In Mainland, there are three kinds of licenses issued namely Commercial (Commonly known as LLC), Professional and Industrial. Mainland companies provide more flexibility in contrast to the Free Zone Companies in terms of employment, business location and promoting business, among other benefits. Mainland Company requires a UAE National to be a part of the Company either as a majority shareholder in an LLC and Industrial License or as a Local Service Agent in Professional License. The cost structure of setting up the legal structure in Dubai can vary between AED 20,000 and AED 50,000 excluding sponsorship fee, special approvals, tenancy contract and the consulting Fee. A rough break down for license is provided below for your perusal.
|Name Reservation||635||Valid for 2 months – Renewable|
|Initial Approval||210||It is for the activity of the company and the shareholders. Valid for 6 months – Renewable|
|License Fee||8,000 to 17,000||Depends on the Payment Voucher and the activity of the company|
|Municipality||5% of the tenancy Contract|
|Tenancy Contract RERA Attestation||220||After securing Tenancy|
|DEWA Connection||2,000 onwards||Deposit. Depends on the size and the location of the tenancy|
|PO Box||1,500 onwards|
|Telephone & Internet||1,000 onwards||Depends on the vendor|
|Immigration & Labour Card of the Company||4,000||Immigration Card is valid for 3 years and requires renewal|
Special Approvals from the Authorities (like DHA approval for Clinics, Municipality + Society of Engineers Approval for Engineering Companies & RTA Approval for Car Rental and Transport Companies, etc.) are expensive and time consuming to obtain and maintain. We assist companies in getting this sorted as well.
Depending on the type of Approvals and the scope of Activity the time and the cost incurred will vary.
On average it takes between 15-20 working days to incorporate the company from start to finish provided all the documents are ready.
- Full ownership, privacy and control of all banking and financial transactions
- Absolute management control without any interference from any other person or institution
- Gives more credibility and prestige to business
- Banks fund the business favourably unlike the free zones
- Allows multiple offices in UAE and employment of large number of multinational employees
- No Paid Capital required.
- A Shareholder gets access to 3 year investor visa while in Free Zone a shareholder can only get an employee visa
- There is a trust agreement between the UAE National and the expat. (this is where we as a company come in)
- In Free Zones, FZ Authority is the single point of contact where as in mainland there are multiple departments involved.