Complete Guide to Setting Up a Mainland Business in UAE in 2025
In today’s rapidly evolving UAE business landscape, mainland company formation remains one of the most strategic options for entrepreneurs seeking comprehensive market access and growth opportunities. At Maldbury & Co, we’ve guided countless clients through this process, and we’re sharing our expertise to help you navigate the mainland business setup journey with confidence.
What is a Mainland Business in UAE?
A mainland business in the UAE operates under a license issued by the Department of Economic Development (DED) of the respective emirate. Unlike free zone companies, mainland businesses can operate anywhere in the UAE without restrictions and can conduct business directly with the local market without intermediaries
Key Benefits of Establishing a Mainland Business
Unrestricted Market Access
Mainland companies can conduct business throughout the UAE and directly with government entities. This unrestricted access opens doors to lucrative government contracts and tenders that are often unavailable to free zone companies.
Diverse Business Activities
The DED offers licenses covering over 2,000 business activities, giving entrepreneurs flexibility to diversify their operations under a single license
No Restriction on Number of Visas
Unlike some free zones, mainland companies have no predetermined limit on the number of visas they can apply for, allowing for seamless team expansion.
100% Foreign Ownership
Since June 2021, the UAE has permitted 100% foreign ownership for most mainland business activities, eliminating the previous requirement for a local sponsor holding 51% of shares for many sectors.
Enhanced Credibility
Local businesses and government entities often prefer working with mainland companies due to their perceived stability and commitment to the UAE market.
Foreign Ownership in UAE Mainland: What You Need to Know
The UAE’s landmark Commercial Companies Law amendment that took effect on June 1, 2021, revolutionized business setup in the country. Under this reform, foreign entrepreneurs and companies can now enjoy full ownership of their mainland businesses across most sectors.
Activities Eligible for 100% Foreign Ownership
Most business activities now qualify for complete foreign ownership, including:
- Retail and wholesale trading
- Professional services and consultancies
- IT services and technology companies
- Food and beverage establishments (restaurants, cafés, etc.)
- Beauty salons and wellness centers
- Most manufacturing activities
- General trading
Sectors Still Requiring Local Partnership
Despite the liberalization, certain strategic sectors still require Emirati participation:
- Security and Military/Civil Defence
- Insurance
- Education
- Oil & Gas
- Healthcare
- Manpower services
- Land/Real Estate ownership businesses
- Certain activities in the Northern Emirates (like restaurants)
These restrictions ensure UAE national interests in sectors considered vital to national security, cultural identity, or economic sovereignty.
Step-by-Step Process for Mainland Business Setup
- Strategic Planning and Consultation
Before diving into the formation process, we recommend consulting with professional service providers like Maldbury & Co to:
- Define your business objectives
- Identify the optimal legal structure
- Determine appropriate business activities
- Create a realistic budget
- Verify eligibility for 100% ownership
- Trade Name Registration
The first formal step involves reserving a unique trade name with the Department of Economic Development. The name must comply with UAE naming conventions and not infringe on existing trademarks.
- License Selection
Choose the appropriate license category based on your business activities:
- Commercial License: For trading activities and goods-related businesses
- Professional License: For services, consultants, and artisans (these have traditionally enjoyed greater foreign ownership flexibility)
- Industrial License: For manufacturing and production activities
- Local Sponsorship Arrangement (If Required)
If your business activity falls within the sectors still requiring local participation:
- Partner with a UAE national who will hold the legally required percentage of shares
- Consider corporate sponsorship through a UAE-owned company
- Work with professional service providers like Maldbury & Co who can facilitate trusted sponsorship arrangements with clear legal protections
- Location and Tenancy Contract
Secure a physical office space and obtain a tenancy contract, which is mandatory for license approval. Options include:
- Traditional office space
- Business centers with flexible arrangements
- Serviced offices with shared facilities
- Initial Approval and Documentation
Once you’ve secured initial approval, you’ll need to prepare and authenticate various documents:
- For individual shareholders:
- Passport copies
- Emirates ID (for residents)
- No objection certificate from current sponsor (for residents)
- Bank reference letters
- For corporate shareholders:
- Certificate of incorporation
- Memorandum and Articles of Association
- Board resolution approving UAE investment
- Power of Attorney for company representatives
- Memorandum of Association (MOA)
This critical legal document outlines the relationship between shareholders, profit distribution, management structure, and other essential operational details. The MOA must be notarized at the Notary Public in the UAE.
