UAE Mainland Business Setup

UAE Mainland specifically refers to the area under the jurisdiction of the Department of Economic Development (DED) in each emirate, outside of Free Zones and Offshore jurisdictions. In short, businesses registered here can operate anywhere in the UAE and internationally, without the geographical restrictions that apply to Free Zone entities.

When you set up a business in the Mainland, you register it with the DED of the specific Emirate, for example, the Dubai DED if you're establishing your company in Dubai. for example, the Dubai Mainland business setup if you're establishing your company in Dubai, or explore Sharjah Mainland business setup if you prefer the capital’s neighboring emirate.

• Mainland Business Setup in UAE​: These businesses can trade and provide services across the UAE without restriction. You’re allowed to open offices, retail outlets, or branches anywhere in the Emirates, offering maximum market access and scalability.
• Free Zone Business Setup: These operate primarily within their designated Free Zone or focus on international markets. To sell directly in the local UAE market, Free Zone companies must go through a local distributor or obtain additional licenses.

Key Advantage: Mainland companies enjoy unrestricted trade across the UAE and can also engage in international business, giving them a broader commercial reach compared to Free Zone entities.

When considering a business setup in the UAE, one of the most important decisions is choosing between a Mainland or a Free Zone company. Each option has unique benefits depending on your business goals.

1. Business Scope & Market Access

• Mainland: Businesses registered on the Mainland can operate anywhere in the UAE and internationally without restrictions. They can sell directly to local customers, bid on government projects, and open multiple branches across the Emirates.

• Free Zone: Companies operating in Free Zones primarily conduct business within the Free Zone itself or internationally. Selling directly in the UAE market usually requires a local distributor or additional licensing.

2. Ownership Rules

• Mainland: Most business activities now allow 100% foreign ownership. Certain strategic sectors may still require a UAE national partner.

• Free Zone: Free Zone companies can generally be fully foreign-owned without a local partner.

3. Licensing & Office Requirements

• Mainland: A physical office is mandatory for all Mainland businesses, and licenses are issued by the Department of Economic Development (DED).

• Free Zone: Free Zone companies may have flexible office options depending on the zone, and licenses are issued by the Free Zone Authority.

4. Tax & VAT Considerations

• Both Mainland and Free Zone companies are subject to UAE VAT (where applicable), but Free Zone companies often have special VAT treatment depending on the zone.

For a more detailed breakdown of all differences, visit our comprehensive guide: Difference Between Freezone and Mainland in the UAE

When you set up on the UAE Mainland, you must obtain a license that defines the specific activities your business is allowed to carry out. There are three main kinds of UAE Mainland License, but there are also many smaller, more specific types under them:

1. Commercial License:

Commercial License is used for buying, selling, importing, and exporting goods (like general trading). This is for businesses that deal with products.

• Examples: A shop selling clothes, a company bringing in electronics from other countries, a supermarket.

2. Professional License:

Professional Licenses are applied to offer services and advice. This is when your skills and knowledge are the main product.

• Examples: Marketing experts, IT helpers, lawyers, accountants, beauty salons, health clinics.

Did You Know: For these licenses, even if you own 100% of your company, you might still need to appoint a Local Service Agent (LSA). The LSA is a UAE national who helps with government paperwork and makes sure rules are followed, but they do not own any part of your company or share in your profits.

3. Industrial License:

Industrial Licenses come in handy while manufacturing products, building, or changing raw materials into new products.

• Examples: A small factory making food, a company putting electronics together, printing services.

It's sometimes possible to combine different activities on one license, but this depends on the DED rules. Our team helps you pick the right license type and activities for your exact business idea.

Almost anyone can start a Mainland Business in the UAE! This includes:

• Entrepreneurs: People with new business ideas, whether they are just starting out or have experience.
• Consultants: Experts who give advice in their field.
• Investors: People who want to put money into a new business and be part of the booming UAE economy.
• Existing Companies: Both local UAE and foreign companies can open a new branch office here to expand their reach.

Most businesses on the UAE Mainland can now be 100% foreign-owned, no local partner needed. This change was introduced under Federal Decree-Law No. 26 of 2020, which amended the UAE Commercial Companies Law.

