Business Setup in Dubai Mainland

Required Documents, How to Apply, Cost of Business Setup in Dubai Mainland

Business Setup in Dubai Mainland

The UAE offers a highly favorable economic environment for investors and entrepreneurs. No matter the type of business you plan to launch, you’ll find a wide range of options when it comes to business activities, company structures, and locations.

While free zones are ideal for certain industries—particularly for startups or businesses focused on international trade—a mainland company provides greater flexibility and long-term growth potential. Mainland (or onshore) companies allow you to operate directly within the UAE local market and tap into broader business opportunities.

Setting up a mainland company in Dubai comes with its own set of advantages and regulatory requirements. Whether you’re launching a new venture or transitioning from a free zone setup to the mainland, this guide will walk you through everything you need to know about establishing a mainland company in the UAE.

Benefits of mainland company in Dubai

Conducting business all across UAE without restrictions
Access to various industries and activity categories
No limitations on currencies used in transactions
Opportunities for business expansion
Access to government contracts
No minimum capital requirement
Flexibility in office location choice
No import/export duties within UAE

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What Is a Mainland Company?

The UAE mainland refers to the areas outside of designated free zones and is governed by the Department of Economic Development (DED) in each emirate. The DED is responsible for issuing mainland business licenses, which allow companies to operate anywhere in the UAE without geographical restrictions.

A major shift came in 2021 with the introduction of the updated Commercial Companies Law, which allows for 100% foreign ownership of many mainland businesses. Previously, foreign investors were required to have a UAE national sponsor or a local service agent (LSA) who held 51% ownership in the company.

Today, full foreign ownership is possible for a wide range of business activities, depending on your license type and sector. For instance, while certain sectors like manufacturing or businesses involved in government contracts under an Industrial License may still require a local shareholder, most commercial and professional activities are now exempt from this requirement—giving international entrepreneurs much greater control and flexibility over their business.

Why Switch from Free Zone to Mainland?

Starting a business in one of the UAE’s free zones can be highly advantageous, thanks to their all-in-one company formation packages that typically include office space, business licenses, and visa services—making the setup process smooth and hassle-free. Many free zones also cater to specific industries, offering unique benefits such as strategic locations, and integration with transport hubs like airports and seaports.

For instance, Dubai Silicon Oasis is ideal for tech-based companies, Dubai Airport Free Zone (DAFZA) offers seamless access to Dubai International Airport, and Jebel Ali Free Zone (JAFZA) provides direct access to the country’s largest seaport, making it perfect for logistics and trading businesses.

However, free zone companies do have certain limitations—especially when it comes to operating within the UAE mainland, expanding business activities, meeting capital or shareholder structure requirements, and opening branch offices across the country. If your goal is long-term growth and broader market reach, transitioning to a mainland company is often the smarter move.

That said, setting up a mainland business also comes with its own set of responsibilities. Depending on your business activity and license type, you may still need a local partner or service agent, and you’ll be required to comply with UAE labor laws and regulations outlined by the Department of Economic Development (DED).

To ensure a smooth and informed transition, it’s highly recommended to consult with experienced business setup consultants, legal advisors, and relevant government authorities. They can guide you through the process and help you make the best choice for your business goals in the UAE.

Advantages of Mainland Company Formation in Dubai

Opening a mainland company in Dubai presents a highly attractive opportunity for entrepreneurs and businesses, thanks to its wide range of benefits and strategic advantages:

Full Access to the UAE Market

Mainland companies are not restricted by geography—they can operate across all seven Emirates, allowing you to serve a broader customer base and expand easily within the UAE and internationally.

No Currency Restrictions

Businesses can transact freely in any currency, offering flexibility for international trade and cross-border financial operations.

Wide Range of Business Activities

Mainland licenses cover a diverse array of activities, from trading and manufacturing to services and professional consultancy—making it a suitable choice for nearly every industry.

Seamless Expansion Opportunities

With a mainland license, you can open branches across the UAE and conduct business with both local and international entities without limitations.

Eligibility for Government Contracts

Mainland businesses can bid for government tenders, offering access to high-value projects and long-term revenue opportunities.

No Minimum Capital Requirement

Unlike many free zones, Dubai mainland companies are often not bound by a minimum capital requirement, making the entry point easier for startups and small businesses.

Flexible Office Locations

You can choose your office location anywhere within Dubai or the wider UAE, giving you the freedom to consider factors like cost, proximity to clients, logistics, and accessibility.

Unlimited Visa Quota

There’s no cap on the number of employment visas you can apply for—ideal for companies planning to scale or hire a larger workforce.

No Internal Import/Export Duties

When doing business within the UAE, mainland companies typically don’t incur import or export duties, helping reduce operational costs.

Strong Networking & Business Ecosystem

Dubai’s dynamic business environment provides rich networking opportunities, industry events, and collaborations with professionals from across the globe.

Enhanced Local Presence

Having a mainland company signals strong commitment to the local market, building credibility with customers, partners, and government entities.

