Starting a mainland company in the UAE changes what your business can access.
The local market. Government contracts. Every emirate. No boundaries.
Thanks to Federal Decree-Law No. 26 of 2020 and Commercial Companies Law No. 32 of 2021, most business activities now allow 100% foreign ownership. No local sponsor. No silent partner. This applies to non-strategic sectors such as retail, technology, and consulting.
Some sectors remain protected: Banking, Telecommunications, and Defence. These activities still require at least 51% UAE national ownership.
This guide is prepared by The UAEGate’s legal team. It breaks down mainland company formation in clear steps. The information shared here is based on official UAE government portals, including u.ae, the Basher platform, and emirate-specific Department of Economic Development sites.
This Guide Covers:
- Why a mainland company setup works for serious businesses
- Step-by-step mainland company formation process
- Documents you actually need. Nothing extra
- Estimated setup costs for 2026
- Mainland company taxation explained simply
- Common mistakes founders make when applying alone
- Ongoing compliance you cannot ignore
Why Choose a Mainland Company Setup in the UAE?
Mainland company setup in the UAE suits businesses aiming for local trading without restrictions. Unlike free zones, mainland entities can sell directly to UAE consumers and bid on public tenders.
Key advantages include scalability through branches and full visa quotas based on office size. Drawbacks involve mandatory physical offices and compliance with Emiratisation rules.
Step-by-Step Guide to Mainland Company Formation in the UAE
The approach shared below is taken from the official UAE government portal, u.ae. This keeps the information accurate and up to date. The entire process consists of 10 steps and is managed by the Department of Economic Development in each emirate. It follows both federal and local rules.
Step 1: Establishing a Business Online
You can set up a business online through the Basher platform. It is an integrated digital service for company registration. Eligible investors can complete the process in as little as 15 minutes. The platform connects federal and local authorities for commercial licence issuance.
In Abu Dhabi, the Department of Economic Development Abu Dhabi provides an instant licence service. This allows investors to obtain a commercial licence online. There is no need to visit a service centre.
Step 2: Starting a Business Through Conventional Methods
The traditional setup process follows these steps:
- Decide your business activity
• Choose a legal structure
• Register the trade name
• Get initial approval
• Prepare the Memorandum of Association and local service agent agreement, if required
• Finalise the business location
• Secure any additional approvals
• Submit documents and pay the fees
Step 3: Identify Your Business Activity
Review the UAE’s activity list on DED websites or u.ae. Select from categories like commercial (trading), professional (services), and industrial (manufacturing).
Specify sub-activities (e.g., “software development” under IT); check for restricted activities needing ministry nods, like food trading requiring Ministry of Climate Change and Environment approval.
In Dubai, over 2,000 activities are available; Abu Dhabi lists similar via ADDED portal.
Step 4: Select Legal Structure
The legal form depends on your business needs. It also determines which laws and regulations apply to your company. In the UAE, investors can choose from the following legal structures:
- General partnership
• Limited partnership
• Limited liability company (LLC)
• Public joint stock company (PJSC)
• Private joint stock company (PrJSC)
• Civil company
• Local company branch
• GCC company branch
• Foreign company branch
• Free zone company branch
• Sole establishment
• Holding company
Note: The chosen legal form must align with the approved business activity.
Step 5: Reserve Trade Name
You apply through the relevant DED, either online or through the official mobile app. This is where your trade name is reviewed. It should match what your business does and how it is structured.
Start with a name availability check. If approved, submit your details. Similar or non-compliant names are usually declined.
Some basic rules to note:
• The trade name must include the legal form, such as LLC or EST
• It should match your approved business activity
• It must respect public morals and local regulations
• Religious references, government names, or external organisation names are not allowed
• The name must be unique and not already registered
Once the application is submitted, you will receive a transaction number or payment voucher to complete the process.
Note:
- Trade names are registered with the local Department of Economic Development.
- Trademarks are handled separately by the Ministry of Economy.
- Trade name certificates need to be renewed periodically.
Step 6: Obtain Initial Approval
Initial approval simply means the authorities have no issue with you setting up the business. It lets you move ahead with the process, but it does not allow you to start operations yet.
Foreign investors also need clearance at this stage. This is issued by the General Directorate of Residency and Foreigners’ Affairs.
If your activity falls under a regulated area, extra approvals are required. This applies to sectors such as legal services, security, and financial securities.
Step 7: Draft and Attest Agreements
Based on your legal structure, you must sign either a Memorandum of Association or a Local Service Agent agreement.
The Memorandum of Association defines the company’s key details. This includes the business name, activities, share capital, ownership, management roles, profit sharing, and dissolution terms. It is mandatory for LLCs, limited partnerships, and joint stock companies.
The MoA must be notarised at a public notary. It is generally drafted in Arabic and English and specifies profit distribution and management authority. If there is an international element, Ministry of Justice attestation may be required.
Where applicable, a Local Service Agent agreement is signed. This is common for certain professional activities owned by non-GCC nationals. It sets a fixed annual fee of AED 5,000 to AED 15,000. The agreement must be notarised or court-attested.
Note: MoAs and LSA agreements are prepared by UAE-based law firms, courts, or public notaries.
Step 8: Secure Physical Office Space
A physical office address is mandatory for all UAE businesses. The premises must comply with the Department of Economic Development rules of the relevant emirate. It must also follow local zoning regulations.
A registered lease is required. In Dubai, leases must be registered with Ejari through RERA. The fee is around AED 200. In Abu Dhabi, lease registration is done through Tawtheeq. The typical cost is about AED 50.
