Evolve Consultancy

UAE Mainland

Expert guidance for establishing your business in the UAE's Mainland

Discover the advantages of UAE Mainland business setup including full market access, government contract eligibility, and enhanced business credibility. Let our experts help you navigate the setup process for your mainland business needs.

Understanding UAE Mainland Business

Mainland businesses in the UAE operate under the jurisdiction of the Department of Economic Development (DED). Unlike free zones, mainland companies can conduct business activities throughout the entire UAE without restrictions, trade directly with the local market, and bid for government contracts, making them the ideal choice for businesses seeking maximum operational flexibility and market access.

Unlimited Geographic Reach
Government Contract Eligibility
Direct Local Market Access
Diverse Business Activities
UAE Mainland Business Setup

Key Advantages of Mainland Business

Establishing a mainland company in the UAE offers distinct strategic advantages that support long-term business growth and market penetration. Understanding these benefits helps entrepreneurs make informed decisions about their business structure.

No Operational Restrictions

Unlike free zone companies that are restricted to operating within their designated zones, mainland businesses can operate and establish offices, retail outlets, or facilities anywhere in the UAE, providing unparalleled flexibility for business expansion.

Government Tenders Access

Mainland companies have the exclusive privilege of bidding for lucrative government contracts and tenders, opening up significant revenue opportunities that are unavailable to free zone entities. This advantage is crucial for businesses in sectors like construction, healthcare, and IT services.

Enhanced Market Credibility

Operating as a mainland company often provides greater credibility with local businesses, customers, and financial institutions. The mainland license is widely recognized throughout the UAE, facilitating smoother business relationships and potential partnerships.

No Visa Limitations

Mainland companies typically enjoy more flexible visa quotas based on their office space and business activities, making it easier to expand their workforce as the business grows, without the strict limitations often imposed in free zones.

Mainland Business Setup Process

Establishing a mainland business in the UAE involves several key steps. While the process has been streamlined in recent years, professional guidance ensures compliance with all regulatory requirements and a smooth setup experience.

1

Business Activity Selection

Choose from over 2,000 permitted business activities across commercial, professional, industrial, and tourism categories. Your business activity determines the license type and associated requirements.

2

Trade Name Registration

Select and register a unique trade name with the Department of Economic Development (DED) that complies with UAE naming conventions and regulations.

3

Initial Approval Acquisition

Submit your business application to obtain initial approval from the DED, which allows you to proceed with securing your business location and additional documentation.

4

Location & Documentation

Secure a physical office space with a valid tenancy contract and prepare all required corporate documents, including memorandum of association and shareholder agreements.

5

License Issuance & Registration

Submit all documentation for final approval, pay the license fees, and receive your business license. Complete additional registrations with the Chamber of Commerce and relevant authorities.

Mainland vs. Free Zone: Making the Right Choice

Understanding the key differences between mainland and free zone setups is essential for making strategic business decisions. Each option offers distinct advantages depending on your business goals, target market, and long-term strategy.

Ownership Structure

Recent amendments to the UAE Commercial Companies Law have transformed ownership possibilities for mainland businesses, offering greater flexibility and control to foreign investors.

Mainland
100% foreign ownership now available for most commercial activities
Some strategic sectors still require Emirati participation
Multiple legal entity options including LLC and branch office
Free Zone
100% foreign ownership has always been permitted
No local sponsor requirement for any business activity
Limited entity types based on free zone regulations
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Market Access & Business Scope

The scope of operations and market access represents one of the most significant differences between mainland and free zone companies.

Mainland
Unrestricted business throughout the entire UAE
Eligible for government contracts and tenders
Multiple branches allowed across different emirates
Free Zone
Cannot directly trade in the UAE mainland without a local agent
Generally ineligible for government contracts
Operations typically limited to the specific free zone
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Taxation & Customs

With the introduction of corporate tax in the UAE, understanding the tax implications of different business structures has become increasingly important.

Mainland
Subject to 9% corporate tax on profits above AED 375,000
5% VAT applies to most goods and services
Customs duties apply on imports
Free Zone
Tax exemptions available for qualifying free zone entities
5% VAT applies, with specific zones offering deferred payments
Customs duty exemptions on imports and exports
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Setup Requirements & Costs

The establishment process and associated costs differ significantly between mainland and free zone companies, influencing the initial investment required.

Mainland
Physical office space required
Potentially higher initial setup costs
More complex documentation requirements
Free Zone
Virtual office options available in many free zones
Often lower initial investment with package options
Streamlined setup process with less paperwork
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Trusted By The Best

Ready to Establish Your Mainland Business?

Evolve Consultancy has helped hundreds of businesses successfully navigate the mainland setup process. Our experienced consultants provide end-to-end support, ensuring a smooth and compliant establishment experience.

Frequently Asked Questions

What is a UAE Mainland business?

A UAE Mainland business is a company established under the Department of Economic Development (DED) jurisdiction, allowing unrestricted trade throughout the UAE without geographical limitations. Unlike free zone companies, mainland businesses can operate directly in the local market, bid for government contracts, and establish multiple branches across different emirates.

Can foreigners own 100% of a UAE Mainland company?

Yes, following recent amendments to the UAE Commercial Companies Law, foreigners can now own 100% of mainland companies in most commercial activities. However, some strategic sectors still require Emirati participation. Our consultants can advise on the specific ownership structure for your business type.

What are the main advantages of a UAE Mainland business over a Free Zone company?

The main advantages of a UAE Mainland business include: unrestricted trading throughout the UAE without the need for service agents, eligibility for government tenders and contracts, ability to open multiple branches across different emirates, enhanced market credibility with local businesses, and more flexible visa quotas based on office space and business activities.

What documents are required to set up a Mainland business in the UAE?

Required documents typically include: passports and Emirates ID (if applicable) of all shareholders, no objection certificate from current sponsor (for UAE residents), bank reference letters, business plan, initial approval application form, memorandum of association, lease agreement for physical office space, and any additional documentation specific to your business activity. Evolve UAE can guide you through the complete documentation process.

Is a physical office mandatory for a UAE Mainland business?

Yes, a physical office space with a valid Ejari (tenancy contract) is mandatory for UAE Mainland business setup. The office must be suitable for your business activities and located in a commercially zoned area. Unlike some free zones, virtual office options are not permitted for mainland businesses.

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