The vast majority of investors wanted to do business with less to zero worries when it comes to the location of their company. This is precisely why business people and investors are attracted to do a business set up in Dubai Mainland. However, they have the right to undertake a business anywhere in Dubai and UAE.
Mainland Company Registration in the UAE
The most common Mainland Dubai Companies in the UAE can be delegated as follows:
- Limited Liability Company (LLC)
Proceeding with your dream to set up a new mainland enterprise, you should have the option to learn how to run this type of company formation. As mentioned in our previous article, we declared that a local sponsor is essential to set up a Mainland Company.
For the LLC Company, a foreign investor can’t have 100% ownership of his enterprise. According to the law in the UAE Mainland, 51% of the total shares of a commercial company will be held by a UAE National (local sponsor or silent partner). The remaining 49% goes to foreign investors. Therefore, one of the foreign investor’s responsibilities is to hire a local Emirati sponsor.
Regarding this, the local sponsor shall agree in court. He will not have any involvement in either the organization activity or profit-sharing of the organization set up in Dubai Mainland.
Additionally, there are limitations in the rule, as mentioned earlier, as it is confined to performing specific business undertakes such as the following:
- Banking Business
- Insurance Business
- Money Investment Business
- Professional Company (Civil Work Company)
Unlike the rules applied in LLC, a foreign investor can retain 100% ownership of the company’s shares in Civil Work Company. How is it possible? Professionals in accounting, consulting, legal, doctors, and other related areas have the privilege to form a Mainland Company, especially a Professional Company, which is also known as a Civil Work Company.
In addition to this, a Civil Work Company needs to appoint a Local Service Agent to take care of the official procedures and to liaise with the different government ministries. This is required to register the Civil Work Company with the Department of Economic Development
Since a Civil Work Company is exclusively for the holders of professional licenses only, it is essential to obtain external approval from a corresponding government ministry before processing the permit.
- Branch or Representative Office of Foreign Companies
- Branch of a Foreign Company in the UAE:
Setting up a foreign branch office in UAE enables you to perform the activities offered by its parent organization. In any case, the actions to be completed by the foreign branch office is still subject to approval by the Ministry of Economy.
- Representative Office in the UAE:
Setting up a Representative Office enables you to likewise advertise and sell the services or product items by the parent company. However, a representative office cannot commercially trade or sign contracts in the UAE, for the parent company should do it.
Service agents are not liable or obligated to deal with any financial matters associated with the company at home or abroad. They are only tasked with completing the entire incorporation process. Therefore, any financial affairs relating to the company within or outside the Emirate are not the responsibility of the service agent.
PERFECT HUB: Your Partner in Setting Up your Business
PERFECT HUB, known to be focused on excellence and in-depth knowledge about business setup, will help you in your mainland company formation in Dubai and UAE. With the assistance of our professional consultants, we will be dealing with the necessities needed for the building. We will help you from the beginning of its process until the end, and we guarantee you to be untroubled while setting up your business.
Do not hesitate to contact us, and we will be happy to give you all the information required for your Mainland Company Formation.
Forming a company in mainland China involves several steps and requirements. Here are the general steps involved in mainland company formation:
- Choose a company name: You need to choose a unique name that meets the requirements of the State Administration for Industry and Commerce (SAIC) and the State Administration for Market Regulation (SAMR).
- Register your company with the local Administration for Industry and Commerce (AIC) or the market regulation bureau. You will need to provide a registered address and details of the company’s legal representative and shareholders.
- Obtain a business license: Once your company is registered, you will need to obtain a business license from the AIC or the SAMR. The license will indicate the type of business you are engaged in and other relevant details.
- Open a corporate bank account: You will need to open a bank account in China to conduct business operations and receive payments.
- Register with tax authorities: You will need to register your company with the local tax authorities and obtain a tax identification number.
- Obtain any necessary permits and licenses: Depending on your business activities, you may need to obtain additional permits and licenses from relevant authorities.
- It is important to note that the process for forming a company in China can be complex, and it is recommended to seek the assistance of a professional service provider or a lawyer who specializes in company formation in China. Additionally, there are different types of business structures to consider, such as a wholly foreign-owned enterprise (WFOE), joint venture (JV), or representative office (RO), each with their own set of requirements and regulations.
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