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The document requirements change with the type of shareholder. Individual shareholders require a specific group of documents. Corporate shareholders require another set. Both requirements are listed below.&nbsp;<h4>Individual shareholder documents</h4><ul><li>Foreign shareholders, directors, and managers are required to submit copies of their passports.&nbsp;</li><li>Employer’s NOC is applicable if the shareholder is on an employment visa.</li><li>UAE shareholder’s National ID card (copy)</li></ul><h4>Removal of Mandatory Requirement of a Local Emirati Sponsor in UAE&nbsp;</h4>Earlier, the company formation regulations necessitated the requirement of a local Emirati sponsor to establish a business in the UAE. It had been an uphill task to identify a reliable sponsor. A risky element here was that the sponsor would be holding 51% of shares in the company and all the official documents would be addressed to him or her. The country’s decision to remove this mandatory requirement is expected to lead to a quantum leap in the arrival of expatriate businesspersons. Consequently, strengthening the business sector and fortifying the UAE economy abundantly.<h4>Corporate Sponsorship</h4>Mainland LLC companies may seek the service of a corporate sponsor. Here the Corporate sponsor would function on behalf of the individual sponsor. A corporate sponsor must be a corporate company owned by UAE nationals.&nbsp;<h3>Types of Company Formation in Mainland UAE</h3><ul><li>Incorporation of Professional Company – Professional companies rely on the professional or intellectual capabilities of their shareholders. Business establishments that provide all kinds of consultancy services can be put into the category of professional companies. Accounting firms, legal firms, educational consultants, and consultancies that deal with administration and management all come under the category of professional companies. A professional trading license is mandatory for all professional companies to operate in the mainland UAE. In certain scenarios, professional company licenses demand the educational qualification of the shareholders to ensure the quality of the services.</li></ul>Professional company assets are subject to government monitoring. The monitoring is conducted for assets like websites to safeguard certain professional standards.&nbsp;Foreign investors or shareholders can fully own a professional company. However, the service of a UAE national is mandatory for company incorporation. The UAE national has no ownership rights or equity share in the company but receives a fixed annual service fee.Incorporation of branch office – You may set up your branch office in Dubai. The branch company can operate as the child company of the parent company and perform all the business activities and transactions vested upon the parent company. The activities include customer-oriented interactions and services, settlement of agreements on behalf of the parent company, etc. The branch office is not supposed to perform any operations that the parent company is not allowed to undertake. Business establishments in the financial sector like banks, financial institutions, and insurance companies can set up branch offices in Dubai.&nbsp;&nbsp;<h4>Step by Step instructions for branch office incorporation in Dubai</h4><ul><li>Finalize your business activity for company formation in Dubai's mainland</li><li>Frame your company structure</li><li>Trade name reservation – Approach the Department of Economic Development (DED) for trade name registration of your branch.&nbsp;</li><li>Ministry of Economy - initial approval&nbsp;</li><li>After you get the initial approval from the Ministry of Economy, you are required to apply for a Commercial License. The license issuance is carried out by the DED and the validity of the license is 1 year.&nbsp;</li><li>Find appropriate office space for your branch and confirm the location.&nbsp;</li><li>Get a Corporate bank account&nbsp;</li><li>Accomplish employee-related formalities like labor cards and visas.&nbsp;</li><li>Get the Dubai Chamber of Commerce and Industry membership.</li><li>Documents needed for MOE – Initial approval&nbsp;</li></ul>To get MOE – Initial approval, the following documents are necessary.&nbsp;<ul><li>Registration forms</li><li>Trade name registration (proof)</li><li>Parent company’s MAA (Memorandum and Articles of Association)</li><li>Parent company’s Certificate of Incorporation&nbsp;</li><li>Passport copy of the director</li><li>Parent company’s NOC</li><li>Local service agent – Naturalization book and passport (copy)</li><li>The local director of the branch requires a power of attorney.&nbsp;</li><li>Board resolution from parent company</li><li>Setting up a new branch in Dubai requires the authorization of the management of the parent company.</li></ul><h4>Documents needed for DED - Commercial License issuance</h4><ul><li>MOE – Initial approval&nbsp;</li><li>The Parent company should issue a statement that defines the business undertakings of the branch</li><li>Parent company’s audited financial statement (previous 2 years)</li><li>Property lease contract (copy)</li><li>Initial approval documents (Copy)</li></ul><h4>Kiltons branch Incorporation Services in Dubai</h4>If your company requires a branch in Dubai, Kiltons can guide you through the Business Incorporation process. We assist you in matters related to:<ul><li>Documentation related services</li><li>Finding a trustworthy local service agent</li><li>Coordinating the various government agencies for approvals</li><li>Branch location assistance</li><li>Corporate bank account opening assistance</li></ul>Limited Liability Company Incorporation – Limited Liability Company Incorporation is one of the most preferred mainland business priorities. LLCs can accommodate multiple shareholders ranging from 2 to 50. A wide range of business activities can be incorporated under an LLC except for financial endeavors like insurance or banking&nbsp;The company share ratio need not be followed in the case of profit and loss acquired. The LLC licenses are issued by the Department of Economic Development or DED.Instructions to set up a Limited Liability Company in Dubai<ul><li>Reserve the trade name</li><li>Office space registration</li><li>General information of shareholders - name and nationality.&nbsp;</li><li>Capital share of the individual shareholder.</li><li>Identity information of managers like name and nationality</li><li>Profit and loss share of shareholders.&nbsp;</li></ul>Representative office – An International business concern is allowed to set up a representative Office in Dubai on its behalf to attain UAE-wide representation. The representative office is established mainly for the promotion of business. At times, the international company may form a representative office to end all business transactions with its clients. The representative office is not authorized to perform any business transactions in the UAE.&nbsp;The Ministry of Economy’s approval is mandatory for the registration of a representative office.&nbsp;&nbsp;<h4>Advantages of setting up Representative office&nbsp;</h4>The economic company set up costThe total cost of formation of a Representative office in UAE would be reasonable.&nbsp; Since having a physical office is not mandatory in UAE, it is economically more beneficial.Many shareholdersA maximum of 50 shareholders can take part in company formation. Hence the representative office has the benefit of flexibility.&nbsp;&nbsp;Share capital benefitMinimum share capital is not required for representative office formation.Jurisdiction:<ul><li>Sheikh Zayed Rd</li><li>Deira</li><li>Business Bay</li><li>Al Qusais&nbsp;</li></ul>Company setup:<ul><li>Mainland company licenses are issued by the Department of Economy and Tourism (DET).</li><li>The Department of Economic Development processes applications for the perusal, approval, and issuance of business licenses.</li><li>Finalize operations and appropriate location before formation.</li><li>Obtain approvals for the license and follow naming policies.</li><li>Mainland companies are permitted to hire foreign employees depending on the company size.</li><li>A corporate bank account is necessary for business operations.</li></ul>

