Complete Guide to Dubai Mainland Company Setup
Key Facts about setting a company in Dubai Free Zone
Setup from
5,555 AED
Registration from
5 DAYS
Bank Account
GUARANTEED
Residence Visas for
2 YEARS
Table of Contents
A Mainland company in the UAE refers to a business entity that is registered and licensed by the Department of Economic Development (DED) of the respective emirate. These companies are allowed to operate anywhere across the UAE, including onshore markets, free zones, and internationally.
Unlike Free Zone companies, which are restricted to doing business within their respective zones or internationally (unless a local distributor is used), Mainland businesses have no such restrictions.
This makes them a preferred choice for entrepreneurs and investors looking to tap into the broader UAE economy.
Mainland companies can engage in a wide range of commercial, professional, and industrial activities, and depending on the nature of the business, may require approvals from sector-specific regulatory authorities such as Dubai Municipality, KHDA, DHA, or Civil Defense.
Advantages of UAE Mainland Company Formation
Access to the Entire UAE Market
A mainland company allows you to operate freely across all emirates without restrictions. You are not limited to a specific free zone and can trade directly with local and international markets, giving your business greater flexibility and reach.
Eligibility for Government Contracts
Mainland companies can participate in lucrative government tenders and contracts that are not always open to free zone entities. This access opens doors to stable, large-scale projects and long-term partnerships with government bodies.
Unlimited Visa Quotas
Unlike free zones that impose limits on the number of visas, a mainland company can sponsor an unlimited number of employee visas based on the size of your office space, making it easier to expand your workforce as your business grows.
Potential for 100% Foreign Ownership
Recent legal reforms in the UAE allow certain business activities under a mainland license to be fully owned by foreign investors, removing the need for a local sponsor in many cases and giving entrepreneurs greater control over their company.
Freedom of Location
We handle it all – so you don’t have to.
Company Structures You Can Register in the UAE Mainland
The Complete Summary:
Structure | Ideal For | Ownership | Local Agent Needed | Commercial Activities Allowed | Notes |
Limited Liability Company (LLC) | Trading, services, contracting, retail | 1–50 shareholders; foreign ownership allowed | No (in most cases) | ✅ Yes | Most popular choice |
Sole Establishment | Individual professionals or freelancers | 100% foreign ownership (with agent) | ✅ Yes | ✅ Yes | For single-owner businesses |
Civil Company | Multi-partner professional services | 100% foreign ownership allowed | ✅ Yes | ✅ Yes | Requires same-field partners |
Branch of Foreign Company | International firms entering UAE market | 100% parent company owned | ✅ Yes | ✅ Yes (same as parent activity) | Cannot carry out new activities |
Representative Office | Marketing and promotion only | 100% parent company owned | ✅ Yes | ❌ No (promotion only) | No commercial income allowed |
Private Joint Stock Company (PJSC) | Large private businesses with investors | At least 2 shareholders | ❌ No | ✅ Yes | Min. capital AED 5 million |
Public Joint Stock Company | Large corporations seeking public listing | At least 5 founders | ❌ No | ✅ Yes | Min. capital AED 30 million |
Want to know more?
Get a free consultation with our experts today.
Types of Licenses Available for Mainland Companies
Understanding the right license type is essential for your business success in the UAE. Each license category serves specific business activities and comes with distinct regulations, permissions, and operational scope to match your company’s needs.
1. Commercial License
This license is issued for businesses involved in trading or commercial activities, such as buying and selling goods, retail, wholesale, import/export, and logistics.
Examples:
- General trading
- Auto parts trading
- Electronics import/export
- Real estate brokerage
Note: A commercial license may allow you to operate multiple related trading activities under one license.
2. Professional License
Issued to individuals or companies offering professional, service-based, or consultancy activities. This license is ideal for skilled professionals, freelancers, and specialists.
Examples:
- IT consultancy
- Marketing services
- Legal or accounting firms
- Design studios
- Management consultancy
Ownership: Can be 100% foreign-owned for many activities. A local UAE national is required as a local service agent(not a shareholder) if 100% owned.
3. Industrial License
This license is for companies engaged in manufacturing, production, or industrial activities. It requires a physical warehouse or production facility and approvals from the Ministry of Industry and Advanced Technology.
Examples:
- Food and beverage manufacturing
- Furniture production
- Textile or garments manufacturing
- Metal fabrication
Note: Additional approvals from civil defense and environmental agencies may be required.
4. Tourism License
Required for businesses that operate in the tourism, travel, or hospitality industry. This license is issued in coordination with the Department of Tourism and Commerce Marketing (DTCM) or similar tourism authorities.
Examples:
- Travel agencies
- Tour operators
- Hotel or resort management
- Cruise and desert safari services
5. Agricultural License
Granted to businesses involved in farming, cultivation, or raising livestock. This license is less common but available through DED with approvals from the Ministry of Climate Change and Environment.
Examples:
- Organic farming
- Livestock breeding
- Fish farming
6. Crafts or Artisan License
This covers businesses involved in manual, skilled work or homegrown products such as pottery, tailoring, or traditional handmade crafts.
