Starting a Mainland Business in the UAE: The Complete 2025 Guide

As of 2025, the UAE continues to position itself as a global hub for entrepreneurs, startups, and established companies seeking to operate in a strategic, business-friendly environment. While free zones remain a popular option, mainland business setup offers a wider range of opportunities, especially for those aiming to trade directly within the UAE market, secure large contracts, or expand physically across emirates.

Thanks to significant regulatory reforms—including 100% foreign ownership for most activities—setting up a mainland company has become more attractive, flexible, and accessible to international investors than ever before.

This guide explains the key features of mainland business setup, outlines the step-by-step process, and provides insights into costs, benefits, and licensing options.

Dubai business district skyline

What Is a Mainland Company in the UAE?

A mainland company is a business entity licensed by the Department of Economic Development (DED) in each emirate. Unlike free zone businesses, mainland companies are allowed to:

• Operate and trade freely anywhere in the UAE

• Bid on government contracts and tenders

• Open multiple branches across emirates

• Sponsor employees and family members directly

Mainland companies are governed by UAE Federal Law and are suitable for a wide range of commercial, professional, and industrial activities.

Key Benefits of Mainland Business Setup in 2025

1. 100% Foreign Ownership

As of recent reforms, foreign investors can now fully own mainland companies in most sectors without requiring a UAE national partner. Restricted sectors still require a local service agent or partial Emirati ownership.

2. Access to Local and Government Markets

Mainland companies can trade with individuals and entities throughout the UAE, including participation in government projects—something not permitted for free zone entities without a distributor.

3. Flexibility in Business Location

Unlike free zone businesses that must operate within designated zones, mainland businesses can establish offices anywhere in the UAE.

4. Broad Scope of Activities

More than 2,000 business activities are licensed under mainland categories, including general trading, manufacturing, consultancy, healthcare, education, real estate, and construction.

5. No Currency Restrictions

Mainland businesses can move capital and profits freely and transact in any currency.

Types of Mainland Licenses

The DED issues several types of licenses depending on the business activity:

Commercial License – For trading activities including import/export, retail, and general trading

Professional License – For service-oriented businesses such as consulting, legal, design, and tech

Industrial License – For manufacturing, industrial, or factory operations

Tourism License – For travel agencies, tour operators, and tourism consultants

Legal Structures for Mainland Companies

Depending on the size and nature of your business, you can choose from several legal entities:

1. Limited Liability Company (LLC) – The most common structure, suitable for commercial or industrial activities. Can now be fully foreign-owned.

2. Sole Establishment – Owned by a single individual, only for professional activities.

3. Civil Company – For professional services with two or more shareholders.

4. Branch of a Foreign Company – Allows international firms to open a UAE branch without forming a new entity.

How to Start a Mainland Company in the UAE (Step-by-Step)

Step 1: Choose a Business Activity

Select your activity from the official DED list. Your activity determines your license type and structure.

Step 2: Reserve a Trade Name

Propose a unique business name that complies with UAE naming conventions. The name must reflect the nature of the business and avoid religious or political terms.

Step 3: Obtain Initial Approval

Initial approval from the DED confirms that the government has no objection to you starting a business. This approval does not yet grant operational rights.

Step 4: Draft and Notarize MOA or LSA Agreement

Depending on your structure, you’ll either draft a Memorandum of Association (MOA) for an LLC or sign a Local Service Agent (LSA) agreement if required.

Step 5: Lease Business Premises

Secure a physical office or shop in a commercial location. A tenancy contract is required and must be registered through the Ejari system (Dubai) or its equivalent in other emirates.

Step 6: Submit Final Documents and Pay Fees

Final submission includes all documents, approvals, tenancy contract, and passport copies. Pay the license issuance and registration fees.

Step 7: Receive Your Trade License

Once approved, you will receive your official DED trade license, company registration certificate, and other relevant documents.

Step 8: Apply for Residence Visas

Mainland companies can sponsor employees and their dependents. Visa quotas depend on office space and license type.

Estimated Cost of Mainland Business Setup in 2025

Cost Item	Estimated Range (AED)
Trade License (initial year)	12,000 – 18,000
Office Rent (small office/shared)	10,000 – 30,000+ annually
MOA/LSA Drafting & Notarization	1,000 – 2,500
Trade Name Reservation	600 – 1,000
Initial & Final Approvals	2,000 – 4,000 (varies by activity)
Visa Processing (per employee)	3,000 – 6,000

Note: Fees vary depending on emirate, business activity, and space. Dubai and Abu Dhabi may have higher overheads than Sharjah or Ajman.

Mainland vs Free Zone: A Quick Comparison

Feature	Mainland Business	Free Zone Business
Foreign Ownership	100% (in most sectors)	100%
Operate Across UAE	Yes	No (needs local agent)
Government Contracts	Eligible	Not eligible directly
Office Location	Anywhere in UAE	Restricted to free zone
Business Scope	Broad	Activity-specific
Setup Process	Moderately complex	Streamlined

Choosing the Right Emirate for Your Mainland Business

Each emirate has its own DED and specific administrative procedures. Consider:

Dubai – Strong infrastructure, global connectivity, high costs

Abu Dhabi – Stable regulatory environment, attractive for energy and finance sectors

Sharjah – Affordable, cultural hub, strong logistics links

Ajman, UAQ, RAK – Lower setup and rental costs, faster processes

Final Considerations

Legal Compliance – Ensure your activity is licensed and monitored under the correct jurisdiction. Non-compliance can result in fines or license revocation.

Corporate Tax (2025) – UAE introduced a 9% corporate tax in 2023 for businesses earning over AED 375,000 annually. However, small business relief and exemptions may apply.

Audit and Accounting – While not always mandatory, maintaining clean financial records is strongly recommended, especially for visa renewals and bank dealings.

Banking – Opening a corporate bank account requires a valid trade license, office lease, and KYC documentation. Allow 2–4 weeks for account activation.

Conclusion

Starting a mainland business in the UAE in 2025 offers unmatched access to the local market, diverse business activities, and an increasingly open regulatory framework that supports 100% foreign ownership. While setup may involve more documentation than a free zone company, the freedom to trade anywhere in the country and participate in public and private tenders makes mainland businesses an excellent option for growth-oriented entrepreneurs.

With clear licensing pathways, support from local authorities, and a mature legal structure, the UAE remains one of the best places in the world to build and scale a company in the Middle East.