UAE Mainland Company Formation Guide 🥇

Company Formation in UAE Mainland 🥇

Introduction: Why Mainland Setup Matters

You choose a mainland company when you need reach across the whole country. You get access to every city, from Dubai to Abu Dhabi and Sharjah. You sell to local customers with no geographic limits. You trade with public bodies under their tender rules. You run operations with office space in a location of your choice. You handle work with suppliers and distributors across the Emirates.

The government updated ownership rules in recent years. Many activities now allow full foreign ownership. Some strategic activities still need extra approvals or local participation under law. Our advisors at Mubarak Al Ketbi (MAK) Auditing confirm your activity. We check foreign-ownership eligibility. We guide you to the right legal form, approved by the relevant authority.

A mainland company runs under the Department of Economic Development (DED) or the equivalent authority in each emirate, like the Department of Economy and Tourism (DET) in Dubai. That authority issues the license. That authority supervises your activities. That authority registers changes during the life of the company.

What Is a Mainland Company?

A mainland company is an onshore entity. The DED or DET licenses it. The entity operates anywhere inside the UAE. The entity trades with private buyers and government bodies. It signs local contracts under UAE law. It can import goods into the mainland with customs clearance. It hires staff under UAE labor law and MoHRE procedures.

You select one legal form. You appoint managers and directors under your MOA. You maintain a registered office inside the emirate of registration. You keep accounts under UAE law and tax guidance. You renew the license on time each year.

Why Choose a UAE Mainland Company Setup?

Mainland formation gives broad flexibility and strong market access. The design supports growth.

Key advantages include:

  • Full ownership for many activities under the updated Commercial Companies Law.
  • Complete market reach with direct sales across all Emirates.
  • Government tender access under entity eligibility and pre-qualification rules.
  • Flexible office location anywhere in the emirate of registration.
  • Wide activity coverage across commercial, industrial, and professional lines.
  • Visa capacity tied to real office size under local rules.
  • Banking readiness after KYC and substance checks by your chosen bank.
  • Customs clarity for goods cleared into the mainland with applicable duties.

Mainland Legal Forms and When to Use Them

You match the legal form with your risk level, ownership plan, and regulator needs.

Limited Liability Company (LLC)

You set up an LLC with 2–50 shareholders. You may hold 100% ownership for many activities. Liability stays limited to paid capital. The LLC fits trading, services, and many industrial uses. It’s flexible with partner entry and exit.

Professional Company

A professional company suits service experts, like engineers and consultants. Foreign owners may hold 100% for permitted activities. In some emirates, a local service agent may still support government touchpoints. Many founders later convert to an LLC for limited liability.

Branch of a Foreign Company

A branch extends a non-UAE parent. The parent keeps full liability. The branch carries the parent name. The branch performs the parent’s activities, as approved. A representative office version promotes the parent only and doesn’t trade.

Branch of a UAE Company

A mainland or free-zone parent opens a branch in another jurisdiction. The branch follows parent activities. It uses the parent’s legal personality. It requires approvals from the DED or DET.

Step-by-Step Mainland Company Formation

The process is linear and predictable when documents are complete. Our team manages each step in sequence.

1) Choose Activity

You define the activity with precision. You select permissions from the authority list. You check if external approvals apply (health, education, media, engineering, or other regulated fields).

2) Choose Legal Form

You pick LLC, professional company, or branch. You set shareholding, manager powers, and capital clauses under the MOA. You prepare a clean structure for banks.

3) Reserve Trade Name

You submit name options to the DED or DET. The name follows rules on public order and clarity. The name includes the legal form suffix where required. It avoids restricted words and confusing marks.

4) Obtain Initial Approval

You file the initial approval request. The authority checks your activity and your identity documents. The approval lets you proceed to documentation and tenancy.

5) Secure Office Space

You lease an office in the emirate of registration. You register the lease (Ejari in Dubai). You ensure space matches visa plans. You plan the fit-out and utility setup.

