Mainland Company Formation in Dubai: Full Process Explained
Introduction: Why Choose Mainland Business Setup in Dubai?
Dubai is a leading global business hub that attracts thousands of entrepreneurs every year. While freezones and offshore entities are popular, many investors prefer mainland business setup due to its flexibility, ability to trade across the UAE, and access to government contracts. Understanding the mainland company formation process is key for entrepreneurs who want to build a sustainable and scalable business in Dubai.
Understanding Mainland Company Formation
What is a Mainland Company?
A mainland company is a business registered with the Department of Economic Development (DED) in Dubai. Unlike freezone companies, a mainland company can operate freely anywhere in the UAE without trade restrictions.
Benefits of Mainland Business Setup
- Freedom to trade anywhere in Dubai and across the UAE
- 100% foreign ownership in most business activities (thanks to new reforms)
- No restrictions on the number of visas you can apply for
- Ability to participate in government contracts and tenders
- Wider business opportunities across sectors
Freezone vs. Mainland: Key Differences
| Feature | Mainland | Freezone |
|---|---|---|
| Ownership | 100% foreign ownership allowed in most sectors | 100% foreign ownership |
| Trading Rights | Across UAE and internationally | Limited to freezone and international trade |
| Office Space | Mandatory physical office lease | Virtual or flexi-desk available |
| Government Contracts | Eligible | Not eligible |
Legal Framework for Mainland Company Formation in Dubai
UAE Commercial Companies Law
Mainland company operations are governed by the Federal Decree-Law No. 32 of 2021, also known as the UAE Commercial Companies Law.
Ownership Rules and 100% Foreign Ownership Reforms
Previously, foreign investors needed a UAE national as a local sponsor with 51% ownership. However, reforms now allow 100% foreign ownership in most sectors, making mainland business setup more attractive than ever.
Step-by-Step Process of Mainland Company Formation
Step 1: Choose Your Business Activity
Identify your company’s primary activity—commercial, industrial, or professional—as this determines your license type.
Step 2: Select a Legal Structure
Options include Limited Liability Company (LLC), Sole Proprietorship, or Civil Company.
Step 3: Reserve a Trade Name
Choose a name that complies with UAE naming conventions.
Step 4: Apply for Initial Approval
Submit initial documents to the DED for approval before incorporation.
Step 5: Draft and Notarize the Memorandum of Association (MOA)
The MOA outlines ownership, shareholder rights, and company structure.
Step 6: Choose a Business Location and Tenancy Contract
Secure an office lease and register it with Ejari (Dubai’s tenancy registration system).
Step 7: Submit Documents to DED
File your application with required documents (passport copies, MOA, tenancy contract).
Step 8: Obtain Trade License
Receive your official license to operate.
Step 9: Open a Corporate Bank Account
Submit your license and incorporation documents to a UAE bank.
Step 10: Apply for Visas and Labor Cards
Mainland companies can apply for unlimited visas based on office space size.
Costs of Mainland Business Setup in Dubai
Trade License Costs
Starting from AED 15,000 – 30,000, depending on the activity.
Office Space and Lease Costs
Average office rent in Dubai mainland ranges from AED 20,000 – 60,000 annually.
Visa and Employee Costs
AED 3,000 – 7,000 per visa, depending on the category.
Types of Licenses for Mainland Company Formation
Commercial License
For trading, import/export, and retail businesses.
Professional License
For consultancy, services, and skilled professions.
Industrial License
For manufacturing and production activities.
Key Advantages of Mainland Business Setup
Access to UAE Local Market
Unlike freezone companies, mainland companies can directly engage with customers in Dubai and across the UAE.
Ability to Work with Government Contracts
Mainland companies are eligible to bid for government tenders.
No Trading Restrictions
Freedom to expand operations anywhere in the UAE and globally.
Challenges of Mainland Company Formation in Dubai
Compliance and Documentation Requirements
Mainland setup requires more paperwork and compliance compared to freezones.
Higher Costs Compared to Freezones
Office lease and license fees are generally higher than freezone setups.
Tips for a Smooth Mainland Business Setup
Work with Business Consultants
Partnering with a consultant saves time and ensures compliance.
Plan Your Budget in Advance
Account for licensing, office space, visas, and staffing costs.
Stay Updated with UAE Regulations
Laws evolve, so staying informed prevents compliance issues.
Conclusion: Your Gateway to Growth with Mainland Business Setup
Dubai’s mainland company formation process may seem complex, but it offers unmatched opportunities. With 100% ownership, access to the local market, and the ability to secure government contracts, setting up a mainland business in Dubai is a powerful step toward success. By following the right process and working with experienced consultants, you can establish a profitable business foundation in one of the world’s fastest-growing economies.
FAQs on Mainland Company Formation in Dubai
Can foreigners own 100% of a mainland company in Dubai?
Yes, recent reforms allow full ownership in most sectors.
How long does mainland business setup take?
Usually between 2–4 weeks, depending on approvals.
What’s the difference between freezone and mainland companies?
Mainland companies can operate across the UAE, while freezones are limited to international or intra-freezone trade.
Do I need a local sponsor?
Not for most sectors, thanks to new ownership laws.
What is the minimum office space requirement for mainland setup?
At least 200 sq. ft. of physical office space is required.
Can a mainland company sponsor employees?
Yes, mainland companies can sponsor unlimited visas based on office size.