Table of Contents
Frequently Asked Questions
What does UAE Activity Code 8110.01 actually cover
Activity Code 8110.01 authorises the bundled delivery of operational support services conducted entirely within a client's premises. This includes cleaning, maintenance coordination, reception management, security oversight, and general facility operations — all delivered under a single contract rather than as separate standalone services.
The business model is B2B by nature. You are contracted by a corporate client, government entity, or property developer to run day-to-day facility functions on their site. You supply the personnel, the processes, and the management layer, while the client retains ownership of the asset.
This activity is distinct from standalone cleaning or security licences. The defining characteristic is integration — multiple support functions delivered as a managed package. Common client sectors include commercial towers, hospitals, hotels, industrial plants, and free zone campuses.
Can a foreign national own 100% of a facility support services company in the UAE
Yes. 100% foreign ownership is permitted for this type of business under the UAE Commercial Companies Law amendments introduced in 2021. There is no requirement for a local Emirati partner or sponsor for Activity Code 8110.01.
This applies to both mainland and free zone structures, though the specific conditions and documentation requirements can vary between jurisdictions. Founders should confirm ownership rules with the relevant licensing authority before proceeding.
Should I set up on the mainland or in a free zone for this type of business
For most operators, a mainland licence — issued by the Dubai Department of Economy and Tourism or the relevant emirate authority — is the practical default. Delivering on-site services across the UAE requires unrestricted operational access, which a free zone licence alone does not provide.
Free zone entities are technically restricted to operating within their designated zone unless they hold a separate mainland branch or a dual-licence arrangement. A free zone structure is better suited to operators who manage contracts remotely, handle procurement, or coordinate sub-contracted on-site teams under a management agreement rather than deploying their own staff directly.
A common and legally sound approach is a mainland licence paired with a free zone holding structure, combining operational reach with ownership and tax efficiency benefits.
What role does Meydan Free Zone play in setting up this business
Meydan Free Zone offers a cost-efficient entry point with 100% foreign ownership, no paid-up capital requirement, and fast incorporation timelines. It is particularly well suited to founders who want to establish a holding or management entity rather than directly deploying on-site staff.
Under this structure, the Meydan entity sub-contracts physical service delivery to licensed mainland operators. A licence covering consultancy and management of support services through Meydan can be a practical fit for this model.
Remote setup is available — there is no requirement to be physically present in the UAE to incorporate through Meydan Free Zone, making it accessible to international founders.
What are the VAT obligations for a facility support services business in the UAE
The standard 5% VAT rate applies to facility support services in the UAE. VAT registration becomes mandatory once your annual taxable turnover exceeds AED 375,000, as set by the Federal Tax Authority.
Because this is a B2B service model, VAT is typically charged to the corporate client under the contract. Businesses should maintain clear invoicing records and ensure their contracts specify VAT treatment explicitly to avoid disputes.
It is advisable to consult a UAE-registered tax agent when setting up your VAT profile, particularly if you are operating across multiple client sites or jurisdictions within the UAE.
What workforce compliance requirements apply to on-site staff
All on-site staff must be registered with the Ministry of Human Resources and Emiratisation (MOHRE). This applies regardless of whether the employees are working at your own premises or at a client's facility.
Salary payments must be processed through the Wage Protection System (WPS), which is a mandatory electronic salary transfer mechanism monitored by MOHRE. Non-compliance can result in fines, licence suspension, or restrictions on hiring new employees.
Founders should also be aware of Emiratisation targets, which may apply depending on company size and sector, and factor workforce planning accordingly from the outset.
What are the first steps to registering Activity Code 8110.01 in the UAE
The first step is to confirm activity approval with your chosen licensing authority. For mainland Dubai, this can be verified via the Dubai DED eServices portal. For free zones, check the zone's published activity list directly, as not all zones support this specific code.
Once confirmed, you will need to reserve a trade name by submitting an initial application with your passport copy and preferred name options. Trade names must comply with UAE naming conventions and cannot conflict with existing registered businesses.
