Dubai has become a top destination for entrepreneurs and investors worldwide because of its strategic location, modern infrastructure, and business-friendly policies. Mainland Company formation in Dubai offers significant advantages, such as the freedom to operate anywhere in the UAE and internationally, access to a diverse market, and opportunities to secure government contracts. These factors make Dubai Mainland an attractive option for business owners aiming for growth and success.
The popularity of establishing businesses in Dubai can be seen from recent statistics. In 2024, the Dubai Chamber of Commerce welcomed over 70,000 new companies, increasing its total membership to more than 258,000.
Additionally, the total estimated FDI capital inflow into Dubai reached $14.24 billion in 2024, marking a 33.2% increase from the previous year. The primary contributors to Dubai’s FDI were India (21.5%), the United States (13.7%), France (11%), the United Kingdom (10%), and Switzerland (6.9%).
This significant growth reflects the confidence that investors have in Dubai’s economic environment.
What is a Mainland Company in Dubai?
A Mainland Company in Dubai is a business entity that is licensed by the Department of Economic Development (DED) of the respective emirate. It allows entrepreneurs to operate freely within the UAE local market as well as internationally, without any restrictions on location or client type.
Dubai Mainland companies can:
- Trade directly with the UAE local market
- Take on government contracts
- Open branches across the UAE and abroad
- Hire more staff without limitation
- 100% foreign ownership in most business sectors.
Mainland vs Free Zone vs Offshore – Key Differences
Here are the key differences between Dubai mainland, free zone, and offshore businesses:
| Feature | Mainland Company | Free Zone Company | Offshore Company |
| Jurisdiction | DED | Respective Free Zone Authority (IFZA, RAKEZ, etc.) | Offshore Authority (RAK, JAFZA etc.) |
| Business Scope | UAE-wide & International | Limited to Free Zone & International | Only International |
| Office Space Requirement | Mandatory physical office | Optional/flexible depending on zone | No physical office is required |
| Ownership (100% Foreign) | Yes (since 2021 reforms) | Yes | Yes |
| Government Contracts | Allowed | Not Allowed | Not Allowed |
| Taxation | Subject to UAE tax laws | Varies (some tax exemptions) | No corporate tax |
Key Benefits of Business Setup in Dubai Mainland
Mainland Company Setup in Dubai comes with a wide range of advantages that make it one of the most attractive business structures in the UAE:
1. 100% Foreign Ownership (in Most Sectors)
Thanks to the UAE’s updated Commercial Companies Law, foreign investors can now own 100% of their mainland company in many business activities, especially in commercial, industrial, and professional sectors. This removes the earlier requirement of having a local Emirati partner.
2. Operate Anywhere in the UAE
Mainland companies are not restricted to a specific zone, you can freely do business anywhere in the UAE, whether it’s in Dubai, Abu Dhabi, Sharjah, or beyond.
3. Easier Bank Account Setup
Mainland companies enjoy smoother relationships with banks, making it easier to open corporate bank accounts and access business loans and credit facilities.
4. No Restrictions on Business Activities
Mainland companies can engage in a broad range of business activities, including commercial trading, real estate, retail, hospitality, manufacturing, and more.
5. Wider Market Reach
Unlike Free Zone entities that are restricted to international trade or within their zone, Mainland companies can serve both the local UAE market and global customers.
6. No Limit on Visa Quotas (Tied to Office Size)
You can apply for multiple investor, partner, and employee visas based on your office space. This is ideal for companies planning to scale operations and build a local team.
Types of Business Licenses for Mainland Companies
The Department of Economic Development (DED) issues various types of licenses tailored to different business activities:
1. Commercial License
A Commercial License is required for businesses engaged in trading activities, including import, export, distribution, and sales of goods and commodities. This license covers a wide range of trading operations, allowing companies to operate within the UAE market and internationally.
