Mainland Company Formation in the UAE

The United Arab Emirates (UAE) has rapidly emerged as a global hub for entrepreneurship, offering a streamlined and highly attractive business setup environment. With over one million active business licences issued by 2023, the UAE continues to draw foreign investors, startups, SMEs, and multinationals looking to establish a strong presence in the region.

One of the most popular and flexible setup options is the mainland company in UAE. Thanks to recent legislative reforms, UAE mainland company formation now allows for 100% foreign ownership in most sectors, eliminating the earlier requirement for local Emirati sponsors.

Combined with a quick setup process (averaging just 4 working days) and no minimum capital requirements in many cases, mainland company formation in UAE has become the go-to choice for foreign entrepreneurs, international firms expanding into Dubai, and ambitious startups entering the GCC market.

In this guide, we cover the step-by-step process for UAE mainland company formation, including legal requirements, types of business licences, company structures, associated costs, timelines, and a clear comparison between mainland, free zone, and offshore entities.

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Key Features of a Mainland Company in UAE

• Broad Market Access: A mainland company can conduct business anywhere in the UAE—across all seven emirates—and internationally. It can serve both private sector clients and government contracts, unlike free zone companies which are restricted from direct trade in the UAE market unless through intermediaries.
• 100% Foreign Ownership (in Most Sectors): Following legal reforms introduced in 2021, most activities under mainland company formation in UAE no longer require a local Emirati shareholder. Foreign investors can now own 100% of the shares in most commercial and professional business categories. A local service agent (LSA) is only required for certain professional setups, and they hold no equity.
• Regulated by DED: Mainland companies are licensed by the Department of Economic Development of each emirate, and their legal and operational structures are governed by the UAE Commercial Companies Law (Federal Law No. 32 of 2021).
• Flexible Business Activities: Mainland companies can engage in over 2,000 permitted business activities, including trade, manufacturing, consulting, healthcare, education, retail, real estate, media, and more. Some activities require additional regulatory approvals, but most are directly accessible via DED.
• Office Requirement: To register a mainland company, you must lease a physical office space in the UAE. Virtual offices are not permitted for long-term operations, although some instant licences may allow you to defer this for the first year.
• Visa Eligibility and Hiring: Mainland companies can sponsor UAE residency visas for owners, employees, and dependents. The number of visas you can obtain often depends on the size of your office space and business activity.

Step-by-Step Mainland Company Formation Process

Forming a mainland company in the UAE involves several clear steps and approvals. The process is designed to be straightforward, but must be followed precisely to meet all legal requirements. 

Step 1: Identify Your Business Activity and Licence Type

The first step in any UAE mainland company formation is choosing your business activity. This determines the type of trade licence you’ll need and governs which approvals and legal form apply.

The UAE recognises over 2,000 permitted commercial, industrial, and professional activities, all categorised under specific licence types:

• Commercial Licence – for trading, retail, and general business
• Industrial Licence – for manufacturing or production-based activities
• Professional Licence – for service-based or specialised skill professions
• Tourism Licence – for businesses in travel, hospitality, or leisure
• Agricultural Licence – for farming and fisheries
• Occupational Licence – for skilled trades and crafts (e.g. electricians, carpenters)

You may include multiple related activities under one licence, but they must belong to the same licence category. Choosing the correct activity is crucial to ensure legal compliance and seamless processing during your mainland company formation in UAE.

Step 2: Select a Legal Structure

Your choice of legal structure will shape the entire company formation process, from ownership rights to documentation and liabilities. There are several options available for mainland company formation in UAE, including:

• Limited Liability Company (LLC): The most popular choice for commercial businesses. As of 2021, most LLCs are eligible for 100% foreign ownership.
• Sole Establishment: A structure for single-owner professional activities. While 100% foreign ownership is permitted, a Local Service Agent (LSA) is required.
• Civil Company: A professional partnership (commonly used by doctors, lawyers, engineers, etc.) which also requires an LSA if fully foreign-owned.
• Branch of a Foreign Company: An extension of an overseas company operating under the same name.
• Joint Stock Companies (Public or Private): Suitable for larger corporations, often with investment or IPO ambitions.

Choose your structure based on business size, risk tolerance, and long-term goals. LLCs are the most flexible and widely applicable for small to medium-sized enterprises and startups seeking a strong foothold in the UAE.

