Company Formation in the UAE Mainland: A Clear, Step-by-Step Playbook
You choose a mainland route when you want full access to the UAE market. A mainland license lets you sell to customers across all emirates. A team can bid on public projects and serve government entities. The framework gives room to scale with branches and warehouses. The rules are direct, yet details matter. This guide uses simple subject-verb-object sentences, clean punctuation, and short steps. It follows Google NLP and EEAT ideas with clear structure, helpful facts, and practical tips.
Mainland basics in plain words
A mainland company is an onshore entity. A Department of Economic Development (DED) or an equivalent authority, like Dubai’s Department of Economy and Tourism (DET), issues the license. The license allows trade within all emirates. The entity can sign local contracts. The entity can hire staff. The entity can open a bank account. The entity can rent offices or warehouses. New laws permit 100% foreign ownership for most activities. Some “strategic impact” activities still need special approvals. We map your activity to the right rule before you file anything.
Why entrepreneurs select a mainland setup today
Founders need reach, flexibility, and trust. A mainland license gives each item.
- Full market reach: You sell directly to UAE customers without a local distributor.
- Public sector access: You join tenders with ministries and semi-government buyers.
- Flexible site choices: You pick any compliant office in your emirate of registration.
- Activity breadth: You hold wide activity lists under the right license class.
- Visa scale: You secure visa quotas that link to office size and activity.
- Partner options: You add branches in other emirates when growth demands it.
Legal forms you can choose
You pick a structure that fits ownership, liability, and investor goals.
- Limited Liability Company (LLC): Two to fifty shareholders. Liability is limited to paid capital. Many sectors now permit 100% foreign ownership.
- Professional Company: Individuals deliver expert services. A local service agent may handle admin with no ownership rights. You can convert to an LLC for limited liability.
- Branch of Foreign Company: The parent owns 100%. The branch mirrors parent activity. The parent remains liable.
- Representative Office: The office promotes and researches. It does not trade.
- Branch of a UAE Company: A local parent extends to new regions or lines.
License classes and what they allow
Your main revenue stream guides your license choice.
- Commercial license: You buy, import, distribute, and sell goods.
- Professional license: You provide services like consulting, IT, design, or medical practice under sector approvals.
- Industrial license: You manufacture, assemble, or process in approved sites.
- Tourism license: You run travel, tours, events, or hospitality under tourism rules.
- Agricultural license: You farm, test soil, or advise on crops and livestock.
- Craftsmanship / Occupational license: You offer technical trades like electrical or plumbing work.
- Freelance / Sole proprietor permits: You deliver services under your own name in permitted lines.
Step-by-step: how to form a mainland company
1) Define your activity
You write a one-page scope. You pick exact activity codes. You note external approvals, if any.
2) Select the legal form
You choose LLC, professional entity, or branch. You pick the form that meets liability and banking needs.
3) Reserve the trade name
You propose three names. You keep words clean and lawful. You add the legal form tag when required.
4) Secure initial approval
You file a simple application. The authority checks fit with rules. You get a green light to proceed.
5) Prepare the office
You sign a lease or Ejari. You ensure the size supports your visa plan. You keep utilities and location proof ready.
6) Draft company papers
You prepare a Memorandum of Association (MoA) or service agreements. You add share splits and manager powers. You notarize where needed.
7) Obtain external clearances
You gather approvals for health, education, civil defense, tourism, or industry if your activity needs them.
8) Receive your trade license
You pay fees. You upload final documents. The system issues the mainland license.
9) Register with MoHRE and immigration
You open a labor file. You obtain an establishment card. You set up the WPS payroll route.
10) Open a corporate bank account
You prepare KYC evidence. You show a business plan and sample contracts. You pass interviews.
11) Process visas
You apply for investor and staff visas. You complete medicals and Emirates ID.
12) Begin operations and keep records
You issue invoices. You collect VAT when required. You keep books and reconcile monthly.
Documents to assemble early
- Passport copies and Emirates ID for all shareholders and managers
- Proofs of address, dated within 3 months
- Three trade name options and the activity list
- MoA or corporate resolutions for branches
- Office lease or Ejari
- UBO declaration and ownership chart
- Sample customer contracts and supplier quotes
- Bank reference or proof of source of funds
- Initial approval certificate from DED/DET
- External authority approvals, when applicable
Banking: what a strong KYC file looks like
Banks want clarity and control. A strong file speeds onboarding.
