Starting a business on Dubai’s mainland is now easier than ever, thanks to streamlined processes and digital platforms designed to help investors with establishing companies quickly and efficiently. Whether you prefer an online setup or the traditional route, understanding the key steps involved—including aligning your business requirements with the appropriate company structure, legal form, and licensing—will ensure a smooth business formation experience.
Choosing the Right Business Location
Selecting the optimal business location is a critical step in the process of mainland company formation in the UAE. The right location not only enhances your company’s visibility and accessibility but also plays a pivotal role in meeting regulatory requirements and maximizing your business potential.
The Department of Economic Development (DED) in each emirate is the primary authority overseeing business setup and the issuance of business licenses for mainland companies. The DED ensures that your chosen business location aligns with your business activity and complies with local zoning regulations. For certain business activities, additional approvals from other government entities—such as the Telecommunications and Digital Government Regulatory Authority or local municipalities—may be required to ensure your premises meet industry-specific standards, such as those for alarm and safety systems or professional services.
For expert guidance and end-to-end assistance, explore our Dubai mainland business setup services to ensure a smooth company formation process.
Establishing a Business Online for Economic Development
You can set up your business online via the Basher platform, a fully integrated digital service that allows investors to complete company formation in Dubai within just 15 minutes. Securing a business licence is a crucial step in the business setup in Dubai mainland process, as it ensures legal registration and operational compliance. This innovative platform connects with federal and local government entities, enabling seamless issuance of commercial licenses and facilitating visa processing for new businesses.
For example, the Department of Economic Development in Abu Dhabi offers an instant license service, allowing entrepreneurs to obtain their commercial license without visiting a physical service center. Additionally, service centres are available for those who prefer in-person support to submit documents or collect their business licence.
When comparing mainland business setup with free zones, it’s important to note that free zones offer specialized business licenses tailored to specific industries, while mainland business setup provides broader market access and eligibility for government contracts.
Conventional Mainland Company Business Setup Process
If you choose the traditional approach, the business setup process involves several essential steps:
- Identify Your Business Activity
Your chosen business activity determines the legal structure and type of trade licence required. The UAE offers six main license types: industrial, commercial, professional, tourism, agricultural, and occupational. Professional licenses cover specialized services such as legal consultancy, technical professions, and other professional services. Certain professions require a professional license as a mandatory requirement to operate legally. - Select the Legal Form
The legal structure must align with your business activity and business requirements. Choosing the correct legal forms is crucial, as it impacts your company structure, licensing process, and compliance with government regulations. Options include Limited Liability Company (LLC), Public Joint Stock Company (PJSC), Private Joint Stock Company (PrJSC), Civil Company, General Partnership, Limited Partnership, and various types of company branches (local, GCC, foreign, and free zone branches). For a foreign company, approvals from the relevant foreign company branches ministry are required. Each legal form has specific implications for ownership, liability, and regulatory compliance. - Register the Trade Name
Your trade name should uniquely identify your business and reflect its nature. It must comply with UAE regulations, such as avoiding prohibited terms, respecting public morals, and including the company’s legal form acronym (e.g., LLC, EST, PJSC). The trade name is registered with the local Department of Economic Development, while trademarks are handled by the Ministry of Economy. - Obtain Initial Approval
Initial approval confirms that the government has no objection to your business establishment. However, it does not permit you to start operations. Foreign investors must also secure approval from the General Directorate of Residency and Foreigners’ Affairs. Certain business activities require additional approvals from other government entities before initial approval can be granted. A physical address that complies with local land planning and municipal regulations is required at this stage. - Draft and Sign Legal Documents
Depending on your company’s legal form, you will need to prepare a Memorandum of Association (MoA) or a Local Service Agent (LSA) agreement. The MoA outlines ownership, management, and operational details and must be notarized by UAE-based law firms or courts. For certain legal forms and business activities, a local service agent agreement is required. Non-GCC nationals must appoint a local service agent under an attested agreement to comply with UAE regulations. - Secure Office Space
