What is a Commercial License?

Commercial License: This license covers businesses engaged in trading activities, such as buying, selling, importing, and exporting goods. In Dubai, a firm can perform up to ten related activities under one Commercial License.

What is an Industrial License?

Industrial License: This license is required for businesses involved in manufacturing, processing, assembling, or packaging goods.

What is a Professional License?

Professional License: This license is for individuals or companies providing professional services, such as consultancy, accounting, and legal services.

What is a Tourism License?

Tourism License: This license covers businesses operating in the tourism and hospitality sector, including hotels, travel agencies, and tour operators.

What is an Agricultural License?

Agricultural License: This license is for businesses involved in farming, livestock, and related agricultural activities.

What is a Craftsmanship License?

Craftsmanship License: This license is for skilled individuals practicing a craft or trade, such as carpentry or tailoring8.

What is a Freelance Permit?

Freelance Permit: This permit allows individuals to work independently in specific fields, offering their expertise and services.

What is an E-commerce License?

E-commerce License: This license is for businesses engaged in online trading activities, selling goods and services through electronic platforms10.

What is a Media License?

Media License: This license covers media and communication services, including publishing, broadcasting, and advertising.

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Any Question? Call Us

+971 56 933 9396

Mainland Business Setup in the UAE

The United Arab Emirates (UAE) consistently ranks high in the World Bank’s Ease of Doing Business report, making it an attractive destination for entrepreneurs and investors worldwide. Leveraging its strategic location, world-class infrastructure, and pro-business policies, the UAE offers an unparalleled environment for establishing and growing a company.

The UAE’s thriving economy and strategic location have made it a magnet for international businesses. Setting up a mainland company unlocks a world of possibilities, allowing you to tap into the vast potential of the UAE market and connect with a diverse clientele. Compared to free zones, mainland businesses enjoy greater freedom

This comprehensive guide on the business setup process in UAE provides actionable insights and step-by-step process for business setup, local regulations, licensing requirements, and cost planning. Whether you are considering a mainland business setup in UAE or exploring free zone options, our expert advice covers every aspect of UAE company formation.

We focus on the key emirates that drive the UAE’s vibrant market:

Abu Dhabi: A powerhouse for finance, oil, and tourism, offering unparalleled business opportunities.
Sharjah: Known for its rich cultural heritage and expanding industrial and creative sectors.
Ras Al Khaimah (RAK): Renowned for its business-friendly environment and competitive operational costs.
Al Ain: Emerging as a hub for education, healthcare, and retail businesses.
Dubai: The global business center with unmatched connectivity, innovation, and international trade.
Ajman: An ideal location for startups and SMEs, offering cost-effective business setup solutions.

Start your journey to successful UAE business setup in UAE.

Types of Business Entities in the UAE

Before exploring licenses and setup procedures, it’s essential to understand the main business entity types in the UAE. Each structure impacts liability, ownership, and flexibility. Common types include:

Mainland Company – Full access to the UAE market, requiring a local sponsor (for some activities).
Free Zone Company – 100% foreign ownership with trade restricted to designated zones.
Offshore Company – Ideal for international business with no physical presence in the UAE.

Choosing the right entity depends on business goals, trade needs, and legal considerations.

✅ Sole Proprietorship: This structure is suitable for individuals who want to fully own and control their business. The owner is personally liable for all business debts and obligations. In Abu Dhabi, foreign citizens can own professional sole proprietorships, while UAE and GCC nationals can own commercial or industrial sole proprietorships.
✅ Partnership Company: This structure involves two or more partners sharing ownership, responsibilities, and liabilities. There are two main types: General Partnership, where all partners share unlimited liability, and Limited Partnership, where some partners have limited liability. In the UAE, general partners in a limited partnership must be UAE nationals.
✅ Limited Liability Company (LLC): This is a popular structure that combines the limited liability protection of a corporation with the flexibility and taxation benefits of a partnership. Owners (members) are not personally liable for company debts beyond their investment. LLCs require a minimum of two and a maximum of fifty shareholders.
✅ Private Shareholding Company (PrJSC): This structure requires a minimum of three investors and is suitable for various commercial and industrial activities. GCC nationals can own up to 100% of the shares.
✅ Public Shareholding Company (PJSC): This structure allows for public offering of shares and requires a minimum of ten shareholders.
✅ Branch Office: This structure allows a foreign company to establish a presence in the UAE while remaining a part of the parent company.

