Once your mainland company is established you must ensure all shareholders, directors, the General Manager, and employees are aware of and abiding by UAE Commercial Companies Law and conforming to best business practices. Set out below are some of the main dos and don’ts that a mainland company should follow.
What is an onshore / mainland company?
Mainland companies are those entities which are registered under the Federal Law No. 2 of 2015 Commercial Companies Law. Some of the basic characteristics of a mainland company are:
Article 9 of the Federal Law No. 2 of 2015 on Commercial Companies Law permits the incorporation of the following types of mainland companies in the UAE:
Further Article 9 of the Federal Law No. 2 of 2015 on Commercial Companies Law provides that if a company does not adopt any of the above-mentioned forms, it will be null and void. Therefore, it is vital that you seek the correct advice when setting up a Dubai company.
In addition to the above structures, foreign companies or entities registered in free zones can also set up a Dubai branch or a representative office within mainland UAE. However, the business activities of the branch must be identical to the business activities of the parent company.
The Important Dos
As per the aforementioned provisions, the following are some of the requirements for investors setting up business in Dubai mainland:
The following are some of the main benefits of an onshore / mainland company:
The Important Don’ts
Companies that are set up in mainland Dubai should be aware:
To conclude, setting up a company in mainland Dubai can be lucrative for business owners that want to target the UAE market for selling their products and services. Most importantly, for those that are starting a company in mainland Dubai or Abu Dhabi, the UAE Commercial Companies Law does not prescribe a minimum share capital. However, the company must have sufficient capital for its business purpose and shall be guaranteed by the partners. The UAE can provide a mainland company with access to other GCC and global markets that can make it even easier to conduct business. Mainland companies are often deemed to be more attractive when compared to free zone companies as there are fewer restrictions.
At Creation Business Consultants we will ensure your mainland company is established for success by ensuring your trade license has the maximum number of business activities. Periodically we will provide updates regarding commercial laws which may impact your mainland business operations within the UAE and wider-GCC, provide information regarding employment law changes which are applicable to your mainland industry sector and we will offer advice to mitigate risks for your mainland company and the nominated General Manager arising from any regulatory changes.
Creation ensures clients receive a seamless, cost effective and proficient entry to the GCC market. We provide clients with the foundations and best practices empowering them to build and control a successful business.
We continuously strive to exceed client’s expectations whilst making certain they are protected from undue risk at all times. Creation Business Consultants is the preferred and truly trusted business partners for the GCC.