Setting up a mainland company in Dubai offers unparalleled opportunities for entrepreneurs and investors looking to establish a strong presence in the UAE’s thriving market. Before proceeding with company formation, it is essential to develop a viable business idea that aligns with market demand and regulatory requirements.
Dubai mainland company formation enables businesses to operate freely across the UAE, access local and international markets, and benefit from a strategic location with robust infrastructure and regulatory support. The entire process is regulated by the Department of Economic Development (DED), which oversees business registration, licensing, and approval procedures essential for establishing a business in the UAE mainland.
Introduction to Mainland Companies
Mainland companies in Dubai are business entities established under the regulatory oversight of the Dubai Department of Economy and Tourism (DET). These companies are authorized to conduct a wide range of commercial, professional, and industrial activities throughout the UAE, making them a preferred choice for businesses aiming to access the local market without geographic restrictions. Unlike free zone entities, a mainland business can operate anywhere in the country, serve both government and private clients, and open branches across all emirates.
The legal structure of a mainland company is determined by the nature of the business activity and ownership preferences. Common legal forms include the Limited Liability Company (LLC), which is ideal for businesses seeking liability protection and flexibility, and the Civil Company, often chosen by professionals such as consultants, engineers, and doctors. Federal Decree Law No. 26 of 2020 has significantly enhanced the appeal of mainland business setup by allowing 100% foreign ownership for most business activities. However, certain strategic sectors, as outlined in Cabinet Decision No. 55 of 2021, still require UAE national participation to ensure alignment with national interests.
By choosing a mainland company structure, entrepreneurs benefit from the ability to conduct business directly with the local market, participate in government contracts, and enjoy the credibility that comes with DET licensing. Whether you opt for a limited liability company LLC, a civil company, or another legal form, mainland company formation in Dubai provides a robust platform for sustainable growth and expansion across the UAE.
You may also refer to our detailed guide on how to set up a mainland company in Dubai for additional legal and procedural insights.
Why Choose Mainland Company Formation in Dubai?
Dubai mainland company setup provides several distinct advantages that make it the preferred choice for many businesses:
- Full Foreign Ownership: Most business activities now allow 100% foreign ownership, eliminating the need for a local sponsor in many cases. Foreign investors can generally own 100% of a mainland company in Dubai, in accordance with recent legal reforms that have relaxed previous restrictions on foreign ownership in most sectors.
- Access to the Local UAE Market: Mainland companies can trade directly with government entities, private companies, and consumers without restrictions.
- Wide Range of Business Activities: Over 2,000 business activities are available, including commercial, industrial, and professional services.
- Ability to Bid for Government Contracts: Only mainland companies can participate in government tenders, opening lucrative opportunities.
- Flexibility to Operate Anywhere in the UAE: Mainland companies can open branches and offices across all emirates.
- Visa Sponsorship: Mainland business setup allows for sponsoring an unlimited number of employee visas, subject to office space.
- Corporate Bank Account Access: Mainland companies can open corporate bank accounts with ease, facilitating smooth financial operations.
Dubai mainland company formation is particularly attractive for multinational companies seeking to leverage investment incentives and participate in government contracts. The legal framework allows multinational companies to establish a strong presence in Dubai without the need for a local sponsor in many sectors, making it easier to access strategic opportunities.
Types of Mainland Licenses in Dubai
Obtaining a business license is a mandatory step for legal operation in Dubai mainland. When forming a mainland company, selecting the right license type is crucial. A mainland license, issued by the Department of Economic Development (DED), is essential for business registration and legal operation in the UAE mainland. The main categories include:
- Commercial License: Suitable for a trading business, including wholesale, retail, import, and export activities, as well as real estate, logistics, and general commercial operations.
- Professional License: Designed for service providers such as consultants, legal advisors, and other professionals.
- Industrial License: Required for manufacturing and industrial businesses, with additional approvals from relevant authorities.
Choosing the Right Legal Structure
Your company’s legal structure impacts liability, ownership, and regulatory compliance. Common legal forms for Dubai mainland companies include:
- Limited Liability Company (LLC): The most popular structure offering liability protection and flexibility for multiple shareholders. LLCs are commonly used for commercial and industrial activities, and recent laws allow 100% foreign ownership in these sectors.
- Sole Establishment: Ideal for individual entrepreneurs providing professional services.
- Civil Company: Formed by professionals such as doctors, lawyers, and engineers who wish to operate jointly. Civil companies are often established for professional partnerships in sectors such as legal services.
- Branch Office: Allows a foreign company to establish a branch in Dubai mainland, enabling established foreign companies to operate in Dubai without forming a new legal entity.
- Public and Private Joint Stock Companies: Suitable for large enterprises requiring significant capital investment.
