UAE Mainland Companies

What is mainland company in UAE? A mainland company is a legal entity that is allowed to operate both inside and outside the country without restrictions. If the client decides to do business in the mainland, the person will need to register a legal entity with the Dubai Department of Economic Development (DED) or the Department of Economy and Tourism of the Emirate of the client´s choice to start a business in the emirate.

Speaking of a free zone company vs mainland company, a local company in the UAE represents a fairly clear and potentially promising alternative to the free zone companies in the UAE, as well as a substantially more attractive option from organizational and reputational points of view compared to free zone companies.

Steps to start a business on the mainland are as follows:

1. Determination of the type of activity of the company – the main types of activities are professional, commercial or industrial. It is possible to choose several types of activities within one of the abovementioned groups.
2. Choice of legal form – it depends on the chosen type of activity and general business needs.
3. Corporate name – the company’s name must contain an indication of its legal form, the purpose of its activities or consist of the names of one or more participants. For branches the name must be the same as the name of the main company.
4. Initial approval from the Department of Economic Development – a mandatory step is to obtain initial approval from the Department of Economic Development on the possibility of registering a company, enterprise or branch with a particular name.
5. Office rent – an office rental is a requirement for registering companies in the UAE. The business must have a real office, it is also necessary to conclude a leasing contract of premises (Ejari) in the territory of the respective emirate.
6. Acquiring supplementary authorizations (if required) – in order to carry out some kinds of activities, it is necessary to coordinate and obtain a number of permits from governmental authorities such as the Ministry of Health, the Police, etc.
7. Obtaining a license – after the preparation of all founding and corporate documents, their approval, getting all permits and payment of all state fees, the Department of Economic Development will give a license for the selected activities.

• Registration throughout the Emirates;
• buying or renting an office in any part of the country;
• no restrictions on areas of activity in the domestic market and abroad;
• tax residency status in the UAE;
• ability to participate in government tenders;
• ability to issue a resident visa for the business owner and his employees;
• affordable credits;
• available loans from Arab banks;
• possibility of 100% ownership (as of November 2020, under amendments to the UAE company law, many businesses no longer require a local Emirati sponsor who should own 51% of the mainland business).

The most common legal forms used for the purpose of formation of a mainland company in UAE are:

• Sole proprietorship;
• Limited Liability Company (LLC);
• Branch of a foreign company.

Local companies are entitled to carry out business in the UAE and internationally. Thus, the legislation provides for the possibility of obtaining the following types of licenses:

• professional;
• commercial;
• industrial.

Furthermore, there are types of activities for which, in addition to obtaining a license there are also additional permits that must be obtained from the regulatory authorities, for example, in tourism, consulting, trading foodstuffs.