Strategic Global Location

Situated between Europe, Asia, and Africa, Dubai serves as a major hub for global trade, making it a prime location for regional headquarters and international commerce.

Access to Global Talent

Dubai attracts professionals from around the world, giving you access to a skilled and diverse talent pool for all sectors.

Mainland Company Licenses

Dubai mainland offers a variety of business licenses tailored to support a wide range of commercial and professional activities. The type of license you’ll need depends on the nature of your business and the services you plan to offer. Here are the most common types of mainland licenses in Dubai:

Commercial License

Ideal for businesses involved in trading activities, this license covers the buying, selling, import, export, and distribution of goods. It’s suitable for both local and international trading operations.

Professional License

Required for individuals or firms offering specialized professional services, such as doctors, lawyers, consultants, engineers, IT professionals, and creatives. This license emphasizes personal expertise and qualifications.

Industrial License

Meant for businesses engaged in manufacturing or industrial operations, including the production, processing, assembling, and packaging of products. This license is essential for factory setups and large-scale production units.

Tourism License

Designed for businesses in the travel and tourism sector, such as travel agencies, tour operators, holiday planners, and hotel-related services. It enables operations catering to both local and international tourists.

E-commerce License

Specifically for businesses conducting online trade, this license is ideal for e-commerce platforms, digital stores, and online service providers. It allows for the legal operation of web-based businesses within the UAE.

Mainland Company Formation Checklist

Setting up a mainland company in Dubai means operating under the jurisdiction of the Department of Economic Development (DED), which governs business licenses and regulations outside free zones. Here’s a comprehensive guide to help you navigate the setup process:

Define Your Business Activity

Start by identifying the business activity you intend to pursue. Your chosen activity will determine the type of license you need. Dubai mainland offers thousands of DED-approved activities—far more than any single free zone. If you later want to diversify, you can easily re-register additional activities with the DED.

Select the Legal Structure

Choose an appropriate legal structure for your company. Common options include:

Limited Liability Company (LLC)
Sole Proprietorship
Private/Public Shareholding Company

Each structure has its own documentation requirements and regulatory conditions. The LLC is the most popular structure, requiring at least two shareholders.

Choose a Company Name

Pick a name that complies with the DED’s naming guidelines. Avoid offensive language, religious references, and duplicate trade names. It’s wise to shortlist multiple names in case your first choice is unavailable.

Prepare the Required Documentation

Key documents typically include:

Passport copies and photos of shareholders
Entry stamp copies (if applicable)
Memorandum of Association (MOA)
Local Service Agent (LSA) Agreement (if required)

Note: Businesses requiring a local partner (such as industrial or manpower supply companies) may need a UAE national sponsor or a Corporate Nominee who holds 51% ownership on paper, while you retain operational control.

Choose an Office Space

Mainland companies must lease physical office space in Dubai. Unlike free zones, you’re free to choose any location that fits your business needs—be it a warehouse near the port or a city office.

Options range from:

Fully-furnished turnkey offices
Custom-fitted commercial spaces

Rent costs and visa quotas are linked to office size (typically one visa per 100 sq. ft.).

Apply for License and Company Registration

Submit your business setup application to the DED, selecting the correct license type:

Commercial
Professional
Industrial
Others, based on activity

Some sectors may require external approvals from other government departments or regulatory authorities.

Pay Fees and Receive Your License

Once approved, pay the applicable registration and licensing fees. Upon payment, you’ll receive your official trade license, MOA, and other documentation needed to legally operate.

Register for Taxation

Register with the Federal Tax Authority (FTA). As of 2023, certain businesses are subject to a 9% corporate tax. Make sure your company is compliant with all relevant tax laws and seek professional advice if needed.

Open a Corporate Bank Account

With your trade license and legal documents in hand, you can approach a UAE-based bank to open a corporate account. Each bank has specific requirements, so be prepared with all necessary paperwork.

Apply for Visas and Labor Quotas

Apply for:

Establishment card and Labor file
Employment visas for staff
Investor/partner visa for yourself

Mainland companies can apply for unlimited employee visas, subject to office space size.

Once you secure your visa, you can also sponsor dependents (family members, domestic workers, etc.).

Get Professional Legal Guidance

While it’s possible to handle the process independently, working with an experienced business consultant or legal advisor can save time, reduce stress, and help avoid costly mistakes—especially when navigating regulatory updates or specialized industries.

Summary

Setting up a mainland company in Dubai can be a strategic move—whether you’re launching a new venture or transitioning from a free zone setup. With greater operational flexibility, access to the local market, and opportunities for long-term growth, Dubai’s mainland offers a solid foundation for sustainable success—especially when you’re equipped with the right knowledge and guidance.

At visakingsdubai, we specialize in making the company formation process seamless and stress-free. Our team of experienced professionals is here to guide you every step of the way—offering expert advice, personalized support, and practical solutions tailored to your business needs.

Business Setup

Required Documents, How to Apply, Cost of Business Setup in Dubai Mainland