A Mainland Company, also known as "Onshore Company" is a local business licensed by the Department of Economic Development (DED) of the respective emirate. This license grants the company the freedom to operate within the local market and also conduct business outside the UAE without any restrictions. A big plus for mainland companies is that you can do business with government entities and can get government contracts.

One of the most important things to remember before starting a mainland company in the UAE is the newly introduced tax applicable from 1st June 2023. Now, the companies located in the Dubai mainland are subjected to 9% corporate tax on the net profit above the threshold amount of AED 375,000. 

Ownership: Until recently, you were only allowed to own a maximum of 49%, while the remaining 51% had to go to the Emirati sponsor for mainland company formation in Dubai. However, the UAE government now allows 100% foreign ownership for few business activities registered on the mainland.

Office Space: For every Dubai mainland license, there is a minimum requirement of 200 SQFT to be leased out on annual basis. Only then the Department of Economic Development (DED) will issue the license. EJARI Certificate issued from the land department makes the annual tenancy contract, legal and presentable in DED for the issuance of the license.

Visa: There is no limitation on visas on the mainland license, Every mainland company is issued an E-quota (electronic quota) by the Ministry of Labour. This quota indicates the company's eligibility for visas and can be expanded if the company needs more staff. Visa eligibility also depends on the amount of office space the company has. The more office space you have, the higher number of visas you may get. You can also sponsor your family as an owner or employee of a Mainland company.

Approval from Government Authorities: A mainland license does require standard government approvals per license. E.g. DED (Department of Economic Development), DM (Dubai Municipality), Ministry of Labour (MOL), Department for Naturalization and Residency affairs of Ministry of interiors or Immigration (MOI).

For certain business activities, you may need approvals from external government authorities. For instance, licenses related to education may require approval from KHDA (Knowledge and Human Development Authority), medical licenses may need approval from DHA (Dubai Health Authority), and food-related licenses may require approval from the FOOD Department of Municipality. Depending on your business, you might also need approval from authorities such as Civil Defense or the Real Estate Regulation Authority.

Benefits of a Mainland Company:

• Freedom to run business throughout the UAE without restrictions
• Up to 91% exemption from corporate and personal taxes
• Allowed 100% repatriation of profits and capital
• Potential bid and work on UAE government contracts
• No limitations on the number of visas
• Able to set up office locations anywhere in the registered emirate and establish multiple business branches building a strong presence in the local market
• Unrestricted access to the global markets