DUBAI MAINLAND
Dubai Mainland Company Formation
A Dubai mainland company is registered directly with the Department of Economic Development and can trade anywhere in the UAE and internationally, with no geographic restriction on where it operates. Since 2021 most activities no longer require an Emirati shareholder, so you can own the company outright. Package, process, documents, approvals and cost — we handle all of it.
100%
Foreign ownership on most Dubai mainland activities
Anywhere
Trade across the UAE and abroad with no territorial limit
No minimum
Share capital required to incorporate most activities
2–4 weeks
Typical time from initial approval to trade licence
BENEFITS
Benefits of Dubai Mainland Business Setup
A mainland entity is registered under the emirate’s economic department and can carry out its licensed activities in the local market, subject to the usual government approvals. That is what separates it from a free zone or offshore company.
Do Business Anywhere in the UAE
No restriction on where you trade. Free zone and offshore entities are tied to a geographic zone and need a distributor or agent to reach mainland customers — a Dubai mainland licence has no such limit.
Your Office Where You Need It
A registered office is required and it can be anywhere in the emirate — Business Bay, Deira, Al Quoz, wherever suits the business. Being able to sit next to your customers is the advantage most founders underrate.
Gateway to the Middle East
Dubai is the trading gateway of the region, with scope to diversify across the GCC. A mainland licence gives you international exposure and the credibility that comes with a local commercial presence.
No Personal Income Tax
Salaries and dividends are not taxed personally in the UAE. What you draw from the business stays with you — which is a large part of why founders relocate here in the first place.
No Minimum Capital Requirement
Most Dubai mainland activities need no share capital deposited before you trade. Capital is stated in the memorandum of association rather than locked in a bank account.
No Currency Restrictions
Mainland companies are not subject to exchange controls. Capital, profits and dividends move in and out freely, in any currency, without prior approval.
Worth correcting: Dubai mainland companies are not exempt from corporate tax. UAE corporate tax has applied since June 2023 at 9% on taxable profits above AED 375,000, and a mainland company has no route to the 0% rate that a qualifying free zone company can claim. Personal income tax remains nil — the two are often confused, and the difference matters when you model the numbers.
COMPANY STRUCTURES
Ways to Set Up a Mainland Company in Dubai
Six structures are available. Which one applies depends on whether you are starting fresh, extending an existing company, or operating in a regulated sector.
Limited Liability Company (LLC)
The standard Dubai mainland vehicle, used for commercial activities such as trading, technical services and contracting. Between one and fifty shareholders, liability limited to the share capital, and full foreign ownership available on most activities.
Professional Company
For skill-based businesses where the owner is qualified in the field — accountancy, management consultancy, marketing, HR and IT among them. A local service agent may be required depending on the activity, on a fixed annual fee.
Branch of a Foreign Company
An extension of an overseas parent rather than a new legal entity, carrying out the parent’s activities in the UAE. It needs Ministry of Economy approval and a local service agent, and cannot undertake activities the parent does not perform.
Branch of a Free Zone Company
A free zone company can license a mainland branch through the Department of Economic Development. This is the usual way to reach mainland customers without giving up the free zone entity or restructuring the group.
Representative Office
May promote and market the parent company’s business, gather market information and liaise with customers — but it cannot trade, invoice or earn revenue in the UAE. Useful for testing a market before committing to a full licence.
Public Shareholding Company (PJSC)
The structure used for banks, insurers and financial institutions. It carries substantial documentation and regulatory approval requirements, and is only appropriate where the activity genuinely requires it.
LICENCES AND LOCATIONS
Business Licences for Dubai Mainland
Three licence categories cover almost every mainland activity. The category follows from what you actually do, not from what is cheapest.
Professional Licence
For service-oriented work: consultancy, accountancy, marketing, IT, design and similar. Issuance cost is lower than a commercial licence and it is usually the fastest category to approve.
Commercial Licence
For buying, selling, importing, exporting and general trading. The most common category in the UAE, and the one where the activity list on the licence needs the most careful drafting.
Industrial Licence
For manufacturing, processing and assembly. It requires physical premises and clearance from the relevant government departments and external ministries before the activity can be licensed.
Where to Set Up in Dubai
Your district shapes your rent, your visa quota and how easily customers reach you. These are the areas we place mainland clients in most often.
Business Bay
The commercial hub, between Sheikh Zayed Road and Dubai Creek. Suited to hospitality, professional services and anything wanting a central corporate address. Rents reflect that.
Deira
One of the oldest parts of Dubai, in the north and bordering Sharjah. Well suited to small shops and medium-sized trading enterprises, with the traditional souk trade still very much alive.
Al Quoz
South-west Dubai, running alongside Al Khail Road and Sheikh Zayed Road. The emirate’s main industrial and warehousing district, and the default choice for light manufacturing and storage.
Al Qusais
Next to Dubai International Airport, mixing residential complexes with commercial space. Popular with education providers and commercial establishments that want proximity to the airport without Business Bay rents.
