Overview
| Registry | Registry in each Emirate. |
| Authorized activities | Trading, Consultancy & Services, Manufacturing, etc. |
| Capital minimum | AED 300,000 |
| Capital release | Not Applicable. |
| Manager | Minimum of one. Must be a natural person. |
| Partners | Any natural person of at least 21 years of age, or a legal entity. |
| Mandatory Local Sponsor/ Agent | 100% ownership for Trading activity. Local Agent for other Consultancy, and Services. |
| Bank Account | Company Bank Account |
| Accounting | Mandatory. |
| Audits | Mandatory, but not by the Registry. |
| Registration TImeline | 2-3 weeks |
Different types of Mainland companies
A foreigner can form 2 types of companies:
1. A Professional Company. A Professional Company can have only one partner (it is called a Sole Establishment) or several (it is called a Civil Works Company).
2. A Limited Liability Company (= LLC).
3 points should be noted concerning the difference between a Professional Company and an LLC:
1. The partners of a Professional Company are unlimitedly liable for the debts of the company! The partners of an LLC are only liable to the extent of their share in the company’s capital.
2. A Professional Company can only be active in the provision of services, consulting, etc. It is not possible to sell goods or manufacture (factory) with a Professional Company.
3. A professional company cannot be owned by a legal entity (i.e. its partners can only be natural persons). If necessary, it is possible to create a branch of a foreign or UAE registered company.
Which activities for your company?
An activity of consulting or selling goods has several consequences for your company:
Consulting / Services
– For professional, service and consulting activities, it is now possible for a foreigner to have 100% of the shares.
– It is required to appoint a “local service agent” who must be Emirati. His role is only to represent the company before the Registry. We provide him/her of course and his/her remuneration is fixed (AED 3,000 per year).
– The liability of the partners is unlimited! This point is very important and we invite you to be very careful about this subject, as a local dispute could have important consequences (confiscation of the passport while a dispute is being settled, etc.). It is possible to avoid this problem by registering in the Mainland a Branch of a limited liability company (contact us for more information).
Sale of goods / Import-export
– Most trading activities no longer require an Emirati sponsor. Please note: some activities still require the presence of a sponsor. We invite you to contact us to validate this point.
– It is not required to appoint a local service agent.
– The liability of the partners is limited to the amount of their participation in the company’s capital.
Pricing
Please note:
– The license fee (trade license line above) is estimated. The final cost depends on the activity and will of course be billed at the exact cost (disbursement).
– For service/consulting activities, it is required to add a Local Service Agent at a cost of AED 3,000 per year. This is not required for sales of goods/import/export activities.
– In addition to the above fees, the cost of an office (mandatory for any company) must be added. It is possible to rent a shared office (from AED 3,000 per year). The size of the office determines the number of employee visas possible: 10m2 per employee. Family visas (husband/wife/children) are not included in the office size.
– There is a 5% tax calculated on the annual value of the office rent (not applicable on a shared office).
– Visa fees are not included in the above rates (see below for visa fees).
– The above fees are to be paid in one installment for 1 year at the time of the order for the creation of the company and the first year, then every year in one installment for 1 year at the anniversary date of the company registration.
Our packages include the following:
Company formation fees (to be paid only once when the company is formed):
– Service Charge -> these are our fees (nothing to add all is included!)
– VAT and accountancy training -> we explain how VAT works and your company’s accounting obligations
– Salary Register -> establishment of the Employee Register
– Company stamp -> this is a stamp that complies with local regulations (required for opening a bank account, etc.)
– FREE assistance in opening a bank account -> we assist you in opening a bank account for your company
– FREE setup of invoicing and accounting application -> Installation and configuration of invoicing and accounting software
Company maintenance fees (to be paid once a year, at creation and then at each renewal of the company):
– Service Charge -> our fee for renewing and monitoring your company
– UNLIMITED after-sale support concerning your company in the UAE -> we provide unlimited customer support to answer all your questions
– Coordination with Accountant -> we provide a coordination service with the accountant of your company
– Coordination with Auditor -> we provide a coordination service with the auditor of your company
– Coordination with Tax Agent -> we provide a coordination service with the tax agent in charge of the VAT of your company
– Subscription to Merritt Updates -> legal, fiscal and social watch on the Emirates sent by email
– UNLIMITED access to Merritt.center -> all administrative, legal and accounting documents of your company in a secure customer portal
– UNLIMITED access to Merritt.guide -> all useful information for your company and your residence in the UAE
– Maintenance of UBO Register -> this involves maintaining and updating the Register of final beneficiaries as required by the Authorities
– Correspondence address in Dubai (including UNLIMITED scan and forward of your mails and courier) -> we scan / resend your mail as soon as it arrives according to your instructions
– FREE shared telephone number in the UAE (with answering in English and Arabic) -> shared telephone number with telephone secretary in English and Arabic
– FREE domain name + WordPress pre-installed + emails-> domain name + installation of a WordPress showcase site + email addresses on a server located in Dubai
Visa Fee
We invite you to contact us for visa rates related to a Mainland company.
