UAE Mainland Business Setup: What You Need to Know

Introduction

Mainland companies in the UAE operate without geographical restrictions. Unlike free zone entities, you can trade anywhere in the seven emirates, bid on government contracts, and work directly with local clients without intermediaries.

Recent regulatory changes now allow 100% foreign ownership in most sectors, eliminating the old requirement for Emirati partners in many industries. This makes mainland registration attractive for businesses needing operational flexibility across the UAE.

This guide covers the real differences between emirates, what each business structure costs, and how to navigate the setup process. You'll understand which emirate fits your business model and what documentation the Department of Economic Development actually requires.

Why Choose Mainland Over Free Zones

Mainland registration provides certain advantages free zones can't match.

Trade Anywhere Without Restrictions

Free zone companies face limitations when operating outside their designated zones. Mainland entities trade freely across all emirates and internationally without geographic constraints or additional licensing.

Compete for Government Contracts

Only mainland companies qualify for government tenders with a valid license. Given the UAE's substantial public sector spending on infrastructure, technology, and services, this access matters for B2G businesses.

100% Foreign Ownership in Most Sectors

Legislative reforms eliminated mandatory Emirati partnership requirements in most commercial activities. You retain full equity and operational control in your business.

Multiple Activities Under One License

Register several business activities under a single mainland license. This lets you diversify across trading, services, or professional consulting without establishing separate legal entities.

No Capital Repatriation Restrictions

Transfer profits and capital freely without bureaucratic obstacles or exchange controls. The UAE imposes no restrictions on currency conversion.

Choosing Your Emirate

Each emirate serves different business needs and budgets.

Dubai Mainland

Dubai combines world-class infrastructure with global connectivity. The emirate suits international trading firms, professional services, retail operations, technology companies, and regional headquarters.

Premium positioning comes with premium costs. Office space, licensing fees, and operational expenses run higher than other emirates, but you gain access to Dubai's extensive business network and international recognition.

Abu Dhabi Mainland

Abu Dhabi targets capital-intensive industries: energy, aerospace, financial services, healthcare, and advanced technology. The emirate provides government incentives and facilitates partnerships with sovereign wealth entities.

Choose Abu Dhabi for large-scale industrial projects, research-driven enterprises, or businesses requiring institutional credibility and government relationships.

Sharjah Mainland

Sharjah balances affordability with proximity to Dubai. Office space costs 30-40% less than Dubai while maintaining access to major transportation routes.

The emirate fits startups, manufacturing operations, educational institutions, and creative businesses where budget matters but access to Dubai's market remains important.

Ajman Mainland

Ajman offers the fastest, most cost-effective setup process. Licensing fees and office space cost significantly less than Dubai or Abu Dhabi, with streamlined registration procedures.

General trading companies, consultancies, and service businesses that don't require premium locations find Ajman attractive for its simplicity and low overhead.

Ras Al Khaimah (RAK) Mainland

RAK has built an industrial base through pro-business policies and reduced costs. The emirate provides targeted incentives for manufacturers and construction companies.

Choose RAK for manufacturing facilities, heavy industrial operations, or construction businesses where lower real estate costs and industrial infrastructure matter more than proximity to Dubai.

Fujairah Mainland

Fujairah's eastern coast location provides direct Arabian Sea access, making it a natural logistics hub. Shipping companies, import-export operations, and maritime services benefit from the port infrastructure.

Umm Al Quwain (UAQ) Mainland

UAQ offers the some of the lowest setup costs in the UAE. Minimal overhead requirements make it suitable for freelancers, and micro-businesses entering the UAE market. UAQ also offers opportunities in sectors related to fishing, hospitality, and general trading.

UAE Mainland Business Structure Options

Your legal structure affects liability, ownership requirements, and operational flexibility.

Limited Liability Company (LLC)

LLCs require minimum two shareholders and limit liability to capital contributions. This structure works for most commercial activities and provides operational flexibility across industries.

Annual costs: 15,000-30,000 AED for licensing (varies by emirate), plus office space and compliance requirements.

Sole Proprietorship

Individual professionals offering specialized services can operate as sole proprietors with complete ownership and control. However, you bear full personal liability for all business debts.

