Mainland Company Formation

A mainland company is registered with the Department of Economy and Tourism (DET) and is free to operate UAE-wide. Unlike an offshore company, which is restricted to holding and international use and cannot trade inside the UAE, a mainland entity can invoice local clients, win public-sector tenders and open branches anywhere in the country.

Choosing between mainland and a free zone comes down to where your customers are and the activity you want to license. If most of your trade is with UAE-based clients or government, mainland usually fits best; if you are export-focused or want a packaged setup, a free zone may suit you. Our free zone vs mainland guide walks through the trade-offs, and the cost estimator gives an indicative budget. When you are ready, we can also arrange your trade licence and ongoing PRO and government services.

The first step is matching your business activity to the DET activity list, because the activity decides your ownership route. For most commercial and industrial activities you can hold 100% of the shares yourself (Federal Decree-Law 26/2020). For a small number of strategic or restricted sectors an Emirati partner is still required, and some professional licences or foreign branches use a 0% equity Local Service Agent who has no share in profit or management. We confirm exactly which route applies to your activity in writing — see the official guidance at u.ae.

From there the process is straightforward: reserve a trade name and initial approval with DET, prepare the Memorandum of Association, secure tenancy (Ejari) for your office, then collect the licence. After that we move to immigration — your establishment card and your investor residence visa, plus staff visas as needed. Founders who meet the thresholds can also explore the Golden Visa. We then help with your corporate bank account and set up accounting, VAT and corporate tax registration so you start compliant. Indicative official fees: DET trade-name reservation is around AED 620 and ICP residence-permit government fees are about AED 100 per year plus medical, Emirates ID and typing (per icp.gov.ae); foreign-branch licences also carry a Ministry of Economy and Tourism initial approval of around AED 3,500 (per moet.gov.ae). All figures are indicative — government fees change, so request an exact quote.

UAE Corporate Tax applies to mainland companies at 0% on taxable income up to AED 375,000 and 9% above that, under Federal Decree-Law 47/2022 and effective for financial years starting on or after 1 June 2023. Corporate Tax registration is required, the late-registration penalty is AED 10,000, and you must file and pay within nine months of your tax period end. If your revenue is under AED 3,000,000 per period you may claim Small Business Relief, available until 31 December 2026. Details are on the Federal Tax Authority (tax.gov.ae).

VAT is charged at a standard 5%. Registration is mandatory once your taxable supplies reach AED 375,000, and voluntary from AED 187,500. We can keep all of this in order through our accounting, VAT and corporate tax service, and protect your brand with trademark and IP registration. If you would like to compare overall budgets first, read the cost to set up a business in Dubai or contact us on WhatsApp for a tailored, no-obligation plan.