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03 May 2025

Step-by-Step Guide to Setting Up a Mainland Company in Dubai

Mainland company formation in Dubai is defined as Original a business  in the heart of the city Throughout of the free zones. This option is Perfect for People searching for in the local UAE market . As you set up a business in Dubai mainland, It provides More freedom in business operations and the Skill to trade anywhere in the UAE or internationally. The procedure Requires certain steps and documentation, Resulting in Important for understand the requirements for a smooth business setup in Dubai

Benefits of Mainland Company Formation in Dubai

Developing a mainland company  in Dubai Provides many  advantages, Creating  it an attractive Choice for entrepreneurs and businesses Planning to Set up Personally  in the UAE Here are the key benefits:
Immediate Access to UAE Market

Advantage: Mainland companies Experience full access to the expansive UAE market Providing them trade freely In all  emirates without limitations This provides businesses greater opportunities for growth and market penetration. 
Unlimited on Business Activities

Different from  free zone companies,  mainland companies Are unrestricted to specific business activities or industries. They can participate a  wide variety of operations,  from consulting and manufacturing to retail and e-commerce.

Proficiency to Trade Anywhere in the UAE and Globally

 Mainland companies Can manage businessany where  Throughout the UAE and internationally. This provides Increased  flexibility in trading with local and global clients Improving business Growth opportunities

100% Return  Profits and Capital

An important Major benefits of mainland company formation  is the ability  To completely return both profits and capital.

Eligibility for Government Contracts

Mainland companies are Permitted To tender for government contracts which often come with Profitable opportunities This is a major advantage over free zone businesses, which are usually excluded from such opportunities.

Efficiency of Getting Visas for Employees

Mainland businesses can easily sponsor employee visas That permit them to build a strong, Team with different people

Networking and Growth Opportunities

Being a member of of the mainland   allows businesses to network with local companies, government bodies, and industry associations

No Currency Restrictions

Dubai mainland businesses benefit from no currency restrictions, making international transactions seamless.

Simple Legal Formalities

The legal process for establishing a mainland business in Dubai is clear and  Simplified reducing Regulatory framework and making the setup process more efficient.

Documents Checklist for Mainland Business Setup in Dubai

Trade License Application

Passport Copies of Shareholders

 UAE Resident Visa (If Applicable)

Emirates ID (For UAE Residents)

 No Objection Certificate (NOC)

 Local Sponsor Agreement

 Office Lease Agreement

Memorandum of Association (MOA)

Dubai Chamber of Commerce Membership

EJARI Registration Certificate
How to Set Up a Mainland Company in Dubai

Starting a business in Dubai is a strategic move, especially when you choose to set up on the mainland. Mainland companies give you access to the entire UAE market and allow you to work with government clients, unlike free zone or offshore setups.

This guide explains the key steps, costs, and requirements for establishing a mainland business in Dubai.

What is a Mainland Company

A mainland company is a business registered under the Department of Economic Development (DED) in Dubai. It allows you to trade both within the UAE and internationally, without any restrictions on business location or client type.

Steps to Set Up a Mainland Business in Dubai

Choose your business activity
Start by identifying the type of business you want to establish. Dubai supports a wide range of activities such as trading, consulting, manufacturing, and e-commerce. Your chosen activity will determine the type of license you need.

Pick a trade name
Your business name must follow UAE naming rules. It should not be offensive, religious, or closely resemble existing company names. The name must also align with your business activity if required. You can check name availability through the DED.

Apply for initial approval
Once you’ve selected your activity and trade name, apply for initial approval from the DED. This approval confirms that the UAE government has no objection to your business.

Secure an office space
Mainland businesses must have a physical office. You will need a valid tenancy contract and an Ejari certificate (Dubai’s rental registration system) to continue the setup process.

Prepare legal documents
You will need to draft and notarize a Memorandum of Association (MOA), which defines your company’s structure. If you're starting a professional service business, a Local Service Agent (LSA) agreement may also be required.

Get any special approvals
Depending on your industry, additional approvals may be needed from relevant authorities. For example, healthcare, education, and financial services may require sector-specific permissions.

Submit final documents
Submit all required documents, including your trade name certificate, initial approval, MOA, tenancy contract, and any special approvals, to the DED for review.

Pay the required fees and get your license
Once approved, pay the necessary government fees. After payment, the DED will issue your trade license, allowing you to legally operate your business in Dubai.

Open a business bank account
With your license in hand, you can open a corporate bank account in the UAE to manage your company’s finances.

Apply for visas
Mainland companies can sponsor investor and employee visas. The number of visas allowed typically depends on your office size. Mainland companies offer greater flexibility compared to free zone options.

Understanding Local Sponsorship

For most mainland company setups, a UAE national must act as a local sponsor and hold 51 percent of the business shares. This sponsor typically does not interfere with day-to-day operations. Certain types of businesses, especially professional service firms, may now be eligible for full foreign ownership.

Cost of Setting Up a Mainland Business in Dubai

Here is a breakdown of the typical setup costs for a commercial or professional license:

Initial approval
Commercial and professional licenses usually have a small government fee for the initial application.

Trade name reservation
A fee is charged to reserve your business name and ensure it complies with regulations.

Tasheel application
This fee covers the processing of your application through government services.

MOA notarization
The MOA must be notarized, with costs depending on your license type.

Annual license fee
You must pay a yearly fee to maintain your business license. Commercial licenses generally cost more than professional licenses.

Market fee
This is calculated as a percentage of your office’s annual rent. While sometimes waived, it may still apply in certain cases.

Foreign name fee
If your company name is not in Arabic, a foreign name charge may apply.

Other Considerations

Office rent is one of the largest costs and varies by location and size.
If you work with a setup consultant or legal advisor, service fees will apply.
Government fees are subject to change, so it’s best to confirm the latest costs with the DED or a business advisor.

 

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