A Complete Guide to Mainland Company Setup in Dubai

A Complete Guide to Mainland Company Setup in Dubai

Dubai’s business-friendly environment makes it a global hub for entrepreneurs and corporations. Setting up a mainland company in Dubai offers unlimited business opportunities, full market access, and no restrictions on trading within the UAE. Whether you’re a startup, SME, or multinational, establishing a mainland company can be the key to long-term success in the region.

1. What Is a Mainland Company in Dubai?

A mainland company is a business registered with the Department of Economy and Tourism (DET) in Dubai. It allows businesses to operate freely within the UAE and internationally without any geographical restrictions. Unlike free zone companies, mainland companies can trade directly with the local market and secure government contracts.

2. Key Benefits of Setting Up a Mainland Company in Dubai

  • 100% Foreign Ownership: No local sponsor is required for most business activities.
  • No Trade Restrictions: Operate anywhere in the UAE and internationally.
  • Government Contract Eligibility: Mainland businesses can bid for lucrative government projects.
  • No Currency Restrictions: Conduct business in any currency without limitations.
  • No Minimum Capital Requirement: Unlike some free zones, there's no set minimum investment.

3. Mainland vs. Free Zone vs. Offshore: What’s the Difference?

Feature Mainland Company Free Zone Company Offshore Company
Business Scope UAE & international Limited to free zone International only
Ownership 100% foreign (in most cases) 100% foreign 100% foreign
Office Requirement Mandatory Optional Not required
Government Contracts Yes No No
Tax Benefits Corporate tax applies Tax benefits available No tax, but limited operations

4. Steps to Mainland Company Setup in Dubai

A. Choose a Business Activity

Identify the right business category, such as trading, manufacturing, consulting, or services. The DET provides a list of approved activities.

B. Select a Legal Structure

Decide on the company type:

  • Sole Establishment (for individuals)
  • Limited Liability Company (LLC) (most common structure)
  • Branch of a Foreign Company

C. Register Your Trade Name

Choose a unique company name that follows Dubai’s naming regulations. The name must not include offensive words or references to religious or political groups.

D. Obtain Initial Approval from DET

This approval confirms that the government has no objections to your business.

E. Arrange for an Office Space

A physical office is mandatory for mainland companies. You can lease an office or opt for a co-working space based on business needs.

F. Draft & Notarize the Memorandum of Association (MOA)

If forming an LLC, the MOA must be notarized and submitted to the authorities.

G. Apply for Business Licenses

Obtain the required license based on your business activity:

  • Commercial License (for trading businesses)
  • Professional License (for service-based businesses)
  • Industrial License (for manufacturing businesses)

H. Register for Corporate Tax & VAT

Companies must comply with UAE tax regulations, including VAT (5%) and corporate tax (9% for businesses exceeding AED 375,000 in profit).

I. Final Approvals & Payment of Fees

Submit all documents, pay the required fees, and receive your business license from DET.

5. Cost of Setting Up a Mainland Company in Dubai

The total cost varies depending on the business activity, office space, and government fees. On average, it ranges between AED 15,000 to AED 50,000, covering:

  • Trade name registration
  • Initial approval fees
  • Office rent
  • Visa and labor fees

6. Do You Need a Local Sponsor for a Mainland Company?

Previously, businesses required a UAE national sponsor (51% ownership). However, under new laws, most business activities now allow 100% foreign ownership, except for some sectors like oil & gas, telecom, and banking.

7. How Long Does It Take to Register a Mainland Company?

The registration process typically takes 7-10 business days, depending on the approvals required.

8. The Future of Mainland Businesses in Dubai

With 100% ownership laws, corporate tax reforms, and a booming economy, Dubai remains a top destination for entrepreneurs. Investing in a mainland company setup in Dubai ensures long-term business growth and unlimited market opportunities.

Final Thoughts

Setting up a mainland company in Dubai is the ideal choice for businesses looking to expand across the UAE and internationally. With no restrictions on trade, access to government contracts, and full ownership in most sectors, entrepreneurs can build a strong presence in Dubai’s competitive market.

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