A Mainland company has far more freedom when it comes to selling products or services in the UAE than a free zone company. It can carry out it’s operations all over the emirate it was established whereas a free zone company is restricted to that free zone. 

The Benefits of Establishing A Mainland Company Formation in UAE 

• Ability to deal with the UAE or GCC governments
  • Ability to bid for government tenders
• Easy bank account opening
  • Banks favor more towards mainland companies making opening corporate accounts easier
• Can be 100% foreign owned due to recent changes in regulations
  • Previously there was a requirement for an Emirati to have 51% shares in a commercial license however, that rule has recently changed meaning it can be 100% foreign owned
• Trade Locally, with free zones and internationally
• No restrictions on office location
  • Chose an office anywhere
• No restrictions on visa quota
  • The price of your license does not affect your visa allowance meaning you can keep applying for more quota
• There is also no requirement for a yearly audit
  • Most Free Zones require yearly auditing of the companies
• More comprehensive range of permissible business activities
• No Corporate or income tax

Licensing Options Through the Department of Economic Development for Mainland Company Formation in UAE

Professional License:

This type of license is based around services. The skills and expertise of the shareholder(s) will be the main selling point for the business. Professional licenses in the UAE only come under the legal form sole establishment. The shareholder may establish the company 100% under his/her own name, with the exception of some activities. You may have more than 1 shareholder for your company but for a professional license you will always need a Local Service Agent. This is an Emirati who will have no shares in your company but will be paid a yearly LSA fee.

Commercial License:

A commercial license is issued in the legal form of Sole establishment or limited liability company (LLC). These will usually be for trading and import/export activities.

A commercial company may now be 100% foreign owned due to a change in UAE regulations earlier this year. There is also no Local Service Agent required for this license making it extremely popular at the moment.

Branch Office:

When making a branch company you are making an extension of the current local or foreign company. It will have the same name and business activities with no separate legal personality. A special approval is required from the UAE Ministry of Economy when forming a branch office.

Representative Office:

When setting up a representative office it will be primarily to promote the business and give the parent company more accessibility through expansion.