Mainland Company Formation in UAE

The UAE mainland is a preferred jurisdiction for business setup, allowing companies to operate without restrictions on trade zones or local agents. Businesses registered on the mainland can engage in commercial, industrial, and professional activities across the UAE and internationally. The mainland setup is suitable for startups, SMEs, and large corporations seeking flexibility, access to government contracts, and a strategic location in the region.

Why Choose Mainland Company Formation?


Setting up a mainland business in the UAE comes with distinct advantages:

Mainland Business Locations in the UAE


 The UAE’s seven emirates each offer distinct advantages for mainland company formation. Selecting the right location depends on your business model, sector     focus, and growth objectives. Below is an overview of key jurisdictions and what they offer investors:

Emirate

Description

Best Suited For

Dubai Mainland

Offers a robust legal framework, world-class infrastructure,
and global connectivity.Businesses can trade freely across
the UAE and internationally without location restrictions.

International trading, professional services, retail,
tech startups, and regional headquarters

Abu Dhabi Mainland

Strategic centre for industries like energy, aerospace, financial services,
healthcare, and technology.Offers government incentives and
access to sovereign wealth partnerships.

Large-scale industrial projects, energy sector players,
R&D, and government-aligned ventures

Sharjah Mainland

Combines affordability with a supportive SME ecosystem.
Promotes industrial development with access to Dubai and
Northern Emirates.

Startups, manufacturing units, education,
and creative industries

Ajman Mainland

Streamlined setup process, competitive costs, and proximity
to major ports and airports.Attractive to SMEs.

General trading, consultancies, and
service-oriented businesses

Ras Al Khaimah Mainland (RAK)

Known for its industrial base, pro-investor policies, and lower
lease costs.Provides incentives for manufacturers.

Manufacturing, construction,
and heavy industries

Fujairah Mainland

Located on the UAE’s eastern coast with direct Arabian
Sea access. A logistics and shipping hub.

Logistics, maritime services,
and import/export businesses

Umm Al Quwain Mainland

Offers low-cost setup options and minimal overheads.
Ideal for low-risk ventures and first-time investors.

Freelancers, startups, and micro businesses

 

Types of Mainland Business Structures


When establishing a business on the UAE mainland, selecting the right company structure is crucial. Here are the primary options:

  • Limited Liability Company (LLC): An LLC is the most popular business structure in the UAE, allowing investors to operate across various industries. LLCs require a minimum of two shareholders and offer flexibility in business operations.
  • Sole Proprietorship: Ideal for individuals looking to provide professional services, a sole proprietorship offers complete ownership and control, although the owner is personally liable for business debts.
  • General Partnership: Formed by two or more partners who share equal responsibility and liability for the business.
  • Limited Partnership: Comprises general and limited partners, where general partners manage the business and limited partners contribute capital but have restricted liability.
  • Public Joint Stock Company (PJSC): Suitable for large-scale businesses, a PJSC requires a minimum of five shareholders and offers shares to the public.
  • Private Joint Stock Company (PrJSC): A private entity with at least three shareholders, providing a structured investment approach.
  • Civil Company: Primarily used by professionals such as consultants, doctors, and engineers. Full ownership is allowed, but a local service agent may be required.
  • Branch of a Foreign Company: Foreign companies can establish a branch in the UAE mainland to conduct business without the need for a local partner. However, certain restrictions apply based on the industry.
  • Local Company Branch: A UAE-based company can open a branch to expand its operations within the mainland.
  • GCC Company Branch: Companies from Gulf Cooperation Council (GCC) countries can establish branches in the UAE mainland.
  • Free Zone Company Branch: Free zone companies can set up mainland branches to conduct business outside free zones.
  • Holding Companies: Used to manage assets, subsidiaries, and investments, ensuring structured ownership.

Legal and Regulatory Compliance


Mainland businesses must adhere to UAE regulations, ensuring smooth and legal operations. Key considerations include:

Step-by-Step Guide to Mainland Business Setup


Setting up a business in the UAE mainland involves several key steps:

  1. Choose a Business Activity: A business can have more than one business activity and there are more than 2,000 business activities to choose from in the UAE. Select the appropriate activity that aligns with your business goals and complies with UAE regulations.
  2. Select a Legal Structure: Decide on the company type (LLC, sole proprietorship, etc.) based on your business needs.
  3. Need for Local Sponsorship: For certain business activities, having a local Emirati sponsor or partner is mandatory. They will hold a minority share (51%) in the company.
  4. Reserve a Trade Name: Ensure your business name is unique and compliant with UAE naming regulations.
  5. Developing a Business Plan: A business plan outlining the company’s objectives, target market, financial projections, and growth strategies is essential for obtaining approvals and financial support.
  6. Obtain Initial Approvals: Secure approval from the Department of Economic Development (DED) and other relevant authorities.
  7. Prepare Legal Documents: Draft and notarize the Memorandum of Association (MoA) and other necessary agreements.
  8. Lease an Office Space: Mainland businesses require a physical office to obtain a trade license.
  9. Apply for a Trade License: Submit all required documents to obtain the official business license.
  10. Complete Visa and Bank Formalities: Open a corporate bank account and process employee visas as required.

Documents Required for Setting Up a Mainland Company in the UAE


Setting up a mainland entity in the UAE requires submission of several key documents to the Department of Economic Development (DED). These include:

  • Application Form: A completed DED application form, including details of the shareholders, chosen legal structure, and proposed business activities.
  • Passport Copies: Notarized and authenticated copies of passports for all shareholders and designated managers.
  • No Objection Certificate (NOC): If a shareholder or manager is currently employed in the UAE, a NOC from their existing employer is required.
  • Memorandum of Association (MOA): For LLCs, a notarized MOA outlining the company's capital, ownership structure, business activities, profit-sharing ratio, and management roles.
  • Local Sponsor Agreement: A notarized agreement between the foreign shareholder(s) and the UAE national sponsor, defining responsibilities, ownership terms, and other arrangements.
  • Tenancy Contract: A valid tenancy contract for the company’s physical office address, registered with the Ejari system (for Dubai-based entities).
  • Bank Reference Letter: A reference letter from a bank for each shareholder, confirming their financial standing.

Comprehensive Business Support Services


To help you focus on growth, we offer end-to-end support:

FAQs on Mainland Company Formation

Mainland company formation in the UAE comes with common questions about ownership, licensing, business activities, and setup benefits. It’s important to understand these to ensure a smooth and compliant process.
How long does it take to set up a mainland company in the UAE?
The process typically takes between 7 to 14 days, depending on approvals and documentation.
Can a mainland company be fully owned by a foreign investor?
Yes, many business activities now allow 100% foreign ownership without the need for a local sponsor.
Do I need a physical office for a mainland company?
Yes, a physical office space is mandatory for mainland companies to obtain a trade license.
What is the minimum capital requirement for a mainland business?

The capital requirement varies depending on the business activity and jurisdiction. Many companies do not have a mandatory minimum capital requirement.

Can I open a corporate bank account with a mainland business license?

Yes, mainland companies are eligible to open business accounts with UAE banks, subject to compliance and verification.

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Ilhaam Maniar
Practice Manager