- A 12-month cash-flow with simple notes
- Three sample invoices and two supplier agreements
- Proof of funds for paid-in capital
- UBO IDs and addresses that match all forms
- Clean org chart with share links and percentages
- Website, domain proof, and a basic brochure
Tips: Keep names consistent. Avoid conflicting addresses. Explain group ties in one clean page. Use two-person authorization for online payments.
Taxes, VAT, ESR, UBO: comply from day one
- Corporate tax: Mainland profits generally fall under the UAE corporate tax regime. Keep proper books. Plan for quarterly estimates and annual returns.
- VAT: Register when you cross thresholds or when activity triggers liability. Keep export proofs and tax invoices in the right format.
- ESR: If you conduct relevant activities, file ESR notifications and, if in scope, ESR reports. Keep substance and staff evidence.
- UBO: File UBO details and update quickly when ownership changes.
- Payroll and WPS: Pay salaries through WPS. Store contracts and leave records.
Costs, timing, and realistic expectations
Indicative timing
- Trade name + initial approval: 1–3 working days
- External approvals (if any): varies by authority
- License issuance after filings: ~3–7 working days
- Bank onboarding: ~1–4 weeks based on KYC
- Visa processing after license: ~5–10 working days per file
Typical cost heads
- License and registration fees
- Notary, attestation, translation
- Office lease and utilities deposits
- Immigration card, labor file, and visas
- Corporate tax and VAT registrations
- Banking minimum balance and charges
You plan a 6- to 8-week critical path for complex activities. You lock dates for lease, bank, and visas to avoid gaps.
Mainland vs free zone vs offshore: a quick comparison
- Market access: Mainland sells directly in the UAE; free zone needs a distributor or mainland structure; offshore does not trade in the UAE.
- Ownership: Mainland now allows 100% foreign ownership for most sectors; free zone allows 100% within the zone; offshore holds assets and trades abroad.
- Compliance: All models must manage UBO, ESR (if relevant), and tax/VAT where applicable.
- Facilities: Mainland gives wide site choice; free zones bundle facilities with visas; offshore has no local office needs.
Sector notes you should consider
- Retail and e-commerce: You confirm online and delivery permissions. You plan last-mile and returns.
- Professional services: You document qualifications for managers. You pick the correct service codes.
- Healthcare and education: You secure approvals from sector regulators. You plan facility fit-out to standards.
- Manufacturing: You align industrial codes, HSE approvals, and utility loads.
- Logistics and trading: You plan customs, HS codes, and bonded options.
- F&B and hospitality: You align tourism and municipality rules. You plan hygiene audits.
Common mistakes and how to avoid them
- Vague activity list: Fix the list at the start. Add all planned lines.
- Office too small for visas: Match office size to visa needs before lease.
- Late UBO or ESR filings: Calendar deadlines and assign owners.
- Weak banking file: Add proof of funds and sample contracts.
- Selling without permits: Align approvals before launch.
Operating rhythm after go-live
- Reconcile bank and ledger each month.
- File VAT on time with proper support.
- Review supplier KYC once per year.
- Renew license, lease, and visas 30 days before expiry.
- Close the year with clean trial balance and schedules.
- Adopt basic controls: maker-checker, PO-GRN-invoice match, and asset tags.
Practical examples for clarity
Consulting firm launch
An owner selects a professional license. The firm leases a small office that grants two visas. The bank wants a plan and two signed LOIs. The firm registers for VAT after crossing the threshold.
Trading company build
Two partners form an LLC. They add multiple trading lines under the commercial license. They set a warehouse later. They plan customs and HS codes before imports.
Tech studio scale
A founder begins with a small office. The firm hires three engineers. It adds a second activity for software publishing with the right approvals.
What Can Help — Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing guides your mainland setup from the first idea to your first invoice. Our team maps your activity to the correct license. Our PRO desk secures initial approval, name reservation, MoA drafting, and external clearances. Our tax unit handles corporate tax registration, UBO filing, ESR notifications, and VAT setup. Our banking desk prepares a strong KYC pack and coordinates account opening. Our visa desk manages investor and staff visas with medicals and Emirates ID. We set a compliance calendar and help you renew on time. When we prepare early, we avoid rework—a stitch in time saves nine.
- For more information visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Or contact/WhatsApp: +971 50 276 2132
