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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.

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UAE MAINLAND

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
Free Zone
100% foreign ownership now available for most commercial activities
100% foreign ownership has always been permitted
Some strategic sectors still require Emirati participation
No local sponsor requirement for any business activity
Multiple legal entity options including LLC and branch office
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
Free Zone
Unrestricted business throughout the entire UAE
Cannot directly trade in the UAE mainland without a local agent or distributor
Eligible for government contracts and tenders
Generally ineligible for government contracts
Multiple branches allowed across different emirates
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
Free Zone
Subject to 9% corporate tax on profits above AED 375,000
Tax exemptions available for qualifying free zone entities
5% VAT applies to most goods and services
5% VAT applies, with specific zones offering deferred payments
Customs duties apply on imports
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
Free Zone
Physical office space required
Virtual office options available in many free zones
Potentially higher initial setup costs
Often lower initial investment with package options
More complex documentation requirements
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.

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