You get full control over your business and all its profits. Generally, you need to be at least 21 years old to be an owner or manager. Depending on your preferred location, you can start a business in Abu Dhabi Mainland to access government projects, or in Ajman Mainland for a cost-effective and quick setup.

Whether you plan to set up a business in Sharjah mainland or other emirates, choosing the UAE Mainland for your business offers many strong benefits:

• Full Market Access: Your business can sell products and offer services directly to customers and companies anywhere in the UAE. This means you can work with any client, bid on government projects, and open multiple offices or shops across seven Emirates without restrictions. Your market is huge!
• Pick Any Location: You can open your office or shop anywhere in the city you choose (e.g., in a busy shopping mall, a tall office building, or a specific business area). You're not limited to a special zone.
• Work with Government: Mainland Businesses in the UAE can work on big government projects and tenders. This opens up significant and steady business opportunities.
• 100% Foreign Ownership: For most commercial and industrial activities, you can now own 100% of your Mainland company, no local partner required. This allows full control over decisions and profits. However, some strategic sectors (like oil, gas, and defense) still require local ownership.
• More Visas: As your business grows and you rent more office space, you can get more visas for your staff and their families. This helps you build a strong team.
• Flexible Activities: You can easily add more business activities to your license as your company grows or if you want to offer new services.
• Clear & Stable Rules: The rules and laws for Mainland companies are well-known, stable, and transparent across the UAE. This makes it easier to plan and operate your business with confidence.
• Strong Government Support: The UAE government actively supports businesses with new laws and initiatives, making it a very business-friendly place to invest and grow.

These powerful points make Business Setup in Mainland a top choice for serious investors and entrepreneurs looking for a wide market reach and great growth potential.

To ensure a smooth and quick business setup in the UAE Mainland, you will need to prepare several essential documents.

• For You (Owners/Managers/Shareholders):

  • Your original Passport and clear copies (your passport must be valid for at least 6 months).
  • Copy of your UAE Visa page and Emirates ID (if you are already living in the UAE).
  • Recent passport-sized photos with a white background.
  • A copy of your entry stamp or visa (if you are currently in the UAE on a visit or tourist visa).
  • No Objection Certificate (NOC) from your current employer (if you are already employed in the UAE and your new business activity might conflict with your current job, or if the DED asks for it).

• For Companies (if another company is an owner):

  • Official paper showing the parent company's registration.
  • Official papers showing the parent company's rules and how it is set up.
  • A formal decision paper from the parent company's board, saying they agree to open a new company in the UAE and naming who will manage it.
  • An official document that lets someone sign for the parent company in the UAE (Power of Attorney).
  • Passport copies of the main directors/owners of the parent company.

• Other Mandatory Documents:

  • Your chosen company name options (usually 3 names you prefer).
  • Your officially registered rental agreement for your physical office space (Ejari in Dubai) is a must-have for your license.
  • The "Memorandum of Association" (MoA) for LLCs needs to be officially signed and notarized by a Public Notary.

Important Note on Attestation: Documents issued outside the UAE generally need to be officially stamped (attested). This means they must be stamped and legalized by:

1. The Ministry of Foreign Affairs in your home country.
2. The UAE Embassy in your home country.
3. The Ministry of Foreign Affairs in the UAE.

Our team can help you with this important process to make sure your documents are accepted. All information provided must be accurate and truthful.

UAE Mainland Company Set Up Charges can vary depending on your business choices. It’s important to know what’s included. Some common fees are:

• Market Fee: This is usually 5% of your annual office rent and is paid to the local Municipality.
• Chamber of Commerce Fee: This depends on which Emirate you register in and your license type. For example, fees may differ between Dubai (DCCI) and Abu Dhabi (Abu Dhabi Chamber).

These fees are added to your standard licensing and registration costs, so it’s good to factor them in from the start.

• Government and Licensing Fees:

  • This is the biggest part of the initial and yearly costs. It includes fees for:
  • Trade name reservation.
  • Initial approval.
  • The main license fee (this is a yearly cost).
  • Chamber of Commerce fees (all businesses must pay this).
  • Municipality Market Fee (often a percentage of your annual office rent, usually around 5%).
  • Other DED fees for specific activities or extra approvals.

These fees generally range from AED 15,000 to AED 35,000+ for the first year, but can go higher depending on the city, how many business activities you have, and if you need any special approvals.

