Setting Up Mainland Company in UAE: A Complete Guide for Entrepreneurs

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The UAE has emerged as one of the world’s most attractive destinations for business owners, startups, and global enterprises. With its strategic location, tax-friendly policies, and pro-business ecosystem, entrepreneurs are increasingly choosing the UAE to establish their ventures. Among the available options, setting up mainland company in UAE is one of the most preferred choices for businesses looking for flexibility, scalability, and unrestricted market access.

This guide will walk you through everything you need to know about setting up mainland company in UAE, including benefits, procedures, costs, legal requirements, and frequently asked questions.

What Is a Mainland Company in the UAE?

A mainland company is a business entity licensed by the Department of Economic Development (DED) of the respective emirate. Unlike free zone companies, mainland businesses can operate anywhere in the UAE and internationally without restrictions.

Setting up mainland company in UAE allows you to trade directly with the local market, bid for government contracts, open multiple branches, and scale operations without geographical limitations.

Why Choose Setting Up Mainland Company in UAE?

Choosing setting up mainland company in UAE offers several competitive advantages:

1. Unrestricted Business Activities

Mainland companies can conduct business anywhere in the UAE and globally without limitations.

2. Access to Government Contracts

Only mainland companies are eligible to participate in UAE government tenders and large public-sector projects.

3. No Limit on Office Location

You can open offices anywhere across the UAE, including prime commercial locations.

4. 100% Foreign Ownership (Selected Activities)

Recent reforms allow 100% foreign ownership for many professional and commercial activities, eliminating the need for a local sponsor in several sectors.

5. Easy Business Expansion

With setting up mainland company in UAE, you can open branches across multiple emirates without creating a new legal entity.

Types of Mainland Business Licenses in UAE

Before setting up mainland company in UAE, you must choose the right license based on your activity:

Commercial License

For trading, import/export, retail, and general commercial activities.

Professional License

For service-based businesses such as consulting, IT services, marketing, education, and healthcare.

Industrial License

For manufacturing, production, and industrial activities.

Selecting the correct license is critical for smooth approvals and future scalability.

Step-by-Step Process for Setting Up Mainland Company in UAE

Step 1: Choose Your Business Activity

Your activity determines the type of license, approvals, and legal structure required.

Step 2: Select Legal Structure

Common options include:

Sole Establishment
Limited Liability Company (LLC)
Civil Company
Branch Office

Step 3: Reserve Trade Name

Your company name must comply with UAE naming regulations and be approved by the DED.

Step 4: Obtain Initial Approval

This approval confirms that the UAE government has no objection to your business setup.

Step 5: Prepare MOA & LSA (If Required)

Draft the Memorandum of Association and Local Service Agent agreement (for professional licenses).

Step 6: Office Space & Ejari Registration

A physical office address is mandatory for setting up mainland company in UAE.

Step 7: Final License Issuance

Once documents are submitted and fees are paid, your mainland license is issued.

Cost of Setting Up Mainland Company in UAE

The cost of setting up mainland company in UAE varies depending on:

Business activity
License type
Office size
Number of visas
Emirate of registration

On average, mainland company setup costs can range from AED 15,000 to AED 40,000, excluding visa and office rental expenses.

Mainland Company vs Free Zone Company

Feature	Mainland Company	Free Zone Company
Local UAE Market Access	Yes	Limited
Government Contracts	Yes	No
Office Location	Anywhere in UAE	Free zone only
Business Expansion	Easy	Restricted
Customs Duty	Applicable	Exempt (within free zone)

For businesses targeting the UAE local market, setting up mainland company in UAE is the superior choice.

Compliance & Legal Requirements

After setting up mainland company in UAE, businesses must comply with:

Annual license renewal
VAT registration (if applicable)
Corporate tax compliance
Proper accounting and auditing
Employee visa and labor law compliance

Professional business setup consultants like SetupMate can help ensure smooth compliance.

Why Choose SetupMate for Mainland Company Formation?

SetupMate simplifies setting up mainland company in UAE by offering:

End-to-end business setup support
Expert consultation on licenses and ownership
Fast approvals and documentation
Transparent pricing with no hidden costs
Post-setup support (visas, banking, compliance)

With expert guidance, you can focus on growth while professionals handle the paperwork.

FAQs – Most Asked Questions

1. What is the minimum capital required for setting up mainland company in UAE?

There is no fixed minimum capital requirement for most mainland companies. The required capital depends on the business activity and legal structure, but many licenses can be issued without depositing share capital.

2. Can a foreigner fully own a mainland company in UAE?

Yes, for many business activities, 100% foreign ownership is allowed. However, some strategic sectors may still require local participation.

3. How long does it take to set up a mainland company in UAE?

The process typically takes 7–14 working days, provided all documents are complete and approvals are obtained on time.

4. Is a physical office mandatory for mainland company formation?

Yes, having a registered physical office space is mandatory when setting up mainland company in UAE.

5. Can I apply for visas under a mainland company?

Yes, mainland companies can apply for multiple employee and investor visas based on office size and business requirements.

Conclusion

Setting up mainland company in UAE is a powerful step for entrepreneurs who want unrestricted access to the local market, long-term scalability, and business credibility. With flexible ownership laws, strong government support, and a thriving economy, the UAE remains one of the best destinations for business formation.

By partnering with experts like SetupMate, you ensure a smooth, compliant, and hassle-free company formation journey—allowing you to focus on what matters most: growing your business.

If you’re planning setting up mainland company in UAE, now is the perfect time to take action.

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