6) Draft and Notarize MOA/LSA

You draft the MOA for an LLC or professional entity. You notarize it under local rules. Where relevant, you sign an LSA (local service agent) agreement for certain professional cases.

7) External Approvals (if required)

You obtain approvals from sector regulators. Examples include KHDA, Health Authority, Municipality, Civil Defense, or Tourism. Our team prepares forms and guides site inspections.

8) License Issuance

You submit the full pack: initial approval, MOA, tenancy, name reservation, IDs, and external approvals. The DED or DET issues the commercial, professional, industrial, or tourism license.

9) Establishment Card and MoHRE

You open files with immigration and MoHRE. You obtain the establishment card. You gain the ability to hire and onboard employees under the platform.

10) Bank Account and Activation

You prepare KYC documents with business rationale. You open the corporate bank account. You activate VAT or corporate tax registrations when required. You start operations with proper records.

Mainland License Categories

Your license reflects your core activity. You may add related activities if the authority allows them.

  • Commercial License: You trade, import, export, or distribute goods.
  • Professional License: You provide specialized services such as consulting, design, IT, and accounting.
  • Industrial License: You manufacture or assemble goods with facility approvals.
  • Tourism License: You operate travel, hospitality, or events under DET rules.
  • Agricultural License: You run farming or agri-services with competent authority oversight.
  • Craftsmanship License: You deliver skilled technical work like electrical, carpentry, or mechanical services.
  • Freelance / Sole-Proprietor Options: You provide services as an individual under updated rules.

Required Documents for Mainland Registration

Authorities request clear and recent documents. You keep copies ready for renewals.

  • Completed application form with accurate details.
  • Trade name reservation confirmation.
  • Passports and Emirates IDs (where applicable) for shareholders and managers.
  • NOC for any shareholder on an existing UAE visa, if applicable.
  • MOA or professional company agreement, duly notarized.
  • Board resolution and power of attorney for corporate shareholders.
  • Tenancy contract (Ejari in Dubai) or virtual office approval, where allowed.
  • External regulator approvals, if your activity is regulated.
  • UBO declaration and partner lists submitted through the official portal.
  • Digital signatures and e-forms filed through DED/DET or “Invest in Dubai.”

Post-Setup Services That Keep You Compliant

Formation is the first milestone. Ongoing compliance keeps operations smooth.

Core post-setup support includes:

  • PRO services: Visa processing, labor cards, document clearance, and immigration filings.
  • Visa services: Investor, employee, and dependent visas with medicals, Emirates ID, and stamping.
  • Banking: Account opening with the right bank, supported by a clear business plan and substance proof.
  • Accounting and tax: Bookkeeping, VAT, and corporate tax registration with FTA compliance.
  • License renewals and amendments: Activity changes, manager updates, or trade-name adjustments.
  • ESR and UBO: Timely filing where applicable under national regulations.
  • Audits and reporting: Year-end audits when required by activity or bank covenants.

Mainland vs Free Zone: Practical Differences

Ownership: Many mainland activities now allow full foreign ownership. Free zones allow full ownership by default.
Market scope: Mainland entities sell across the UAE directly. Free-zone entities often need a distributor for mainland trading.
Government work: Mainland entities usually join public tenders. Free-zone entities have limited access to such tenders.
Location rules: Mainland companies choose any office within the emirate. Free-zone entities house offices inside the relevant zone.
Licensing logic: Mainland licenses are broad with add-on activities by approval. Free-zone licenses tie closely to zone lists.

Banking, Substance, and Practical Readiness

Banks assess risk carefully. They ask for contracts, invoices, office evidence, and manager backgrounds. You prepare a short profile that explains the activity, the target markets, and the expected flows. You support that with lease, license, MOA, and UBO records. You keep records in a simple accounting system. You issue VAT invoices where relevant. You store receipts with date stamps and clear descriptions.