Step-by-Step Guide to Dubai Mainland Company Formation
1. Select Your Business Activity
Choose from a comprehensive list of approved activities offered by the Dubai Department of Economy and Tourism (DET). Your choice will determine the type of license and legal structure.
2. Decide on the Legal Structure
Based on your business activity and ownership preferences, select the appropriate legal form.
3. Reserve Your Trade Name
Your trade name must comply with UAE regulations, reflect your business activity, and be unique. It requires approval from the DET.
4. Obtain Initial Approval
Secure initial approval from the DET, confirming the government’s no-objection to your business setup.
5. Draft and Notarize Legal Documents
Prepare the Memorandum of Association (MoA) or Local Service Agent (LSA) agreement as per your legal structure.
6. Secure Physical Office Space
A physical office with a registered tenancy contract (Ejari) is mandatory for mainland company setup. Office size influences visa quotas.
7. Obtain Additional Approvals (If Required)
Certain business activities require approvals from government bodies such as the Dubai Health Authority (DHA), Knowledge and Human Development Authority (KHDA), or Dubai Municipality.
8. Submit Final Documents and Pay Fees
Submit all required documents to the DET and pay the applicable fees to receive your trade license.
9. Open a Corporate Bank Account
With your trade license, open a corporate bank account to manage your business finances.
10. Apply for Visas
Sponsor employee and family visas according to your office size and business needs.
Documents Required for Mainland Company Setup
- Valid passport copies of all shareholders and managers
- Emirates IDs and residence visas (if applicable)
- Trade name reservation certificate
- Initial approval certificate
- Memorandum of Association or Local Service Agent agreement
- Ejari-registered tenancy contract for office space
- Additional government approvals (if applicable)
Government Fees and Regulations
The process of company formation in Dubai mainland involves a transparent fee structure and regulatory oversight by various government entities. The Dubai Department of Economy and Tourism (DET) is the primary authority responsible for issuing trade licences and regulating business activity. Government fees for mainland company formation are determined by several factors, including the type of business activity, the chosen legal structure, the number of shareholders, and any required external approvals from other government entities.
Key components of the fee structure include Trade Licence Registration (with fees starting from AED 130), Initial Approval application through the EGSH system, and Trade Name Reservation (also starting from AED 130). Final government charges are calculated based on the specific activity group, the need for additional approvals, and the size and location of the leased office space. The EGSH platform provides a detailed breakdown of all applicable fees during the consultation phase, ensuring full transparency before submission.
In addition to setup fees, mainland companies are subject to UAE corporate tax, currently set at 9% on taxable profits exceeding AED 375,000. Businesses with annual profits below this threshold benefit from small-business relief. Certain sectors, such as oil & gas and banking, may be governed by separate tax regimes. The Digital Government Regulatory Authority and other government bodies play a crucial role in regulating and updating the requirements for company formation, ensuring compliance with the latest economic development policies.
Staying informed about government fees and regulatory changes is essential for successful mainland company formation. By working with experienced advisors, businesses can navigate the complexities of trade licence applications, initial approvals, and ongoing compliance, ensuring a smooth and cost-effective entry into the Dubai market.
Corporate Tax and Compliance
Mainland companies in Dubai are subject to UAE corporate tax regulations, currently set at 9% on taxable profits exceeding AED 375,000. Compliance with tax filing, accounting standards, and labor laws is essential for smooth operations and ongoing business success.
Why Partner with Us for Your Dubai Mainland Company Formation?
With extensive experience in mainland business setup, we provide end-to-end support tailored to your unique needs:
- Expert guidance on selecting business activities and legal structures
- Streamlined application and approval process
- Assistance with office space leasing and Ejari registration
- Support with visa processing and corporate bank account opening
- Ongoing compliance and advisory services to ensure your business thrives
Start Your Business Setup in Dubai Mainland Today
Embark on your journey to establish a successful mainland company in Dubai with confidence. Contact us for a personalized consultation and let us help you navigate the process smoothly, ensuring your business is compliant, competitive, and ready for growth.
Frequently Asked Questions (FAQs)
Q: Can foreigners own 100% of a mainland company in Dubai?
A: Yes, most business activities now allow full foreign ownership without a local partner.
Q: Is a physical office mandatory?
A: Yes, a registered office space with Ejari tenancy is required for mainland company licensing.
Q: How long does the company formation process take?
A: Typically, it takes 3 to 7 working days, depending on business activity and approvals.
Q: Can mainland companies bid for government contracts?
A: Yes, only mainland companies are eligible to participate in government tenders.
Q: What types of business licenses are available?
A: Commercial, professional, and industrial licenses are the primary categories.
Unlock the full potential of your business with a Dubai mainland company setup ,your gateway to the UAE’s dynamic market and beyond.
You may reach out to us at info@bcl.ae
