BUSINESS SETUP IN UAE MAINLAND: THE ULTIMATE GUIDE FOR ENTREPRENEURS

Business Setup in UAE Mainland: The Ultimate Guide for Entrepreneurs

Business Setup in UAE Mainland: The Ultimate Guide for Entrepreneurs

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Setting up a business in the United Arab Emirates has become a top choice for entrepreneurs and investors from around the globe. With its strategic location, world-class infrastructure, and investor-friendly policies, the UAE offers numerous options for company formation. Among these, business setup in UAE mainland stands out as a powerful opportunity for those who want to access the full local market and expand internationally.


In this guide, we’ll cover everything you need to know about business setup in UAE mainland — from benefits and procedures to license types and cost considerations.






What is UAE Mainland?


UAE mainland refers to the geographical area outside of the country’s free zones. Businesses established in the mainland are licensed by the Department of Economic Development (DED) of the respective emirate (e.g., Dubai, Abu Dhabi, Sharjah). These companies can operate freely across the UAE and even do business with the government, unlike freezone companies which have limitations on where they can trade.






Benefits of Business Setup in UAE Mainland


Choosing business setup in UAE mainland offers a range of advantages for entrepreneurs seeking flexibility, access, and long-term growth potential:



1. No Trade Restrictions Within the UAE


Mainland companies can operate in any part of the UAE, including the local market, which is not allowed for most freezone companies without an agent.



2. Ability to Work With Government Entities


Only mainland companies can apply for government contracts and tenders, which opens up significant business opportunities.



3. No Currency Restrictions


Mainland businesses can transact in multiple currencies without restrictions, making international trade and banking smoother.



4. Strategic Office Locations


You can set up your office anywhere in the UAE — in high-profile business districts, city centers, or industrial zones — depending on your needs.



5. Unlimited Business Activities


Mainland licenses allow you to choose from a wide range of business activities, and you can often combine multiple activities under one license.



6. Visa Eligibility and Flexibility


Mainland companies are eligible to sponsor employee visas based on office size, and there is no upper cap on the number of visas (unlike freezones).






Key Changes: 100% Foreign Ownership Now Permitted


In a game-changing reform, the UAE now allows 100% foreign ownership of mainland businesses in most sectors. Previously, foreign investors were required to have a local Emirati sponsor owning 51% of the company. With this restriction lifted for many commercial and industrial activities, business setup in UAE mainland has become even more attractive and accessible.






Steps for Business Setup in UAE Mainland


The process of setting up a mainland company is straightforward, especially with the help of a business setup consultant. Here’s an overview of the typical steps:



Step 1: Define Your Business Activity


Choose your business activity from the list approved by the DED. The type of activity will determine the kind of license you need.



Step 2: Choose a Legal Structure


Common mainland company structures include:





  • Limited Liability Company (LLC)




  • Sole Establishment




  • Civil Company




  • Branch Office




An LLC is the most popular form, especially for trading and general commercial activities.



Step 3: Reserve a Trade Name


Your trade name must reflect your business activity and comply with UAE naming guidelines. It should not contain offensive or religious terms.



Step 4: Apply for Initial Approval


The DED will issue an initial approval certificate, allowing you to proceed with other legal formalities like drafting documents and renting office space.



Step 5: Draft and Notarize MOA (Memorandum of Association)


This document outlines the roles, responsibilities, and ownership distribution between shareholders and must be notarized in the UAE.



Step 6: Lease Office Space


A physical office address is mandatory for mainland businesses. Choose a location that meets the required office space standards copyright quotas.



Step 7: Submit Documents and Pay Fees


Once all documents are ready and fees are paid, the DED will issue your mainland business license.



Step 8: Apply for Visas and Corporate Bank Account


You can now apply for residence visas for yourself and your employees and open a corporate bank account.






Types of Licenses for Mainland Companies


When pursuing business setup in UAE mainland, you’ll need to apply for a license based on your chosen activity:





  • Commercial License – For trading and retail businesses




  • Professional License – For service providers, consultants, and specialists




  • Industrial License – For manufacturing and production businesses




  • Tourism License – For travel, hospitality, and tourism-related services




Each license type comes with its own documentation and regulatory requirements.






Costs Involved in Mainland Business Setup


The cost of business setup in UAE mainland varies based on several factors:





  • Type of business activity




  • Number of shareholders




  • Office location and size




  • Visa quotas and sponsorship requirements




On average, setting up a mainland company can range between AED 15,000 to AED 40,000, excluding office rent and visa fees. It’s advisable to work with a licensed consultant to get a clear and customized estimate.






Choosing the Right Emirate for Setup


While Dubai remains the most popular choice due to its global reputation and infrastructure, other emirates such as Abu Dhabi, Sharjah, and Ajman also offer great opportunities with lower setup costs. Each emirate has its own DED and unique advantages, depending on your industry and target market.






Final Thoughts


Business setup in UAE mainland is an ideal route for entrepreneurs who want maximum market access, operational flexibility, and the ability to scale across the UAE and beyond. With recent legal reforms, especially the introduction of 100% foreign ownership in many sectors, starting a mainland company has never been easier or more rewarding.


Whether you're launching a startup, expanding an existing business, or exploring new markets, a mainland setup can serve as a strong foundation for success in the UAE and the broader Middle East region.


To ensure a smooth, compliant, and cost-effective setup process, consider working with a trusted business consultancy that understands UAE laws, licensing procedures, and market dynamics.


Take the next step and launch your UAE mainland business with confidence.

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