Mainland Company Formation in Dubai, UAE | Dubai Mainland License

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Mainland companies are business entities that are allowed to function and operate within the boundaries of Emirati jurisdiction that come under commercialized geographical regions

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<ul><li>A professional or commercial license is required to set up a mainland company in Dubai.</li><li>Mainland companies are required to appoint at least one director before starting company activities.</li><li>The physical presence of the investor or the shareholder in the UAE is optional at the time of initial approval.</li></ul>

Prerequisites

<ul><li>Mainland businesses are free to operate nationwide, unlike free zones or offshore companies that have restricted jurisdiction.</li><li>These companies are exempt from corporate and income taxes, which allow them to enjoy substantial financial benefits.</li><li>UAE’s business-friendly environment, absence of restrictions on currency exchange, and culture that encourages expansion facilitate international exposure.</li></ul>

Benefits

The documents required for mainland company formation in Dubai include:<ul><li>Application for a business license</li><li>Duly attested LLC agreement</li><li>Copy of passport</li><li>Passport-size photographs</li><li>Tenancy contract</li><li>Article of Association (AOA)</li><li>Memorandum of Association (MOA)</li></ul>

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Riyaz Kilton is the owner of Charman of Kiltons Business Setup, Inc. He currently serves as the Vice Chairman of the International Promoters Association (IPA), a group that represents the Indian business community. He is also a member of the International Promoters Association's Board of Directors.

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