2. Industrial License
An Industrial License is necessary for businesses involved in manufacturing or industrial activities. This includes operations such as production, assembly, and processing of goods. Companies holding this license are permitted to engage in manufacturing activities, provided they have a physical warehouse inside the country.
3.Professional License
A Professional License is designed for individuals and companies offering professional services based on intellectual or artistic talent. This includes professions such as consultancy, legal services, auditing, engineering, and artisanship. Holders of this license can operate as sole proprietorships or civil companies.
4. Tourism License
A Tourism License is mandatory for businesses operating in the travel and tourism sector. This includes travel agencies, tour operators, and hospitality services.
5. E-commerce License
With the rapid growth of online businesses, the Department of Economic Development (DED) in Dubai offers an E-commerce License, allowing companies to conduct commercial activities over the internet. This license enables businesses to sell products and services online within the UAE and internationally.
Legal Structures Available for Dubai Mainland Companies
Here are the primary legal structures available for business setup in Dubai Mainland:
1. Limited Liability Company (LLC)
An LLC is the most prevalent form of business entity in Dubai’s mainland. It allows for a flexible ownership structure, where foreign investors can own up to 100% of the shares in many sectors, subject to specific regulations. The liability of shareholders is limited to their share capital, providing a safeguard for personal assets. This structure is suitable for a wide range of commercial activities.
2. Sole Establishment
This structure is designed for individual entrepreneurs who wish to own 100% of their business. It is typically applicable to professional services, where the owner is personally liable for the company’s debts and obligations. This setup is ideal for consultants, freelancers, and service providers.
3. Civil Company
A Civil Company is formed through a partnership between two or more professionals in recognized fields such as law, accounting, or medicine. Partners can be of any nationality, and foreign investors can own up to 100% of the business. However, a UAE National Local Service Agent is required to facilitate administrative procedures.
4. Branch Office
Foreign companies can establish a Branch Office in Dubai to conduct business activities that are similar to those of the parent company. The Branch operates under the name of the parent company and is permitted to engage in commercial activities, but it does not have a separate legal identity.
5. Representative Office
Similar to a Branch Office, a Representative Office is established by a foreign company but is limited to promoting and marketing the parent company’s services or products. It is not permitted to conduct revenue-generating activities within the UAE.
Selecting the appropriate legal structure is crucial as it influences ownership dynamics, liability, and operational scope.
Mainland Company Formation Process in Dubai, UAE (8 Easy Steps)
Mainland company formation in Dubai involves a series of well-defined steps. Here’s a step-by-step process:
1. Determine Business Activity
Identify the nature of your business operations, as this will dictate the type of license required – commercial, industrial, professional, or tourism. Ensure that your chosen activity aligns with the categories permitted by the Department of Economic Development (DED).
2. Choose a Legal Structure
Select an appropriate legal form for your business, such as a Limited Liability Company (LLC), Sole Proprietorship, or Civil Company. This decision impacts ownership arrangements and liability considerations.
3. Reserve a Trade Name
Propose a unique trade name that reflects your business activity and complies with DED naming conventions. Submit the name for approval to ensure it’s not already in use and adheres to UAE regulations.
4. Obtain Initial Approval from DED
Apply for initial approval from the DED, indicating that the UAE government has no objection to your business setup. Foreign investors may need additional approvals from relevant authorities.
5. Secure a Business Location
Lease a physical office space that meets DED requirements, as a valid tenancy contract is mandatory for license issuance. The size of the premises may influence visa eligibility for employees.
6. Obtain the Dubai Mainland Business License
With all prior steps completed, submit the compiled documents, including the MOA, initial approval, trade name certificate, and tenancy contract to the DED. Pay the requisite licensing fees. Upon verification, the DED will issue your business license, legally authorizing your company to commence operations in Dubai.
However, depending on your business activity, secure approvals from relevant government bodies or ministries. For instance, healthcare businesses require approval from the Ministry of Health.
7. Register with Relevant Authorities
Register your company with the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA) to facilitate employee visa processing.
