Setting up a Dubai mainland company is a strategic move for businesses looking to access the vast UAE market and benefit from the region's favorable business environment. Dubai, a global hub for trade, finance, and innovation, offers a wide range of opportunities for entrepreneurs. In this guide, we will explore everything you need to know about setting up a mainland company in Dubai in 2024, including legal requirements, benefits, and the steps involved.

1. What is a Dubai Mainland Company?

A Dubai mainland company is a business registered with the Department of Economic Development (DED) in Dubai. This type of company is permitted to operate directly in the local UAE market, with no restrictions on its business activities. It also enables the company to secure government contracts and access a broader range of business opportunities.

2. Key Benefits of Dubai Mainland Company Setup

a) Full Ownership

Unlike free zone companies, mainland businesses can be fully owned by foreign nationals (depending on the business type and industry).

b) Flexibility in Location

Mainland companies can operate anywhere in the UAE, including Dubai’s prime locations like Downtown, Business Bay, and DIFC.

c) No Restrictions on Market Access

Dubai mainland companies can trade directly with the UAE market, which is ideal for businesses that aim to expand locally and regionally.

d) Access to Government Contracts

Mainland companies are eligible to bid on government projects, a key benefit for businesses seeking to establish strong local partnerships.

3. Legal Requirements for Dubai Mainland Company Setup

a) Choose a Business Activity

The first step is to select a business activity that aligns with your product or service offering. The DED has a list of approved business activities that cover a wide range of industries.

b) Legal Structure

Choose the appropriate legal structure for your business. Options include:

• Limited Liability Company (LLC)
• Sole Proprietorship
• Civil Company

c) Local Sponsor Requirement

For most mainland businesses, a local sponsor (UAE national) is required, who typically holds 51% of the company’s shares. However, recent changes to the law have allowed foreign nationals to fully own businesses in certain sectors.

d) Office Space

You’ll need to secure a physical office location in Dubai, which complies with the DED's requirements for space and infrastructure.

4. Steps to Set Up a Dubai Mainland Company

a) Choose a Business Name

The business name must adhere to DED's naming conventions and avoid offensive or inappropriate terms.

b) Apply for Initial Approval

Submit your application to the DED to obtain initial approval for your business. This step typically involves submitting documents such as passports, visa copies, and the proposed company name.

c) Draft a Memorandum of Association (MOA)

The MOA outlines the partnership structure, responsibilities, and obligations of shareholders. It’s crucial for determining how the business will operate legally.

d) Secure Office Space

Once approved, secure office space that meets the DED’s requirements. The office location and space size must be sufficient for your business’s needs.

e) Apply for Business License

After completing the previous steps, you can apply for the business license from DED. This officially registers your company and allows you to start operations.

5. Cost of Setting Up a Dubai Mainland Company

The cost of setting up a Dubai mainland company can vary widely depending on factors such as:

• Business activity
• Office space requirements
• License fees
• Legal and administrative expenses

On average, setting up a mainland company can range from AED 15,000 to AED 50,000, but the exact cost depends on the complexity of your business and the services you require.

6. Challenges to Consider

• Local Sponsorship – While foreign ownership is now possible in some sectors, many mainland businesses still require a local sponsor.
• Cost of Office Space – The cost of leasing commercial property in prime areas can be high.
• Legal Formalities – Setting up a mainland company involves more legal paperwork compared to free zone setups.

7. Key Considerations Before Setting Up

• Market Research: Understand the demand for your product or service in the UAE market.
• Cultural Adaptation: Be aware of the local business culture and regulations.
• Growth Potential: Consider the scalability of your business and future expansion plans.

Conclusion

Setting up a Dubai mainland company offers significant advantages, especially for businesses looking to operate across the UAE and beyond. With the right strategy, legal structure, and a clear understanding of the regulatory landscape, your business can tap into the lucrative Dubai market.

Are you ready to start your business journey in Dubai? Let us know how we can help guide you through the process!