The process of starting a business in Dubai Mainland can become overwhelming, given the regulations and licensing requirements you must navigate. Questions like “What type of license do I need?”, “How much will it cost?”, or “Do I need a local sponsor?” can leave you second-guessing every step of your business setup journey. Without a clear understanding of the company formation process, you risk costly mistakes, delays, or even non-compliance with UAE laws—which is why having a clear roadmap for mainland company formation is crucial.
Here, we’ll break down everything you need to know about starting a business in Dubai Mainland. From selecting the right business license and business structure to understanding costs and documentation requirements, we’ll guide you step-by-step. Whether you’re an experienced businessman, a business owner aiming to expand into Dubai, or launching your first venture as an entrepreneur, this guide will assist you in making informed decisions and avoiding common pitfalls related to the cost of a Mainland trade license process. This detailed guide covers every aspect of Dubai mainland business setup.
Steps to Start a Business in Dubai Mainland
Following is the structured process you can follow to set up your Dubai Mainland company:
- Select a Business Activity
- Choose a Legal Structure
- Obtain Initial Approval
- Reserve a Trade Name
- Get Office Space
- Sign MoA/LSA
- Obtain External Approval & Apply for Trade License
- Apply for Relevant Visas
1. Select a Business Activity
In most countries, a single license suffices for multiple business activities. However, in Dubai Mainland, activities are grouped. Therefore, activities belonging to differing groups require separate licenses. This is a key aspect of mainland company operations, distinguishing it from a free zone company.
Depending on your chosen business activity, you will need one of the four main types of licenses offered by the Department of Economic Development (DED):
- Commercial License: Perfect for businesses involved in trading or retail, covering a wide range of commercial activity.
- Professional License: This mainland license is for businesses with expertise in certain fields that provide professional services, such as IT consultancy or legal advice.
- Industrial License: Best suited for manufacturing, production, or assembly activities.
- E-trader License: Ideal for sole proprietors selling products or services via social media. While primarily available to UAE and GCC nationals, certain expats can also apply.
Pro-Tip: Align your primary business activity with market demand and your expertise. If you plan to engage in multiple activities, ensure they are related to avoid complications during the licensing process for your mainland company. For instance, UAE’s e-commerce market is projected to reach AED 48.8 billion by 2028. Now might be the perfect time to get an e-trader license and set up your home-grown retail business in Dubai.
2. Choose a Legal Structure
The legal structure of your business significantly affects your liability, tax obligations, and operational flexibility. Below are some common options for mainland companies and for a solid business structure:
Limited Liability Company (LLC)
This is the most popular legal form, chosen by over 50% of newly registered companies in 2024 according to Dubai Pulse.
An LLC can have 2-50 partners or be owned entirely by one person as a “One Person LLC.” With the amendment to federal Decree-Law No.26 of December 2020, expats can enjoy 100% foreign ownership in most sectors of the Dubai Mainland company landscape. This significant change has bolstered the appeal of Dubai mainland company formation.
If you are thinking of trading in Dubai Mainland, it’s important to note that you must choose an LLC as your legal structure for your mainland business.
Sole Proprietorship
Selected by over 30% of new companies in 2024, this legal type is ideal for individual business owners providing professional services.
Expats setting up a company with this legal form need a local service agent (LSA). It offers complete control but comes with unlimited liability where personal assets are not protected.
Civil Company
Best for businesses owned by two or more partners providing professional services, such as consultancy or medical services.
Expats must partner with a UAE national or hire an LSA in case of 100% foreign ownership. In this company setup, partners carry unlimited personal liability for the company’s debt or obligations.
3. Obtain Initial Approval
Initial approval is a crucial step in the licensing process. To avoid rejections by the DED, ensure your application reflects your specific business activity. For example, if you’re starting a business consultancy, clearly outline that focus in your documents.
To apply, gather and submit the following documents to the Dubai Department of Economic Development:
- Passport copy of all shareholders
- Residence/tourist visa copy of shareholders
- Passport-size photographs
- Contact details
- Business activities
- Articles of association
Most applications receive approval within one business day, though high-risk nationals such as Pakistanis or Syrians may have to wait 3 to 5 days. Additionally, due diligence compliance checks can severely impact the application’s rejection or approval timeline. This approval signifies that the government has no objections to your proposed mainland company formation.
Ready to take the next step in your company formation in Dubai Mainland? Contact us today for expert guidance on starting your business in Dubai!
4. Reserve a Trade Name
After selecting your business category and legal structure and receiving initial approval, it’s time to reserve a trade name for your mainland company.
Choose three potential names that reflect your business activity and adhere to DED guidelines. Ensure your chosen name does not resemble existing brands or international organizations like the “WHO.”