Customs and Trade Flows on the Mainland

When goods enter the mainland, customs duties may apply. You use the correct HS codes. You record duties in your accounting. You plan shipments through ports and airports with bonded logistics partners. You follow product standards, labeling rules, and safety approvals where needed. You build a simple SOP for import, warehouse, and distribution steps.

Hiring and Emiratisation Considerations

MoHRE rules apply to mainland companies. You submit labor contracts. You pay wages through WPS. You track visa expiry dates and renew early. You follow Emiratisation rules where they apply to company size and sector. You create a simple HR file for each employee with offer, contract, and training log.

Timeline and Cost Drivers

The timeline depends on activity, approvals, and fit-out. Many straightforward cases finish in weeks. Regulated cases take longer. Cost items include license issuance, office rent, visa quotas, immigration files, and attestation fees. Banks don’t charge to open accounts in most cases, but minimum balance rules may apply.

Common Mistakes to Avoid

  • Picking the wrong activity list and needing reissue later.
  • Signing a lease that doesn’t match visa plans.
  • Ignoring sector approvals until late in the process.
  • Delaying bank KYC documents and business rationale.
  • Skipping accounting setup until the first audit request.

Sector Notes (Examples)

  • Consulting: Confirm professional license scope and experience requirements.
  • E-commerce: Set up payment gateway KYC and delivery SOPs.
  • Light manufacturing: Plan Civil Defense approvals and utility load.
  • Healthcare or education: Secure strict regulator approvals before marketing.
  • Hospitality: Coordinate DET permits, hygiene controls, and insurance.

What Can Help — Support from Mubarak Al Ketbi (MAK) Auditing

Mubarak Al Ketbi (MAK) Auditing helps founders and investors with every step. Our team maps your activity with the correct legal form. Our specialists prepare MOA drafts with clear powers. Our PRO unit manages visas and government portals. Our accountants set up VAT and corporate tax registrations. Our auditors build compliant systems for year-end reporting. Our consultants plan banking readiness with substance evidence. Our goal is simple: we reduce friction, we raise certainty, and we speed market entry. When you’re ready to launch with confidence, we’ll handle the groundwork so you can focus on sales and delivery—because in business, the early bird catches the worm.

For more information

  • Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
  • Contact / WhatsApp: +971 50 276 2132

FAQs on UAE Mainland Company Formation Guide 🥇

Who must register for Free Zone Corporate Tax?
Any Free Zone entity earning taxable income or meeting the FTA criteria must register for corporate tax and obtain a TRN.
What’s the corporate tax rate for Free Zone companies?
Qualifying Free Zone Persons enjoy 0 % tax on eligible income, while non-qualifying income is taxed at 9 %.
Can a Free Zone company trade with the mainland?
Yes, but income from such activities becomes taxable at 9 %.
What documents are required for registration?
Trade license, passport copies, MOA/AOA, lease agreement, and bank reference letter.
What’s the penalty for late registration?
AED 10,000 as per Cabinet Decision No. 10 of 2024, unless waived by the FTA under specific conditions.

Know more Our Related Services

VAT for Property Management Entities in Dubai

Introduction Dubai always grows fast with real estate investment and new business. Many people buy

Shams Company Registration: Simple Setup Guide 🥇

Company Registration in Sharjah Media City (Shams) Introduction to the Free Zone Sharjah Media City,

When & Why You Need to Deregister VAT UAE 🥇

When and Why You Need to Deregister VAT in UAE VAT deregistration is an important

AML Training Program for Employees: Key Things to Consider 🥇

Introduction to AML Training Programs Every company in the UAE must train its employees about

Non-Deductible Corporate Tax Expenses UAE Guide

What Are the Expenses That Cannot Be Deducted While Calculating the Corporate Tax? Businesses in

Corporate Tax for Non-Extractive Resource Businesses UAE

Corporate Tax Rules for Non-Extractive Natural Resource Businesses in UAE Understanding Corporate Tax for Non-Extractive