UAE MAINLAND
UAE Mainland Company Formation
A mainland licence lets you trade anywhere in the UAE and anywhere abroad, take on government contracts, and open offices wherever your customers are. Since the 2021 amendments to the Commercial Companies Law, most activities no longer need an Emirati shareholder — you can own the company outright. Simple and fast setup with no hidden charges, handled through the Department of Economic Development in each emirate.
100%
Foreign ownership on most mainland activities since the 2021 law change
Unrestricted
Trading across the whole UAE and internationally, with no territorial limit
Eligible
To bid for UAE government and semi-government contracts
2–4 weeks
Typical time to licence, depending on activity and approvals
WHY MAINLAND
Why Choose a Mainland Licence
A mainland company operates inside the UAE without territorial restriction. For a business whose customers are here, that difference decides everything.
Trade Anywhere in the UAE
No restriction on where you sell. You can invoice mainland customers directly, open retail outlets, hold a physical shopfront and work with free zone companies — none of which a free zone licence lets you do without a distributor or agent.
Bid for Government Contracts
Only mainland companies can tender for UAE government and semi-government work. For contracting, consultancy, healthcare, education and supply businesses, that is often the largest part of the market.
100% Foreign Ownership
Federal Decree-Law No. 26 of 2020 removed the 51% Emirati shareholding requirement for most commercial and industrial activities from June 2021. You keep full ownership and full control of the profits.
No Visa Cap Tied to a Package
Free zone visa quotas are limited by your desk or office package. On the mainland the quota follows the size of your premises, so a growing team is a matter of taking more space rather than renegotiating a licence.
Locate Wherever You Need To
Offices, showrooms, clinics, warehouses and workshops anywhere in the emirate — Business Bay, Deira, Al Quoz, Al Qusais, Jumeirah or Al Karama in Dubai, and the equivalents in every other emirate.
Free Movement of Funds
No currency restrictions and no exchange controls. Capital and profits move in and out freely, and expatriate staff can be recruited without quota restrictions on nationality.
One correction worth making: mainland companies are not exempt from import and export duty — that is a free zone benefit and it is often misapplied to mainland licences. Goods imported into the UAE mainland attract the 5% GCC customs duty, and VAT at 5% applies to most supplies. We tell clients this before they budget, not after.
WHERE WE SET UP
Mainland Company Formation Across the Emirates
Each emirate has its own Department of Economic Development, its own fee structure and its own strengths. The right one depends on where your customers are and what your premises will cost.
Dubai Mainland
The largest market and the widest activity list. Both B2B and B2C models work here, with established commercial districts in Business Bay, Deira, Al Quoz, Al Qusais, Jumeirah and Al Karama — the last of these still among the most affordable office space in the city for small and medium businesses.
Abu Dhabi Mainland
The capital, and the centre of government and semi-government contracting. Strong for energy, construction, healthcare and professional services, with an economic department that moves quickly on approvals for substantial projects.
Sharjah Mainland
Lower operating costs than Dubai while remaining inside the same commercial catchment. Popular with trading, light industry and logistics businesses that need warehouse space at a sensible rent.
Ras Al Khaimah Mainland
One of the fastest-developing economies in the federation and a steady draw for foreign investment, with competitive licence costs and a straightforward economic department.
Ajman Mainland
The entry point on cost. Licence and premises are cheaper than anywhere else in the country, which suits small trading and service businesses that still need full mainland trading rights.
Umm Al Quwain Mainland
The lowest running costs in the country, short approval queues and real room for light industry — a sensible first UAE entity when budget matters. We also license on the Fujairah mainland, the only emirate on the Gulf of Oman, which matters for shipping and bunkering.
STRUCTURES AND LICENCES
Legal Structures and Business Licences
Two choices sit behind every mainland licence: the legal form of the company, and the licence category that covers your activity. Each carries different requirements, and each is expensive to change later.
Commercial Licence
For buying, selling, importing, exporting, distributing and general trading. The most common category in the UAE, and the one with the longest activity list — which is why the activities on your licence need drafting carefully.
Professional Licence
For service-oriented work: consultancy, accountancy, legal services, IT, design, education and similar. Issuance costs are lower than a commercial licence, and it is usually the fastest category to approve.
Industrial Licence
For manufacturing, processing and assembly. It requires physical premises and clearance from the relevant government departments and external ministries before the activity can be licensed.
Limited Liability Company (LLC)
The standard mainland vehicle. Between one and fifty shareholders, liability limited to the share capital, and full foreign ownership available on most activities. This is what the majority of our mainland clients incorporate.
Sole Establishment or Civil Company
A sole establishment is owned by one individual with unlimited liability. A civil company suits professional partnerships — doctors, engineers, consultants — and may require a local service agent depending on the activity and the emirate.
Branch of a Foreign Company
An extension of an existing overseas company rather than a new legal entity, carrying out the parent’s activities in the UAE. A local service agent is required, on a fixed annual fee rather than a share of profits.