• Office Space Cost:

  • You must have a physical office with a registered rent document (like Ejari).
  • In Dubai or Abu Dhabi, expect to pay between AED 15,000 to AED 50,000 per year for small to mid-sized spaces.
  • In smaller Emirates like Ajman or Umm Al Quwain, office rents can start from around AED 8,000 to AED 15,000 per year.

• Visa Costs:

  • Each visa (for owners/investors or employees) has a fee for the application, medical tests, and an Emirates ID card.
  • An investor/partner visa might cost around AED 4,000 - AED 7,000 per person for a 2-year visa. Employee visas have similar costs per person.

• Other Important Fees:

  • Legal translations and official stamping of your documents (especially for papers from other countries).
  • Local Service Agent fees (if required for your business type, common for professional licenses).
  • Bank account opening fees (some banks might charge a small fee for setting up).
  • Mandatory Audit Fees: Most Mainland LLCs must have a yearly financial check (audit) done by an approved auditor. This is a recurring yearly cost, usually from AED 5,000 to AED 20,000+, depending on your business size.

These are starting ideas for the first year. Renewal costs are often similar to the initial government fees each year.

Starting a Mainland Company  in the UAE involves several clear steps. Safe Ledger makes this process smooth and easy for you, handling most of the paperwork.

1. Choose Your Business Job: Decide exactly what your company will do (e.g., selling goods, giving advice, building). This is the first and most important step, as it determines your license type and any special government approvals needed. We can help you check if your activity allows 100% foreign ownership.
2. Pick Your Company Type: Most choose a Limited Liability Company (LLC) for personal asset protection. A Sole Proprietorship is allowed only for GCC nationals in commercial activities. Expats can open one only for professional activities, and must appoint a Local Service Agent (LSA). Branch Offices are for existing foreign companies.
3. Name Your Company: Choose a unique name and get it approved by the DED. Remember, names cannot be offensive, cannot refer solely to religion, and must follow UAE rules (e.g., no short forms without full name).
4. Obtain Initial Approval: Secure initial approval from the Department of Economic Development (DED), indicating that your proposed business activity and legal structure are acceptable. This step is typically swift and often includes a document confirming your trade name reservation.
5. Prepare Legal Papers: Write important papers like the "Memorandum of Association" (MoA) for LLCs. This document explains how your company will work, who the owners are, their shares, and their responsibilities. It needs to be officially signed.
6. Find an Office: A physical office is mandatory for Mainland company setup in uae. You must obtain a valid tenancy contract for the space. In Dubai, this agreement must be registered through the Ejari system. Other Emirates may have different office registration requirements. P.O. boxes are not accepted; your office must be a real, functional space, ranging from small serviced offices to larger traditional setups.
7. Obtain Additional Approvals: Some businesses (like healthcare, education, or financial services) need extra 'okay's from other specific government bodies (like the Ministry of Health or Ministry of Education) before the DED gives the final license.
8. Pay Money & Get License: Pay all the required government fees to complete your company registration. Once the payment is done, you’ll receive your official UAE Mainland License. The full cost details are explained in the section “How Much Do Different Company Types Cost?”
9. Register Your Brand (Trademark Protection): After obtaining your license, it’s highly recommended to register your brand name and logo as a trademark. This is done through the Ministry of Economy, not the DED. Trademark registration ensures your brand is legally protected across the UAE and prevents others from using it without your permission.
10. Open Bank Account: Set up a corporate bank account in a UAE bank. This is a critical step for your business’ money. Be ready for the bank to ask many questions about your business, as they follow strict rules. This step can sometimes take time.
11.  Apply for Visas: Once your company is licensed, you can apply for residence visas for yourself (investor visa), your partners, and your employees (employment visa).

