Benefits of Setting up Your Business on the Mainland?
As you know, there is always a best-fit for every business, and your business could potentially benefit from having an office in the mainland of the UAE, as opposed to setting it up in a designated free zone or as an offshore company.
For example, if you are an Ad Agency, your clients will definitely appreciate your easy-to-access location. It is much easier than travelling to a free zone on the outskirts of the city, plus you can scale up more easily as you grow. Another example is of legal advisory firms, they pay a lot of attention to the privacy of their clients, and having an office on the mainland enables them to achieve this objective. There are just a few examples of the advantages of locating your business on the mainland.
How to Establish Your Company on the Mainland
When you go about to establish your company on the Mainland, you need to clearly identify the commercial activities you plan to undertake. Based on this, the right company structure that is beneficial for your business can be determined. For instance, you could set up your company as a Sole Establishment, a Legally Limited Partnership, a Legally Limited Company, or a Private Limited Company.
Registering a company on the mainland requires you to have a Local Sponsor who will own 51% of the company. The Local Sponsor can be a male or female above the age of 21. In addition, the Local Sponsor must be a UAE national or an Emirati.
With that being said, things work differently in the UAE. Because having a Local Sponsor who owns 51% of your company does not mean the Local Sponsor takes home 51% of the profits. The Local Sponsor needs to be paid a Sponsor Fee according to a predetermined agreement, and this could be done on a monthly / quarterly / half-yearly / annual basis. But also based on your agreement, in some cases, the Local Sponsor takes a percentage of the sales.
A key point to note is that the Local Sponsor is legally responsible for the functioning of your company. But the Local Sponsor can sign over a Power of Attorney relinquishing his/her control over your company, and this way, you will be in charge of everything.
The Local Sponsor can be an individual, or it could also be another company incorporated in the UAE. Regardless the case, the latter still functions in the same way, putting you in full control over your business.
Need the Help of a Professional Company Setup Specialist?
This is where IPRO comes into the picture. At IPRO, we have a track record of matching companies with the right Local Partner. Our business setup experts are all informed of the latest changes in all government legislations and can guide you in the best way forward.
Our team also consists of experience and qualified professionals who will go the extra mile to ensure that everything is in order. We also have expert who can assist you in the annual audit, which is mandatory for companies established on the mainland.