Onshore Company

Mainland

Register an onshore company with fewer restriction on business activities

Mainland Overview

The main benefit of having an onshore entity is that there are fewer restrictions on how business activities are undertaken, and there is no restriction on the location of the business premises provided it is located onshore (i.e. outside any of the free zones).

An LLC is required to have a UAE / Gulf Cooperation Council (GCC) shareholder to hold at least 51% of the shares. Therefore, the maximum shareholding a foreign investor can have in an LLC is 49% or choose a Sole Establishment company formation to own 100% of shares.

Foreign investors can be further restricted (or require additional approvals) to carry out certain activities in the UAE (for example, oil and gas industry), as some activities are strictly reserved for UAE / GCC nationals (and, as such, require 100% local ownership). It is possible to enter into certain contractual arrangements to govern the relationship between the shareholders.

Common License Types

Commercial License

Covers a broad range of trading and multiple activities

Professional license

Service - Consultancy based activities fall under this category

Industrial License

Manufacturing, Fabrication business activities

Legal Structures Available for a Mainland Incorporation

Limited Liability Company
Non UAE nationals can get upto 49% ownership
Branch
Fully operating office of a parent company and legally liable to it
Sole Establishment
100% foreign ownership for a single shareholder
Representative Office
Office only allowed to promote business of parent company
Civil Company
Upto 3 individual shareholders holding 100% ownership
Subsidiary
Corporate shareholder structure and classified as an LLC

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