Types of Business Licenses in the UAE

The UAE offers a diverse range of business licenses to accommodate various industries and activities. Here’s a summary of the main types:

✅ Commercial License: This license covers businesses engaged in trading activities, such as buying, selling, importing, and exporting goods. In Dubai, a firm can perform up to ten related activities under one Commercial License.
✅ Industrial License: This license is required for businesses involved in manufacturing, processing, assembling, or packaging goods.
✅ Professional License: This license is for individuals or companies providing professional services, such as consultancy, accounting, and legal services.
✅ Tourism License: This license covers businesses operating in the tourism and hospitality sector, including hotels, travel agencies, and tour operators.
✅ Agricultural License: This license is for businesses involved in farming, livestock, and related agricultural activities.
✅ Craftsmanship License: This license is for skilled individuals practicing a craft or trade, such as carpentry or tailoring8.
✅ Freelance Permit: This permit allows individuals to work independently in specific fields, offering their expertise and services.
✅ E-commerce License: This license is for businesses engaged in online trading activities, selling goods and services through electronic platforms10.
✅ Media License: This license covers media and communication services, including publishing, broadcasting, and advertising.

Advantages of Business Setup in Abu Dhabi Mainland

Full Ownership

You can hold 100% ownership of your mainland company, granting you complete control over operations and decision-making.

Wider Market Access

Unlike free zones with restrictions on trade with the mainland, mainland companies can freely operate and trade throughout the UAE.

Government Contracts

You become eligible to participate in lucrative government tenders and projects, further expanding your business reach.

Branch Expansion

Easily open new branches and offices within the UAE.

World-Class Infrastructure

Abu Dhabi boasts excellent transportation networks, logistics facilities, and advanced communication technologies, making it an ideal location for businesses of all sizes.

Business Setup Process in the UAE

The UAE government has implemented various initiatives to streamline business setup procedures. One notable example is the Bashr eService, an integrated online platform that enables investors to establish companies in the UAE within minutes. This service connects with local and federal government entities, simplifying the process and reducing the time required for company formation.

While the specific requirements may vary slightly between emirates, the general process for obtaining a business license in the UAE involves the following steps:

1. Identify Your Business Activity:

Explore the various types of economic licenses (Occupational, Tourism, Industrial, etc.) and over 2,000 specific activities offered in the UAE.

2. Determine Your Company Structure:

Choose the legal form (Sole Establishment, Limited Liability Company, etc.) that best suits your business needs and legal requirements.

3. Register Your Trade Name:

Select a unique and compliant trade name through the chosen Emirate's Department of Economic Development (DED). (Estimated time: 1-2 weeks)

4. Apply for Initial Approval

Obtain a no-objection certificate from the UAE government to proceed with further steps.

5. Create LSA or MOA

Draft a Local Service Agent Agreement (LSA) for sole proprietorships or a Memorandum of Association (MOA) for certain company structures.

6. Choose Your Business Location:

Secure a physical location that adheres to DED and local zoning regulations. In Dubai, register your tenancy contract through Ejari.

7. Apply for Additional Government Approvals:

Certain business activities might require approvals from specific government entities (e.g., Ministry of Health for health-related businesses).

8. Submit Required Documents:

Compile and submit necessary documents, including the initial approval receipt, attested lease contract, and MOA/LSA.

9. Pay Fees and Collect License

Once fees are settled, collect your business license from the DED service centers or their website.

10. Register with the Chamber of Commerce

Local Sponsor Requirements

For certain business activities and legal structures in the UAE, foreign investors may need a local sponsor or a local service agent. A local sponsor is a UAE national who holds 51% of the shares in the company but may not be actively involved in the business operations. A local service agent, on the other hand, is a UAE national who provides administrative and legal support to the company without holding any shares.

The requirement for a local sponsor varies depending on the emirate, the business activity, and the legal structure. It’s essential to consult with the relevant authorities or business setup specialists to determine if a local sponsor is required for your specific business.

Choosing the Right Emirate: Location Matters

The UAE consists of seven emirates, each with its own unique economic landscape and regulations. Choosing the right emirate for your company depends on various factors:

Business Focus

Dubai is a global hub for trade and finance, while Abu Dhabi is the administrative capital with a focus on government projects. Sharjah offers cost-effective options for industrial businesses.

Target Market

If you aim for a regional clientele, Dubai's strategic location offers easy access. Abu Dhabi caters to the government sector, while other emirates might be ideal for specific local markets.

Regulations and Fees

Each emirate has its own regulations and fee structures. It's crucial to choose an emirate that aligns with your business activity and budget.