Jumeirah
The west coast, dominated by tourism and real estate. Restaurants, resorts and consumer-facing businesses do well here because the footfall is already there.
Al Karama
Still among the most affordable office space in the city. A practical base for small and medium enterprises that need a genuine Dubai address without the cost of a prime district.
THE PROCESS
Steps to Set Up a Company in Dubai Mainland
Six steps through the Department of Economic Development. We prepare the filings, obtain the approvals and deal with the government bodies on your behalf.
01
Register the Trade Name
A suitable trade name is chosen and registered with the DED. Naming rules are strict — no abbreviations of personal names, nothing religious or political, and nothing implying an activity the licence will not cover.
02
Initial Approval From the DED
The DED confirms it has no objection to the business being established. Activities in a regulated sector are referred to the relevant ministry or authority at this point.
03
Draft and Notarise the Memorandum
The memorandum of association sets out the shareholding, the purpose of the company and the capital involved. It is drafted and then notarised, which the DED handles alongside the initial approval.
04
Secure Office Space and Register the Ejari
A registered office is mandatory for a mainland licence and the tenancy must be registered through Ejari. There is no flexi-desk shortcut here, and your visa quota is calculated from the size of the space.
05
Submit to the DED and Pay the Licence Fee
All documents go to the DED and the Commercial Registration Department, and the licence fee is paid. This is where the file either clears cleanly or comes back — which is why the earlier steps matter.
06
Trade Licence, Establishment Card and Visas
The trade licence is issued and the company can trade, contract and open a bank account. Immigration and labour establishment cards follow, then entry permits, medicals, Emirates ID and residence visas for you and your staff.
Documents Required
- Passport copies and photographs for every shareholder and director
- Visa page or entry stamp for anyone already in the UAE
- Proof of trade name registration and the completed application forms
- Memorandum of association, notarised
- Registered tenancy contract and Ejari certificate
- For a branch: certificate of incorporation, memorandum and articles of the parent, a board resolution, a no-objection certificate and a power of attorney
- For a branch: Ministry of Economy approval and a statement from the parent defining the branch’s activities
OWNERSHIP AND TAX
Sponsorship, Ownership and What You Owe
Most published guidance on Dubai mainland companies is several years out of date on both ownership and tax. Here is where things actually stand.
The 51% Local Sponsor Rule Is Gone
Company formation rules used to require an Emirati sponsor holding 51% of the shares, with official documents issued in his name. Finding a reliable sponsor was genuinely difficult and the arrangement carried real risk. Federal Decree-Law No. 26 of 2020 removed that requirement for the great majority of commercial and industrial activities from June 2021. On most Dubai mainland activities you now own 100% of your own company.
When a Service Agent Is Still Required
Certain professional and civil structures, and branches of foreign companies, still need a local service agent. The distinction matters: a service agent holds no shares and takes no profit — it is a fixed annual fee for administrative support and government liaison. If anyone offers to be your 51% partner, ask them to name the activity that requires it.
Corporate Tax, VAT and Customs
Corporate tax applies at 9% on taxable profits above AED 375,000 and 0% below it. Registration with the Federal Tax Authority is mandatory whether or not you make a profit. VAT is 5%, compulsory once taxable supplies pass AED 375,000 in twelve months and voluntary from AED 187,500. Imported goods attract the 5% GCC customs duty. There is no personal income tax on what you draw out.
Ongoing Compliance
Annual trade licence renewal, Ejari renewal, corporate tax and VAT returns, audited financial statements where required, and full compliance with UAE labour law including the Wage Protection System and mandatory health insurance. Establishment cards and employee visas run on their own cycles. We hold the calendar — a lapsed licence takes the visas down with it.
SIDE BY SIDE
Dubai Mainland or a Free Zone?
The honest comparison. Where your customers are decides this, not the headline licence price.
Selling to UAE Customers
Dubai Mainland
Direct and unrestricted anywhere in the country
Free Zone
Needs a mainland distributor, agent or branch
Government Contracts
Dubai Mainland
Eligible to tender
Free Zone
Not eligible
Corporate Tax
Dubai Mainland
9% above AED 375,000, with no exemption route
Free Zone
0% on qualifying income if the QFZP conditions are met
Office Requirement
Dubai Mainland
Physical premises with a registered Ejari tenancy
Free Zone
Flexi-desk upwards, scaled to your visa quota
Setup Cost
Dubai Mainland
Higher, driven mainly by the rent on real premises
Free Zone
Lower to start, particularly on a flexi-desk package
Best Suited To
Dubai Mainland
Retail, F&B, contracting, clinics, government supply and anything selling locally
Free Zone
Exporters, consultancies and holding companies serving customers outside the UAE
START YOUR COMPANY
Register Your Dubai Mainland Company
Package, process, documents, approvals and cost — one point of contact for all of it. We deal with the Department of Economic Development and the relevant ministries every day, which is what keeps approvals moving. And if a free zone licence would genuinely serve you better, we will say so before you spend anything.