For instance, if you want to use the name “Technovation LLC” for a tech company, check its availability and reserve it via Dubai DED’s online portal. Approval usually takes about 24 hours, and the Trade Name Reservation Certificate is valid for six months. This is a critical step in your company registration.
5. Get an Office Space
An E-trader license offers flexibility by allowing you to operate from a home-based office. This is a common query when considering mainland business setup.
An instant license permits businesses involved in activities like marketing management or commercial brokerage to operate from a virtual office provided by the DED for the first year. However, a physical office is mandatory starting from the second year for a Dubai Mainland company. A strategic business location is key for most.
In contrast, businesses applying for a standard Dubai Mainland license must secure physical office space, particularly for trading or import/export activities that require warehouses. Companies can rent traditional office setups — with customization options — or explore cost-effective alternatives like co-working hubs or shared offices. Consulting with experts at Best Solution is highly advisable for personalized guidance on company formation and office choices in Dubai Mainland.
Regardless of your office choice for your mainland company, you must submit a proof of address (lease agreement) before the mainland license is issued. This includes obtaining the tenancy contract attested by the Real Estate Regulatory Agency (RERA) and recorded in its registration system (Ejari)—which means ‘My Rent’ in Arabic.
Moreover, securing a physical office is generally recommended, as its absence may cause challenges or result in application rejection for opening a corporate bank account. For businesses without a physical office, acquiring a corporate bank account via WIO, an online banking service, is preferable. WIO is comparatively lenient in its documentation and requirements than traditional UAE banks like Emirates NBD or ADCB.
6.Sign MoA/LSA
You must sign and submit a duly attested memorandum of association (MoA)/LSA on the Invest in Dubai portal for mainland license issuance. This is a core part of company formation for a mainland company.
The Dubai DED can generate the MoA for you, outlining your company’s objectives and shareholder structure. It also provides the local service agent contract for civil companies 100% owned by non-GCC nationals.
7.Obtain External Approval & Apply for Trade License
Certain activities or company types require approval from other government departments or agencies. Thus, before applying for a trade license, ensure you obtain these approvals and comply with their requirements for your Dubai Mainland company.
| External Approval Entities | Activities Covered |
| Ministry of Interior | Driving schools, fire equipment & safety systems, Used-car dealers & auto-parts, car rental |
| Ministry of Justice | Legal activities and consultancy |
| Local Municipal Department (Dubai Municipality) | Architectural services, engineering projects, clinics |
| Telecommunications and Digital Government Regulatory Authority (TDRA) | Telecommunication activities |
| Executive Council | Travel & tourism, general services, charter trading, ship/maritime agencies, car clubs, charter air transport, foreign company branches |
| Ministry of Economy | Insurance activities and consultancy |
| Local Health Departments (DHA) | Health-related activities (clinics, medical services) |
| Supreme Petroleum Council | Onshore/offshore gas & oil-field services, Onshore/offshore oil drilling operations |
For example, if you plan on launching an innovative fintech service in the local market, you require external approval from the Dubai Financial Services Authority. Meanwhile, a mainland license for e-trade requires you to get approval from the TDRA. The entity is in charge of regulating the eCommerce framework and transactions in the UAE mainland.
Once you receive the necessary external approvals, submit your initial approval receipt, Ejari registration, and the signed MoA/LSA. Your Mainland trade license, also known as a business license, will then be issued by the DED within 7 days. This signifies the successful Dubai mainland company formation.
8.Apply for Relevant Visas
After obtaining your business license, you can apply for visas for yourself and your employees. These visas legally permit you to reside and manage your business operations in Dubai. The application process generally includes obtaining an entry permit, undergoing mandatory medical examination, applying for the Emirates ID, and receiving the residency e-visa.
Mainland companies benefit from unlimited visa quotas based on business activity, employee roles, and contractual agreements. This is a significant advantage over a free zone business setup.
A key requirement in securing your company visa quota is ensuring that your leased office is registered with Ejari. The Ministry of Labour may inspect your office and review relevant contracts and invoices to assess your application.
For example, consider a logistics company in Dubai Mainland. Once the company registers its office with an Ejari contract, it applies for a visa quota. The Ministry of Labour then reviews its active project contracts and invoices to verify ongoing work. After a detailed inspection, the Ministry grants a visa quota based on the company’s workload.
Companies with substantial work demands and supporting documentation receive a higher visa allocation.
