UAE has become a center of attraction for foreign investors over the past few decades and now it is a dream of every businessman to start a business in the UAE.

Procedures, timelines, languages, costs, and requirements can differ wildly – not only from country to country but also in different states and provinces. Forming a company in UAE can be very difficult if you are unaware of the legal formalities. It requires approvals from various government departments and a single mistake will result in a long legal process along with financial loss.

Professionals of Nidi Services are experts in company formations. We offer a full spectrum of company formation services and are seasoned experts in incorporating companies. All our packages are designed to ensure that your company formation is completed in the most efficient manner possible. With over 15 years of experience, our team will make sure that you choose the correct jurisdiction and license type for your company.

In UAE, a company can be formed in any of the following three jurisdictions: Mainland, Free Zone, and Offshore.

A mainland company is an onshore company and a license to establish the entity is issued by the Department of Economic Development (DED) of the respective emirate. A mainland business is allowed to do business in the local UAE market as well as outside UAE without any restrictions. It is necessary to understand the term “Mainland” as per DED’s definition in order for an entrepreneur to take a decision to register a Mainland Company in UAE. Different types of a license under the mainland are:

• Professional license
• Commercial license
• Industrial license
• Tourism license

In commercial & industrial licenses, 51% shares are owned by a UAE National, and 49% shares are for the ex-pat partner. In a professional license, 100% shares are owned by an ex-pat partner, and a UAE national is appointed as a Local Service Agent.

Following are the facts about Mainland Companies in UAE.

• These companies are regulated under Federal Law No. 2 of 2015 which came into effect on 1 July 2015.
• No expatriate can own more than 49% shares in any commercial limited liability company (LLC).
• GCC national can own 100% shares in any company.
• GCC companies or individual GCC nationals can make partnerships with UAE nationals.
• For certain business activities, as per law, only UAE nationals can own 100% shares.
• Business activities covered under the professional category can be 100% owned by ex-pat/foreigners but it is mandatory to have UAE nationals as a service agent.