Corporate Shareholder

Forming a UAE mainland business with a corporate shareholder offers some exceptional privileges, including access to the market and the ability to perform diversified business activities. Though the formation involves a lot of planning and documentation, it benefits those companies looking to make a strong entry into the market.

This article contains the benefits, requirements, and processes for setting up a mainland company by a corporate shareholder.

There are various benefits to setting up a mainland company

• Access to Local Markets: Mainland companies can trade directly within the UAE.


• Broad Choice of Businesses: Better suited for mainland operations are manufacturing, retail, investment, and professional services.


• Flexibility of Operations: Mainland companies can open offices or retail outlets in high-demand locations like malls, high streets, or business hubs.


• Strategically Advantageous Opportunities: Mainland companies may bid for government contracts and strive toward international expansion.

Which Emirate to Choose?

Dubai Mainland

• This suits businesses that want high visibility and a cosmopolitan customer base.


• It is a favorite choice for retail stores, investment firms, and professional services.


• Licensing authority: Dubai Department of Economy and Tourism (DET).

Abu Dhabi Mainland

• Recommended for industrial activities, oil and gas services, and government collaborations.


• Licensing authority: Abu Dhabi Department of Economic Development (ADDED).

Northern Emirates

• Most suitable for fresh start-ups or SMEs that offer an economical alternative.


• Ideal options for logistic activities, manufacturing, or local trade.

Required Documents

Establishing a mainland company with a corporate shareholder involves lengthy paperwork.

For the Parent Company (Corporate Shareholder):

1. Certificate of Incorporation;


2. MOA and AOA;


3. Board Resolution:

• Authorizing the formation of a mainland company in the UAE.


• Note: It is essential to specify the relevant authority (e.g., “Notary Public Dubai,” “Notary Abu Dhabi,” “Dubai Court,” or “Dubai Department of Economy and Tourism (DET)”) while drafting the board resolution.

     4.Incumbency certificate: Confirms the current shareholders and directors of the company.

     5. Power of Attorney (POA): Appointing an authorized representative.

For Individual Representatives:

Identity documents:

• copyright copies of the authorized signatory and manager.


• UAE visa and Emirates ID (if applicable).

Additional Requirements:

1. UBO Declaration: Identification of the Ultimate Beneficial Owners.


2. Proof of address: For the parent company and authorized signatory.


3. Attested documents: All corporate documents must be:

• Attested by the Ministry of Foreign Affairs and by the Ministry of Justice.


• Translated from a foreign language into Arabic according to UAE requirements.

The steps are indicated below:

1. 
   
   
   
   1. Select an Activity to be Engaged: Choose the activity according to business goals (e.g., manufacturing, retail, investment).
   
   
   2. Select the Emirate: Depending on operational and market needs.
   
   
   3. Register Trade Name: For approval to the relevant licensing authority (e.g., DET for Dubai, ADDED for Abu Dhabi).
      
      
      
      • Drafting of MOA and LSA Agreement:
      
      
      • An MOA describes the structure of a company and its ownership.
      
      
      • A local service agent (LSA) agreement may be needed for professional licenses.
      
      
      
      
   
   
   4. Document Submission: All corporate and personal documents require notarization and attestation.
   
   
   5. Approval from Dubai Commercial Licensing Department: Attain preliminary approval from the licensing authority.
   
   
   6. Find Office Space: They need office space Only for a mainland license.
   
   
   7. Payment of Licensing Fees: Pay all costs for registration and issuance of the license.
   
   
   8. copyright: Apply for visas for managers and other employees.
   
   
   
   

Key Considerations for Specific Activities

Manufacturing

• Approval is required from the Ministry of Industrialization and/or the Ministry of Industry and Advanced Technologies before commencement.


• Must offer some land for the facility.

Retail Stores

• The physical premise of the store is mandatory.


• Immediate requirement for approval from any municipality.

Setting up a business in Dubai