The main mainland company advantages in the UAE are direct access to the local market, 100% foreign ownership for most activities, a wide choice of licence types, Small Business Relief, no income tax on individuals and a 0% corporate tax band up to AED 375,000. This guide explains each one and cites the official source. It also states what these advantages do not cover.
Last updated: 3 October 2026
What is a mainland company in the UAE?
A mainland company is licensed by the Department of Economic Development of an emirate, not by a free zone authority. The UAE Government portal says Federal Decree-Law No. 32 of 2021 on Commercial Companies applies to any economic entity that carries out an economic activity on the mainland (Source: u.ae, Business regulations related to mainland companies).
In short, the licence comes from the emirate and the company law is federal. As a result, the same core rules apply in Dubai, Abu Dhabi, Sharjah and the other emirates.
What are the mainland company advantages in the UAE?
1. Direct access to the UAE local market
This is the first of the mainland company advantages, and it is the one free zones cannot match. The UAE Government portal states that a free zone company “is not permitted to carry out business outside the free zone, i. e. on the mainland” (Source: u.ae, Running a business in a free zone). To extend its business to the mainland, it needs permission from its free zone authority and a licence from the local economic department.
A mainland company already holds that licence. Therefore, you can sell to customers, open a shop or sign a contract in the local market without a second approval route. For a side-by-side view, read our guide on mainland vs free zone in Dubai.
2. 100% foreign ownership for most activities
You do not need a local shareholder for most activities. The portal says: “Foreigners are allowed to establish companies with 100 per cent full ownership, based on the provisions of Federal Decree-Law No. 26 of 2020” (Source: u.ae, Full foreign ownership of commercial companies).
However, the same source excludes “economic activities with a strategic impact, which relate to seven sectors”. It lists 1,105 commercial and industrial activities open to full foreign ownership in Abu Dhabi and more than 1,000 in Dubai. For that reason, we check your exact activity before any application is filed.
3. A wide choice of licence types and legal forms
The portal lists six licence types for the mainland: industrial, commercial, professional, tourism, agricultural and crafts. It also lists five legal forms, including the limited liability company (Source: u.ae, Steps to start a business on the mainland). In practice, this lets you match the licence to what you sell and the legal form to how you share ownership.
4. Corporate tax of 0% up to AED 375,000
UAE corporate tax is “0 per cent for taxable income up to AED 375,000” and “9 per cent for taxable income above AED 375,000” (Source: u.ae, Corporate tax). Consequently, a mainland company pays 9% only on the taxable income above that band. For the full rules, read our UAE corporate tax guide.
5. Small Business Relief, where you qualify
The Ministry of Finance says a resident business can claim Small Business Relief when its revenue is below AED 3,000,000 in the relevant tax period and in each previous tax period (Source: Ministry of Finance, decision on Small Business Relief). The Ministry also says the relief “will not be available to Qualifying Free Zone Persons”. Therefore, it is one of the mainland company advantages for a small firm.
However, the relief has an end date. According to the same source, it applies to tax periods “that end before or on 31 December 2026”. Confirm your position with a registered tax agent before you rely on it.
6. No income tax on individuals
The portal states: “The UAE does not levy income tax on individuals.” (Source: u.ae, Taxation). As a result, a salary or dividend you take from your company is not reduced by a UAE personal income tax. Your home country may still tax you, so check your tax residence first.
Which mainland company advantages matter for your business?
The answer depends on where your customers are. First, if you sell to people or companies inside the UAE, market access matters most. Second, if you are a small firm, the tax band and the relief matter more. Finally, if your customers are abroad, a free zone may suit you as well.
| Your situation | Advantage that matters most |
|---|---|
| You sell to UAE customers | Direct access to the local market |
| You want full control | 100% foreign ownership for most activities |
| Your revenue is below AED 3,000,000 | Small Business Relief until the end of 2026 |
| Your taxable income is low | 0% corporate tax up to AED 375,000 |
What do these mainland company advantages not cover?
- You need an office. The portal says: “All businesses in the UAE must have a physical address to operate.”
- Some activities need additional government approvals before the licence is issued.
- Activities with a strategic impact are outside the 100% foreign ownership rule.
- Corporate tax registration and filing still apply, even when the tax due is zero.
- Licence fees differ by emirate and activity, so we quote them case by case.
- This article is general information, not legal or tax advice.
How SCORP sets up your mainland company
We start with a call and map your business to the correct activity and legal form. Next, we reserve the trade name and apply for the initial approval. Then we prepare the Memorandum of Association, arrange the office lease and submit the file. After that, we support the bank account, residence visas, renewals and corporate tax filing. We confirm the full cost in AED before you pay any fee.
You will need these documents:
- Passport copies of all shareholders and managers
- Passport-size photographs
- Three proposed trade names
- A short description of your business activity
Get a free quote for your mainland company
FAQ: mainland company advantages
Which of the mainland company advantages is the biggest?
Direct access to the UAE local market. A free zone company is not permitted to carry out business on the mainland without further permission and a local licence.
Is 100% ownership one of the mainland company advantages?
Yes, for most activities, under Federal Decree-Law No. 26 of 2020. Activities with a strategic impact are excluded.
Does a mainland company pay corporate tax?
Yes. The rate is 0% on taxable income up to AED 375,000 and 9% above it, according to the UAE Government portal.
Does a mainland company need an office?
Yes. The UAE Government portal says all businesses in the UAE must have a physical address to operate.
Sources
All sources were accessed on 3 October 2026.
- UAE Government portal: Business regulations related to mainland companies
- UAE Government portal: Running a business in a free zone
- UAE Government portal: Full foreign ownership of commercial companies
- UAE Government portal: Steps to start a business on the mainland
- UAE Government portal: Corporate tax
- Ministry of Finance: Decision on Small Business Relief
- UAE Government portal: Taxation