THE PROCESS
Step-by-Step Mainland Setup Process
Six steps through the Department of Economic Development. We handle the filings, the approvals and the government liaison — typically two to four weeks depending on the activity.
01
Finalise the Business Activity
Everything follows from the activity you register. It determines your licence category, whether you need external ministry approval, what premises you must take and whether full foreign ownership is available. Getting this right at the start avoids amending the licence later.
02
Register the Trade Name
The name is reserved with the Department of Economic Development. UAE naming rules are strict — no abbreviations of personal names, nothing religious or political, and nothing implying an activity your licence does not cover.
03
Initial Approval and Documents
The DED issues initial approval confirming there is no objection to the business. Passport copies, photographs, visa or entry stamp pages, and the memorandum of association are prepared and submitted. Regulated activities go to the relevant ministry at this stage.
04
Secure Premises and the Ejari
A tenancy contract registered through Ejari or the emirate’s equivalent is required before the licence can issue — the mainland has no flexi-desk shortcut. Your visa quota is calculated from the size of that space, so premises and headcount need planning together.
05
Apply for the Business Licence
With approvals and tenancy in place, the licence application is submitted and fees paid. The DED issues the trade licence and the company is legally able to trade, sign contracts and open a bank account.
06
Establishment Card, Visas and Bank Account
Immigration and labour establishment cards, then entry permits, medicals, Emirates ID and residence visas for you and your staff — followed by the corporate bank account, which is consistently the slowest step and where a properly prepared file makes the difference.
We work closely with the government bodies. Our consultants deal with the Department of Economic Development and the relevant ministries across all seven emirates day in, day out. That relationship is what turns a two-month approval into a two-week one, particularly on activities that need external clearance.
OWNERSHIP, TAX AND COMPLIANCE
What a Mainland Company Actually Owes
Most published advice on UAE mainland companies predates both the ownership reform and the corporate tax regime. Here is the position as it now stands.
You Probably Do Not Need a Local Sponsor
This is the most out-of-date claim on the internet about UAE mainland companies. Federal Decree-Law No. 26 of 2020 removed the 51% Emirati shareholding requirement for the great majority of commercial and industrial activities from June 2021. A local service agent is still required for branches of foreign companies and for certain professional and civil structures — but that is a fixed annual fee for administrative support, not a share of your profits. If someone is offering to be your 51% sponsor, ask them which activity actually requires it.
Corporate Tax at 9%
UAE corporate tax applies at 9% on taxable profits above AED 375,000, and 0% below that. Unlike a free zone company, a mainland company has no route to the 0% Qualifying Free Zone Person rate — it is inside the standard regime. Registration with the Federal Tax Authority is mandatory regardless of profit, and the return is filed annually.
VAT and Customs Duty
VAT is charged at 5% on most goods and services, with registration compulsory once taxable supplies exceed AED 375,000 in twelve months and voluntary from AED 187,500. Goods imported into the mainland attract the 5% GCC customs duty. There is no personal income tax on salaries or dividends.
Ongoing Compliance
Annual trade licence renewal, Ejari or tenancy renewal, audited financial statements where required, corporate tax and VAT returns, and full compliance with UAE labour law including the Wage Protection System and mandatory health insurance. Establishment cards and employee visas run on their own renewal cycles. We keep the calendar so nothing lapses — a licence that expires takes the visas with it.
SIDE BY SIDE
Mainland, Free Zone or Offshore?
Three structures for three different businesses. The answer follows from where your customers are and whether you need to live here.
Trading in the UAE
Mainland
Unrestricted across the whole country
Free Zone
Restricted — needs a mainland distributor, agent or branch
Offshore
Not permitted to trade inside the UAE
Government Contracts
Mainland
Eligible to tender
Free Zone
Not eligible
Offshore
Not eligible
Corporate Tax
Mainland
9% above AED 375,000, no exemption route
Free Zone
0% on qualifying income if the QFZP conditions are met
Offshore
Outside the UAE tax net, and no UAE substance either
Office Requirement
Mainland
Physical premises with a registered tenancy contract
Free Zone
Flexi-desk upwards, scaled to your visa quota
Offshore
None — registered agent address only
Residence Visas
Mainland
Yes, quota based on office size
Free Zone
Yes, quota tied to your package
Offshore
No visa entitlement at all
Best Suited To
Mainland
Businesses selling to UAE customers — retail, F&B, contracting, clinics, government supply
Free Zone
Exporters, regional HQs, consultancies and holding companies serving customers outside the UAE
Offshore
Holding assets and international trade with no UAE presence needed
START YOUR JOURNEY
Set Up Your Mainland Company in the UAE
Simple and fast business setup with no hidden charges — one point of contact for the licence, the premises, the visas and the bank account. We will tell you plainly when a free zone licence or an offshore structure would serve you better, because putting a client in the wrong structure costs everyone more in the end. The consultation is free and it is the part that saves the money.
