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 the UAE
Integrated facility support — where your operation runs inside a client's premises — is a structurally sound business model in the UAE, but it requires the right licence, the right jurisdiction, and a clear understanding of how the law treats on-site service delivery.
This guide covers everything a founder needs to know about registering Activity Code 8110.01 in the UAE: what it covers, which jurisdiction fits, how to set it up, and what compliance looks like on the ground.
Key Stats at a Glance
| Activity Code | 8110.01 |
| Activity Name | Provision of Support Services Within a Client's Facility |
| ISIC Classification | ISIC 8110 — Combined Facilities Support Activities |
| Market Context | The GCC facilities management sector is one of the region's fastest-growing outsourced service categories, driven by commercial real estate, hospitality, and industrial expansion — Mordor Intelligence |
| Ownership Rules | 100% foreign ownership permitted under UAE Commercial Companies Law amendments (2021) |
| VAT Applicability | Standard 5% VAT applies; registration mandatory above AED 375,000 annual taxable turnover — Federal Tax Authority |
| Workforce Compliance | All on-site staff must be registered with MOHRE and covered under WPS — Ministry of Human Resources and Emiratisation |
What This Activity Actually Covers
Activity 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 discrete 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 bring the personnel, the processes, and the management layer. The client retains 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.
Business Activities List
Explore Over 2,500+Choosing the Right Jurisdiction: Mainland vs Free Zone
For most operators, a mainland licence — issued by the Dubai Department of Economy and Tourism or the relevant emirate authority — is the practical default. On-site client work across the UAE requires unrestricted operational access. A free zone licence alone does not provide that; free zone entities are technically restricted to operating within their designated zone unless they hold a separate mainland branch or dual-licence arrangement.
Free zone incorporation suits 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. If direct on-site staffing is your core delivery model, a mainland licence paired with a free zone holding structure is a common and legally sound approach.
Free Business Setup Cost Calculator
Calculate NowMeydan Free Zone as a Starting Point
Meydan Free Zone offers a cost-efficient entry point with 100% foreign ownership, no paid-up capital requirement, and fast incorporation timelines. For founders structuring a holding or management entity — one that sub-contracts physical delivery to licensed mainland operators — a Meydan Free Zone licence covering consultancy and management of support services is a practical fit.
Remote setup is available. There is no requirement to be physically present in the UAE to incorporate.
Start Your UAE Company Remotely
Get in Touch NowStep-by-Step Licence Setup Guide
- Step 1 — Confirm activity approval. Verify that activity code 8110.01 is approved under your chosen authority. For mainland, cross-check via Dubai DED eServices. For free zones, check your chosen zone's published activity list directly.
- Step 2 — Reserve your trade name. Submit an initial application with passport copies, proposed activity description, and business address details. Name reservation is typically valid for 60–90 days.
- Step 3 — Secure a physical address. Mainland licences require a tenancy contract registered with Ejari. Free zones accept flexi-desk arrangements, which significantly reduces initial overhead.
- Step 4 — Obtain initial approval. Finalise your Memorandum of Association (for LLCs) or articles of incorporation depending on your chosen legal structure.
- Step 5 — Pay licence fees and collect your trade licence. For mainland, this is issued by the relevant emirate's DED. Timelines vary but typically range from five to fifteen working days once documentation is complete.
- Step 6 — Register with MOHRE. Enrol in the Wage Protection System (WPS) before deploying any on-site personnel. All staff must hold valid UAE residence visas sponsored by your entity — MOHRE.
- Step 7 — Register for VAT. If projected annual turnover exceeds AED 375,000, VAT registration with the Federal Tax Authority is mandatory — FTA.
- Step 8 — Draft client service agreements. Contracts should clearly define scope, liability, staffing ratios, and service level agreements before commencing any on-site operations.
Compliance, Staffing, and Ongoing Obligations
All on-site workers must hold valid UAE residence visas sponsored by your entity. Visa quotas are tied to your registered office space and licence type — this is a practical constraint worth planning around before you scale headcount.
WPS compliance is non-negotiable. Late salary payments trigger MOHRE penalties and can freeze new visa applications, which directly disrupts your ability to staff client sites.
Client contracts should specify whether your staff operate under your supervision or the client's. This distinction affects liability, insurance requirements, and how disputes are handled. Public liability and workmen's compensation insurance are standard requirements for any on-site service operation in the UAE.
Annual licence renewal is mandatory. Mainland licences also require Ejari renewal and updated tenancy documentation. Missing renewal deadlines results in fines and, eventually, licence cancellation.
Corporate tax at 9% applies to taxable income above AED 375,000 from June 2023 onwards. If you are running a free zone holding entity alongside a mainland operating company, structure your inter-company agreements carefully to remain compliant.
Conclusion
Activity 8110.01 is a commercially viable, scalable model in the UAE. Demand for outsourced facility support across real estate, healthcare, and hospitality is consistent and growing. The setup process is straightforward if you choose the right jurisdiction from the outset, structure your staffing compliantly, and draft client contracts that reflect how the law treats on-site service delivery.
If you are ready to incorporate or need clarity on which jurisdiction fits your operating model, speak to the Series M team.
References
- Mordor Intelligence (mordorintelligence.com)
- Federal Tax Authority (tax.gov.ae)
- Ministry of Human Resources and Emiratisation (mohre.gov.ae)
- Dubai DED eServices (eservices.dubaided.gov.ae)