Examples:
- Tailoring services
- Embroidery and textile craft
- Pottery or woodworking
Step-by-Step Process to Set Up a Mainland Business in the UAE
Step 1: Choose Your Business Activity
Select the exact business activity from the Department of Economic Development (DED) approved list.
The activity will determine the type of license (Commercial, Professional, Industrial, etc.). Some activities may require external approvals from other departments (e.g., Municipality, Health Authority, Tourism, etc.).
Step 2: Decide the Legal Structure
Choose the appropriate legal form (e.g., LLC, Sole Establishment, Civil Company, Branch, etc.).
This affects ownership, liability, visa eligibility, and setup requirements. Foreign ownership is now allowed up to 100% for many activities under UAE law.
Step 3: Reserve a Trade Name
Submit 3 preferred trade names to DED that align with naming guidelines:
- Must not include religious terms or offensive language
- Should reflect your business activity
- Must not be already registered
Once approved, you’ll receive a Trade Name Reservation Certificate
Step 4: Apply for Initial Approval
Submit a request to DED for initial approval of your business setup. This means the government has no objection to your business.
At this stage, you can also apply for external approvals if required. You’ll receive an Initial Approval Certificate valid for 6 months.
Step 5: Secure Office Space and Tenancy Contract (Ejari)
Mainland businesses are required to have a physical office or commercial space.
Sign a tenancy contract and register it under Ejari (for Dubai) or the equivalent in other emirates. The office size must align with the number of visas you plan to apply for.
Step 6: Draft & Notarize the MOA or LSA Agreement
Prepare the Memorandum of Association (MOA) or Local Service Agent (LSA) agreement based on your legal structure.
The MOA outlines ownership distribution, management roles, and capital contributions. Get it signed and notarized at a UAE public notary or registered service center.
Step 7: Final Submission and License Issuance
Submit all final documents to DED:
- Trade name certificate
- Initial approval
- MOA/LSA
- Ejari (tenancy contract)
- Passport copies of shareholders/partners
- External approvals (if applicable)
Pay the applicable license fee and government charges as required. Receive your Mainland Trade License and registration certificate.
Documents Required
Document Type | Description |
Passport copies | All shareholders and managers |
Emirates ID and residence visa | For UAE residents |
Trade name reservation certificate | From DED |
Initial approval certificate | From DED |
Tenancy contract and Ejari certificate | Proof of office space |
Memorandum of Association (MOA) | Or Local Service Agent (LSA) agreement |
No Objection Certificate (NOC) | From current sponsor (if applicable) |
External approvals | For regulated activities (health, education, tourism) |
Parent company documents | For branches or representative offices |
Additional documents | As per activity (qualifications, business plan) |
Tips for Smooth Business Setup in the UAE Mainland
- Choose the Right Business Activity and Ownership Structure: Select your business activity from the approved DED list and confirm ownership rules, as 100% foreign ownership is allowed for most activities.
- Work with Experienced Consultants: Use reputable business consultants or PRO services to ensure compliance, save time, and prepare all required documents correctly.
- Secure Proper Office Space: Choose a physical office that meets minimum size requirements for visa eligibility in a DED-approved location.
- Plan for External Approvals: Check if your business activity requires additional permissions from authorities like Dubai Municipality, KHDA, or DHA to avoid delays.
- Open Corporate Bank Account Early: Start the business bank account process immediately after license issuance, as compliance checks can take time.
- Stay Compliant with Renewals and Regulations: Monitor license renewal deadlines, maintain VAT and tax compliance, and stay updated on labor and immigration rules.
Conclusion
Setting up a mainland business in the UAE offers unmatched flexibility and market access for entrepreneurs and investors. With 100% foreign ownership now permitted in most sectors, simplified processes, and access to the entire UAE market, mainland formation presents significant opportunities for growth.
By choosing the right business structure, preparing complete documentation, and working with experienced consultants, you can establish your business smoothly. The UAE’s strategic location, world-class infrastructure, and business-friendly policies make it an ideal destination for your next venture.
Other Blogs
Get Expert Advice
Got a Question? Our expert is ready to Answer and Help!
We will contact you under 1 Minute to analyze your case, provide solutions, and calculate costs.
Get an Expert Support
Fill in your contact details, and we’ll get back to you soon
Frequently Asked Questions
Is A Physical Office Required For Mainland Setup?
Yes, mainland companies must have a physical office with a valid Ejari registration. Virtual offices or shared workspace arrangements are not permitted for mainland business setups.
Are There Any Minimum Capital Requirements?
Most business activities don’t have fixed minimum capital requirements. However, you must specify your capital amount in the Memorandum of Association during registration.
Can Mainland Companies Sponsor Employee Visas?
Yes, mainland companies can sponsor visas for both investors and employees. The number of visas allowed depends on your office space size and type of business activity.
What Legal Structures Are Common For Mainland Companies?
Popular structures include Limited Liability Company (LLC), Professional Services Company, Sole Establishment, and Civil Company. Each structure has different ownership rules and liability requirements.