The Different Company Types You Can Establish In Mainland UAE

Establishing a business in the mainland of the United Arab Emirates (UAE) offers entrepreneurs a wide array of opportunities in one of the world’s most thriving economies. Whether you’re a local entrepreneur or an international investor, understanding the different company types available in mainland UAE is crucial for selecting the right legal structure for your business. Moreover, if you’re seeking the cheapest mainland license in UAE, it’s essential to explore the various options available to ensure compliance with regulatory requirements while minimizing costs.

Sole proprietorship:

A sole proprietorship is the simplest form of business structure, where the business is owned and operated by a single individual. In mainland UAE, a sole proprietorship can be owned by either a UAE national or a GCC national. While this structure offers complete control and flexibility to the owner, it also entails unlimited liability, meaning the owner is personally responsible for all debts and liabilities of the business.

Limited liability company (LLC):

A Limited liability company (LLC) is one of the most common types of business structures in mainland UAE, suitable for small to medium-sized enterprises (SMEs). An LLC requires a minimum of two and a maximum of fifty shareholders, who can be individuals or corporate entities. Shareholders’ liability is limited to their respective share capital contributions, providing protection of personal assets.

Public joint stock company (PJSC):

A Public joint stock company (PJSC) is a publicly traded company that can offer its shares to the public through a stock exchange. PJSCs are typically larger enterprises with substantial capital requirements and multiple shareholders. Shareholders’ liability is limited to their share capital contributions, and the company must adhere to stringent regulatory requirements and corporate governance standards.

Private joint stock company:

A Private joint stock company is similar to a PJSC but differs in that its shares are not publicly traded on a stock exchange. Instead, shares are privately held by a limited number of shareholders, often family members or private investors. While a Private Joint Stock Company offers the benefits of limited liability and access to capital through share issuance, it is subject to regulatory requirements governing joint stock companies in mainland UAE.


A partnership is a business structure where two or more individuals or entities collaborate to operate a business together. In mainland UAE, partnerships can take various forms, including general partnerships, limited partnerships, and professional partnerships. General partnerships involve shared management and unlimited liability among partners, while limited partnerships allow for limited liability for some partners who do not actively manage the business.