Best for consultants, freelancers, and professional services where you're the primary service provider.

Civil Company

Professional practitioners (consultants, doctors, engineers, lawyers) typically establish civil companies. These usually allow 100% foreign ownership, though some professions require a local service agent.

Branch of Foreign Company

Foreign companies can establish UAE branches to conduct business under the parent company's name. This requires industry-specific approvals and typically involves more complex documentation.

Useful when maintaining your international brand matters more than establishing a separate UAE entity.

Holding Company

Holding companies manage investments, subsidiaries, and assets. This structure optimizes ownership arrangements and facilitates strategic corporate planning for investors with multiple UAE entities or international operations.

What Setup Actually Costs

Costs vary significantly by emirate and business structure.

Dubai LLC Setup:

• Trade license: 15,000-25,000 AED annually

• Office space: 25,000-60,000 AED annually (depends on location)

• Initial approvals: 10,000-15,000 AED

• Visa processing (per visa): 5,000-7,000 AED

• Legal documentation: 5,000-10,000 AED

Total first-year cost (Dubai LLC): 80,000-150,000 AED

Sharjah/Ajman LLC Setup:

• Trade license: 8,000-15,000 AED annually

• Office space: 12,000-30,000 AED annually

• Initial approvals: 5,000-8,000 AED

• Visa processing (per visa): 4,000-6,000 AED

• Legal documentation: 3,000-7,000 AED

Total first-year cost (Sharjah/Ajman LLC): 40,000-80,000 AED

These estimates exclude optional services like PRO support, accounting setup, or specialized licensing requirements for regulated activities.

Current Licensing Requirements

100% Foreign Ownership

Most commercial activities now permit full foreign ownership. You don't need an Emirati partner for standard trading, consulting, or service businesses.

Activities Still Requiring Local Partnership:

Certain sectors still mandate Emirati involvement:

• Specific defense-related activities

• Some healthcare services

• Certain educational activities

• Security services

Always double-check current regulations for your specific activity, as this list evolves with regulatory changes.

Local Service Agent

Some business structures require a local service agent who facilitates government relations without holding equity. Agent fees typically run 3,000-8,000 AED annually.

License Types

The Department of Economic Development issues three main license categories:

• Commercial License: Trading, import/export, general commerce

• Professional License: Consulting, services, expertise-based businesses

• Industrial License: Manufacturing, production, processing activities

Each license permits registration of multiple related activities.

Tax and Compliance

Corporate Tax

The UAE introduced 9% corporate tax on annual profits exceeding 375,000 AED, effective June 2023. Profits below this threshold face 0% tax.

Small businesses and startups often operate below this threshold initially, though growing companies should plan for this expense.

VAT Registration

Businesses with annual revenue exceeding 375,000 AED must register for 5% Value Added Tax. Registration is optional for revenue between 187,500-375,000 AED.

Accounting and Audit Requirements

LLCs must maintain proper accounting records. Companies exceeding certain revenue thresholds require annual audited financial statements. Budget 8,000-20,000 AED annually for accounting and audit services depending on business complexity.

Bring proactive about UAE tax registration is essential to avoid costly fines. It's always recommended to consult an experienced consultant to advise on the process correctly.

The Setup Process

Step 1: Choose Your Activities

Select from over 2,000 registered business activities. You can register multiple activities under one license, but they should relate logically. For example: general trading, import/export, and wholesale distribution fit together.

The Department of Economic Development of the Emirate must approve your activity selection.

Step 2: Reserve Your Business Name

Your business name must be unique, follow UAE naming conventions, and avoid restricted terms. Name approval typically takes 1-2 days.

Restrictions include religious references, names too similar to existing companies, and certain geographic terms without proper authorization.

Step 3: Secure Initial Approvals

Submit your application to the Department of Economic Development in your chosen emirate. Include shareholder details, proposed activities, and business structure.

Some activities require additional approvals from sector-specific regulators (health authority, education authority, etc.). This adds 2-4 weeks to the timeline.

Step 4: Lease Office Space

All mainland companies need a physical office. The tenancy contract serves as proof of business premises during licensing.