- License Issuance
Submit all documentation to the DED along with payment of license fees. Processing typically takes 3-5 working days, after which you’ll receive your business license.
- Post-License Registrations
After obtaining your license, several additional registrations are required:
- Chamber of Commerce membership
- Ministry of Human Resources & Emiratisation (MOHRE) establishment card
- Federal Tax Authority (FTA) registration for VAT (if applicable)
- Customs code (for importing businesses)
- Industry-specific approvals from relevant regulatory authorities
- Bank Account Setup
With your license in hand, you can proceed to open a corporate bank account. Prepare for a detailed due diligence process from UAE banks, which has become more rigorous in recent years.
Timeline and Cost Considerations
Typical Timeline
From initial consultation to license issuance, the process typically takes 2-4 weeks, depending on the complexity of your business activities and how quickly you can provide the required documentation.
Cost Components
- Trade name reservation: AED 600-1,000
- Initial approval fees: AED 100-300
- License fees: AED 10,000-15,000 (varies by activity and legal structure)
- MOA notarization: AED 2,000-4,000
- Office lease: Varies widely by location (AED 40,000-200,000 annually)
- Local service agent/partner fees (if applicable): Negotiable (typically AED 15,000-50,000 annually)
- Chamber of Commerce: AED 1,000-2,500
- Immigration establishment card: AED 2,000-3,000
- Miscellaneous approvals and attestations: AED 5,000-10,000
Mainland vs. Free Zone: A Strategic Comparison
Aspect | Mainland Company | Free Zone Company |
Foreign Ownership | 100% for most sectors (with exceptions in strategic industries) | 100% foreign ownership |
Market Access | Unrestricted access to UAE market | Restrictions on direct business with UAE market |
Business Scope | Broader options for multiple activities | Limited to activities permitted in the specific free zone |
Government Contracts | Eligible for government tenders | Limited eligibility |
Location | Can operate anywhere in the UAE | Must operate within the designated free zone |
Visa Allocation | Based on office space and capital | Predetermined by package |
Customs Duty | Applicable for imports | Exemption within the free zone |
Success Story: TechSolutions International
When TechSolutions International, a European software development company, approached Maldbury & Co in 2023 for UAE expansion, they were delighted to learn about the 100% ownership option for mainland companies. With our guidance, they established their Dubai mainland operation within 18 days, securing their preferred trade name and commercial license for IT consultancy and software development.
The ability to operate without a local partner streamlined their decision-making processes and allowed them to maintain complete control over their intellectual property. Within six months, they secured contracts with two government entities and expanded their team to 15 professionals. Their mainland presence gave them credibility in the local market that would have been difficult to achieve as a free zone entity.
How Maldbury & Co Can Help
With our extensive experience in UAE mainland business setup, Maldbury & Co offers:
- Expert guidance on activity classification and ownership eligibility
- Comprehensive consultations tailored to your business needs
- Trusted local sponsorship arrangements with legal safeguards (when required)
- Efficient license procurement and document handling
- Full support for post-license requirements and registrations
- Banking relationship facilitation
- Ongoing compliance and renewal services
Getting Started
Ready to establish your mainland business in the UAE? Contact our expert team for a personalized consultation:
- Call: +971502468497
- Email: hello@maldbury.com
- Visit: www.maldbury.com
Our consultants will guide you through every step of the process, ensuring your business is set up efficiently and in full compliance with UAE regulations.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Regulations and procedures may change over time. Please consult with Maldbury & Co professionals for the most current requirements and personalized guidance.