8. Open a Corporate Bank Account
With your trade license and legal documents, open a corporate bank account in a UAE-based bank to manage your business finances effectively.
Documents Required for Dubai Mainland Company Formation
For business setup in the Dubai mainland, the following key documents are required:
- Clear copies of passports
- UAE residence visa copies
- No Objection Certificate (NOC), if needed
- Trade Name Reservation Certificate
- Initial Approval Certificate
- Memorandum of Association (MOA)
- Lease Agreement (Ejari)
- Additional Approvals
Dubai Mainland Company Formation Cost in 2025
Establishing a mainland company in Dubai involves several costs, with the trade license fee being a primary expense. As of 2025, Dubai mainland license cost typically ranges between AED 15,000 and AED 35,000, depending on the nature of your business activities.
Additional costs to consider include:
- Government and registration fees
- Office space rental (AED 15,000 to AED 30,000 per year)
- Visa and Immigration costs (AED 3,000 to AED 7,000 per individual)
- Additional approval and permits
- Miscellaneous expenses (administrative fees, insurance, and other operational costs)
Post Business Setup Requirements
After obtaining your business license in Dubai, several critical steps are necessary to ensure your company’s operational readiness and compliance with local regulations:
Visa Processing for Partners and Employees
Securing visas for company partners and employees is vital for legal employment in the UAE. This process involves medical examinations, obtaining Emirates IDs, and visa stamping. Compliance with the General Directorate of Residency and Foreigners Affairs (GDRFA) regulations is mandatory.
VAT Registration
If your company’s taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 over the previous 12 months, you are required to register for Value Added Tax (VAT) with the Federal Tax Authority (FTA). Additionally, businesses may choose to register voluntarily if their taxable supplies and imports, or taxable expenses, exceed the voluntary registration threshold of AED 187,500.
Opening a WPS Account for Employee Salaries
The Wage Protection System (WPS) is an electronic salary transfer system that ensures the timely and full payment of wages to employees. To comply, register with the Ministry of Human Resources and Emiratisation (MOHRE) and process salaries through a WPS-compliant bank or exchange house.
A Seamless Mainland Business Setup Journey
Mainland company formation in Dubai isn’t just about paperwork, it’s about making the right decisions at the right time, in a new environment that may be unfamiliar. Entrepreneurs often face real challenges: understanding legal structures, choosing the correct license, securing local approvals, visa rules, or simply finding trustworthy partners on the ground. Language barriers, cultural differences, or lack of local networks can slow down or even derail business plans.
At AE Setup we’ve seen these challenges firsthand, and we’ve built our services to solve them. Whether you’re an investor from Europe, a tech founder from India, or a consultant from Africa, our dedicated team understands your journey. We provide personalized guidance, in your language, and tailor your company setup to fit your goals. From the first consultation to your license in hand, we handle the complexities so you don’t have to.
So instead of figuring it all out alone, let us be your local partner in Dubai. We’re not just helping you start a company, we’re helping you build a future.
Frequently Asked Questions
1. What is a mainland company in Dubai?
A mainland company is a business licensed by the Dubai Department of Economic Development that can operate freely across the UAE and internationally without restrictions on business location or clientele.
2. Can a foreigner own 100% of a mainland company in Dubai?
Yes, in most sectors, 100% foreign ownership is now allowed. However, certain strategic sectors may still require a UAE national as a local partner or service agent.
3. What kind of office space is required for mainland businesses?
Dubai mainland companies must have a physical office address. Depending on your business type, you can choose from shared desk spaces (flexi-desks), executive offices, or dedicated commercial units.
4. Can I sponsor my family or employees with a mainland company license?
Yes, once your business license is issued and you have an established office, you can sponsor residence visas for family members and employees.
5. Can I convert my free zone company into a mainland company?
Yes, it’s possible — but it involves canceling the free zone license, setting up a new mainland license, and potentially relocating your business. We can help ensure a smooth transition.