Costs vary dramatically by emirate and location:

• Dubai premium areas: 50,000-100,000 AED annually

• Dubai standard locations: 25,000-50,000 AED annually

• Sharjah/Ajman: 12,000-30,000 AED annually

Flexi-desk and shared office options exist but verify they meet DED requirements for your license type.

Step 5: Draft Legal Documents

For LLCs, prepare and notarize the Memorandum of Association defining ownership structure, capital contributions, profit distribution, and management responsibilities.

This document requires notarization through a UAE notary public. Budget 2-3 days for this process.

Step 6: Submit License Application

Compile all documentation and submit your formal trade license application. Processing typically takes 5-10 business days once all documents are complete.

Step 7: Open Corporate Bank Account

UAE banks require trade license, tenancy contract, business plan, and shareholder documentation. Account opening takes 2-4 weeks depending on the bank and your business profile.

Some banks hesitate with brand-new companies or certain nationalities. Working with a business setup advisor who has banking relationships expedites this step.

Step 8: Process Visas

Once licensed, you can sponsor residence visas for shareholders, managers, and employees. Each visa requires medical testing, Emirates ID processing, and residency stamping.

Standard visa processing takes 3-4 weeks. Budget 5,000-7,000 AED per visa including medical, Emirates ID, and typing center fees.

Required Documentation

Prepare these documents before starting the setup process:

For All Shareholders and Managers:

• Passport copy

• Recent passport-size photographs

• No Objection Certificate from current UAE employer (if applicable)

• Proof of address (utility bill or bank statement)

For the Company:

• Completed DED application form

• Memorandum of Association (for LLCs)

• Tenancy contract for office space

• Initial approval certificate from DED

• Activity-specific approvals (if required)

For Foreign Company Branches:

• Board resolution authorizing UAE branch

• Parent company commercial registration

• Audited financial statements (typically last 2 years)

• Bank reference letter

All foreign documents require official attestation through your home country's UAE embassy and the UAE Ministry of Foreign Affairs.

Timeline Expectations

Standard mainland company setup: 4-8 weeks

Week 1-2: Name approval, activity selection, initial DED approvals

Week 2-4: Office lease, legal documentation, sector approvals (if needed)

Week 4-6: License issuance, bank account opening

Week 6-8: Visa processing, Emirates ID, final setup completion

Complex applications requiring multiple sector approvals or foreign company branch documentation can extend to 10-12 weeks.

Common Setup Mistakes

1. Choosing emirate based only on cost: The cheapest option often creates complications. Ajman licensing costs less than Dubai, but if your clients and suppliers operate in Dubai, the commute and perception issues may cost more than you saved.

2. Underestimating office space requirements: Some businesses lease minimal space to meet licensing requirements, then realize they need proper facilities. Moving offices means updating licenses, visas, and banking documentation. Plan for your actual needs.

3. Selecting too many unrelated activities: While you can register multiple activities, choosing unrelated activities (e.g., general trading + legal consulting + restaurant management) raises questions during banking and creates compliance complications.

4. Ignoring visa requirements: Each visa requires salary minimums and proper role justification. Plan your visa needs before setup to ensure your license and office space accommodate your team.

5. Starting without professional guidance: DIY mainland setup is possible but typically takes 2-3x longer and often requires fixing mistakes. The DED doesn't provide detailed guidance on optimal structure or documentation requirements.

Getting It Right

Mainland company setup provides operational freedom free zones can't match, but the process involves more complexity and higher costs than free zone registration.

Your emirate choice, legal structure, and documentation approach affect your costs, timeline, and operational flexibility for years. Most businesses benefit from experienced guidance through the Department of Economic Development requirements, bank account opening, and visa processing.

At Gravity Power Management Consultancies, we handle mainland company setup across all seven emirates. We help you choose the right emirate for your business model, structure your company optimally, and manage the complete setup process from initial approval through visa issuance.

We work directly with DED offices, maintain banking relationships that streamline account opening, and ensure your mainland company launches properly the first time.

Article Written By:

Laura Jihad Berrouan,

Co-Founder / UAE Business Expert

Dubai, United Arab Emirates

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Disclaimer: Thank you for reading our article! This content is for informational purposes only and does not constitute legal, tax, or investment advice. Please consult qualified professionals for guidance specific to your situation.