How to Start a Mainland Company in Dubai: Step-by-Step Process Explained

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Setting up a business in Dubai is one of the smartest decisions entrepreneurs make today. The city is a global business hub with world-class infrastructure, tax advantages, and unmatched opportunities. But one type of business setup stands out—mainland company formation in Dubai.

What is a Mainland Company?

A mainland company is an onshore business entity registered directly under the Department of Economic Development (DED) of the respective Emirate. Unlike free zone companies, a mainland company enjoys full access to the local UAE market, allowing it to conduct business anywhere inside or outside the UAE.

Think of it as having no boundaries—you can operate freely across all seven Emirates and internationally.

Why Dubai is a Popular Choice for Investors

Dubai offers a stable economy, zero personal income tax, strategic location, and a multicultural environment. Investors from all over the world pick Dubai because it is the gateway to Asia, Africa, and Europe—perfect for business expansion.

Key Features of a Mainland Company

Setting up a mainland company comes with powerful features that attract global entrepreneurs.

Full Trading Flexibility

Unlike free zones where operations are restricted, mainland companies can:

  • Trade within the UAE market
  • Work with local businesses
  • Take on both government and private projects

This means more clients, more opportunities, and higher growth potential.

Office Space Requirements

For most mainland companies, having a physical office space is mandatory. This ensures credibility and compliance with DED regulations. However, virtual office options also exist for select activities.

100% Foreign Ownership Rules

Earlier, foreign investors needed a local sponsor holding 51% shares. Today, 100% foreign ownership is allowed in most mainland business activities—making Dubai even more attractive for global entrepreneurs.

Benefits of Mainland Company Formation in Dubai

Freedom to Trade Across the UAE

Your business can operate anywhere—Abu Dhabi, Dubai, Sharjah, or any other Emirate. This gives you a huge advantage over free zone companies.

Unlimited Business Activities

Whether your business is commercial, industrial, or professional—you can choose from over 2,000+ activities approved by DED.

Ability to Work with Government Contracts

Mainland companies can easily participate in government tenders—something free zone companies usually cannot do.

Flexibility in Business Expansion

Mainland companies can open multiple branches across the UAE without restrictions. Expansion becomes smooth and straightforward.

Legal Structure Options for Mainland Companies

LLC (Limited Liability Company)

The most common structure. It offers limited liability protection and now allows 100% ownership for many activities.

Sole Establishment

A business entirely owned by one individual. Ideal for professionals such as consultants, designers, and freelancers.

Civil Company

Suitable for professional partners like doctors, engineers, and accountants.

Branch of a Foreign Company

Allows an international company to open an office in Dubai and carry out its operations.

Step-by-Step Process for Mainland Company Formation

Setting up a mainland company is easier than ever. Here’s how the process works:

Step 1 – Choose Business Activities

Select activities from the DED list. Make sure they match the nature of your business.

Step 2 – Select a Legal Structure

LLC, sole establishment, civil company, or foreign branch.

Step 3 – Register Trade Name

Choose a unique, memorable name that meets DED naming rules.

Step 4 – Apply for Initial Approval

This confirms that the government has no objection to your business.

Step 5 – Prepare MOA and LSA Agreements

  • MOA for LLC companies
  • LSA for professional licenses

These documents define your business structure.

Step 6 – Choose a Business Location

Rent an office or opt for a flexi-desk depending on your activity.

Step 7 – Submit Documents

Submit all approvals and documents to DED.

Step 8 – Receive License

Once approved, you receive your mainland license and can start operations.

Documents Required for Mainland Company Formation

Basic Document Checklist

  • Passport copies of shareholders
  • Visa copies
  • Emirates ID (if applicable)
  • Passport-sized photos
  • Initial approval receipt
  • Trade name certificate

Additional Documents for Foreign Investors

  • Entry stamp
  • Attested documents (if required)
  • NOC from current sponsor (if in UAE)

Cost of Mainland Company Formation in Dubai

Factors Affecting Total Cost

The cost varies based on:

  • Type of business activity
  • Number of visas
  • Office space location
  • Legal structure

Estimated Cost Breakdown

Typical costs include:

  • Trade license fees
  • Registration fees
  • Ejari (office lease)
  • MOA drafting
  • Local service agent fees (if applicable)

On average, mainland setup costs range between AED 15,000 – AED 30,000, depending on the activity.

Common Mistakes to Avoid

Choosing the Wrong Business Activity

Selecting the wrong activity can lead to rejection or future complications.

Not Understanding Ownership Rules

Know whether your activity permits 100% ownership or requires a local agent.

Poor Financial Planning

Underestimating costs can slow down your business launch.


Why Work with a Business Setup Consultant?

Faster Licensing Process

Experts handle all paperwork, reducing delays.

Avoid Legal Complications

They ensure your business complies with UAE laws.

End-to-End Support

From choosing activities to opening a bank account—they guide you through everything.

Conclusion

mainland company formation in dubai opens doors to endless business opportunities. With full trading freedom, 100% ownership for most activities, and the ability to work nationwide, it’s one of the most powerful business structures in the UAE. Whether you’re a beginner or an experienced investor, Dubai offers the perfect environment to grow and scale your business effortlessly.

FAQs

1. What is the main advantage of a mainland company in Dubai?

The main advantage is the ability to trade freely across the UAE without restrictions.

2. Can foreigners own 100% of a mainland company?

Yes, most business activities now allow 100% foreign ownership.

3. How long does it take to set up a mainland company?

Usually between 3–7 working days, depending on approvals.

4. Do I need an office to start a mainland company?

Yes, a physical office or flexi-desk is required for most activities.

5. What is the cost of mainland company formation in Dubai?

Costs typically range from AED 15,000 to AED 30,000 depending on activity and visa needs.

By Lee

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