The office must meet civil defence and fire safety requirements. A landlord NOC may be required for the licensed activity. The space should be ready for inspection. Basic fittings such as desks, internet, and utilities must be in place.
Step 9: Obtain Additional Sector Approvals
Some business activities require extra approvals from specific government authorities. Common examples include:
- Ministry of Interior: Transport, driving schools, fire and safety systems, used vehicles and car rental.
- Ministry of Justice: Legal services and consultancy.
- Local municipalities: Architecture and engineering.
- TDRA: Telecommunications.
- Supreme Petroleum Council: Oil and gas services and drilling.
- Executive Council: Tourism, charter trading, maritime and air transport, and foreign branches.
- Ministry of Economy: Insurance and related consultancy.
- Local health authorities: Healthcare activities.
Step 10: Final Submission and License Issuance
After completing the required steps, investors can collect the business licence from the economic department service centres or download it through the official portal.
Documents required for licence issuance
- Initial approval receipt and previously submitted documents.
- Attested lease agreement.
- Ejari registration in Dubai.
- Attested MoA, where applicable.
- Attested local service agent agreement, for civil establishments or entities fully owned by non-GCC nationals.
- Relevant government approvals.
You have 30 days to pay the licence fee. Otherwise, the application is void.
Documents Checklist for UAE Mainland Company Formation
The list includes the following documents.
- Passports/Emirates IDs for all shareholders/managers.
- Initial approval receipt from DED.
- Entry permit/residence visa copies [non-GCC nationals].
- Bilingual MoA, notarised.
- LSA agreement if applicable.
- Attested tenancy contract with NOC.
- Sector approvals.
- Parent company docs, board resolution, audited financials [For branches].
Approximate Cost Breakdown for Mainland Company Formation
| Cost Component | Estimated Range (AED) |
| Trade name reservation | 600 – 1,000 |
| Initial approval | 100 – 500 |
| Notary / MoA | 500 – 2,000 |
| Trade licence (annual) | 10,000 – 50,000 |
| Office lease (annual) | 20,000 – 100,000 |
| Attestation fees | 50 – 200 |
| Visa cost (per visa) | 3,000 – 5,000 |
| Bank account setup | 1,000 – 5,000 |
Note:- Make sure to add 5 % VAT.
Taxation for Mainland Companies
UAE mainland companies pay corporate tax at 9% on taxable income above AED 375,000. This applies to financial years starting from June 2023. Tax returns are filed through the Federal Tax Authority portal.
- No withholding tax on dividends
- Common expenses like salaries and rent are deductible
- Transfer pricing rules apply to related-party transactions
- For a December 2024 year-end, the first return is due by 30 September 2025
- From 2025, multinational groups with over €750 million in global revenue may face a 15% minimum top-up tax
Common Problems When Applying for a Mainland Company Setup on Your Own
Attempting mainland company formation in UAE independently often leads to setbacks due to the system’s complexity.
Common issues include:
- Bureaucratic Delays: Incorrect formats or missing papers cause rejections; even a small MoA error can delay approval. Arabic translation issues are a common reason.
- Language and Cultural Barriers: Forms switch between English and Arabic; applicants often miss naming rules or restricted terms. This leads to rejected trade names.
- Hidden Approvals: Some activities need extra ministry clearance; these are easy to overlook. Missing one can halt the application mid-way.
- Cost Overruns: Underestimating fees, like unexpected notary surcharges or re-application costs (AED 500+ each time).
- Visa and Compliance Errors: Office size affects visa quotas; Emiratisation gaps trigger monthly fines. These penalties can grow quickly.
- Bank Account Rejections: Banks demand detailed business plans; DIY setups often lack polished docs, prolonging account opening (1-3 months).
- Policy Changes: Regulations evolve regularly; without updates, applications fail even after submission.
A common pitfall is submitting via Basher without UAE Pass linkage, causing system errors; or ignoring fire safety inspections, leading to license suspension.
This is why many founders choose professional help like TheUAEGate. It saves time. It reduces cost. It avoids unnecessary stress.
Key Compliance Considerations for UAE Mainland Companies
Emiratisation Requirements
Mainland private sector companies must meet Emiratisation targets based on workforce size.
- 50+ employees require Emiratisation in skilled roles, with annual targets up to 10 %.
- Companies with 20–49 employees must employ at least two Emiratis.
- All compliance is managed through the Nafis portal.
- Failure to meet targets results in fines of AED 6,000 per month for each unfilled Emiratisation position.
Physical Presence
A leased physical office is mandatory for mainland businesses. Inspections are conducted to ensure the office meets compliance standards.
Key points to note:
- The office must be properly set up with basics such as desks and internet
- Virtual offices are not accepted
- The location must follow municipal zoning rules. For example, industrial activities cannot operate from residential areas
For the latest official details and to begin your application, visit u.ae (UAE Government Portal) or the Basher platform. Always consult the relevant DED or a licensed advisor for your specific case.
Ready to Start Your Mainland Company the Right Way?
As you see above, setting up a mainland company in the UAE on your own requires multiple steps. And mistakes are easy to make and costly to fix
If you want clarity instead of confusion, we’re here to help.
We at TheUAEGate handle mainland company formation end-to-end. From approvals and licensing to visas, tax registration, and banking. Everything is structured around your activity and emirate.
Start with confidence. Set up once. Set up right. Consults with our experts today.