Step 3: Register a Trade Name

Next, reserve a unique trade name for your mainland company in UAE through the local Department of Economic Development (DED). The name must:

• Be original and not conflict with existing business names
• Avoid any religious, political, or offensive terminology
• Reflect your business activity to some degree
• Include the legal structure (e.g. “LLC” or “PJSC”)

Pro Tip: Using a non-Arabic name or special characters may incur additional charges—Dubai DED, for example, levies up to AED 2,000 for foreign names.

Trade name reservations are typically processed within 1–3 working days and are valid for six months, giving you time to complete the rest of your licensing formalities.

Step 4: Obtain the Initial Approval

Apply for initial approval from the Department of Economic Development (DED). This acts as a no-objection certificate from the government, allowing you to proceed with the next stages of your UAE mainland company formation.

Initial approval is not a trade licence and does not authorise commercial activity, but it signals that the proposed business activity is accepted in principle.

If you're a foreign national applying from outside the UAE, you may require a security clearance or approval from the General Directorate of Residency and Foreigners Affairs (GDRFA).

For regulated sectors—such as finance, healthcare, education, telecom, or legal services—you’ll need additional ministerial or federal authority approvals (e.g. Central Bank, Health Authority, or Telecommunications Regulatory Authority) before the DED will grant this clearance. These external NOCs should be secured at this stage.

Step 5: Draft the Memorandum of Association (MOA) and Local Agent Agreement

Prepare your company’s constitutional documents:

• For Limited Liability Companies (LLCs) or businesses with multiple shareholders, a Memorandum of Association (MOA) must be drafted and notarised. The MOA defines shareholding, declared capital, profit distribution, management structure, and business objectives.
• If you are forming a sole establishment or a civil company with 100% foreign ownership, you must appoint a Local Service Agent (LSA)—a UAE national or Emirati-owned company who will liaise with authorities on your behalf. The LSA does not hold equity in the company.

Both the MOA and LSA agreement must be notarised—either at a UAE public notary or court.

At this point, you must declare the company’s share capital. For most LLCs, no minimum capital is required by law, unless stipulated for specific activities. You may declare any suitable amount in the MOA without needing to deposit it upfront.

All documents must be signed by the shareholders (or their authorised attorneys via Power of Attorney) and attested accordingly.

Step 6: Secure a Business Location (Lease an Office)

To proceed with your mainland company formation in UAE, securing a physical office address is mandatory.

You must lease a commercial space suited to your business activity. Options include:

• Shared desks or serviced offices
• Private offices
• Warehouses or industrial units (depending on the licence)

The premises must comply with local zoning and municipality regulations, and the tenancy contract must be registered. In Dubai, this is done through the Ejari system via the Real Estate Regulatory Agency (RERA).

A copy of the registered lease must be submitted for final licence issuance. This step is non-negotiable—except in specific Emirates or under instant licence schemes where an office may not be required for the first year. However, even in such cases, a lease becomes mandatory at the time of renewal.

Important: The number of residence visas your company can sponsor is typically linked to office space size. In Dubai, for example, one visa is generally granted for every 9 square metres of leased space.

Step 7: Obtain Additional Government Approvals (if required)

Depending on your business activity, you may need to secure external approvals from specific UAE regulatory authorities before the DED will issue your final business licence.

This step is critical for businesses in regulated sectors. Examples include:

• Ministry of Interior – for security firms, surveillance services, or driving schools
• Ministry of Justice – for legal consultancy and advocacy services
• Local Municipality Engineering Departments – for architectural and engineering consultancies
• Telecom Regulatory Authority (TDRA) – for telecom-related businesses
• Ministry of Economy – for insurance providers and financial consultancy
• Health Authorities – for hospitals, clinics, pharmacies, and medical centres
• Supreme Petroleum Council (Abu Dhabi) – for oil & gas field services and energy consultancies

If your business activity falls under any of these categories, the relevant ministry must issue a permit or clearance letter. This document must be included in your final UAE mainland company formation file. 

Many activities, particularly commercial and general services, do not require any additional approval beyond the DED. However, to avoid delays in your mainland company formation in UAE, always verify the regulatory requirements for your specific business activity in advance.