Departments of Economic Development in the Emirates

Department of Economic Development in Abu Dhabi

Department of Economic Development in Dubai

Department of Economic Development in Sharjah

Department of Economic Development in Ajman

Department of Economic Development in Umm Al Quwain

Department of Economic Development in Ras Al Khaimah

Fujairah Municipality

Licensing Requirements and Services

Streamlined Licensing Process

ADDED facilitates the processing of licenses and permits essential for engaging in commercial activities. Through eServices on TAMM, you can conveniently choose and apply for the licenses required for your business operations.

License Options for Investors and Businesses

Economic Licenses

Gain insight into the specific economic activities permitted after fulfilling all relevant legal requirements.

Permits

Enable your establishment to publish commercial advertisements, add accessories, or engage in temporary activities.

Business Activities Allowed in Different Emirates

Each emirate in the UAE has its own set of permitted business activities and areas of focus. Here’s a summary of the main activities allowed in the key emirates: Abu Dhabi:

Wide range of activities: Abu Dhabi allows for a diverse range of business activities across various sectors, including trading, manufacturing, services, tourism, and more.
Focus on technology and innovation: Abu Dhabi has been actively promoting technology and innovation, with initiatives like Hub71 supporting startups and entrepreneurs in these fields.
Sustainability: Abu Dhabi emphasizes sustainability in business activities, with a focus on eco-friendly practices and the cultivation and production of specialized horticulture products.
Aviation: Abu Dhabi Airport Free Zone (ADAFZ) focuses on aviation and related businesses, including airlines, aircraft maintenance, ground handling services, and logistics companies.

Sharjah:

Diverse economic opportunities: Sharjah’s economy spans various sectors, including manufacturing, tourism, education, and media.
Focus on media and creative industries: Sharjah Media City (Shams) is a dedicated free zone for media and creative businesses, offering a supportive environment and cost-effective solutions.
Logistics and distribution: Sharjah has a strong logistics and distribution sector, with free zones like Hamriyah Free Zone Authority (HFZA) and Sharjah Airport International Free Zone (SAIF Zone) supporting these activities.
Publishing and printing: Sharjah Publishing City is a free zone specifically designed for publishing and printing businesses, offering a specialized environment for companies in this sector.

Ras Al Khaimah:

Trading and manufacturing: Ras Al Khaimah is a hub for trading and manufacturing activities, with a focus on industries like manufacturing, logistics, tourism, and services.
Strategic location: Ras Al Khaimah benefits from its strategic location, situated near Dubai and offering access to diverse markets in the Middle East, Europe, Asia, and Africa.
General trading: Ras Al Khaimah allows for a wide range of general trading activities, including import, export, storage, and distribution of goods.
Consultancy and professional services: Ras Al Khaimah encourages consultancy and professional services across various sectors.

Al Ain:

Diverse economy: Al Ain’s economy is diverse, with opportunities in sectors such as agriculture, manufacturing, tourism, education, healthcare, and more.
Mainland business focus: Al Ain primarily focuses on mainland business activities, allowing companies to operate across the UAE.
Trading of automotive parts and accessories: Al Ain permits the trading of various automotive parts and accessories.

Dubai:

Wide range of activities: Dubai allows for a wide range of business activities, including trading, manufacturing, services, tourism, and more.
Focus on finance and technology: Dubai is a major financial center and a hub for technology companies, with free zones like Dubai International Financial Centre (DIFC) and Dubai Silicon Oasis (DSO) supporting these sectors.
Commodities trading: Dubai Multi Commodities Center (DMCC) is a free zone specializing in commodities trading, offering a platform for businesses in this sector.
Real estate and retail: Dubai has a thriving real estate and retail sector, with numerous opportunities for businesses in these areas.

Ajman:

Trading and manufacturing: Ajman allows for trading and manufacturing activities, with a focus on sectors like food and beverage, automotive, health and beauty, and construction.
E-commerce and online trading: Ajman encourages e-commerce and online trading activities.
Affordability: Ajman focuses on affordability for businesses, with low setup costs and flexible installment plans available.
Consultancy and professional services: Ajman permits consultancy and professional services across various industries.

Cost of Obtaining a Business License in the UAE

The cost of obtaining a business license in the UAE varies depending on several factors, including the type of license, the emirate, the business activity, the company size, and the number of visas required. Generally, the cost ranges from AED 5,000 to AED 30,000 or more. Here’s a breakdown of approximate costs for different emirates:

Emirate	License Cost (AED)
Abu Dhabi	10,000 to 30,000
Sharjah	5,000 to 30,000+
Ras Al Khaimah	10,000 to 20,000
Dubai (Mainland)	7,000 to 15,000 (DED License)
Dubai (Free Zone)	5,750 to 30,000
Ajman	5,000 to 20,000

It’s important to note that these are approximate costs, and the actual fees may vary. It’s advisable to contact the relevant authorities or consult with business setup specialists for accurate and up-to-date pricing information.

