Business Setup in UAE Mainland: Complete Guide (2025)

Introduction

The UAE is an attractive destination for business owners, entrepreneurs, and investors looking to expand their operations. One of the most popular options for company formation is the Business Setup in UAE Mainland.

This comprehensive guide will walk you through the process of UAE Mainland Company Formation, explain the steps to start a Business in UAE Mainland, and highlight the Benefits of Mainland Business in UAE.

What is UAE Mainland?

The UAE Mainland refers to the part of the country outside Free Zones, regulated by the Department of Economic Development (DED). Unlike Free Zone businesses, UAE Mainland Companies can operate throughout the UAE and trade directly with the local market.

This gives them broader access to government contracts, as well as the ability to set up branches across the UAE.

UAE Mainland Company Formation: Overview

To establish a business in the UAE Mainland, entrepreneurs must follow a series of regulatory steps. The UAE government offers a supportive environment for both local and foreign investors, and the process of UAE Mainland Company Formation is relatively straightforward, especially if you are familiar with the legal framework.

To set up your business, you’ll need to:

• Select your business activity
• Choose a company structure
• Secure a trade name approval
• Rent office space (Ejari contract)
• Apply for a trade license
• Register with labor and immigration authorities
• Open a corporate bank account

Steps to Start a Business in UAE Mainland

Starting a business in the UAE Mainland involves several steps. Let’s break down the steps to start a Business in UAE Mainland in more detail:

1. Define Your Business Activity

The first step in your UAE Mainland Company Setup is selecting the business activity you want to engage in. The UAE government categorizes over 2,000 different business activities that you can choose from, such as trading, manufacturing, consultancy, or professional services. Your selected activity will determine your license type (commercial, professional, or industrial).

2. Choose Your Legal Structure

The next step in your Business Setup in UAE Mainland is choosing the legal structure of your company. The most common structures are:

• Limited Liability Company (LLC) — Most popular for commercial activities, where foreign ownership is allowed up to 100% in many sectors.
• Sole Establishment — A single-person business structure typically used for professional services.
• Civil Company — Ideal for professional partnerships, such as lawyers, doctors, and architects.
• Branch of a Foreign Company — For international companies looking to set up a branch in the UAE.

3. Reserve Your Trade Name

Your trade name is an important element of your UAE Mainland Company Formation process. The name must be unique, compliant with UAE naming rules, and aligned with your business activity. It should not contain any offensive language or religious references.

4. Apply for Initial Approval

After reserving your trade name, you must obtain initial approval from the Department of Economic Development (DED). This is a confirmation that the government has no objections to your business idea and is a required step before applying for a trade license.

5. Secure Your Office Location

A physical office space is required for every Mainland Business Setup in UAE. You will need to sign an Ejari contract and register your office with the relevant authorities. The size and type of office depend on your business activity and legal structure.

6. Draft and Notarize the Memorandum of Association (MOA)

If you’re forming an LLC or partnership, you’ll need to draft and notarize a Memorandum of Association (MOA). This document outlines the ownership percentages and responsibilities of each shareholder or partner. It’s essential for your UAE Mainland Company Setup.

7. Obtain Your Trade License

Once all documentation is complete, submit your application to the DED and pay the required fees. Upon approval, you’ll receive your Trade License, which officially permits you to conduct business in the UAE Mainland.

8. Register for Labor and Immigration

In order to hire employees, you’ll need to register with the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA). This will enable you to apply for work visas and labor cards for your employees.

9. Open a Corporate Bank Account

The final step in your Business Ssetup in UAE Mainland is opening a Corporate Bank Account. You will need to present your trade license, office lease agreement, and other company documents to the bank.

Benefits of Mainland Business in UAE

Why choose Mainland Business Setup in UAE over Free Zones or offshore companies? Here are some compelling reasons to go for a UAE Mainland Company Formation:

1. Access to the Local Market

Unlike Free Zone companies, UAE Mainland Businesses have the advantage of operating anywhere in the UAE, including Dubai, Abu Dhabi, and Sharjah. This makes it easier to reach local customers and clients.

2. Government Contracts

Only Mainland Companies are eligible to bid for government tenders, which opens up opportunities for lucrative public sector projects.

3. No Restrictions on Business Activities

With UAE Mainland Company Setup, you have the freedom to choose multiple business activities under a single license. This gives you flexibility in expanding your services without the need for additional licenses.

4. 100% Foreign Ownership (for Specific Sectors)

As of 2021, the UAE government allows 100% foreign ownership in many sectors, allowing international entrepreneurs to own and operate Mainland Businesses without the need for a local sponsor.

5. No Capital Repatriation Restrictions

You are free to repatriate all profits and capital without any restrictions, a key advantage for foreign investors in UAE Mainland Company Formation.

6. Scalability

UAE Mainland businesses enjoy the advantage of easy expansion. Whether you want to open more branches or increase your workforce, the process is relatively straightforward.

Costs of Setting Up a Mainland Business in UAE

The cost of Business Setup in UAE Mainland varies depending on factors such as the type of business activity, office space, and the emirate where you are setting up. Typically, the costs involved include:

• Trade license fees
• Office rent (Ejari)
• Sponsorship fees (if required)
• Notarization of MOA
• Labor and immigration registration fees
• Bank account setup costs

On average, setting up a Mainland Business in the UAE can cost between AED 15,000 to AED 50,000, depending on the complexity of your setup.

FAQs: Mainland Business Setup in UAE

Conclusion:

Business Setup in UAE Mainland offers numerous advantages for entrepreneurs looking to access the local market, engage in government contracts, and expand their businesses. By following the outlined steps for UAE Mainland Company Formation, you can start your business in the UAE with ease and confidence.

If you’re ready to start your UAE Mainland Company Setup, consider partnering with a professional business consultant to streamline the process and ensure compliance with UAE laws.

About G12.ae

G12.ae is a trusted UAE-based business consultancy specializing in Mainland and Free Zone Company Formation. With a reputation for delivering fast, reliable, and customized Business Setup solutions, G12.ae helps entrepreneurs, startups, and global investors successfully establish their businesses in the UAE.