Cost of Mainland Business Setup in Dubai
The cost of setting up a mainland business in Dubai can range from AED 12,000 to AED 30,000 or more, depending on various factors such as:
- Type of Business Activity: Different activities have different licensing fees. The number of activities chosen under a mainland license can also affect the cost. For instance, an e-trader license costs approximately AED 1,000, but it restricts the activities that can be conducted.
- Office Space Requirements: Office rental costs vary significantly based on business location and size. Offices in prime locations such as Business Bay or Downtown Dubai may cost more due to higher rent. Moreover, the office rental cost accounts for 20% of the licensing fee. Hence, instant licenses are cheaper as they do not mandate physical office space for the first year.
- Additional Approvals: Certain sectors may require additional approvals from relevant authorities, which can incur extra costs for your mainland company formation. This could include specific requirements from the Dubai Municipality or even the Dubai Health Authority for certain commercial activity.
For a detailed estimate, use Best Solution’s cost calculator and consult our experts for affordable mainland business setup service packages tailored to your specifications. Our business setup consultants are ready to assist with every step.
Advantages of Mainland Company Formation in Dubai
1. Zero Trade Restrictions
Unlike free zone companies, Mainland business setups are not restricted to operating within specific areas. Establishing a Dubai Mainland company grants you direct access across all seven UAE emirates along with the international market. This offers a strategic location advantage for any foreign investor looking to expand from the Middle East to globally.
The unlimited trade access is advantageous for businesses looking to tap into a larger client base. For instance, a retail store in Dubai can sell its products and services across all emirates, including Abu Dhabi and Sharjah, serving both local and international customers without facing restrictions. This is a key benefit of mainland business.
2. Access to Government Contracts
Only mainland companies can bid for government contracts and participate in public sector projects, which can be lucrative growth opportunities for a mainland business.
For example, if a construction firm is set up in Dubai Mainland, it can secure contracts for government infrastructure projects, providing significant revenue streams. This is a significant draw for any foreign company considering relocation.
3. Scalable Workforce
Unlike free zones with fixed visa quotas, Mainland businesses enjoy flexible visa allocations tied to their workload from active project contracts. This makes mainland company setup highly advantageous for growth, unlike a typical free zone business setup.
For instance, a tech start-up doubling its client base can swiftly get approval to onboard developers by submitting new service agreements to the Ministry of Labour—eliminating challenges commonly experienced in free zones.
Challenges of Mainland Company Formation in Dubai
1. External Approval Requirements
Certain activities in the Mainland require third-party approvals that most Free Zones do not. This mandatory step may delay your mainland license issuance and postpone the commencement of your business operations. An offshore company formation typically faces fewer such requirements.2. Compliance with Local Laws
Operating as a Mainland company requires strict adherence to UAE mainland regulations and laws. Non-compliance can lead to fines or even business closure. The following are some requirements that you must comply with for your mainland business:- VAT registration and return filings: Mainland businesses must register for VAT if the taxable supplies and imports exceed the threshold of AED 375,000. Additionally, they must file annual VAT returns within 28 days from the end of their tax period. A delay in filings can result in AED 1,000 penalty for the first offence and AED 2,000 for repeated offences.
- Corporate Tax: Mainland companies must register for corporate tax, regardless of whether they owe any tax. Businesses are subjected to 9% corporate tax on income above AED 375,000 as of 1 June 2023.
- Economic Substance Regulations (ESR): The UAE applies ESR to Mainland entities operating in sectors such as banking, insurance, or investment. These companies must provide the regulatory authorities with economic substance notifications, including details about their business activities.
- UBO Declaration: Mainland companies must submit beneficiary owner details to Dubai DED annually. Failure to comply can lead to a hefty fine of AED 15,000 or more.
- Emiratisation Target: Applied exclusively to Mainland, companies with a workforce of over 20 must meet Emiratisation targets. The target involves achieving a 2% annual growth rate in hiring Emirati nationals for skilled positions relative to their total skilled workforce. For non-compliance, a hefty fine of AED 6,000 is imposed per vacancy. Moreover, the business can face a suspension on issuance of employee work permits. It may also be downgraded in the Ministry of Human Resources and Emiratisation (MOHRE) 3-tier company classification.
For non-compliance, a hefty fine of AED 6,000 is imposed per vacancy. Moreover, the business can face a suspension on issuance of employee work permits. It may also be downgraded in the Ministry of Human Resources and Emiratisation (MOHRE) 3-tier company classification.
Conclusion
Establishing a business in Dubai Mainland opens up opportunities for sole proprietors and companies. As an entrepreneur, Mainland business setup gives you unlimited market access. Unlike free zones, you can also obtain scalable visa quotas tailored to your operational needs. This makes mainland company formation a highly attractive option.