Business Support Services in the UAE

The UAE offers a wide range of business support services to assist entrepreneurs and investors in navigating the complexities of setting up and running a business. These services vary between emirates, catering to the specific needs and focus areas of each region. Here are some examples:

Abu Dhabi:

ADGM: Abu Dhabi Global Market offers a supportive ecosystem for financial and non-financial businesses, with a focus on banking, capital markets, wealth management, fintech, and digital assets.
Hub71: This initiative provides funding and support for technology startups, offering access to a dynamic community, mentorship, and resources.

Sharjah:

Sharjah Media City (Shams): Shams provides comprehensive business support services for creative entrepreneurs and media companies, including concierge services, training workshops, and financial services.
Sharjah Entrepreneurship Center (Sheraa): Sheraa offers support for entrepreneurs and startups, with a focus on EdTech, CleanTech, and the arts industries.

Ras Al Khaimah:

RAKEZ: Ras Al Khaimah Economic Zone provides a range of support services, including visa processing, corporate financial support, and access to a professional network.
RAK FTZ Company Transfer: RAK Free Trade Zone offers company transfer services, allowing businesses to transfer their existing companies to the free zone and benefit from its advantages.
GloboPrime Corporate Services: Offer administrative support, visa processing, and guidance on government-related procedures. Learn more.

Al Ain:

GloboPrime Businessmen Services Centers: Al Ain has several Businessmen Services Centers. You can choose reliable corporate services providers like GloboPrime Corporate Services UAE that offer administrative support, visa processing, and guidance on government-related procedures.

Dubai:

Dynasty Business Adviser: This consulting firm offers a wide range of business support services, including legal support, accounting and tax support, bank account opening assistance, and visa and PRO services.
Dubai Next: This crowdfunding platform provides startups with funding and assistance in obtaining trade licenses.
GloboPrime Corporate Services in Dubai: Offer administrative support, visa processing, and guidance on government-related procedures. Learn more.

Ajman:

Ajman Free Zone (AFZ): AFZ offers comprehensive business support services, including assistance with company registration, licensing, visa processing, and access to modern facilities.

For further assistance, please contact us.

Mainland vs. Free Zone: Choosing the Right Location

When setting up a business in the UAE, entrepreneurs have the option of establishing their company in the mainland or a free zone. Both options offer distinct advantages and disadvantages, and the choice depends on the specific needs and goals of the business.

Category	Mainland	Free Zone
Advantages	Access to the wider UAE market. Ability to trade directly with local customers. Greater flexibility in business activities.	100% foreign ownership. Tax exemptions and benefits. Simplified company setup procedures. Access to modern infrastructure and facilities.
Disadvantages	Requirement for a local sponsor for certain activities. Higher setup costs. More complex legal and administrative procedures.	Restrictions on trading outside the free zone. Limited business activities allowed.

How GloboPrime UAE Expert Business Setup Consultant Can Help?

GloboPrime Corporate Service Provider is committed to providing reliable and efficient attestation services to ensure your documents are authenticated with precision and care. Contact us today to learn more about how we can assist you with your Bahrain embassy attestation requirements.

The Advantages of Partnering with Us

We will guide you every step of the way, ensuring a smooth Company Registration process in the UAE. Our Services:

Expert Consultation

We will discuss your business goals and recommend the most suitable business activity and legal structure.

Sole Proprietorship

Ideal for small businesses with one owner. Offers lower setup costs but limited liability protection.

Limited Liability Company (LLC)

The most popular choice, offering flexibility, ease of management, and limited liability for shareholders.

License Application

Our team will assist with all the paperwork and applications required to obtain your mainland business license.

Company Formation

We will guide you through drafting the Memorandum of Association (a document outlining your company's objectives and structure) and other legal requirements.

Visa Processing

We will assist you in obtaining the necessary visas for yourself and your employees.

Ongoing Support

Even after your company is established, GloboPrime remains your trusted partner. We provide ongoing support with services like accounting, legal advice, and business development.

Start Your Mainland Business Today!

Contact us today for a free consultation! We will assess your business goals and create a customized roadmap for your successful mainland business setup in the UAE.

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