Starting a business in the UAE mainland has become easier and more rewarding, particularly with the government’s game-changing decision to permit 100% foreign ownership in various business sectors. If you’re a global investor, entrepreneur, or SME, setting up a mainland company offers flexibility, freedom, and a wider range of opportunities compared to free zones and offshore structures.
Why Choose Mainland Over Free Zone or Offshore?
Mainland business formation in the UAE is the best choice if you’re looking to operate across the UAE and serve both local and international markets. Unlike free zone companies, which are limited in their ability to trade directly with the UAE market unless using a distributor, mainland companies face no such restrictions.
1. Key Advantages of Mainland Company Setup
- Conduct business across the UAE and internationally without restrictions on local operations.
- Access government contracts and tenders that are typically restricted to mainland entities.
- Unlimited visa quotas based on office size, ideal for businesses planning to scale.
- Expand freely into new sectors or emirates without needing to reincorporate.
2. What Makes 100% Ownership Possible Now
The UAE has introduced new reforms allowing 100% foreign ownership of mainland businesses in most sectors. Previously, a local Emirati sponsor holding 51% ownership was mandatory. Now, depending on the activity, international investors can have complete control of their company. This shift supports the UAE’s vision to attract foreign investment and promote business confidence.
Step-by-Step Mainland Business Formation
1. Choose the Right Legal Structure
Most Common Company Formation Options in Dubai Mainland:
1. LLC (Limited Liability Company)
An LLC (limited liability company) is one of the most common business structures in the United Arab Emirates (UAE). It offers limited liability protection, flexible ownership options, and is suitable for various commercial and industrial activities across both the mainland and free zones.
2. Sole Establishment
A sole establishment in the UAE is a legal structure for individuals who want to offer professional services such as consulting or design, with full ownership and control. It allows 100% ownership, but the owner is fully liable for all debts and obligations.
3. Branch of a Foreign Company
A branch of a foreign company allows international businesses to operate in the UAE without creating a separate legal entity. It can conduct activities identical to its parent company and offers 100% foreign ownership while complying with local regulations.
4. Civil Company
A civil company in the UAE is a legal structure for professionals in fields like law, medicine, engineering, or consultancy. It allows two or more individuals to form a partnership and share profits, with each partner personally liable for the business’s obligations.
2. Reserve Trade Name and Get Initial Approval
Select a trade name that’s compliant with UAE regulations; it should not include religious or political terms and must match your business activity. Once your name is approved, apply for initial approval from the Department of Economic Development (DED), which confirms that the UAE has no objection to your business setup.
3. Draft and Notarize the MOA
Your Memorandum of Association (MOA) outlines your business purpose, partner roles, and capital contribution. It must be notarized by a UAE court or approved legal body. If you’re forming an LLC, the MOA is a mandatory legal document to proceed.
4. Lease Office Space in the UAE Mainland
Mainland companies require a physical office address. You’ll need a tenancy contract (Ejari) registered with the Real Estate Regulatory Agency. Office space requirements vary by business type, but ensure it’s adequate for your operations and future growth. In some cases, virtual offices may be allowed during the initial stages.
5. Submit Final Documents and Get the License
Once your documents are ready and the office is leased, submit everything to the DED for final review. Documents may include:
- Passport copies of shareholders
- MOA and initial approvals
- Ejari tenancy contract
- External approvals (if required)
After approval, pay the license fee and receive your business license. Your company is now officially formed.
6. Submit Final Documents and Get the License
Once your documents are ready and the office is leased, submit everything to the DED for final review. Documents may include:
1. Passport copies of shareholders
Passport copies of shareholders are required to verify the identity of all owners involved in the company formation. These copies must be clear and valid, as they are essential for registration, approvals, and issuing the trade license in the UAE
2. Visa copies
Visa copies are required to verify the UAE residency status of shareholders or managers involved in the company. These help authorities confirm legal entry, identity, and eligibility to participate in business formation within the UAE.
3. Memorandum of Association (MOA)
The Memorandum of Association (MOA) outlines a company’s structure, ownership, business activities, and shareholder roles. It is a mandatory legal document required for mainland company registration and must be notarized for approval in Dubai.
4. Initial Approvals
Initial approvals are granted by the Department of Economic Development (DED) and confirm that the UAE government has no objection to you starting your business. It’s a mandatory step before proceeding with licensing and final company registration.
5. Proof of Residence
Proof of residence is required to verify the address of shareholders or business partners. This can include a utility bill, tenancy contract, or official letter showing the current residential address, typically issued within the last three months.
6. Ejari tenancy contract
An Ejari tenancy contract is a mandatory, registered lease agreement for your office space in Dubai. It proves that your business has a physical address and is required by the DED to issue a trade license for mainland company formation
7. Trade Name Approval from DED
Trade Name Approval from DED is a required step where the Department of Economic Development approves your chosen business name. The name must follow UAE naming guidelines and reflect your business activity before proceeding with licensing and registration.
Types of Mainland Licenses in Dubai
Here are the official names of the main mainland license types in Dubai:
1. Commercial License
For businesses involved in trading goods, whether retail, wholesale, import/export, or general trading. Suitable for businesses involved in online selling, retail shops, and trade operations.
2. Professional License
Designed for service-oriented and specialist businesses, such as consultancies, engineers, healthcare providers, and freelancers. Allows 100% foreign ownership (with a UAE national local service agent)
3. Industrial License
Issued for businesses engaged in manufacturing, production, or industrial processing of goods, from factories to food or mechanical assembly. Requires physical facilities and regulatory approvals
Why Work with a Business Setup Consultant
1. Benefits of Expert Help
Working with a professional consultant saves you time, money, and stress. They assist with:
- Choosing the right license and structure
- Securing office space and approvals
- Managing visa applications and renewals
- Staying compliant with government regulations
They also keep you informed of legal updates like new ownership laws, so your business stays protected and scalable.
LUKADAH—Your Partner in UAE Mainland Business Setup
At LUKADAH Business Consultant, we specialize in mainland business setup with 100% ownership. Our experienced team handles every step from licensing to legal documentation, so you can focus on building your brand in the UAE. Whether you’re a solo founder or expanding internationally, we provide personalized support and transparent pricing for a smooth setup journey.
Contact Us:
📞 +971 4 394 0800 | 📧 info@lukadah.com | 🌐 www.lukadah.com