Introduction – Why Mainland Company Setup in Dubai is Booming
Dubai has earned its reputation as one of the most business-friendly cities in the world—and the mainland company setup model is a key reason why. Whether you're a startup founder, an international investor, or a freelancer looking to expand your service offerings, mainland company formation in Dubai offers unmatched flexibility and scalability.
A mainland company, registered under the Dubai Department of Economic Development (DED), allows entrepreneurs to trade both locally and internationally. Unlike free zones, which restrict business operations to designated areas or abroad, a Dubai mainland company setup gives you the full spectrum—local market access, unlimited visa eligibility, and even the ability to bid on government contracts.
With recent government reforms, especially the 2021 update that allows 100% foreign ownership in most sectors, the process has become smoother and more favorable for global entrepreneurs. Add to that the advantages like strategic location, world-class infrastructure, and zero personal income tax, and it's easy to see why setting up a mainland company in Dubai is no longer just an option—it's a strategic move.
What Is a Mainland Company in Dubai?
A mainland company in Dubai refers to a business that is registered under the Dubai Department of Economic Development (DED). Unlike freezone or offshore companies, mainland companies have the legal right to operate anywhere within the UAE, including engaging directly with the local market—whether it's serving UAE-based clients or signing government contracts.
Legal Structure and Jurisdiction
Mainland companies are governed by UAE Federal Law and regulated by the DED. Business owners can select from several legal structures, including:
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Limited Liability Company (LLC)
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Sole Establishment
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Civil Company
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Branch of a Foreign Company
The most common among these is the LLC, especially for commercial activities. It offers limited liability to shareholders, while also enabling multiple visas, business bank accounts, and a flexible office setup. After the 2021 legal reform, many LLCs now allow 100% foreign ownership, making the mainland even more appealing.
Mainland vs. Freezone vs. Offshore: Key Differences
Feature | Mainland | Freezone | Offshore |
---|---|---|---|
Market Access | Full UAE + International | Limited to Freezone & Abroad | International only |
100% Ownership | Available (post-2021 law) | Yes | Yes |
Physical Office Required | Yes (Ejari registered) | Optional (Flexi desk allowed) | No |
Visa Allocation | Based on office size | Capped (depends on Freezone) | Not applicable |
Trade with Mainland Companies | Allowed | Not allowed without distributor | Not allowed |
Government Contracts Eligibility | Yes | No | No |
Benefits of Mainland Business Setup in Dubai
Choosing a mainland company formation in Dubai comes with a range of business advantages that go beyond just a trade license. The mainland setup is designed for businesses that want flexibility, visibility, and full market access in the UAE and beyond. Let's explore the key benefits:
1. Access to the Entire UAE Market
Unlike freezone companies, which are often restricted to specific zones or international dealings, mainland companies can trade freely across the UAE. This means you can work with local suppliers, sell products in retail outlets, and directly serve clients in Dubai, Abu Dhabi, Sharjah, and other emirates—without needing a local distributor.
2. Eligibility for Government and Semi-Government Contracts
Government tenders and contracts are only available to Dubai mainland companies. For sectors like construction, facilities management, consultancy, or trading, this opens up multi-million-dirham opportunities that freezone entities simply cannot access.
3. Unlimited Visa Quota
While freezones impose caps on employee visas, mainland businesses can sponsor unlimited visas—based on the size of your office space. This is critical if you're planning to scale your workforce in the UAE.
4. 100% Foreign Ownership
Thanks to the 2021 Commercial Companies Law amendment, many activities now allow 100% ownership without a UAE national sponsor. This gives expats full control over their business while retaining all profits and decision-making power.
5. Business Activity Flexibility
Mainland companies can engage in a wider variety of commercial, professional, and industrial activities—more than what is typically available in most freezones. You can also combine activities on a single license.
6. Reputation and Credibility
Operating from the mainland with a registered office in areas like Business Bay, Sheikh Zayed Road, or Deira provides instant credibility. Clients, investors, and partners tend to view mainland businesses as more established and trustworthy.
Types of Business Activities Allowed for Dubai Mainland Company
One of the standout advantages of mainland company formation in Dubai is the diverse range of business activities you can legally engage in. Whether you're offering professional services, trading goods, or launching a manufacturing unit, the mainland license accommodates it all—with flexibility to combine multiple activities under a single license, if permitted.
The Dubai Department of Economic Development (DED) has categorized business activities into three broad types:
1. Commercial Activities
These involve buying and selling goods or services with the aim of earning a profit. It's one of the most common categories and includes businesses like:
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General trading
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Real estate brokerage
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Retail stores
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Import/export businesses
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Travel and tourism companies
DED allows businesses to combine up to 10 commercial activities under a single trade license, provided they fall under the same group.