A physical office address is mandatory for mainland business licensing. The office or warehouse lease contract must comply with local municipality requirements and be attested where necessary. In Dubai, the lease agreement must be registered with Ejari to be valid. - Obtain Additional Government Approvals
Depending on your business activity, you may need approvals from specific ministries or government bodies. For example, particular business activities such as charter air transport, charter trading, maritime agencies, and oil field services require approvals from the relevant authorities, including:
- Ministry of Interior for transport, fire equipment, and safety systems
- Ministry of Justice for legal consultancy
- Telecommunications and Digital Government Regulatory Authority (TDRA) for telecom activities
- Local municipalities for architectural and engineering services
- Ministry of Economy for insurance and consultancy services
- Supreme Petroleum Council for oil and gas operations
- Executive Council for charter air transport and related activities
- Submit Required Documents and Pay Fees
Prepare and submit all necessary legal documents, including the initial approval receipt, notarized MoA, lease contract, and government approvals. Payment of fees must be made within 30 days of receiving the payment voucher to avoid cancellation of your application. - Open a Corporate Bank Account
With your mainland business licence or commercial licence in hand, you can open a corporate bank account to manage your company’s financial operations efficiently.
A key benefit of holding a mainland business licence is the ability to trade freely across the UAE and internationally, without geographical or market restrictions.
Important Notes
- You can select multiple business activities under a single license, provided they are compatible.
- The legal form must match the business activity and comply with applicable laws, ensuring all business requirements are met for proper licensing and regulatory approval.
- Some strategic sectors have additional restrictions or requirements.
- All documents, including tenancy contracts and legal documents, must be duly attested and compliant with regulatory standards.
- Engaging legal services can help navigate complex requirements and ensure all the necessary documents are prepared correctly.
You may also read our detailed guide on how to set up or open a mainland company in Dubai for additional insights into legal structures and approvals.
Conclusion
Setting up a mainland company in Dubai offers unparalleled advantages, including unrestricted access to the local UAE market, eligibility to bid for government contracts, and the freedom to trade freely across the UAE and internationally. Opting for a mainland business setup allows you to benefit from recent policy reforms, such as greater foreign ownership, and provides the flexibility to operate without geographical or market restrictions. By carefully selecting your business activity, legal structure, and securing all required approvals and licenses from the Department of Economic Development and other government entities, you position your business for success in one of the world’s most dynamic economic hubs.
The UAE mainland’s robust legal framework, world-class infrastructure, and strategic location make it an ideal choice for entrepreneurs and foreign investors alike. With the right support—whether through legal services, local partners, or government resources—you can navigate the business setup process smoothly, ensuring compliance and unlocking growth opportunities. Embrace the possibilities of mainland company formation and take your business to new heights in Dubai’s thriving marketplace. Contact us today at info@bcl.ae
Frequently Asked Questions About Business Set Up in Dubai Mainland
What is Dubai Mainland business setup?
Dubai Mainland business setup refers to establishing a company licensed by the Department of Economic Development (DED). It allows businesses to operate anywhere in the UAE and internationally, unlike free zone companies which are restricted to specific zones.
What are the main steps to set up a business in Dubai Mainland?
The process typically includes choosing a business activity, selecting a legal structure, reserving a trade name, obtaining initial approval, drafting a Memorandum of Association (MOA), securing office space, and finally receiving the trade license from the DED.
What are the benefits of setting up a business in Dubai Mainland?
Benefits include the ability to trade across the UAE and internationally, access to government contracts, flexibility in office locations, and eligibility to open branches anywhere in the country.
Do Dubai Mainland companies need office space?
Yes, physical office space is mandatory for Mainland companies. The tenancy contract (Ejari) must be submitted to the DED as part of the licensing process.
How do Dubai Mainland companies differ from Free Zone companies?
Mainland companies can operate anywhere in the UAE and internationally, while Free Zone companies are limited to their specific zones. Mainland firms also have access to government contracts and broader market opportunities.
