Company setup
Mainland company setup in the UAE
A mainland company is licensed by the economic department of the emirate where it is based, not by a free zone. It can sell directly to customers anywhere in the UAE, bid for government work and open branches. It suits founders whose customers are inside the country. Caliph handles the licence, the office paperwork and the visas.
At a glance Fact sheet
- Licensed by
- The economic department of the emirate where the company is based
- Where you can trade
- Across the UAE mainland and abroad. Premises in another emirate need a branch licence there
- Ownership
- Up to 100% foreign ownership for most commercial and industrial activities
- Governing law
- Federal Decree-Law No. 32 of 2021 on Commercial Companies
- Office
- A tenancy contract in the emirate, unless the licence type allows otherwise
- Visas
- Can sponsor residence visas for owners and employees
Overview
Mainland is the everyday word for the part of the UAE that sits outside the free zones. A company formed here is registered with the economic department of one emirate and appears on that emirate's commercial register. The licence names the legal form, the partners, the activities and the address, and it is renewed every year.
For many years most mainland companies needed an Emirati partner holding the majority of the shares. An amendment to the Commercial Companies Law in 2020 removed that general rule, and the current law, Federal Decree-Law No. 32 of 2021, keeps it that way. Each emirate decides which activities are open to full foreign ownership. Activities with strategic impact are set at federal level, and some legal forms still need a UAE national as owner or service agent.
The emirate matters more than founders expect. It decides which authority you deal with, where your office has to be, which approvals sit beside the licence and what the yearly renewal involves. Caliph sets up mainland companies in more than one emirate, and your consultant recommends one after hearing where your customers and staff will be.
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When mainland is the right route
Your customers are inside the UAE
A mainland licence lets you invoice shops, households, companies and government bodies anywhere in the country without a distributor in between.
You want to bid for government work
Public tenders and many large private contracts ask the supplier for a mainland licence. If that is your market, start here.
You need a shop, clinic, restaurant or workshop
Premises that serve the public on a city street are licensed by the emirate, not by a free zone. The location and the activity are approved together.
You plan to grow the team
Visa allocation for a mainland company usually follows the office it rents, so the company can add staff as it takes more space.
You expect to open branches
A mainland company can add branches in the same emirate or in others, each with its own licence under the parent.
How a mainland setup runs
Choose the emirate and the activity
Your consultant matches your business to the activity list of the right economic department and checks who may own it.
Reserve the trade name
The name is checked against the department's naming rules and reserved for your application.
Get the initial approval
The department confirms it has no objection to the partners and the activity. Some activities also need a second authority to approve.
Sign the Memorandum of Association
For a company with partners, the Memorandum of Association is drafted, signed and certified in the way that emirate requires.
Secure the office
You lease premises that suit the activity, and the tenancy contract is registered or attested with the local authority.
Receive the licence
The file is submitted, the fees are paid and the trade licence is issued.
Open the visa file
Caliph registers the company with immigration and the labour ministry, then starts residence visas for owners and staff.
Questions people ask
What is a mainland company in the UAE?
It is a company licensed by the economic department of an emirate and registered on that emirate's commercial register, outside any free zone. It can trade directly with customers across the UAE and abroad, rent premises in the city and sponsor residence visas for its owners and employees.
Can a foreigner own 100% of a mainland company?
Yes for most commercial and industrial activities. The general requirement for an Emirati majority partner was removed from the Commercial Companies Law, and each emirate sets the activities open to full foreign ownership. Strategic activities and some legal forms still have conditions. Your Caliph consultant confirms what applies to you before you apply.
Do I still need a local sponsor or service agent?
Not for a typical limited liability company in an open activity. Some forms, such as sole establishments and civil companies for professional work, can still require a UAE national as owner or local service agent, and the rule differs by emirate. This is checked at the start so the structure is right the first time.
Does a mainland company need a physical office?
Usually yes. Most economic departments want a tenancy contract for premises in the emirate before they issue or renew the licence. Some licence types and activities are allowed to start with a shared or virtual arrangement. The office also affects how many visas the company can apply for.
Which emirate should I choose for a mainland licence?
Choose the emirate where your premises, staff and main customers will be. A licence from one emirate lets you serve clients across the country, but a shop or office in a second emirate needs a branch licence there. Rents, approvals and renewal steps differ, so compare them with your consultant.
Is a mainland company subject to corporate tax and VAT?
Yes. Corporate tax is 9% on taxable income above AED 375,000, and the company registers for it with the Federal Tax Authority. VAT at 5% becomes mandatory once taxable supplies pass AED 375,000 in 12 months, with voluntary registration from AED 187,500. Caliph can handle both registrations after the licence is issued.
- UAE Government portal: full foreign ownership of commercial companies
- Sharjah Economic Development Department
- Department of Economic Development, Ajman
Reviewed by Caliph Business Solutions on . Rules differ by activity and by authority. Your Caliph consultant confirms what applies to you.
Ready to establish your company in the UAE?
Book a free consultation. Tell us what you want to open and we come back with the route, the documents and the cost.
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