There is 100% Expatriate Ownership made available in Mainland Companies as per the Commercial Companies Law amendments. So, there is no requirement for a UAE National holding 51% shares to register a mainland company. Also, for the Services Company License in UAE there is no requirement for a Local Service Agent.
UAE is a major business hub where the new company formation is seeing linear growth over the years. Services License in Dubai, UAE is a popular business licensing category and remains a top choice for a new company set up by many investors globally.
Table of contents
The services sector makes up a significant presence in the mainland of UAE. There is a strong demand for a services company License in UAE. Accordingly, UAE has a growing business opportunity and availability of a wide target audience for the companies to test their service solutions.
Setup a Services Company in UAE Mainland
To set up a services company in UAE the investor must follow certain steps. Taking a Services License in Dubai, UAE is esssential for running a Services Company. There is no requirement of a UAE Citizen or a UAE Corporate as the Local Service Agent for setting up a services company in the region.
As per latest amendments to Commercial Company Law, the foreign investor will have 100% ownership of the company. Previously, the Local Service Agent will act as liaising agent for all administrative related tasks.
They liaise with the Department of Economic Development (DED) for the company registration, visa processing, and any related activities. Foreign investors can retain their local sponsor for the company if they wish to maintain their current partnership.
The Local Service Agent will be having no power in the operations or share capital of the company. However, the investor must pay the Local Service Agent fee annually during the renewal of the Professional Business License.
There will be a side agreement with the Local Service Agent on the payment terms and other conditions. The Service License is for the individual or a group of shareholders under a company name to legally conduct the desired business activity.
The Department of Economic Development (DED) of the respective emirates is the issuing authority for service licenses for a company in the mainland of UAE.
Services Companies License in Dubai – list of business activities
Foreign investors can register Service Companies in Dubai, UAE for various business activities. The Services License is one of the most sought-after business license categories in Dubai.
Under the services license in Dubai, investors can open consultancies and companies across a wide range of business activities ranging from engineering to information technology to architecture, and more.
The mainland services company will have a virtual license valid for 1 year that must be renewed yearly. The investor can take an office space by preparing a lease agreement with any commercial space owners or business centres in the mainland of UAE to start operations from the office.
The business owner after obtaining the Services Company License in Dubai can apply for the UAE residence visa. Then proceed with applying for the bank account for the new company.
Services Company License in Dubai – List of Documents
There are few documents such as the investor passport, photograph, and application form to start the processing of the Services Company License. For professional services, the educational qualification of the investor is advisable to submit for faster processing.
For applying UAE residence visa for the investor and sponsor employees the company must apply for the establishment card. Then proceed with applying for the residence visa and bank account. (AURION will assist you with the document attestation from the Embassy and Ministry of Foreign Affairs)
Similarly, the team will help in preparing the Shareholder Agreement and help process the other company documents. Along with the Services Company License, the licensing authority will provide the Lease contract for the office space, Memorandum of Association and Article of Association for the company.
Is a Service Agent Mandatory for a Services Company in Dubai/UAE?
There is no requirement of having a Local Service Agent in UAE for opening a Services Company. In case, the business owners want to seek the support of a Local Sponsor or Local Service Agent, they can utilize the provision.
Business Owners can engage with the following Local Service Agents to open a company and liaise with government officials.
1. UAE Citizen as Local Service Agent
The services Company in Dubai can secure a license by appointing a UAE National as the Local Service Agent. They will assist in the administrative process, visa application, and getting government clearance for the company.
They will have zero ownership in the company and will not be involved in any administrative tasks. There is a yearly fee payable to the Local Service Agent to continue their services.
In the case of a UAE National as a local service agent, there is always a provision to change the local service agent in case of any dispute or unexpected situations.
2. UAE National Owned Company as Local Service Agent
Another option is to appoint a UAE National owned company as a Local Service Agent. The services company in Dubai can enhance their security and trust by having a corporate as the local service agent.
Also, there would be zero involvement in the company’s working and operations by the Corporate Company. Furthermore, any personal disinterest or related circumstances can be avoided by appointing a corporate company.
Hence, in a nutshell for setting up a service company in UAE, the investor has to get a local service agent for processing the services business license from the DED.
There is a host of business benefits for the investor in getting a Services License in Dubai and setting up a services company in the mainland of Dubai, UAE. It helps in getting government contracts and working with other mainland companies.
Also, helps in expanding into the local UAE market, it is a perfect option for services companies.
To know more about the Services Company Setup in UAE Mainland, connect with our expert team right away!
