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What is a Mainland Company?
In the United Arab Emirates (UAE), a mainland company (also referred to as an onshore company) is licensed by the Department of Economic Development (DED) of the respective Emirate.
Each of the seven Emirates has a primary licensing authority which allows businesses to register and operate legally within the local market. Mainland companies benefit from complete operational flexibility, unrestricted access to UAE markets, and a broad range of permitted business activities.
Advantages of Registering a Mainland Company
Mainland companies offer a range of benefits that make them a preferred choice for investors and entrepreneurs:
- 100% Foreign Ownership – Now available for most business activities
- Freedom to Operate Locally – Trade and contract freely across the UAE
- No Capital Requirement – For the majority of licensed activities
- No Currency Restrictions – Repatriate capital and profits with ease
- Eligibility to Contract with UAE Government – Including entities such as ADNOC
- Flexible Hiring – Employ staff locally or internationally with ease
- Freedom to Lease Office Space – Anywhere within the Emirate
- No Mandatory Annual Audit – For most business categories
Legal Structures Available for Mainland Companies
The legal structure best suited to your company will depend on your intended activities and ownership model. When setting up a mainland company, you may choose from several legal forms, depending on your business model:
- Limited Liability Company (LLC)
- Sole Establishment / Professional Licence
- Branch or Representative Office of a Foreign Company
Business Activity Categories
The DED classifies business activities into six primary types, which directly influence the licence type and legal form. Each category has specific requirements and implications for operations, licensing, and compliance.
1
Professional
2
Commercial
3
Industrial
4
Tourism
5
Agricultural
6
Occupational
Navigating the Three Types of Mainland Companies in the UAE
In the UAE, businesses can register under three primary types of mainland company structures: Limited Liability Companies (LLC), Professional Licences, and Foreign Branch/Representative Offices. Each structure has its own advantages and requirements, making it essential for investors to choose the one that best aligns with their business goals.
LLCs are the most common and allow foreign investors to own up to 100% of their business, subject to certain activities. Professional Licences are ideal for businesses offering services, consultancy, or skilled professions, and can also be fully foreign-owned.. Foreign Branch/Representative Offices serve as extensions of an existing parent company, either in the UAE or abroad, to promote the parent company’s services without directly engaging in trade or providing services. H1: Limited Liability Company (LLC)
Limited Liability Company (LLC)
In the United Arab Emirates, the Limited Liability Company (LLC) remains the most commonly registered business structure for those establishing a Mainland presence. Historically, forming an LLC required the appointment of a 51% local partner. However, following the landmark amendments announced by the Foreign Direct Investment Authority (FDI) on 1st June 2021, over 1,000 business activities are now eligible for 100% foreign ownership under the revised Commercial Companies Law (CCL).
Local Partnership Solutions for Restricted Activities
While many business activities can now be fully owned by foreign investors, there are still specific sectors that continue to require a 51% local shareholding. At Rosemont Partners, we understand that navigating a local partnership arrangement may feel unfamiliar to international clients. That is why we offer tailored solutions, including the provision of a trusted corporate nominee.
Our bespoke nominee arrangement is designed to ensure that the foreign investor — holding a 49% share — retains full financial and managerial control of the company. From contractual safeguards to shareholder agreements, every detail is structured to protect your interests and provide peace of mind.
Professional License
Professional Licences are best suited to individuals and firms operating in sectors such as consultancy, accounting, legal services, advertising, creative industries, and more.
Foreign Branch / Representative Office
A Foreign Branch or Representative Office is considered an extension of your parent company, whether it is registered in an existing UAE Freezone or internationally. It is not a new legal entity, meaning the liability rests with the parent company.
1
Activities
- A Foreign Branch can engage in similar business activities to those of the parent company and will be registered with the Department of Economic Development (DED) under the same trade name.
- A Representative Office, on the other hand, cannot engage in trading or provide services. Its primary purpose is to promote the parent company’s services within the UAE.
2
Requirements
It is recommended for a Foreign Branch to appoint a Local Service Agent (LSA) for the purpose of easing the process of applying for employment visas with immigration. The LSA does not hold shares in the company and has no control over the daily operations of the business.
Their role is to act as a representative, with no civil liability or financial obligations attached.
3
Important Notes
As a Foreign Branch is essentially an extension of the parent company, the foreign entity remains liable for taxes in accordance with the jurisdiction of the parent company’s location.
A Foreign Branch or Representative Office must be registered with the Ministry of Economy (MoE). As part of the registration process, a refundable bank guarantee of AED 50,000 is required. This guarantee is held throughout the licence period and cannot be used as working capital.
Steps to Register a Foreign Branch / Representative Office
- Identify and appoint a Local Service Agent
- Reserve the foreign branch trade name
- Obtain initial approval
- Prepare the Board Resolution and Power of Attorney
- Draft and prepare the Local Service Agent agreement
- Schedule Notary Public signing (Parent company must identify the authorised signatory)
- Obtain approval from the Ministry of Economy and Federal Foreign Companies Committee
- Secure office space (Company’s registered address)
- Issuance of the Trade Licence
We Support Your Entry into the UAE Market
At Rosemont Partners, our team brings deep expertise and over 40 years of combined experience in supporting investors and international companies entering the UAE market.
We provide:
- Comprehensive Business Setup Services – From company formation to approvals and licensing
- Expert Activity Classification – Ensuring your company is registered under the most appropriate and strategic business activity
- Visa & Immigration Support – Full assistance with staff employment visas, immigration registration, and Ministry of Labour (MoL) compliance
- Wage Protection System (WPS) Registration – Ensuring your employees are compliant with local labour laws
- Bank Account Assistance – Matching your licensed activity with suitable banking options to streamline account opening
Ready to start your
Mainland company in the UAE?
ontact us today to discuss the best structure for your business and get expert guidance on setting up in the UAE. Our team at Rosemont Partners is here to assist you every step of the way.
