Setting up a Mainland business in the UAE unlocks full access to one of the region’s most dynamic and opportunity-rich markets. From retail to real estate, healthcare to consulting, Mainland licenses allow companies to trade freely anywhere within the Emirates, work with government entities, and scale without geographic restrictions.
However, with this flexibility comes the responsibility of navigating a detailed regulatory environment. Here’s a step-by-step breakdown of what entrepreneurs and investors need to know before launching on the Mainland.
1. 🧱 Business Activity and Legal Structure
The first step in forming a Mainland business is identifying your business activity and choosing the appropriate legal structure, as classified by the Department of Economic Development (DED).
Common Structures:
• Sole Establishment – Owned and managed by a single individual
• Limited Liability Company (LLC) – Most popular, offering liability protection for shareholders
• Branch of a Foreign Company – Extension of an international business
• Civil Company – Designed for professionals such as doctors, engineers, and consultants
Your selected activity must match the license category you apply for and meet all regulatory prerequisites.
2. 🤝 Local Sponsorship and Ownership
Thanks to recent reforms, 100% foreign ownership is now allowed in most sectors. However, for activities deemed strategic or sensitive, a local sponsor may still be required.
• For businesses requiring sponsorship, a Local Service Agent (LSA) can be appointed.
• The LSA holds no ownership or profit rights but assists with government paperwork and approvals.
Choosing the right structure early avoids ownership complications later.
3. 📝 Trade Name Registration
Your trade name should:
• Reflect the nature of your business
• Not include religious, political, or offensive terms
• Be unique and not match any existing entities
Once selected, the trade name must be approved by the DED, forming a core part of your license application.
4. 🏢 Office Space Requirements
Unlike Free Zone setups, physical office space is mandatory for all Mainland companies.
• Your office must be registered with a tenancy contract
• Business centers and flexi-desk options are accepted for smaller operations
• The number of employee visas is often linked to the size of your leased space
Your office must also meet Dubai Municipality (or local equivalent) standards for zoning and use.
5. 📜 Licensing and Sector-Specific Approvals
The license type depends on your core activity:
• Commercial License – For trading and sales operations
• Industrial License – For manufacturing or production
• Professional License – For services like legal advice, marketing, or healthcare
Additional Regulatory Bodies:
• Dubai Health Authority (DHA) – For medical practices
• Real Estate Regulatory Agency (RERA) – For real estate firms
• Food Safety Department – For restaurants and food distribution
These authorities may require additional permits, inspections, or employee qualifications.
6. ✅ Regulatory Compliance and Audits
Mainland businesses must adhere to federal and emirate-level regulations, including:
• Annual financial audits for LLCs and branches
• VAT registration if annual turnover exceeds the mandatory threshold
• Compliance with UAE labor laws, including contracts, leave policies, and health insurance
Maintaining transparent financial and HR systems is crucial for avoiding fines and staying licensed.
7. 👥 Visa Eligibility and Sponsorship
Mainland setups offer robust residency and visa benefits:
• Investor visas for business owners
• Work visas for employees and their families
• Visa quotas based on office size (usually 1 visa per 8–10 sqm)
Visa applications, renewals, and cancellations must be handled through the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA).
8. 💸 Government Fees and Setup Costs
Budget for:
• Initial trade license and registration fees
• Office rent and tenancy contract fees
• Visa processing fees for investors and employees
• Service agent or sponsor fees (if applicable)
Additional recurring costs include license renewals, audits, and compliance filings.
🧠 Final Thoughts
Setting up a Mainland business in the UAE gives you access to the entire local market, public tenders, and a flexible operating environment. However, it also comes with more complex compliance responsibilities than Free Zones.
Understanding the legal structure, licensing requirements, visa regulations, and cost implications will ensure your business is built on a solid foundation — ready to grow and scale across the Emirates.
🚀 Ready to Set Up a Mainland Business in the UAE?
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👉 Visit www.licensemarket.ae for a transparent and efficient business setup experience.