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.