2. Professional Activities
This category is meant for individuals or businesses that offer expertise, skills, or intellectual services. These include:
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Consultancy (management, marketing, HR)
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IT services
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Design and architecture firms
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Legal and auditing services
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Educational or training services
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Medical professionals (clinics, physiotherapy, etc.)
Professional licenses are often 100% owned by the expat but require a local service agent (LSA) for regulatory purposes (unless waived under the 100% ownership rule).
3. Industrial Activities
These are for businesses engaged in manufacturing, production, or industrial transformation of products. Examples include:
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Food processing
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Furniture manufacturing
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Garment production
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Chemical blending
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Packaging industries
Industrial licenses require external approvals from relevant authorities such as Dubai Municipality or Civil Defense, and companies must have physical warehouses or production units.
Step-by-Step Guide to Mainland Company Registration in Dubai
Starting a mainland business setup in Dubai might seem complicated at first, but when broken down, the process is surprisingly straightforward—especially with the help of a reliable consultant. Here's a step-by-step breakdown of how to register your company with the Dubai Department of Economic Development (DED):
Step 1: Choose Your Business Activity
Start by identifying what business you want to run. Dubai's DED has thousands of pre-approved activities—ranging from e-commerce and consulting to manufacturing and trading. You'll need to select the exact activity (or combination) for your trade license. This step determines what legal structure, documents, and external approvals (if any) are needed.
✅ Pro Tip: Some activities are eligible for 100% foreign ownership, while others may still require a local partner or agent. Verify this before proceeding.
Step 2: Select Your Legal Structure
The next step is to determine the legal entity of your company. The most common choices for mainland company formation include:
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Limited Liability Company (LLC)
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Sole Proprietorship
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Civil Company
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Branch of a Foreign Company
Your legal structure defines liability, ownership limits, and visa eligibility. For most commercial ventures, LLC formation in Dubai mainland is the go-to choice due to its flexibility and protection.
Step 3: Reserve a Trade Name
Choose a unique trade name for your business that reflects your activity and meets DED naming conventions. The name must:
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Not violate public morals
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Not be already registered
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Not contain religious or political terms
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Include your activity if required (e.g., "Consulting", "Trading")
DED will verify and approve the name before moving to the next step.
Step 4: Get Initial Approval from DED
This is a non-objection certificate that allows you to proceed with the licensing steps. It confirms that the DED has no objection to you starting your company in Dubai. You'll need to submit:
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Passport copy
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Trade name certificate
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Business activity form
This is not the final license, but it allows you to proceed with tenancy contracts and external approvals.
Step 5: Finalize Office Space and Obtain Ejari
For a mainland license, you must have a physical office space. This can be a traditional office, co-working space, or flexi desk—but it must be registered under Ejari, the government's rental registration system.
Step 6: Submit Required Documents and Pay Fees
Once your tenancy contract is finalized, submit all documents including your Ejari, initial approval, trade name, passport copies, and signed Memorandum of Association (MOA) or Local Service Agent Agreement.
Pay the Dubai mainland license cost, which varies depending on activity, number of partners, and visa packages.
Step 7: Receive Your Mainland Trade License
Once all approvals and documents are verified, the DED will issue your Dubai mainland company trade license. You are now legally allowed to begin operations, open a business bank account, and apply for employee visas.
Cost of Setting Up a Mainland Company in Dubai
One of the most common questions entrepreneurs ask is: “How much does it cost to start a mainland company in Dubai?” The answer depends on several variables—your chosen activity, office space, number of visas, and whether you're hiring a consultant or handling the process independently. But here's what you need to know:
Breakdown of Mainland Company Formation Cost in Dubai (2025)
Expense Category | Estimated Cost (AED) |
---|---|
Trade Name Reservation | 600 – 1,000 |
Initial Approval from DED | 1,000 – 1,500 |
Memorandum of Association (MOA) Drafting | 1,500 – 2,000 |
Office Rent (Ejari registered) | 8,000 – 20,000+ |
License Issuance Fee (DED) | 10,000 – 15,000 |
Foreign Name Fee (if applicable) | 2,000 – 3,000 |
Local Service Agent (if required) | 5,000 – 7,000 (yearly) |
Visa Costs (per person) | 3,500 – 6,000 |
Medical, Emirates ID, Stamping | 2,000 – 3,000 |
PRO/Consultant Charges (optional) | 5,000 – 10,000+ |
Total Setup Cost Range | AED 15,000 – 45,000+ |
Cost-Saving Tips
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Opt for a flexi-desk or co-working space to minimize office rent.
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Choose professional license if you're offering services—it often comes with lower fees.
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Compare government incentives—some activities enjoy reduced license fees under startup support schemes.
What Influences the Mainland License Cost in Dubai?