Step 8: Final Submission and Licence Collection

Once all documents and approvals are in order, you’ll submit your complete application to the DED for review and processing. This is the final step before your mainland company in UAE becomes legally active.

Your submission will typically include:

• Completed DED application form
• Initial approval receipt
• Trade name certificate
• Notarised Memorandum of Association or LSA agreement
• Attested tenancy contract (Ejari or equivalent)
• Any necessary external approval certificates

Once approved, the DED will issue your trade licence (also referred to as the business licence), officially incorporating your company and granting you the right to commence operations.

You can collect the licence in person at a DED service centre or download it digitally from the DED portal.

Be sure to pay the trade licence issuance fee within 30 days of the payment voucher being generated. Delays beyond this window may result in cancellation of your application.

Additional Steps After Licence Issuance

With your UAE mainland company formation complete, you can now begin formal operations. Important post-licensing steps include:

• Applying for the establishment card (required for employee sponsorship)
• Registering with the Ministry of Human Resources & Emiratisation (MOHRE) to obtain labour cards
• Applying for residency visas for shareholders and staff
• Opening a corporate bank account under your newly licensed entity
• Registering for VAT with the Federal Tax Authority if your turnover exceeds AED 375,000 per year
• Obtaining any municipal approvals, such as signage permits, environmental clearances, or sector-specific certifications

As a mainland company in UAE, you have the advantage of sponsoring employees, bidding for government contracts, and conducting business across all emirates without restrictions.

Let me know if you’d like the final section summarised into a checklist or formatted for inclusion in a slide deck or brochure.

Opening a Business Bank Account in the UAE

Once your mainland company in UAE is licensed, opening a corporate bank account is a critical next step. UAE banks require a full set of documents, including:

• Valid trade licence
• MOA and shareholder details
• Emirates ID and residency visa (for authorised signatories)
• Office lease (Ejari or equivalent)
• A brief business plan or activity summary
• Minimum balance (often AED 25,000 to AED 150,000, depending on the bank)

The account opening process can take anywhere from 7 to 21 working days, depending on your business activity, risk profile, and the bank’s compliance checks.

Through Binderr, you can compare banks, submit your KYC digitally, and track your application status—all in one place. Whether you need a traditional bank or a fintech EMI solution, Binderr helps you get banked faster and smarter.

Total Estimated Cost to Set Up a UAE Mainland Company

Setting up a mainland company in UAE involves several cost elements, some fixed and others variable depending on your business size, licence type, and location. Below is a practical estimate by category:

Total Estimated Setup Cost Scenarios:

• Small Startup (Dubai Mainland): AED 20,000 – 35,000
  (e.g. solo consultant, small shared office, no local agent fee)
• Medium Office or Multi-Activity Setup: AED 50,000 – 100,000+
  (e.g. trading company, dedicated office space, multiple visas, possible agent or consultancy involvement)

Bottom Line

Choosing to set up a mainland company in UAE offers unmatched access to the local and international markets, full foreign ownership in most sectors, and a fast-track business environment. With the right guidance, the UAE mainland company formation process can be completed in as little as one week—with costs tailored to fit startups and established firms alike.

Whether you're a global enterprise or a first-time founder, forming a mainland company in UAE is a strategic move that positions you for long-term success in the Gulf and beyond.

You can launch a mainland company in UAE with a modest budget of around AED 20,000–35,000 for a small consultancy or service-based venture. 

Costs vary across emirates, with Dubai offering a competitive ecosystem and Sharjah or Ajman providing budget-friendly alternatives. The true advantage comes from aligning your budget, activity, and ownership structure right from the start.

Streamline Your Process with Binderr Marketplace

Why tackle the intricacies of UAE mainland company formation alone, when Binderr Marketplace can make it seamless?

• Compare quotes from certified formation agents, banks, EMIs, legal advisors, and more—all in one platform.
• Apply online and track every step via a single dashboard—from licence issuance to visa staging.
• Access bundled service packages like licensing, bank account setup, VAT registration, and office leasing—designed for different budgets and business needs.
• Benefit from smart automation, transparent pricing, and direct access to top industry experts.

Whether you're starting lean or setting up a multi-activity firm, Binderr Marketplace is your trusted ally for launching and scaling a mainland company in UAE—faster, smarter, and stress-free.