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An LLC (Limited Liability Company) is the earliest and most commonly known structure in the global marketplace. LLCs are limited by their shares and are defined by the liabilities of the company. In order to form an LLC, a minimum of 2 to a maximum of 50 shareholders is necessary.
In order to encompass such an ensemble, with regard to the UAE law, a UAE national (individual or corporate) should own 51% of the shares while the remaining 49% is allotted to the other expatriate shareholders of the company. The major benefit of Mainland companies is access to the UAE Market.
Mainland companies are at ease of carrying out their business activities throughout the UAE market, either inside or outside, without limiting their access within the Free zone alone.
In the case of mainland license, a 140 square foot office is mandatory along with an Ejari (Dubai), or Tawtheeq (Abu Dhabi). Only after producing these documents to the Department of Economic Development, the license will be released.
Mainland ensembles don not have limitations. The MOL (Ministry of Labor) issues an Electronic Quota to every company highlighting their visa eligibility. This can be increased by increasing your office space, as you will be allocated 1 visa for an 80 square foot office space. In case of the presence of external staff like drivers, sales professionals, etc. a separate quota can be applied without affecting the office space quota.
Free zones are different from the mainland owing to the fact that itโs an isolated land or setting with different tax, import, and customs regime. The major advantage is that a free zone company does not have to give out the shares, the expatriate can own 100% of the shares.
A company in the free zone can be handled 100% by the expatriate without the need for a UAE National or a service agent.
A free zone license can be procured with or without a physical office. The license holders are at ease to use a smart/Flexi office, but with due restrictions on visa allocation.
The visa allocation is limited in the case of free zone companies from 1-6 visa packages. In the case of more visa requirements, you will have to rent a physical space inside the free zone. Renting physical spaces inside the free zone is pricey due to the high demand for commercial space and limited supply.
Approval from external authorities is usually not required by free zone authorities as free zone facilities are mainly for the import and export of goods. It is to be noted that no external approvals from governing bodies outside the free zone are entertained.
Originally posted 2021-09-29 05:21:57.