While challenges like compliance with VAT, corporate tax, and Emiratisation targets require careful planning, the pros far outweigh the cons for mainland company operations.
By following our structured roadmap—from choosing a business activity and business structure to obtaining approvals, securing a trade name and office space and thereafter, applying for visas —you can confidently set up your Dubai Mainland company. This detailed company setup guide aims to clarify every step.
For further assistance, consider engaging with the Best Solution experts specializing in Dubai’s business setup landscape. Our 14+ years of experience equips us to help you navigate Mainland’s licensing process and expedite mainland business license issuance for your company formation in the United Arab Emirates. If you’re considering a mainland business setup service, our business setup consultants are here to help.
Frequently Asked Questions
What types of business structures are available for setting up a mainland company in Dubai?
Dubai mainland companies can be set up under various business structures, including Sole Establishment, Civil Company, Limited Liability Company (LLC), Branch of a Foreign Company, and Representative Office. Each structure suits different ownership and business needs.
What are the costs associated with setting up a mainland company in Dubai?
The cost of setting up a mainland company in Dubai typically starts from AED 15,000 to AED 30,000, depending on the business activity, license type, office space, and other government fees. Costs may vary based on your specific setup.
How can you initiate the process of setting up a mainland company formation in the UAE?
To set up a mainland company in the UAE, you must choose your business activity, select a legal structure (such as an LLC), and reserve a trade name. The process starts by obtaining initial approvals from the Department of Economic Development (DED), securing office space, and preparing key documents like passport copies, MoA, and tenancy contract. Once submitted and approved, you can obtain your trade license and begin operations.
What are the different types of trade licenses available to mainland companies in Dubai?
Mainland companies in Dubai can apply for various trade licenses based on their business activity. The main types include: Commercial License (for trading activities), Professional License (for service-based or skilled professions), Industrial License (for manufacturing or industrial operations), and Tourism License (for travel and tourism-related businesses).
Which documents do you need to provide to set up a mainland Dubai company?
To set up a mainland company in Dubai, you’ll typically need the following documents: passport copies of all shareholders, visa and Emirates ID (if applicable), trade name reservation certificate, initial approval from the Department of Economic Development (DED), Memorandum of Association (MoA), and a tenancy contract (Ejari) for your office space.
What is the process for obtaining a trade license for a mainland company?
To obtain a mainland trade license in Dubai, start by choosing your business activity and legal structure. Then, reserve a trade name, get initial approval from DET, and secure a physical office space. Once all required documents and approvals are in place, you can submit the final application for license issuance. Partnering with professionals who understand local regulations can streamline the process and prevent costly delays.
What are the legal and regulatory requirements for business setup in Dubai?
To set up a business in Dubai, you must choose a legal structure, register your trade name, obtain initial approvals from the Department of Economy and Tourism (DET), secure the appropriate business license, and comply with regulatory bodies like the Ministry of Human Resources, Immigration, and relevant sector-specific authorities.
Can foreigners have complete foreign ownership in a Dubai mainland business setup?
Yes, in most sectors, the UAE allows 100% foreign ownership for mainland businesses without the need for a local sponsor. However, some strategic or regulated activities may still require UAE national involvement. It’s important to consult with experienced business setup advisors to ensure your chosen activity qualifies and to stay fully compliant with the latest regulations.
What are the benefits of a professional license for mainland company formation in Dubai?
A professional license allows 100% foreign ownership for service-based businesses and is ideal for consultants, specialists, and professionals. It enables you to operate across Dubai without restrictions on location, bid for government projects, and sponsor employee visas. With expert guidance, you can ensure your license aligns with your business activity and complies with all regulatory requirements.
How does a mainland company in Dubai differ from a free zone company?
A mainland company can operate anywhere in the UAE and internationally, offering greater flexibility in doing business with local and government entities. In contrast, a free zone company is limited to operating within its designated zone or internationally, with restrictions on mainland trade unless through a local distributor. Choosing the right structure depends on your business goals—consulting with experts ensures you make a strategic, compliant decision.
What are the office space requirements for mainland business setup?
For a mainland business setup in Dubai, having a physical office space is mandatory. The space must meet the minimum size requirements set by the Department of Economy and Tourism (typically around 200 sq. ft.) and be verified through a tenancy contract and Ejari registration. Partnering with experienced consultants helps you choose compliant office solutions that align with your business activity and licensing needs.
Disclaimer : This guide provides a general information. Regulations and costs may change time to time based on government rules, so consult the best solution’s professional Business Setup consultants for the latest updates. Refer to the glossary for definitions of key terms which is mentioned in this article. Refer to the glossary for definitions of key terms. Refer to the glossary for definitions of key terms.
