Mainland company set-up

At Foster Chapman, our team is trained to ensure that your business setup is quick and easy. Securing a Mainland Company License is an attractive option if you are looking to start a new business that boosts your revenue and trading. However, along with its benefits, it also has many potential challenges.

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Why should I choose the Mainland for my business setup?

Opting for a Mainland setup instead of a Free Zone comes with several advantages. Mainland companies can trade with other businesses without geographic restrictions, encouraging the establishment of multiple branches and a much greater reach across the Emirates. With a wider scope to expand your business, all you have to do is re-register any new business activities you are adding to your company with the Economic Development Department to continue trading freely. You also have 100% Ownership of the business and can benefit from lucrative government contracts, positioning yourself advantageously within the UAE’s substantial market.
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What are the different types of Mainland company setup?

Mainland companies in the UAE are registered with the Department of Economic Development (DED), which grants licenses to operate within the country. Here are the different mainland companies which you can choose for your business:

  • Sole Establishment
  • Civil Company
  • Liability Company (LLC)
  • Branch and Representative Office
  • Joint Venture
  • Private & Public Shareholding Company

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Mainland Company Setup Procedure

Establishing a mainland company in the UAE involves many steps, including:

  • Select a Business Activity
  • Obtain Initial Approval from the DED
  • Acquire a Trade Name
  • Rent Office Space
  • Get Approvals from Relevant Authorities
  • Obtain a Business License
  • Compliance with Legal Requirements (e.g. VAT)

Once you’ve finished setting up, your business is all ready to go.

Company Setup Procedure on the Mainland

1. Decide on your business activity

Choose the type of economic license based on your business activity. Available licenses include:

  • Occupational
  • Tourism
  • Commercial
  • Agricultural
  • Industrial
  • Professional

Each license type covers different economic activities, and the appropriate license is determined by your business’ nature.

2. Select the legal structure

Decide on the legal form of your business, which dictates the regulations you must follow.

Options include:

  • Public Joint Stock Company (PJSC)
  • Civil Company
  • Limited Liability Company
  • General Partnership
  • Private Joint Stock Company (PrJSC)
  • GCC Company Branch
  • Holding Company
  • Limited Partnership
  • Foreign Company Branch
  • Free Zone Company Branch
  • Local Company Branch
  • Sole Establishment
3. Register your trade name

Choose a unique trade name for your company, that does not resemble any existing registered company. You can register the trade name via the Department of Economic Development’s (DED) website, mobile app or in person.

4. Obtain initial approval

Secure initial approval from the UAE government, which indicates there are no objections to your business proposal. This approval allows you to proceed with the company formation steps but does not authorise you to start business operations.

5. Prepare MOA or LSA documents

Memorandum of Association (MOA): Required for Civil, LLC, public shareholding or private shareholding companies.
Local Service Agent (LSA): Necessary for sole proprietorships.

6. Choose a business location

Your business must have a physical address in compliance with DED regulations and local zoning laws. You can register your tenancy contract through the Ejari portal of the Dubai Land Department.

7. Obtain additional government approvals

Certain business activities require approvals from additional government bodies including:

  • Ministry of Justice
  • Local Municipal Department
  • Local Health Departments
  • Ministry of Economy
  • Petroleum Council
  • Telecommunications and Digital Government Regulatory Authority (TRDA)
8. Submit documents and collect your license

Provide the following documents to finalise your business setup:

  • Initial approval receipt
  • Copies of previously submitted documents
  • Attested lease contract
  • MOA
  • Approvals from other relevant authorities

Required Documents for Mainland Business Setup

For initial approval:

  • Registration and licensing application
  • Proof of reserved trade name
  • Applicant’s passport copy (with residence visa for non-GCC nationals)
  • No-objection letter from the current sponsor (for non-GCC nationals)
  • Director’s passport copy and no-objection letter from the current sponsor
  • Court permission for applicants under 21 years
  • Approvals from government authorities
  • Board resolution

After initial approval:

  • Receipt of initial approval
  • Office lease copy
  • MOA copy

Switching from Free Zone to Mainland Business

To transition from a Free Zone to a Mainland business, follow these steps:

  1. Cancel your Free Zone license
  2. Choose a business activity for the mainland
  3. Select a suitable business location
  4. Determine your legal structure
  5. Secure a local sponsor
  6. Register a trade name
  7. Apply for a mainland trade license
  8. Secure your office space
  9. Apply for a visa
  10. Look for a business setup consultant.

Business Setup in Dubai Mainland

For expert guidance on establishing a mainland business in the UAE, Foster Chapman offers comprehensive consulting services. We assist with every aspect of the setup process, ensuring compliance with regulations and providing insights into the most profitable business regions and structures.

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