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Nature of activity – High-risk sectors (like finance or healthcare) may need external approvals, increasing costs.
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Visa requirement – More visas = more costs for medical, stamping, and quota allocation.
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Office location – Prime areas like Downtown, Business Bay cost more than Al Qusais or Deira.
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Number of partners/shareholders – More parties mean more paperwork, attestation, and approvals.
Documents Required for Mainland Company Formation in Dubai
To start your mainland company setup in Dubai, you'll need to gather specific documentation depending on your business type, number of shareholders, and whether any of them are corporate entities. Ensuring you have the right documents from the beginning can save time and avoid delays during the registration process.
For Individual Shareholders (UAE Residents or Foreigners)
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Passport copy (valid for at least 6 months)
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Visa copy (visit visa, residence visa, or entry stamp)
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Emirates ID copy (if resident)
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Passport-size photograph (white background)
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No Objection Certificate (NOC) from current UAE sponsor (if employed)
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Residential address proof (for some activities or bank account setup)
For Corporate Shareholders (If a company is a shareholder)
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Certificate of Incorporation
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Memorandum and Articles of Association
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Board Resolution authorizing investment in Dubai entity
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Certificate of Good Standing
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Passport copy of the UBO (Ultimate Beneficial Owner)
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All corporate documents must be notarized and attested by:
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Competent authority in the country of origin
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UAE Embassy in the country of origin
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Ministry of Foreign Affairs in the UAE
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Business Setup Documents (All Company Types)
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Trade Name Certificate (from DED)
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Initial Approval Certificate
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Ejari-registered office lease agreement
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Memorandum of Association (MOA) – notarized and signed
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Local Service Agent Agreement (if applicable)
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Tenancy contract and location map
Optional but Often Required
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Power of Attorney (POA) if another person is handling the process
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Bank reference letter (in case of corporate shareholders)
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Professional qualifications (for regulated activities like consultancy, legal, or medical)
Do You Need an Office for Dubai Mainland Business Setup?
Yes—a physical office is mandatory for any mainland company formation in Dubai. Unlike freezone or offshore companies, where virtual or flexi-desk options might suffice, mainland businesses must lease a commercial space registered with the Ejari system (Dubai's official rental registration platform). This requirement is non-negotiable as it ties directly to your business license approval and visa eligibility.
Why Is an Office Space Mandatory?
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Legal Compliance: The Dubai Department of Economic Development (DED) mandates that every mainland business must operate from a verified commercial space.
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Visa Allocation: The number of visas you can apply for is directly linked to the size of your office. For example, a 100 sq. ft. space may allow 1–2 visas, while larger spaces allow more.
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Business Credibility: Having a physical address in a recognized commercial area builds trust with clients and partners. It adds legitimacy to your business presence in the UAE.
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Mail Handling & Government Communication: Official documents from ministries, banks, and government bodies are typically sent to the office address registered in your license.
Office Options for Mainland Companies
Option | Description | Best For |
---|---|---|
Traditional Office | Leased space in a commercial building | Growing teams, full-time staff |
Serviced Office | Fully furnished space with admin & support services | Startups, SMEs |
Flexi Desk (Limited) | Shared workspace with desk access (Ejari possible) | Freelancers, consultants |
Virtual Office | ❌ Not accepted for mainland license in Dubai | — |
Ejari Registration: What It Means
“Ejari” is Arabic for “My Rent.” It's a government platform that registers all tenancy contracts in Dubai. Your office lease must be Ejari-registered to get your DED trade license approved.
Without an Ejari:
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You can't proceed with license issuance
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You won't be eligible for visa quota allocation
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Banks may reject your corporate account application
Choosing the Right Legal Structure for Dubai Mainland Company
Your business's legal structure affects everything—from liability and profit distribution to ownership rights and visa eligibility. In the mainland company formation in Dubai, selecting the correct structure depends on your business activity, number of shareholders, and growth plans.
Here are the most common legal structures for mainland companies in Dubai:
1. Limited Liability Company (LLC)
The LLC is the most widely chosen legal structure for commercial activities in the UAE.
Key Features:
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Requires 1–50 shareholders.
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Liability is limited to the extent of shares held.
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100% foreign ownership is allowed for most activities.
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Can have multiple visas based on office space size.
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Ideal for general trading, retail, contracting, and consultancy.
When to choose:
You're planning a scalable business with flexibility in operations, staff expansion, and full access to UAE markets.
2. Sole Establishment / Sole Proprietorship
This structure is best suited for individuals offering professional services such as consulting, training, or freelance work.
Key Features:
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Owned and operated by one individual.
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100% ownership allowed for expats in most professions.
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Requires a Local Service Agent (LSA) (UAE national).
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No limited liability—owner is personally liable for business debts.