Subsequent steps typically include submitting incorporation documents, obtaining initial approval, signing a Memorandum of Association, securing office space or a flexi-desk arrangement, and paying the licence fee. Timelines vary by jurisdiction but free zone setups can often be completed within a few days.
How does the GCC facilities management market context affect this business opportunity
The GCC facilities management sector is one of the region's fastest-growing outsourced service categories, according to Mordor Intelligence. Growth is being driven by expanding commercial real estate, a booming hospitality sector, and ongoing industrial development across the Emirates.
This macro trend creates strong demand for integrated facility support operators — particularly those who can deliver bundled, managed services under a single contract, which reduces administrative complexity for large property owners and operators.
For founders entering this space, the combination of market growth, 100% foreign ownership rights, and a well-defined licensing framework makes the UAE a structurally attractive base for building a scalable facility support business.
Setting Up a Provision of Support Services Within a Client's Facility Business in Dubai
A commercial tower needs cleaning, a reception desk staffed, lifts serviced and someone watching the doors. The owner does not want four suppliers and four invoices. They want one contract and one team running the building. Activity code 8110.01 is the license for that work.
This guide covers what the license allows, who hires you, how mainland and free zone compare, and the steps to get set up. The point that decides everything else is where your staff physically work, because that is what drives your jurisdiction.
Key Stats at a Glance
| Activity code | 8110.01 |
|---|---|
| Activity name | Provision of Support Services Within a Client's Facility |
| Sits under | ISIC 8110, Combined Facilities Support Activities |
| What it covers | Bundled cleaning, maintenance coordination, reception management, security oversight and general facility operations, delivered on the client's site |
| Ownership | 100% foreign ownership under the 2021 UAE Commercial Companies Law amendments |
| Market context | GCC facilities management is one of the region's fastest-growing outsourced service categories – Mordor Intelligence |
| VAT | 5% applies; register above AED 375,000 annual taxable turnover – Federal Tax Authority |
| Corporate tax | 9% on taxable income above AED 375,000 from June 2023 |
| Workforce | All on-site staff registered with MOHRE and covered by the Wage Protection System |
| Foreign ownership | 100% in Meydan Free Zone |
What This License Covers
Code 8110.01 permits bundled operational support services delivered entirely inside a client's premises. Cleaning, maintenance coordination, reception management, security oversight and general facility operations, all under one contract rather than as separate services.
The word doing the work is bundled. This is not a standalone cleaning license or a standalone security license. The defining feature is integration: several support functions delivered as one managed package.
The model is business-to-business by nature. A corporate client, government body or property developer contracts you to run day-to-day facility functions on their site. You bring the people, the processes and the management layer. They keep the asset.
Who Your Clients Will Be
Commercial towers, hospitals, hotels, industrial plants and free zone campuses.
What connects them is scale and complexity. A building large enough to need five support functions is large enough to find managing five suppliers a nuisance, and that nuisance is what you are selling against.
Your commercial proposition is administrative simplicity as much as service quality. A property owner handing you one contract, one point of contact and one invoice has removed a management problem, not just bought cleaning. That is why bundled contracts hold up well against cheaper single-service competitors, and why the GCC facilities management sector keeps growing as commercial real estate, hospitality and industrial capacity expand across the Emirates.
Mainland or Free Zone
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| On-site delivery across the UAE | Unrestricted operational access | Restricted to the designated zone without a mainland branch or dual license |
| Best suited to | Deploying your own staff to client sites | Managing contracts, procurement, or coordinating sub-contracted teams |
| Foreign ownership | 100% under the 2021 amendments | 100% yours |
| Office | Tenancy contract registered on Ejari | Flexi-desk accepted, which cuts starting overhead |
| Paid-up capital | Set by the authority | None |
| Setup | Five to fifteen working days once documents are complete | Fast, with remote setup available |
For most operators a mainland license from the Department of Economy and Tourism is the practical default. Delivering services on client sites across the UAE calls for unrestricted operational access, and a free zone license on its own does not give you that. Free zone entities are technically limited to their designated zone unless they hold a separate mainland branch or a dual-license arrangement.