When you are planning to mainland company setup in UAE, you'll interact with several main government offices, each with its own rules. Our consultants make these interactions simple for you:

• Department of Economic Development (DED): This is the primary licensing authority in each Emirate (e.g., DED). They are responsible for:
  • Giving out your trade license.
  • Approving what your business does and its legal type.
  • Registering your company name.
  • Making sure businesses follow local trade rules.
• Land Department / Other Local Municipalities: These offices handle:
  • Registering your office rent paper (Ejari in Dubai is a must).
  • Making sure your office meets local safety and planning rules.
• Ministry of Human Resources & Emiratisation (MOHRE): This is the federal office for all worker-related matters. They:
  • Handle labor laws and rules for workers.
  • Give out work permits and labor cards for your staff.
  • Make sure salaries are paid correctly through a system called WPS.
• Federal Authority for Identity, Citizenship, Customs & Port Security (ICP): This office is in charge of all residency matters. They handle:
  • Giving out entry permits for new residents.
  • Processing living visas for owners, partners, and employees.
  • Giving out Emirates IDs, which are like your main ID card in the UAE.
• Federal Tax Authority (FTA): The FTA handles all tax matters. They are in charge of:
  • Registering companies for Corporate Tax and VAT (sales tax).
  • Making sure tax laws are followed and doing tax checks.
• Other Special Offices: For certain business jobs, you might need extra 'okays' from other government groups. For example:
  • Dubai Health Authority (DHA) for medical clinics.
  • Knowledge and Human Development Authority (KHDA) for schools.
  • Securities and Commodities Authority (SCA) for financial investment services.

Dealing with all these different offices can be tricky and confusing, especially when considering taxation. Our consultants help navigate VAT implications for your business, whether it's a Mainland company or a Free Zone entity. Learn more about VAT for Free Zone companies in the UAE

The time it takes to get your mainland license in the UAE usually ranges from 1 to 3 weeks. This timeframe depends on a few things:

• How fast you provide all your papers: Having everything ready and correct from day one speeds things up a lot.
• The type of business activity: Some activities (like health, education, or finance) need extra approvals from other government ministries, which can add more time to the process.
• The Emirate you choose: Some DED offices might process applications faster than others.
• Trade Name Approval & MoA Signing: These initial steps can take a few days each.

After the trade license is issued, the entire process, including getting visas for owners and employees, will add another 2-4 weeks. This includes medical tests and getting the Emirates ID card.

Total Setup Time: Approximately 4 to 7 weeks to become fully operational.

While business setup in the mainland is smooth with expert help, new businesses can make some common mistakes:

• Wrong Business Activity: Picking an activity that doesn't exactly match your goals can cause major legal and operational problems later. Always be specific.
• Not Enough Money: Underestimating the total UAE Mainland LLC cost. Remember to plan for license fees, office rent, visa costs, and yearly renewals.
• Ignoring Regulatory Rules: Not understanding or following the specific rules of the DED and other government offices in your chosen Emirate can lead to fines or delays.
• No Proper Office: You must have a real, physical office with a proper, registered rent paper (Ejari). A P.O. box is not enough.
• Not Verifying Company Name: Not ensuring your chosen company name is available and follows all DED naming rules before starting applications can cause delays.
• Missing Approvals: For certain regulated activities (like medical, education, and financial services), failing to get all necessary extra approvals from relevant ministries before applying for the final license.
• Not Doing Enough Market Research: Starting a business without fully understanding what customers need or who your competitors are.
• No Expert Guidance: Trying to do everything alone can lead to costly delays, mistakes, and fines due to the complex procedures and changing regulations.

Common Problems for Setting New Businesses in the UAE Mainland

While Business Setup in Mainland offers many good points, new businesses might face some common challenges, especially if they are not prepared.

• Higher Starting Costs: Compared to some Free Zones, setting up on the Mainland can cost more capital at the beginning, especially because you must have a physical office and pay certain government fees. Costs are generally higher in big cities like Dubai and Abu Dhabi.
• More Rules to Follow: There are more government offices involved and more rules to keep up with (like new tax laws, worker rules, and economic substance rules). This can be complex if you don't have expert help.
• Finding a Good Office: It can take time and effort to find a good, physical office space that fits the DED rules and your budget, especially in busy areas.
• Bank Account Delays: While setting up a bank account is key, it can sometimes take longer than expected because banks have very strict checks on new companies.
• Market Competition: The UAE Mainland is a busy market with many established businesses. New businesses need a very strong and unique idea to stand out and attract customers.
• Payment Times: In some business areas, especially for services or big projects, getting paid by customers can take a long time. New businesses need to plan their money carefully to make sure they have enough cash.

Our experienced business setup consultants in the UAE Mainland guide you through potential challenges and ensure a smooth setup process. Contact Safe Ledger today to get expert assistance and start your business with confidence.