When to choose:
You're a solo entrepreneur offering specialized services or a freelancer looking to formalize your business legally.
3. Civil Company
This structure is applicable for professional services involving two or more partners (doctors, engineers, lawyers, etc.).
Key Features:
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Full ownership allowed for expat professionals.
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Requires LSA if all partners are foreign nationals.
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Partners share profits and liabilities equally or as agreed.
When to choose:
You're launching a partnership in a regulated field and require a flexible, service-based structure.
4. Branch of a Foreign Company
Ideal for existing international companies that want to establish a presence in Dubai without forming a separate legal entity.
Key Features:
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100% owned by the parent company.
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Can conduct similar activities as the parent.
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Requires appointment of a UAE National as a service agent.
When to choose:
You're expanding an overseas business into the UAE while keeping it under the same brand and control.
5. Representative Office
Not allowed to generate income or conduct business, this entity is meant only for marketing or promoting the parent company.
Key Features:
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No commercial or revenue-generating activity.
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Must appoint a local service agent.
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Requires Ministry of Economy approval.
When to choose:
You want a cost-effective presence to study the market or establish brand visibility before full expansion.
Dubai Mainland License with Visa – How It Works
One of the most powerful benefits of mainland company formation in Dubai is the ability to sponsor multiple visas, including for investors, employees, partners, and even family members. Your business license from the Dubai Department of Economic Development (DED) doesn't just give you trading rights—it also enables residency and workforce scaling.
Let's break it down step by step:
How Many Visas Can a Mainland Company Get?
There's no fixed upper limit—your visa quota is determined by:
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Size of your office space (Ejari area)
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Nature of your business activity
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Approval from the Ministry of Human Resources & Emiratisation (MOHRE)
Visa Process for Mainland Companies
Once your company is licensed and your office is registered, you can apply for visas through the following stages:
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Establishment Card (Immigration File)
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Enables your company to sponsor individuals.
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Visa Quota Approval
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Request approval for the number of visas needed.
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E-Visa Issuance
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Entry permit for individuals (can be issued inside or outside UAE).
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Change of Status
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Converts entry permit to residence (if within UAE).
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Medical Test & Emirates ID
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Mandatory biometric, health test & ID process.
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Visa Stamping
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Residency visa is stamped into the passport.
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What Do Setup Consultants Actually Do?
A good business setup consultant doesn't just help you “get a license”—they simplify and accelerate the entire journey.
Key services include:
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Business activity selection & feasibility analysis
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Choosing the right legal structure
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Reserving trade names and initial approvals
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Drafting MOA, LSA agreements, and translation services
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Office space solutions (with Ejari)
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Managing visa quotas and stamping
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Coordinating with government departments (DED, MOHRE, DHA, GDRFA, etc.)
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Opening corporate bank accounts
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Post-license support (VAT, accounting, renewals)
Conclusion – Is a Mainland Company in Dubai Right for You?
If you're looking to build a business in the UAE that gives you full freedom to trade, hire, and scale—mainland company formation in Dubai is your most versatile option. From unrestricted access to the UAE market to 100% foreign ownership, the mainland model combines regulatory clarity with growth potential.
Whether you're a solo consultant, a global brand expanding into the Middle East, or a startup team aiming to tap into the GCC economy—Dubai's mainland setup offers you:
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The freedom to trade locally and internationally
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The ability to apply for unlimited visas
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A presence in the most connected business hub in the region
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The legal recognition needed to secure government contracts and bank support
What is a mainland company in Dubai?
A mainland company is a business registered with Dubai's Department of Economic Development (DED), allowing full operations across the UAE and internationally.
How do I start a mainland company in Dubai?
Choose your activity, select a legal structure, reserve a trade name, get initial DED approval, lease an office, and apply for your trade license with required documents.
What are the benefits of mainland company formation in Dubai?
Mainland companies can trade across the UAE, enjoy 100% ownership (for most activities), hire unlimited staff, and bid on government contracts.
How much does it cost to set up a mainland company in Dubai?
Costs typically range from AED 15,000 to AED 45,000, depending on activity type, number of visas, and office space location.
Can I own 100% of a mainland company in Dubai?
Yes. As per the 2021 reforms, most commercial and professional activities allow 100% foreign ownership—no UAE partner required.
How long does it take to form a mainland company in Dubai?
With all documents ready, the process can take 3 to 7 working days for license issuance. Visa processing may take an additional week.
What documents are required for mainland company formation?
Passport copies, visa/residency page, passport-size photos, trade name certificate, initial approval, tenancy contract, and signed MOA are standard requirements.
Do I need an office for a mainland company in Dubai?
Yes. An Ejari-registered office space is mandatory. The size of the office also determines how many visas your company can sponsor.