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What does a Business Setup in UAE Mainland Represents?

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.

  • Mainland Company Formation 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 Company Formation: 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.

Types of Licenses for the UAE Mainland

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.

Who Can Start a Business in the UAE Mainland?

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.

Why You Should Pick the UAE Mainland for Your Business?

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.

Documents You Need for UAE Mainland Company Formation

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.

How Much Cost is Charged for Different Company Types?

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.

How to Set Up A Company in the UAE Mainland?

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).

Government Offices for Mainland Company Formation in UAE

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, but our business setup consultants in the UAE Mainland handle these parts for you, making the process much smoother and faster.

How Much Time Does It Take to Register a UAE Mainland Company?

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.

Mistakes to Avoid When Setting Up a Company in the UAE Mainland

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.

Top Sectors for UAE Mainland Business Setup

The UAE Mainland is a very active market, always growing. Industries that particularly thrive here benefit from direct access to a large customer base and strong government support. Here are some of the best and most popular business types:

  • Retail and E-commerce: With many residents and tourists, selling goods through physical shops (malls, streets) and online stores (e-commerce) always does well.
  • Food & Beverage (F&B): Restaurants, cafes, food delivery services, and food supply companies are always in high demand.
  • Professional Services: Businesses that offer expert advice in areas like business management, IT, human resources, marketing, accounting, and legal help are highly needed.
  • Logistics & Transportation: The UAE is a global trade hub with big ports and airports. So, companies involved in shipping, warehousing, delivery, and customs clearance are very successful.
  • Construction & Real Estate: There are always new buildings and projects. So, construction companies, property developers, and real estate agents do well.
  • Healthcare: Clinics, hospitals, special medical centers, and companies that sell medical products are growing fast because of more people and the government’s focus on health.
  • Education: Schools, universities, training centers, and online learning platforms are important for the growing population.
  • Technology & Innovation: New tech companies, software makers, AI solutions, and online security firms find a lot of support and smart customers here.

If your business needs to sell directly to people or other businesses within the UAE, the Mainland is usually the most suitable and most profitable choice.

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Frequently Asked Questions (FAQs)

Q-1. What's the best part of a UAE Mainland Company?
The biggest advantage is freedom. A UAE Mainland Company can sell products or services across all seven emirates, including Dubai, Abu Dhabi, Sharjah, and more. Why this matters: You don’t need special approvals or agents to do business with local companies, the government, or customers in any emirate. This gives your business a wider reach and bigger chances to grow.
Q-2. Can I own all of my UAE Mainland Company?

Earlier, people from outside the UAE needed a local Emirati partner to own a Mainland Business. But now, most business activities allow full ownership by foreigners.
What this means for you: You can have complete control of your company, profits, and decisions, without needing a UAE national as a partner.

Q-3. How much does it cost to start a Mainland Company in the UAE?

Starting a business in the UAE Mainland typically costs between AED 15,000 to AED 35,000 for the first year.

  • Business license
  • Government approvals
  • Registration fees
  • Office rent (Ejari)
  • Visa processing fees

Note: Prices may vary depending on your business activity and the emirate you choose.

Q-4. Do I need a real office for a UAE Mainland Business setup?

All UAE Mainland companies must have a physical office space. You also need to register the office under Ejari, which is the Dubai government’s online system for tenancy contracts.

Why is this important?
Without a registered office, you cannot complete your trade license or apply for employee visas.

Q-5. What is a UAE Mainland License?

A UAE Mainland License is a legal document issued by the Department of Economic Development (DED). It proves your company is registered and can operate legally in the UAE Mainland.

  • Commercial (for trading businesses)
  • Professional (for services)

Industrial (for manufacturing)
Choosing the right license depends on your business activity.

Q-6. How fast can I get a Mainland License in UAE?

Fast Setup in Just 1 to 3 Weeks
Once all your documents are ready, you can get your business license in as little as 7 to 21 days.

  • Missing paperwork
  • Government approvals
  • Choosing a regulated activity

However, with the help of business consultants, you can expedite the process.

Q-7. Do Mainland Companies Pay Taxes?

Yes, Corporate Tax and VAT May Apply

  • If your company makes more than AED 375,000 profit, you must pay 9% corporate tax.
  • If your yearly sales are over AED 375,000, you need to register for VAT and charge 5% on taxable goods and services.

Good to know:

  • Profits below AED 375,000 are tax-free.
  • Some free zone companies enjoy tax benefits, but Mainland companies are fully under UAE tax rules.
Q-8. Which is better, Mainland or Free Zone company in UAE?

It depends on your business goals

  • Choose Mainland if you want to sell directly in the UAE market, open multiple branches, or work with government entities.
  • Choose Free Zone if you want 100% ownership, lower setup costs, and don’t need to operate in the UAE market directly.

Key difference: Mainland companies need a physical office and can trade freely across the UAE. Free Zone companies usually need a distributor or agent to sell on the mainland.

Q-9. Can I sponsor my family with a UAE Mainland company?

Once you get your trade license and investor visa through your Mainland company, you can sponsor your spouse, children, and parents.
Steps include:

  • Getting your residency visa
  • Meeting income requirements (usually AED 4,000–AED 10,000/month)

Submitting the tenancy contract (Ejari), Emirates ID, and other documents
This makes it easy for entrepreneurs to live with their families in the UAE.

Q-10. Do I need a local service agent (LSA) in 2025 for a professional license?

As of 2025, most professional licenses no longer require a Local Service Agent (LSA). Foreigners can now fully own their businesses in many sectors.
However, LSAs may still be needed for:

  • Some regulated or restricted activities
  • Legal or government liaison requirements (rare cases)

An LSA does not own any share in your business; they only help with approvals and paperwork for a fixed annual fee.

Q-11. Is a sponsor necessary for Mainland Companies in the UAE?

Earlier, a local Emirati sponsor was mandatory for most mainland companies. However, with the recent reforms, 100% foreign ownership is now allowed in many business activities (except those of strategic importance). In some regulated sectors, you may still require a UAE national as a service agent or sponsor.

Q-12. How much does mainland company formation cost in the UAE?

The cost depends on factors such as business activity, number of visas required, office space, and approvals from government departments. On average, forming a mainland company in the UAE can cost anywhere between AED 15,000 to AED 35,000. Additional costs may apply for visas, trade licenses, and specific regulatory approvals.

Q-13. How to register a Mainland Company in the UAE?

The process involves:

  1. Choose business activity (as per Department of Economic Development – DED guidelines).

  2. Select a trade name and get it approved.

  3. Determine shareholding structure (foreign ownership or local partner if required).

  4. Obtain initial approval from DED.

  5. Lease office space and get a tenancy contract.

  6. Draft and notarize MOA/LSA (if applicable).

  7. Submit documents & pay fees to obtain the trade license.

  8. Apply for visas and open a bank account.

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