Meydan Free Zone suits a different delivery model: managing contracts remotely, handling procurement, or coordinating sub-contracted on-site teams under a management agreement rather than deploying your own people. It gives you 100% foreign ownership, no paid-up capital condition and fast setup, and there is no need to be in the UAE to register.
A common and legally sound arrangement combines the two. A mainland license for operational reach, paired with a free zone holding structure for ownership and tax efficiency. If direct on-site staffing is your core model, that is the shape to look at.
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Step by Step Setup Guide
- Step 1, confirm activity approval: Check that code 8110.01 is approved under your chosen authority. Cross-check mainland through the DET e-Services portal, and check any free zone's published activity list directly, because not every zone carries this code.
- Step 2, book your trade name: Submit an initial application with passport copies, your proposed activity description and business address details. Name reservation usually holds for 60 to 90 days.
- Step 3, secure a physical address: Mainland licenses call for a tenancy contract registered on Ejari. Free zones accept a flexi-desk, which cuts starting overhead a lot.
- Step 4, get initial approval: Finalise your Memorandum of Association for an LLC, or your articles of association depending on your legal structure.
- Step 5, pay the fees and collect your trade license: Mainland issue runs five to fifteen working days once your documents are complete.
- Step 6, register with MOHRE: Enrol in the Wage Protection System before you deploy anybody on site. Every member of staff must hold a valid UAE residence visa sponsored by your entity.
- Step 7, register for VAT: Compulsory with the Federal Tax Authority once projected annual turnover passes AED 375,000.
- Step 8, draft your client service agreements: Define scope, liability, staffing ratios and service levels before any on-site work begins.
Compliance and What You Need in Place
Visas and quotas
Every on-site worker needs a valid UAE residence visa sponsored by your entity, and visa quotas tie to your registered office space and license type. That is a hard constraint on how fast you can scale headcount, so plan around it before you sign a contract you cannot staff.
Wage Protection System
Not negotiable. Late salary payments trigger MOHRE penalties and can freeze new visa applications, which stops you staffing client sites at exactly the moment you need people. The compliance failure and the commercial failure are the same event.
Supervision and liability
Your contracts should state clearly whether your staff work under your supervision or the client's. That single clause affects liability, insurance and how any dispute gets handled. Public liability and workmen's compensation cover are standard for any on-site service operation in the UAE.
Renewal
Annual license renewal is compulsory, and mainland licenses also need Ejari renewal with updated tenancy documents. Missing the deadline brings fines and eventually cancellation.
Tax
VAT at 5% applies and is normally charged to the corporate client under the contract, so state the VAT treatment explicitly in your agreements to avoid arguments later. Corporate tax at 9% applies to taxable income above AED 375,000. If you run a free zone holding entity alongside a mainland operating company, structure the inter-company agreements carefully.
Market Opportunity
The GCC facilities management sector is one of the region's fastest-growing outsourced service categories, and the reasons behind that are physical rather than cyclical.
Commercial real estate keeps being built. Hospitality keeps expanding. Industrial capacity keeps coming online across the Emirates. Every one of those buildings needs running once it opens, and running it is not something most owners want to do themselves.
The bundled model is where the growth concentrates. Large property owners and operators want managed services under one contract because it cuts their administrative load, which is exactly what code 8110.01 is built for. Put that alongside 100% foreign ownership rights and a clear licensing framework and the UAE is a workable base for building something that scales.
Conclusion
Activity 8110.01 is a scalable model with consistent demand behind it across real estate, healthcare and hospitality.
Setup is simple provided you get three things right from the start: the jurisdiction that matches how you deliver, a staffing structure that complies from your first hire, and client contracts that reflect how UAE law treats on-site service delivery.
The third is the one most operators leave until last and should not. Speak to the Meydan Free Zone team to confirm which jurisdiction fits your operating model.
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